What is Equity?
Equity represents ownership in a company acquired through contribution of capital, which is required to set up or run a business. This capital is raised through issue of shares to the public or a group of private persons, where each share represents a proportion of the stake on the assets and profits of the company. These shares are either bought directly from the company through an offer, or traded (bought and sold) on the stock exchanges.
Why invest in Equity?
Despite the risk involved, investment in equities is known to offer investors high returns in the long run. Equities investment not only helps an individual in wealth creation over time, but also builds the nation’s capital in the process.
For the investor, equity offers numerous benefits such as:
Entitlement to company’s profits:
The holder of a company’s equity or shares is entitled to a share of profit in the company. This share of profit is received through dividends.
Lower costs:
The investor needs to pay only for the contract, which is usually much less than the price of the underlying asset, thus offering a benefit of lower costs.
High Returns:
Even though equity is a risky asset, returns on investments in equity are known to beat inflation in the long-term, and thus help in wealth creation.
How to invest in Derivatives?
Derivatives are generally short-term trading instruments, and are traded on the exchanges. Similar to stocks, to buy or sell derivatives on the exchange, you need to place orders with your broker, who then executes the order on your behalf.
ABV Enterprises, as the authorized person, is representing IIFL, one of the leading players in the broking space in India and offers broking services in equities, commodities, currencies as well as derivatives. We bring to the table more than 10 years of broking experience, backed by in-depth research from the strong in-house research team and an excellent customer support system. Trader Terminal, the proprietary trading software of IIFL offers the convenience to trade through a terminal which can be accessed as a desktop application as well as a browser-based web application.
How Do I Invest in Equity?
You can either invest in equity for the long-term, or trade daily with the intention to profit from market fluctuations. The prerequisite is a demat account with a Depository and Trading account with a recognized broker.
ABV Enterprises, as the authorized person, is representing IIFL, one of the well-established leading players in the equity broking space in India and offers a depository participant and broking services to the retail as well as institutional segments, offering Trader Terminal, the proprietary trading software of IIFL offers unmatched trading convenience. The trading terminal can be used as a desktop application as well as a browser-based web application.
Derivatives Trading:
What are Derivatives?
A derivative is an instrument which derives its value from the underlying asset. The asset can be equity, a commodity, a currency or even an index. Derivatives are usually in the form of a contract, where the buyer is under an obligation to buy or seller is under an obligation to sell the underlying asset at a specified price on a specified date in the future.
Why Invest in Derivatives?
Derivatives have traditionally been used by businesses to hedge against different types of risks, and have been in existence for decades. With well-planned strategies based on a thorough study of the markets, individual investors and traders can earn handsome returns through derivatives trading.
Investment in derivatives has the following benefits:
Hedging against risk:
Since mutual funds invest in a bouquet of Derivatives are used for hedging against risk in price fluctuations of the underlying asset. Since the buy (or sell) price at delivery is specified in advance, the buyer/seller can protect his investment from deviation in price trend.
Lower costs:
The investor needs to pay only for the contract, which is usually much less than the price of the underlying asset, thus offering a benefit of lower costs.
Leverage:
Trading in derivatives involves use of leverage through margin that is maintained with the broker. Hence, lesser cash is required to be paid at the time of trade.
How to invest in Derivatives?
Derivatives are generally short-term trading instruments, and are traded on the exchanges. Similar to stocks, to buy or sell derivatives on the exchange, you need to place orders with your broker, who then executes the order on your behalf.
ABV Enterprises, as the authorized person, is representing IIFL, one of the leading players in the broking space in India and offers broking services in equities, commodities, currencies as well as derivatives. We bring to the table more than 10 years of broking experience, backed by in-depth research from the strong in-house research team and an excellent customer support system. Trader Terminal, the proprietary trading software of IIFL offers the convenience to trade through a terminal which can be accessed as a desktop application as well as a browser-based web application.
ABV Enterprises, as the authorized representative, is representing IIFL one of the well-established leading players in the equity broking space in India, offering PMS invest in equities, fixed income, debt, structured products and other assets.
Managed by a Professional Money Manager.
Top PMS schemes gave one-year returns in double digits in 2022, ranging between 10% and 35%
PMS is for high-net-worth individuals (HNIs) and institutions.
Minimum investment amount is Rs 50 Lakh
AUMs of PMS in last seven years rose from Rs 10.45 lakh crore in 2013 to nearly Rs 28 lakh crore in March 2023.
What are Mutual Funds?
In a mutual fund, money from various investors is pooled together and invested in a portfolio of instruments. A mutual fund may invest only in equities or debt instruments or a mixture of the two, also called balanced funds.
Why Invest in Mutual Funds?
Mutual funds are ideal for investors who do not like to put all their eggs in one basket. Along with diversification, mutual funds offer the advantages of professional management of funds and low costs.
Diversification of portfolio:
Since mutual funds invest in a bouquet of instruments, they offer an effective means of diversification for the investor.
Professional management:
Mutual funds are an excellent means of investment for people who do not have the time or the expertise to study the markets in depth before making investment decisions. The funds are generally managed by well-qualified fund managers, and it is always prudent to check the fund manager’s background before investing in a fund.
Low cost:
A mutual fund unit is much less expensive than the individual stocks in which the fund has invested. Thus, with a given amount of money, an investor can buy a greater number of units of mutual funds than individual stocks.
Tax Benefits:
Investment in mutual funds offers several tax benefits. For example, dividends received through mutual funds are exempt from tax, while investment in certain types of mutual funds is deductible from the taxable income to reduce the tax liability. Thus, mutual funds can be used as effective tools for tax planning.
How do I Invest in Mutual Funds?
Mutual funds can be bought through a mutual fund distributor or agent. Mutual fund units are also traded on exchanges and can be bought and sold therefrom. IIFL offers both services, acting as a distributor agent for mutual funds, as well as offering broking services for trading in the markets.
ABV Enterprises, as the authorized person is representing, IIFL with a presence in over 700 locations across the country, IIFL is one of the largest distributors of mutual funds in India with a reach across the length and breadth of the country. Further, for investors who wish to buy mutual fund units from the market, we offer a recognized and well-established broking service, with a rich broking experience of more than a decade. IIFLs proprietary trading software, the Trader Terminal, enables you to trade online, with the flexibility of using it either as a desktop application or as a Web application.
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Important Disclaimer and reminder for all traders and investors! The content on this website is for educational purposes only and are not a recommendation to buy or sell any particular financial instrument. Equities, Futures, Options, and Currency Trading have large potential for rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Absolutely do not trade with money you cannot afford to lose. This email is neither a solicitation nor an offer to Buy/Sell equities, futures, forex, or options. No representation is being made that any account will or is likely to achieve profits or losses similar to any discussed here. The past performance of any trading system or methodology is not necessarily indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Absolutely consult your Registered Financial Advisor and your Risk Trading Plan before ever investing or trading any financial instrument!
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