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Govt. will combine SEBI Act, 1992, Depositories Act, 1996 and SCRA into a solitary Securities Market Code which should upgrade administration and lessen consistence.
Govt expanded FDI rate in the Insurance area from 49% to 74% however with controls and defends. This opens up the insurance area for Mergers and Acquisition.
For gold trade, SEBI will go about as a controller, seems as though somebody will begin staying at work past 40 hours
Govt proposes to strip two PSU banks and one General Insurance Co., Divestment Target for FY22 set at Rs. 1.75 lakh crore. Govt resemble - Paisa he paisa hoga!
Help to senior residents Age 75 or more getting just pension and interest pay are not needed to document ITR. Presently they can live sukkon ki zindagi!
No adjustments in Tax section by any stretch of the imagination - Budget ka principle kaam toh bhul hi Gaye!
Threshold exclusion limit for an assessment review, with advanced exchanges, expanded from 5 cr to 10 cr. CA's resemble ab hamari audit income bhi kha jao!
Monetary Deficit ascends to 9.5% of GDP. Arey! Isko kam krna hota hai.
Petroleum aur Diesel cost hi increment krna tha toh financial plan kyun rakh liya.
We have noticed many regulatory changes in the mutual fund industry in the upcoming year, which is about to end soon. In an attempt to make mutual funds more transparent for traders and investors, SEBI came up with some changes which will remain applicable in the new year 2021.
Here is a list of changes that will come into effect in Jan 2021.
1. Changes in portfolio allocation rules for multi-cap funds:
SEBI announced portfolio allocation rules for multi-cap mutual fund schemes. As per the new rules made by SEBI, a mutual fund scheme will have to invest at least 75% in equities and equity-related investments. In addition to this, the schemes will have to invest in a minimum of 25% each in small-cap, mid-cap and large-cap stocks. At present, there is no such restriction allocation and therefore fund managers are allowed to invest in the mid-cap as per their own choice.
All mutual fund houses were given time till 31 January 2021, to comply with the fresh rules, within the one month from the date of publishing the next lists of stocks by AMFI. Following concern in the industry, the SEBI later introduced a new mutual fund category called flex cap fund, which is required to invest at 65% of the corpus in equity without any restrictions on investing in small-cap, mid-cap or large-cap funds. Some AMCs have already reclassified their multi-cap schemes as Flexi cap category to avoid any portfolio changes.
2. Changes in NAV Calculation
From January 1, 2021, mutual fund investors will get the purchase NAV of the day, when investors’ money reaches the AMC, irrespective of the size of investments. This NAV rule will be applicable only for those funds which are available for utilization irrespective of the name and size of the application.
Under the prevailing rules, the NAV of the date of purchase is considered for the purchase of less than Rs 2 lakh, even if the money does not reach the AMC, but the order is placed within the cut off time.
3. Inter Scheme Transfer of Securities
According to the sources, inter scheme transfer (IST) of debt papers can only be done within 3 business days of the allotment of the schemes’ units and after three business days, such transfer will not be allowed. Under prevailing rules, SEBI only requires that such IST be done at the market prices.
From January 1, 2021, inter scheme transfer in closed-ended funds can be done within 3 business days as the scheme transfers involve shifting of debt papers from one mutual fund scheme to another.
Moreover, SEBI also specified that such ISTs be done only at the market places and no ISTs shall be allowed if there is any negative market news or rumours in the mainstream media.
4. Renaming the dividend option
From April 1, 2021, mutual fund schemes comprising all the dividend schemes will be renamed as income distribution cum capital withdrawal options.
5.New Riskometer Tool
SEBI introduces a new category of mutual fund schemes on its riskometer tool for investors to make better decisions with high-risk mutual funds. Earlier, the model was simply based on the risk of the category without considering its actual portfolio. The new riskometer shall be evaluated every month and all schemes will be labelled for risks and funds.
SEBI is considering additional measures which are expected to be implemented with the mutual fund industry. Here are some of them:
Intraday trading is considered as quite riskier than other trading strategies as it involves buying and selling of stocks on the very same day. This is because, in intraday trading, a large number of stocks are bought and sold with the intention of booking profit. Here, the objective is plain and simple: to buy and sell shares within the same day. Before we begin, let's understand what exactly is Intraday trading and what are the strategies investors need to apply while intraday trading.
Needless to say, intraday trading means purchasing and selling of stocks on the very same day. However, with intraday trading, traders can short sell their shares and then buy back during the rolling settlement period. Experienced traders always recommend selecting the shares which are highly liquid.
It is important to determine the entry-level and target price before placing the buy order. It’s quite understandable for a person’s psychology to change post buying of shares. Hence, many traders may sell shares even if the price experiences high growth. As a result, they may lose the best chance of achieving gains because the price goes upward.
Stop loss is defined as an advanced order placed with the assistance of a broker to buy or sell a specific stock once it reaches a price point. It is generally used to restrict the loss or gain in a trade. This is beneficial in limiting the potential loss for investors due to downfall in a stock.
Stop-loss also works great in short selling. Investors who short sell their shares, stop loss acts a boon by minimizing the losses if the price goes up beyond their expectations.
There is a famous quote saying “ As long as greed is stronger than compassion, there will always be suffering”. Many investors suffer from greed or fear in terms of high earning. With the help of stop-loss, investors not only minimize their losses but also book their profits once the target is achieved.
Successful traders advised to include 10-12 shares in their wish-list and research all the stocks in depth. For instance, do fundamental analysis and technical analysis of stock and try to understand the trend such as the history of a stock, merger, present return and more.
Experienced professionals fail to predict the exact market movement. There are many times when all the technical indicators depict a bull market; there is still a decline. However, these factors do not provide any guarantee. If the market does not move according to your expectation, then it is important to exit your position to avoid huge losses.
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Soybean (Glycine max) is termed Golden Bean. The plant is classed as associate seed and is a vital international crop. The processed soybean is the largest supply of supermolecule feed and second-largest supply of edible fat within the world. The foremost portion of the worldwide and domestic crop is solvent-extracted with alkane to yield soy oil and procure Soymeal, which is widely employed in the animal feed trade.
Soybean has a very important place in the world's seed cultivation state of affairs, because of its high productivity, profitability and important contribution towards maintaining soil fertility. The crop additionally features an outstanding place as the world's most vital seed legume, that contributes 25% to the worldwide edible fat production, about 2/3rd of the world's protein concentrate for livestock feeding, and is a valuable ingredient in formulated feeds for poultry and fish.
About 85% of the world's soybeans are processed annually into soybean meal and oil. Of the oil fraction, 95% is consumed as edible oil; the rest is used for industrial products such as fatty acids, soaps and biodiesel.
Soybean seed is processed for Soymeal and Soy oil, both of these products are consumed throughout the country. A previously substantial part of Soymeal production gets exported but in the last two years exports reduced and domestic consumption increased.
India produces around 10 Mn tones of Soybean, while global production is around 340Mn tones. Among which the major producing countries are the USA, Brazil and Argentina whereas the major producing states are MP, Maharashtra and Rajasthan.
रॉयटर्स सर्वे के मुताबिक, ओपेक के कच्चे तेल के उत्पादन में जनवरी महीने में प्रति दिन 160,000 बैरल प्रति दिन की वृद्धि हुई है क्योंकि ओपेक और गठबंधन 2021 के पहले महीने में उत्पादन में कटौती को कम कर रहा है। ओपेक के स्रोतों के अनुसार ओपेक का उत्पादन जनवरी में औसत 25.75 मिलियन बैरल प्रति दिन रहा, दिसंबर से 160,000 बैरल प्रति दिन और लगातार सातवें महीने में कार्टेल ने अपना उत्पादन बढ़ाया है।
जबकि उत्पादन में बढ़त पिछले महीने में अधिकांश लीबिया से है, जिसे ओपेक गठबंधन मे कटौती से छूट दी गई है। जनवरी में उत्पादन में वृद्धि आश्चर्यजनक नहीं है क्योकि ओपेक गठबंधन ने जनवरी में उत्पादन में 500,000 बैरल प्रति दिन जोड़ने का फैसला किया था।
पूरे समूह के लिए 500,000 बैरल प्रति दिन के कोटे में से, ओपेक की बढ़ी हुई उत्पादन की हिस्सेदारी लगभग 300,000 बैरल प्रति दिन है। इसलिए, जनवरी में उत्पादन की सबसे बड़ी वृद्धि क्रमशः ओपेक के नंबर एक और नंबर दो उत्पादकों, सऊदी अरब और इराक से हुई है, क्योंकि उनका उत्पादन मे हिस्सा अधिक है।
जनवरी में ओपेक के उत्पादन में तीसरा सबसे बड़ा इज़ाफा ईरान से आया है, जो लीबिया की तरह ओपेक गठबंधन की कटौती से मुक्त है। कच्चे तेल की कीमतों मे मांग कम होने की सम्भावना और उत्पादन अधिक होने से ऊपरी स्तरों पर दबाव है और नए कोवीड-19 वायरस महामारी को लंबे समय तक जारी रख सकता है, जिससे मांग घट सकती है।
इस सप्ताह फ़रवरी वायदा कच्चे तेल की कीमतों मे ऊपरी स्तरों पर दबाव रहने की सम्भावना है। इसमें 4025 रुपय के ऊपरी स्तरों पर प्रतिरोध एवं 3650 रुपय के निचले स्तरों पर सपोर्ट है।
Introduction:
Bonds are one of the most essential financial instruments available to investors. They are popular for their stability and predictable returns, making them a key component in a balanced investment portfolio..
Bonds are debt securities issued by various entities such as governments, municipalities, and corporations to raise capital. When you purchase a bond, you're essentially lending money to the issuer. In return, the issuer promises to pay you periodic interest (known as the coupon) and return the bond’s face value (or principal) when it matures.
Did you know The concept of bonds dates back to ancient Mesopotamia, where they were used to record debts and obligations. Fast forward to today, and bonds remain a cornerstone of modern finance!
Let's dive into the various types of bonds available in the market, with examples relevant to Indian investors:
Government bonds are issued by national governments and are considered one of the safest investments. In India, these are known as Government Securities (G-Secs). They are backed by the government’s ability to tax its citizens, which minimizes the risk of default.
Example: The 10-year Government of India Bond is a common benchmark bond that many investors in India consider for long-term stability.
Did you know Did you know that India’s first-ever bond issue dates back to 1811? It was issued by the East India Company to fund its operations in the country.
Corporate bonds are issued by companies to fund their operations or expansion. These bonds typically offer higher interest rates than government bonds due to the increased risk associated with the issuer's financial health.
Example: HDFC, a leading financial services company in India, frequently issues corporate bonds that offer attractive returns compared to government bonds.
Municipal bonds are issued by state governments, cities, or other local government entities. In India, these bonds are not as prevalent as in some other countries, but they do exist. The interest from these bonds is often exempt from certain taxes, making them appealing to investors in higher tax brackets.
Example: Some Indian states have issued municipal bonds to fund infrastructure projects like the development of smart cities.
Zero-coupon bonds do not pay periodic interest. Instead, they are issued at a discount to their face value, and the investor receives the full face value at maturity. This type of bond can be useful for long-term financial goals.
Example: The Reserve Bank of India has issued zero-coupon bonds in the past, which are sold at a deep discount and redeemed at face value upon maturity.
Convertible bonds are hybrid securities that can be converted into a predetermined number of the issuing company’s shares. These bonds offer the potential for equity-like returns while providing the safety of a bond.
Example: Tata Motors has issued convertible bonds that can be converted into equity shares, offering investors both stability and potential for growth.
High-yield bonds, also known as junk bonds, are bonds with a lower credit rating, which means they carry a higher risk of default. To compensate for this risk, they offer higher interest rates.
Example: Some smaller Indian companies, particularly in the infrastructure and real estate sectors, may issue high-yield bonds to attract investors willing to take on more risk for higher returns.
Understanding the key features of bonds is crucial for making informed investment decisions. Here are some important aspects to consider:
The face value, or par value, is the amount the bondholder receives when the bond matures. In India, corporate bonds typically have a face value of ₹1,000.
The coupon rate is the interest rate the bond pays, usually expressed as an annual percentage of the face value. In India, interest payments on bonds are often made semi-annually.
Example: A corporate bond from Infosys might offer a coupon rate of 8%, meaning the investor would receive ₹80 per ₹1,000 bond each year.
The maturity date is when the bond’s principal amount is repaid to the bondholder. Bonds can have short-term, medium-term, or long-term maturities, depending on the issuer's needs and the investor's preferences.
Example: A 5-year bond issued by Reliance Industries would return the principal amount after five years, along with the final interest payment.
Did you know The longest-maturity bond ever issued was a 100-year bond, sometimes referred to as a "century bond." In 2020, India’s largest steelmaker, Tata Steel, issued such a bond!
Yield represents the bond’s return on investment. It can vary based on factors like the bond’s price, coupon rate, and remaining time to maturity. Yield is an important measure for comparing the potential returns of different bonds.
Bonds are rated by agencies like CRISIL, ICRA, and CARE in India, which assess the issuer’s creditworthiness. Higher ratings (like AAA) indicate lower risk, while lower ratings (like BB or lower) suggest higher risk.
Example: A bond issued by the State Bank of India (SBI) might have a AAA rating, indicating a very low risk of default.
Did you know India’s bond market was largely developed after the 1991 economic reforms, and today it’s one of the fastest-growing bond markets in Asia!
Callable bonds can be redeemed by the issuer before the maturity date, usually at a premium. This feature benefits the issuer if interest rates drop, allowing them to refinance at a lower cost.
Example: Some bonds issued by Indian corporations like ICICI Bank are callable, giving the issuer flexibility to manage their debt efficiently.
Bonds are a versatile investment option that can offer varying degrees of risk and return. By understanding the different types and features of bonds, Indian investors can make informed decisions that align with their financial goals, whether they're seeking safety, income, or growth potential.
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