While many investors have similar outlooks, no two are exactly alike. Due to the unique structure of ETFs, all types of investors, whether retail or institutional, long-term or short-term, can use it to their advantage without being at a disadvantage to others. They allow long-term investors to diversify their portfolio at one shot at low [...]

ETFs are just what their name implies: baskets of securities that are traded, like individual stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day like any stock. Most ETFs charge lower annual expenses than index mutual funds. However, as with stocks, one must pay a [...]

SEBI Guidelines defines Book Building as a process undertaken by which a demand for the securities proposed to be issued by a corporate body is elicited and built up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, [...]

What should a stock market index be? A stock market index should capture the behaviour of the overall equity market. Movements of the index should represent the returns obtained by “typical” portfolios in the country. What do the ups and downs of an index mean? They reflect the changing expectations of the stock market about [...]

What is an Initial Public Offering? Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuer’s securities. Who decides the price [...]

To invest in an IPO, you need a demat account. Right?…Wrong! Here’s why. Even investors who don’t have a demat account are finding ways to bet on the Reliance Power mega issue. And there are brokers who are willing to show the way. As the deadline for the largest IPO draws near, several first-time retail [...]

Imagine this. You want to buy a home and you apply for a home loan to a bank where you have your salary account. You have a decent monthly income which is more than enough to service the equated monthly installments on your loan. But still the bank declines your application saying that you are [...]

Almost every money transaction demands the use of a PAN. These include: ~ When you get a job ~ When you file an income tax return ~ When you open a bank account ~ When you deposit cash of Rs 50,000 or more in a bank ~ When you open a bank fixed deposit of Rs 50,000 or more ~ When you [...]

We often hear glamorous stories about people making millions at the stock market.But a serious stock market player will also admit to burning his fingers at some time or the other. Three of our readers wrote in with the mistakes they committed.  My mistake: I sold too soon! Enamored by other people’s success in the [...]

Mutual funds are a great instrument for retail investors to participate in equity markets. They offer professional management of investor’s money and spread out costs of doing so over a large asset base. Last few years the Indian retail investor has taken an increasingly greater interest in the mutual fund route. This is a welcome [...]