FAQs Page – Frequently Asked Questions

What are some factors that impact stock prices?

There are various factors that affect share prices. Factors like company earnings reports, industry trends , global economic conditions , changes in interest rates and political events. In Addition the supply and demand for a particular stock can also impact its price.

What are some common mistakes to avoid when investing in the stock market?

Some of the common mistakes to avoid while investing in the stock market are : investing based on emotions , not diversifying your portfolio. Furthermore trying to time the market , not doing thorough research before making investment decisions. Moreover it is important to approach investing in a rational and informed manner and invest for the long term.

What are some strategies for managing risk in the stock market?

Some of the strategies to manage risk in the stock market are – one must diversify your portfolio, invest for the long term Furthermore one must maintain a cash reserve for emergencies. One must periodically re balance your portfolio to adjust for changes in market conditions. Moreover investors can hedge their stock portfolio or stock positions with futures or options or other financial instruments to reduce the risk on the portfolio and avoid potential losses.

What are some tips for investing in the stock market?

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What is the difference between growth and value stocks?

Growth stocks are companies that are expected to grow in their earnings, revenue, profitability, market share and / or on other financial metrics. These stocks usually trade at higher valuations in comparison to their earnings or assets. On the other hand Value stocks are companies that are undervalued in comparison to their assets or earnings. These stocks usually trade at lower valuations. but they may offer higher dividends or other benefits to investors.

What is the difference between a bull market and a bear market?

A bull market is a market where in stock prices are rising and investors are positive about the market. Investors have an optimistic view on the economy. Investors believe the market will continue to do rise and do well. A bear market on the other hand is a market where stock prices are falling and investors are negative about the market. investors are mostly pessimistic about the economy. Investors believe the market will continue to fall and will not do well. Bull and bear markets are driven by a variety of factors like the economic conditions , industry trends and global events.

What are Sensex 30 Returns in last 20 years ?

The Average Annual Returns of Sensex 30 Index of BSE during the period 2000 to 2022 [ 22 years] are 17.32%. Nifty Midcap 100 Index has has given positive returns in 18 out of 22 years on a yoy basis. Nifty Midcap 100 Index has given a return of 4.44% in 2022. Read more

What are Nifty Next 50 Returns in last 20 years ?

The Average Annualised returns of Nifty Next 50 Index during the period 2000 to 2021 [ 21 years] are 24.05%. Nifty Next 50 Index has has given positive returns in 17 out of 21 years on a yoy basis. Above all the Nifty Next 50 Index has given a return of 29.87% in 2021.

What is a Index ?

An Index consists of a group of stocks that represent the overall market or a specific sector. Index is a statistical measure. Index is a standardized measure to track performance of group of stocks, bonds, other financial securities.

What are Nifty 50 Returns last 20 years ?

The Average Annual returns of Nifty 50 Index during the period 2000 to 2022 [ 22 years] are 16.81%. Nifty has given positive returns in 18 out of 22 years on a yoy basis. Nifty 50 Index has given a return of 24.12% in 2021. Nifty 50 Index has given a return of 4.33% in 2022.

What are Exchange traded Funds ?

Exchange Traded Fund (ETF) is a security that invests in and tracks a basket of shares like an Index, or a commodity like gold, silver or bonds. ETFs are listed and traded on a stock exchange. Index based ETFs are a basket of securities which trade like a single stock on the stock exchange. They invest in a basket of stocks that comprise the index they track.

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is a way of investing. By doing an SIP you can invest a fixed amount of money at regular intervals (usually monthly or quarterly) in a mutual fund or exchange traded fund (ETF). SIP will help in reducing the impact of market volatility on your investment by averaging out the cost of buying units over time. SIPs are best for investors who want to invest in the stock market but who dont have the knowledge and expertise in investments. Furthermore they dont have time to actively manage their investments.

What is a Gold ETF ?

A Gold ETF or a Gold Exchange traded fund is a security which invests in physical gold of 99.5 % purity and tracks the domestic price of physical Gold. The price of Gold ETF is on a real time basis. Gold ETFs are listed and traded on the Stock Exchange (NSE, BSE ) like any other stock throughout the day during market hours.

What is an ISIN ?

ISIN (International Securities Identification Number) is a unique identification number for a security

What is Dematerialization of Shares ?

Dematerialization of Shares is a process where in the physical share certificates of an investor are converted to an equivalent number of shares / securities in electronic form and are credited to the demat account of the Investor with his Depository Participant (DP).

What is a Depository ?

A depository is like a bank wherein the deposits are securities (viz. shares, debentures, bonds, government securities, units etc.) in electronic form

Does one need to keep any minimum balance of securities in his account with his DP?

No. There is no minimum balance required for your demat account. You can have zero balance in your demat account.

Can odd lot shares be dematerialised?

Yes, odd lot share certificates can also be dematerialised.

Do dematerialised shares have distinctive numbers?

No. Dematerialised shares do not have any distinctive numbers. The shares are fungible, means that all securities / shares of a specific company will be identical and interchangeable.

Can one dematerialise his debt instruments, mutual fund units, government securities in his demat account?

Yes. You can dematerialise and hold all such investments in a single demat account.

Do you make money from Stocks ?

Yes certainly, you make money from Stocks. You need to buy stocks after proper research and analysis, your portfolio has to be well diversified to reduce the risk and you need to remain invested in stocks for a longer period of time (3 to 5 years) to create wealth. You can create wealth in the long term by investing in stocks over a longer period of time

What are the four types of Investments | Different types of Investments

The four types of Investments ( four major asset classes to invest in) are – Equity, Fixed Income, Real Estate and Commodities. In Equity there is direct Equity ie Equity shares and Equity Mutual Funds. In Commodities it is Gold, Silver.

Is Stock Market Investment Risky?

Yes investment in stocks carries Risk. Though it involves high risk, if investment is done after a proper study, research, by following a proper discipline, by diversifying the portfolio, by having a proper asset allocation and by being invested for a longer period of time one can reduce the risk considerably and make good returns.

What is a IPO | Initial Public Offering

IPO or Initial Public Offering is a process in which an unlisted company raises capital in the primary market by the sale of its shares to the public. After the IPO the company gets listed on the Exchange.

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