Thus, this blog will describe the CPR concept in details giving this information on its calculation and application in such trading field. 

What is called as CPR in Trading?

CPR refers to Central Pivot Range that is a set of 3 significant price levels derived from the preceding day trading range. These levels are used to determine the possible support and resistance zone in the current day’s trading. CPR assists traders determine whether the market is bullish, bearish or neutral and this in a way influences their decisions. 

CPR is more applicable in the determination of short term price trends and the likely points of reversal, making it most effective within the day period. Therefore when dealing with the price level within CPR, the trader is able to make the right trades at the right time more accurately. 

How is CPR Calculated? 

You may also consider the link – Common Mistakes to Avoid When Trading Stocks

There are 3 ways to calculate the CPR, one is the Pivot point, the top central point and the bottom central pivot. Let’s have a look at their formulas and ways to calculate the pivot points.

Pivot Point (P): 

P = (High + Low +Close)/ 3 P = 3High + Low + Close 

The Pivot Point is the middle point in the range, and it becomes a basis of quotations in relation to the day’s trading. 

Top Central Pivot (TC): 

TC=(Pivot Point+High) ÷2 TC=2 × Pivot Point + High 

This level acts as a resistance level or mark the end of the range and is also referred to as the limit level. 

Bottom Central Pivot (BC): 

BC= (Pivot Point + Low) / 2 BC = 2 Pivot Point + Low 

This level acts as the lower support level to form this level as remaining at its lowest level. 

All these three levels put together make up the CPR that traders apply in determining key price points. 

Ambiguity of Students in writing CPR Levels 

Read more – What is the Upper and Lower Circuit in Shares?

CPR can tell a price story, including tendency in direction and, the possibility of breakouts, as well as where the market may encounter subtle buy or sell force. Let’s break down how to interpret the CPR levels: 

• Narrow CPR: A narrow CPR means that the trend day is possible, or there is a breakout. It has also turned out that when the three levels of CPR – P, TC and BC – are closer to one another, it may mean that the price action is preparing for a large movement in either direction. This is the conditions most traders usually wait for to trade with breakout. 
• Wide CPR: A wide CPR indicates a sideways or ranging type of market in which the price has the tendency to fluctuate between its supports and resistances. In such situations though, traders in particular use range bound techniques whereby they buy at lower levels and sell at the upper end of those levels. 
• Price Opening Above CPR: If price opens above the CPR then the indication is that of an upward trend known as bullish sentiment which may mean that traders may be anticipating for a higher price. In this case CPR becomes a support zone. 
• Price Opening Below CPR: If the price opens below the CPR there is bearish signal. Sellers might search for potential entries thanks to the fact that the CPR is going to be a resistance point most of the time. 
• Price Trading Around CPR: When the price is near the CPR it details the fact that the market is in a state of flux. In such an occurrence, the trader should wait for the CPR to be violated clearly above or below for the next course of action to be taken. 

Application of the CPR in Trading Strategies 

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1. Breakout Strategy 

Of all the trading strategies which we have discussed today, the most commonly used one is breakout trading where CPR is often used. For trend reversals traders wait for the price to go above the Top Central Pivot (TC) or below the Bottom Central Pivot (BC) replacing the previous trend. In a breakout scenario they set their stop loss orders usually below the BC for longs and above the TC for shorts. 

Bullish Breakout: If the price rises above the TC with good momentum, oil traders can take a long position in anticipation of the prices to rise further. 

Bearish Breakout: However, if the price goes below the BC with good volume, traders should look forward to shorting it in the future. 

2. Reversal Strategy 

CPR is also used for the purpose of finding out how these markets may be reversed in the future. The other kind of pivot is the Top Central Pivot (TC) or the Bottom Central Pivot (BC) and if the price gets to them and bounces then the trader can take advantage of this kind of move as it usually forms bearish or bullish candlesticks. 

For example: 

Bullish Reversal: In case the price rises to the BC, then leans back in creating a bullish candlestick pattern, then this could be viewed as a buy signal. 

Bearish Reversal: When the price touches the TC line and fails to penetrate it and instead creates a bearish pattern then one might consider selling. 

3. Intraday Trading 

CPR is a rather effective tool in intraday trading helping determine critical price levels within a trading session. Indeed, if a trader is able to track the movements of the CPR price he or she can easily identify the direction of the market and make the appropriate trades during this period. 

Moreover, when using the CPR it can be used in conjunction with other technical tools such as moving averages, Bollinger Bands or RSI to provide signals for entry/exit. 

Conclusion 

CPR is perhaps one of the most useful tools for trading that can help a trader to get insight into the market and determine the levels of the price which might be crucial for a definite breakout. No matter whether you are trading with the direction of the trend or on the contrary, using the Central Pivot Range can deliver very helpful information to you and help with your trading decisions. It is therefore important to adopt the use of CPR in your trading plan so as to improve your chances of being right about the direction to take, how to minimize risk and make better trades. 

Angel tax comes into play in the case of start ups. When the investment of the investor exceeds the fair market value then one has to pay angel tax to the government. This tax is paid to prevent cases  of money related fraud.

The Government of India wants to boost the growth of startups in India and that is why the angel tax is now going to be abolished from the upcoming year. Let us share insights about it in the next section.

Demerits of angel tax in India

As mentioned earlier, angel tax is imposed in order to stop money laundering. Along with this merit there are many demerits of angel tax in India. Check out the drawbacks of angel tax in India.

• Investors who are looking to invest  for the first time fail to collect a lot of money.
• Lots of money is lost by paying angel tax.
• Non resident investors are not eligible for deduction of this tax.
• Investors need a great sum of money to start their business.

These are the  drawbacks of angel tax in India. Investors feel.it difficult to afford all this money and thus the start ups go through issues. 

Angel tax rate in India

The angel tax rate in India is decided on the basis of rules and regulations. The tax is levied at a rate of 30 percent if the investment received is higher than the fair market value. Income tax department needs the angel tax from the respective company or firm.

Exemption from Angel tax

The exemption from angel tax can be enjoyed if the criterias are being fulfilled. You can check out the main criterias that are required to be fulfilled for exemption from angel tax. The criterias are shared as follows.

• Share premium of the company should not exceed Rs 25 crore. The maximum capital is to be maintained.
• In case of individuals who are Non residents, the turnover of their company should not be more than  Rs.100 crores in the last  year.
• The net worth of the investor should not be more than Rs.2 crores from the last few years. It is an important criteria.
• The startup can enjoy the benefit of not paying tax in the starting of three years.

These points tell how you can be eligible for the exemption of not paying angel tax. Note these points and then get good outcomes. 

Non residents investors and exemption from angel tax in certain cases

Also, consider the link – Tax Implications of Stock Market Investments

Now it is said that non resident investors in specific fields are exempted from angel tax. The certain areas where provision of angel tax is no more required are shared as follows.

• Central banks’ investments dont need angel tax.
• Sovereign wealth funds are also exempted from this.
• Multilateral agencies are also covered in this.
• Organisation where the indirect or direct involvement of the government is present, angel tax is exempted for them.

Now they can invest freely for the best benefits. You can also study more about the new rules on angel tax. Check out the sections that are shared here.

New rules for angel tax

New rules have been proposed for the angel tax. You can check out the regulations and then you can get to know how they work. Check out the new rules and regulations that are shared as follows.

• E verification will now be continued. The verification of investors will be done easily and the long term process for the same is now replaced.
• The turnover value is now exceeded to Rs.100 crore and more.
• One can even be exempted from angel tax if the net worth of the company is Rs 250 crore and more.

The new rules bring great changes in the lives of people. They help to empower the startups in India. The finance minister of the nation has made changes in order to boost up the process of start ups. Now from the upcoming year 2025-2026 the angel tax is going to be abolished. It further creates many opportunities for young investors.

The impact of new rules of angel tax

Note – Tax Implications of Stock Market Investments

The regulations made by the government have opened many gateways  for young investors. One can check the following points to understand how great the impact is.

• Startups can now be done easily. The business requirements and other criterias will be fulfilled by them.
• The business model will be created easily and one can work according to it.
• The tax exemption gives them better investment opportunities and enables them to enjoy the opportunities.
• Better funding can be helpful for them.
• Great returns can now be taken and enjoyed.

All these are the positive impacts of the new rules regarding angel tax. New investors can now step towards the best outcomes. The next year will provide a lot of relaxation and relief to  all the  investors. Investors can start their preparation for investing rightly. 

Angel tax direct or indirect varies on the type. It is now abolished by the government in order to promote the future of startups. From last year the issues of angel tax were noticed but now they are resolved. So if you were tense about the taxes then now you can stay stress free.

You may also read our latest post – The Best Investment Plans in India for the Middle Class

Conclusion

Angel tax was given by the startup owners. The tax was given if the value exceeds the fair market value. Many rules and regulations are now changed with regard to angel tax. It was imposed to safeguard the money laundering case. From the upcoming year the angel tax is going to be abolished. One can invest without any worry. If you are a young investor then you can take advantage of it. Get the right information and start investing. You will get the best outcomes by getting the best information. Check out the blog on angel tax and then get good information.

What does the Upper and Lower Circuit represent?

The meanings of “upper circuit” and “lower circuit” are features implemented in the stock market to control the flapping of the stock prices. They are in effect price ranges approved by the stock exchange within which a given stock can transact in a given day. 

• Upper Circuit: The highest that a stock can trade at within a particular day to be permitted to continue trading. If a stock reaches it’s upper circuit, it implies that there is a limit on the number of points the price of a certain stock can move up to on a specific trading session. 
• Lower Circuit: The lowest permissible price level which may be traded in the stock exchange for a certain day. If it gets to the position whereby the stock is at the lower circuit, it then means that it has reached the lower most level under which it cannot trade for that particular trading day. 

Both of these mechanisms are meant to afford equilibrium and reduce volatility within the stock market, which is often brought about by swelling speculation, information release or change in the attitude towards the market. 

What Is the Purpose of having Upper and Lower Circuits? 

This is the main role of upper and lower circuits so as to maintain high unpredictable swings in the stock market. Lack of control of such flounders often precipitates wrong decisions by investors, panic in the market or incurring severe losses. They act like a ‘circuit breaker’ and suspend trade whenever the prices rise or drop to certain specified levels to enable investors or traders to take informed decisions. 

Here are some of the key reasons why these circuits are in place: 

• Market Stability: Price limits therefore basically mean that the hasty and rapid fluctuation of price in a particular stock is controlled by the stock exchanges. This keeps the general market in check and ensures that investors especially those in the retail segment are not exposed to high volatile prices. 
• Prevent Manipulation: Upper and lower circuits protect shareholders from the manipulations of spinning in which some traders may manipulate the prices up or down. 
• Time for Reflection: When the stock reaches either of the circuits, the trading of the particular stock may be suspended to afford investors to touch base and consider news or events that may cause them to make uninformed decisions. 
• Regulatory Compliance: Most stock exchanges around the globe especially the NSE and BSE in India or NYSE and NASDAQ in the United States are by the rules and regulation of the regulatory authorities to put in place circuit breakers to help in the control of the flow of shares and protect the investors. 

What is the Mechanism of Upper and Lower Circuit?

More to the point, the upper and lower circuit levels are fixed by the respective stock exchange as per the previous closing price affected in a stock. They are often defined in respect to the closing price of the stock of the preceding trading session. For example for a given stock that closed at $ 100 the previous day the upper circuit limit is 10% then the upper circuit for that particular day will be $ 110, the lower circuit will be $ 90. 

Check out our latest post – Long-Term vs. Short-Term Investments: Which Strategy is Right for You?

Circuit Levels 

Classification of stocks in the stock exchange is normally done depending on volatility, liquidity and market capitalization. Accordingly, different circuit levels may be set for different categories of stocks: 

• 5% Circuit: In the case of those stocks, which are either very much risky and / or thin-traded. 
• 10% Circuit: For moderately volatile stocks he will have to wait until the volatility either reduces or the price again goes up. 
• 20% Circuit: Specifically, it is applied to less speculative, and more openly traded stocks. 

Some of these stocks may experience a trading suspension which may last for a few minutes to even a few hours depending on the exchanges rules or the size of the movement. For instance, the NSE has put in place circuit limits that include 10%, 15% and 20% for Nifty 50 index in India. When the index goes high or low to such levels, the trading is suspended for a certain number of minutes. 

Effectiveness of Upper and Lower Circuits for the Investors

Read more – Tax Implications of Stock Market Investments

The concept of upper and lower circuits is important to the investor most importantly for the short-term trader. Here are some of the impacts: 

• Limited Liquidity: When any particular stock reaches its upper or lower circuit then the companies have very less floatation. For instance, it is logical to state that if a stock has reached it upper circuit then it might be rather difficult to look for sellers who are willing to sell the stock at such a price. Likewise, if a stock comes down to its circuit filter, it can be difficult to locate a buyer for the stock. This may results in positions being locked until the market is open again. 
• Market Sentiment: Meanwhile, the upper circuit is considered as a bullish signal while the lower circuit as a bearish signal. However, this is not ends with this because such movements can often be achieved through speculation instead of solid grounds. 
• Trading Opportunities: To the experienced traders they may find upper and lower circuits as an opportunity for trading. For instance, if the trader expects the stock to go up to its upper circuit, he is free to buy on anticipation of selling after the price has risen a bit. On the other hand they might short sell a stock that is expected to sink to the lower circuit. 
• Risk of Losses: As much as circuits serve to limit losses and protect the investors, they are actually circuits the opposite for retail investors. Even in cases where a stock reaches its lower circuit for several consecutive days, there could this mean a lot of loses in case the investors cannot sell. Likewise, the stocks making upper circuits can fetch a capital which could be helpful at other place. 

You may also check out – What are the best Indian stocks to buy?

Conclusion 

The upper and the lower circuit are essential to ensure that prices within the market are kept constant least they go higher or lower than the probably set limits. They saves investors from fraudulent activities and stock market crash, offer a buffer period in volatile markets, and offers an orderly trading mechanism. To the stock market investors, it is crucial to get a basic notion of how such circuits operate, for which reasons, and with what consequences. 

Mr Patel also went on to explain that the challenges and opportunities that the hitting upper or lower circuits pose to investors can be contained through education, diversification and proper risk management.

1. Nature of Ownership 

Shares: 

A share is a form of investment where one is invested on company ownership. For instance, when you buy shares you are actually a shareholder this is so because you own a part of the company. Shareholders are counterparts to the company and they own a part or portions of the company’s stocks. In this case, the concept of ownership means the degree of ownership that is invariably determined by the number of shares owned. 

Debentures: 

On the other hand, we have debt securities which include the debentures. When you buy debentures, you are actually giving out a loan to the business in question, hence making it a form of indebtedness. Total, you are not an owner in the company when you take a debenture with you as a debenture holder. Instead, you consider yourself as a secured party because you are a creditor with an interest in the company’s assets and the company is in turn legally bound to pay back the principal sum with interest. 

Key Difference: 

The shareholders are the company’s equity holders who are entitled to the claim of the company’s earnings and also on its properties. 

Thus debenture holders areóthe creditors of the firm who have a charge on the assets of the firm, but do not have ownership rights. 

2. Risk and Return 

Shares: 

As a general rule, the investment in shares is more risky compared with the investment in debentures. Facilities held through share also have the ability to change in value due to operations of the firm, general market conditions and even economic forces. On the one hand, shareholders can obtain high income in the form of dividends and increase their capital, on the other hand, they are subject to the risk of losing their invested funds, if the company’s performance is low or the company becomes bankrupt.

Debentures: 

Debentures, on the other hand, affords lesser risk to its holders, Debentures returns on investment are fixed and received in the form of interest regardless of the proficiency of the company. In fact, even when the performance of a company is weak it is mandatory for it to pay interest on debentures. But the yields of debentures are relatively lower compared to potential yields of shares of stocks. 

Key Difference: 

Stocks have high returns but with even higher risks as compared to other securities. 

Debentures offer relatively stable, but lower, returns with less risks than an equity interest. 

3. Rights and Privileges 

Shares: 

All shareholders have some privileges because they are owners of the business entity; These include: 

Voting Rights:This is in reference to the shareholder rights whereby common shareholders are entitled to have a say in major organizational issues like the appointment of the board of directors and various corporate management decisions. 

Dividends: Some of the returns that shareholders may get include dividends which are part of the company’s profits that is distributed among shareholders. However, dividends are not fixed and are paid from the organization’s profits as per the decisions of the management. 

Residual Claims:On the occasions of liquidation, shareholders come with the last priority in gaining access to the company’s remaining tangible resources after all creditors have been paid. 

Debentures: 

Debenture holders, unlike shareholders, are creditors and therefore there are limited rights given to them. In connection with the borrower, their rights are mainly linked to the repayment of the debt. Key rights include: 

Interest Payments: Particularly, debenture holders are accorded a fixed amount of interest and are payable whether or not the business made profits. 

Principal Repayment:The terms of debentures include redemption at par value at the end of the debenture period for repayment of the principal amount to the debenture holders. 

Priority in Liquidation: With regards to liquidation, it is important to note that debenture holders enjoy a higher ranking than shareholders with regard to the amount and priority of the corporation’s assets due to them.

Key Difference: 

The major benefits of shareholders are the right to vote, potential dividend receipts, and residual claims to assets. 

Debenture holders do not have any voting rights but they can receive fixed interest payments and it has been seen that they have the right to claim the company’s assets in case of its liquidation. 

4. Income Generation 

Also, read our latest post – Understanding the Basics of the Share Market: A Beginner’s Guide

Shares: 

The income for shareholders primarily comes from two sources: Dividends and capital gains. There are two main types of distributions which we have to differentiate: Dividends are the part of the company’s profits distributed to shareholders periodically, usually monthly or quarterly. Capital gains include changes in the value of the shares over time and this will enable shareholders to dispose of the shares at a higher price than what they paid. 

Debentures: 

Debenture capital earns its money by way of interest, which is usually specific and payable at specific times (for example annually or semi-annually). The interest rates are fixed at the time of issuing the debentures and the income received through them is in fact not a profit. The principal amount is also to be paid at the maturity date which is not the case with shareholders at any given time. 

Key Difference: 

The two ways through which shareholders are able to make their returns are by means of dividend and capital appreciation. 

Debentures receive interest in a fixed amount and therefore are considered as sources of revenue. 

5. Tax Implications 

Shares: 

Dividends as well as any gains from shares are also subjected to taxes. dividends are usually treated differently to ordinary income tax and capital gains are taxed on a basis of holding period being either short term or long term gains. 

Debentures: 

Even the interest received on debentures is paid after tax has been deducted. But this is subject to the normal tax rates as other forms of income and there are no zero percent taxation like in the case of dividend income or capital gains from investments held for over a year. 

Key Difference: 

Dividends received by the shareholders are also subjected to taxation and with much preferential rates in case of capital gains. 

On the same note, the holders of Debentures are subjected to tax on the interest income received on their Debentures at the normal tax rates.

Read more – Dividend Investing: Portfolio for Passive Income and Passive Income Strategic Planning

6. Convertibility and Flexibility 

Shares: 

It can be mentioned that shares are usually non-immutable and it means that they cannot be exchanged for other types of securities. However, the concept of the share can also be segmented into classes like preferred shares and others with features such as conversion to common share under certain times. 

Debentures: 

While some debentures are fully paid, they may be fully paid with provision on the holder’s side to exchange them with shares in the company at a specific rate after some time. As for this feature, debenture holders are provided with the capacity of capital gains in case of excellent performance of the company’s shares. Convertible debentures also contain both the security features of a debenture and the potential for the growth of an equity. 

Key Difference: 

Most shares are non –convertible although there can be some special attributes in the preferred shares. 

There are secured debentures that enable the companies to become convertible debentures that give the option of converting them into share capital. 

You may also check out the link – What are the two classes of stock and stock market- a detailed discussion

Conclusion 

Thus the key difference between share and debenture holders considers the nature of the investment made by each of them. It is the major investor who has full control of the company through the voting rights of shares that they own has the direct equity interest in the firm’s profits and assets, potential high returns though with higher risk taking. Like any other debt financing, the debenture holders have a fixed income and relatively lesser risk compared to the equity shareholders but no controlling rights or the possibilities of a large appreciation in their investment.

Many benefits of gold investment are present which makes it popular. You can also get the best results by investing rightly. This blog is for those who want to invest in gold. If you are also interested in gold investment then you need to check this blog.

Go through all the sections of this blog and know how you can get superb results. Invest in gold for great outcomes. The sections below will solve all of your queries. 

Reasons to invest in gold

If you are thinking of investing in gold then that’s a very good thing. Investment in gold can be great. The main reasons to invest in gold are shared as follows.

• It is a very good method of saving money.
• Investing in gold requires less maintenance. You can get benefits in low maintenance.
• The stability is good in gold investment. 
• It is good for future generations too. 
• There are plenty of options to choose from while investing in gold.

All these are the reasons to invest in gold. Make sure that you are choosing the right method of investment. Get the best benefits by investing nicely. 

Also, consider the below link- The Best Investment Plans in India for the Middle Class

Different ways of investing in gold

Investment in gold can be done in various ways. You can check out the methods of investments. The main methods are discussed as follows.

1.Purchase physical gold- Investing in gold by purchasing it in physical form is a nice thing. You can buy gold coins, gold bars, gold jewellery , etc. This can be used later according to need. Shop for great and pure quality of gold for good investment. Best gold will give you the best results. Insurance of gold is to be done.

2.Gold ETF- Gold exchange traded funds can be helpful too. In this you do not have to buy physical gold. The gold assets are used by many people. It just behaves like funds. It has great liquidity and is useful too. You can add gold in your portfolio. Track the gold price movements and then obtain best results.

3.Gold mining stocks- Gold mining stocks are very important. Find out a good company that can be used for mining stocks. This ensures good results. Risk is included in this but it’s worth considering. You can choose the gold mining stock for best outcomes.

4.Digital gold- Digital gold can be very beneficial. Many sites offer this investment opportunity. You can save the digital gold in digital lockers. Withdrawal of cash can be taken anytime. People have now started investing in digital gold for best benefits.

There are many ways of investing in gold. You can invest in gold in many different ways. Choose the method that suits you. If you are willing to explore the best methods then gather the best insights for superb outcomes. Make investments rightly and then get good results.

Which gold investment is good: digital or physical?

Digital or physical gold investments are the two options that can be chosen. You can choose the one that is helpful for you. Check out the features of digital and physical gold investment.

• Storage- Physical gold comes with issues related to storage. Digital ones can be stored easily.
• Counterparty risk- The counterparty risk in physical gold depends on the platform and most of the time it is zero. In the case of digital gold it depends on the funds.
• Trade- Physical gold is not traded and digital gold can not be traded as well. 
• Purity- The purity of the gold depends on the source of the seller in case of physical gold. In digital gold the purity is great.
• Investment- In physical gold it varies and in digital cases it can be as low as Rs 1.

You can now determine whether the digital gold is good for you or the physical gold. Take the right decision and then get the best results.

Read more about – What is Digital Gold Investment?

Risks associated with gold investment

Some risks are also present in gold investment. You need to know about the risks associated with gold investments. The risks are shared as follows.

1.Digital gold requires the best regulation. Only limited options are present of digital gold. One needs to choose wisely.

2. Market risk is associated with gold investments. One needs to know about the market risks before investing in gold. It’s best to know about the market so that you can invest accurately. Keep an eye on market trends and then get good results. 

3.Different instruments have different risks. Read about the investment options nicely and then get good results. Manage risks effectively.

4.If you invest at the right platforms then the risk can be managed. Diversification can also help in managing things. Do proper research for saving time and effort. Look for the safest options and then enjoy the gold investment opportunities. 

All these are the main things that you need to consider while investing in gold. Take the right steps to save yourself from risks. Invest in gold and then achieve good results. For your future generation you can start investing now. Do proper research and then get good results.

Check out – What is Digital Gold Investment?

Conclusion.

Investing in gold can be helpful for you. You can make right investment choices by researching properly. Check out this blog and then discuss how you can invest in gold. This blog is a perfect guide for you. Take proper steps and action while investing in gold. Choosing pure quality of gold is required. Read this blog and get detailed information about it. You will reap many benefits by investing in gold. Do not skip any section and then see how greatly you can obtain results. Take your investment to another level by gathering the best information. Take help of a broker or any other professional while investing in gold.

Overview: The Nippon India ETF known as Nifty 50 BeES is one of the oldest and simplest to understand ETFs in India. It is benchmarked on the Nifty 50 index which encompasses the leading fifty organizations listed in the National Stock Exchange of India (NSE). 

 Why It’s a Top Pick: 

• Low Expense Ratio: The expense ratio on this ETF is low, meaning that the long term costs to the investor are low. 
• Diversified Exposure: Enables one to be taken through a list of large-cap stocks across the broad index market categories. 
• Liquidity: Large volume of trading makes transactions easy to undertake. 
• Who Should Invest: Most suitable for those who seek a means to exposure to lower risk Indian equity market at a very low cost. 

 2. SBI ETF Nifty 50 

Overview: There is also an SBI ETF Nifty 50 which, like the Nippon India ETF Nifty 50 BeES will track the Nifty 50 Index and offer a nearly identical investment experience, but under the umbrella of SBI. 

 Why It’s a Top Pick: 

• Performance: The Nifty 50 Index Tracking with very low Tracking Error. 
• SBI Brand Trust: Run by one of India’s largest and most reputed NBFC which is primarily an automobile financing company. 
• Who Should Invest: Ideal for those investors who like to invest in the large public sector bank and want the direct exposure in top 50Companies of India. 

 3. HDFC Gold ETF 

Overview: As for the funds, Investors seeking to move away from equities they can invest in the HDFC Gold ETF which gives an opportunity to invest in gold which is one of the most traditional and stable tools of investment. 

 Why It’s a Top Pick: 

• Safe-Haven Asset: The gold is traditionally regarded as an instrument for risk diversification or safe-haven, especially in the period of economical instability. 
• Inflation Hedge: Is useful as an inflation and currency hedge. 
• Who Should Invest: Suitable for a person who would want to diversify his or her investment portfolio or those who want an investment avenue that would guarantee them better returns despite the prevailing inflation levels. 

4. Icici Prudential Nifty Next 50 Exchange Traded Fund 

Overview: This ETF follows the Nifty Next 50 index to comprises of the 50 smallest companies on the NSE besides the 50 biggest ones that make up the Nifty 50. 

 Why It’s a Top Pick: 

• Growth Potential: Nifty Next 50 consists of growing mid-cap companies who have the possibility to move to Nifty 50 in the near future. 
• Diversification: Provides additional investment in securities of mid-cap companies thus providing a balanced exposure to large-cap stocks. 
• Who Should Invest: Most relevant to investors who are looking for growth and a little more risk than with the mega cap stocks of the S&P 500. 
•  5. UTI Nifty Index Fund 

Overview: The UTI Nifty Index Fund is a Low Cost ETF launched with an objective to closely track the Nifty 50 index. 

Read more – Understand Money Market Funds – Are Money Market Funds Right for You?

 Why It’s a Top Pick: 

• Low Costs: This is a low expense ratio ETF that is among some of the cheapest to use. 
• Reliable Performance: Benchmarked to Nifty 50 and has low tracking error. 
• Who Should Invest: Most appropriate for long-term investment and those individuals who wish to have unsophisticated access to the equity market of India with minimal transactional costs through Active Management. 

 6. Kotak Banking ETF 

Overview: Kotak Banking ETF follows Nifty Bank Index and gives investors an idea to invest in the banking sector which has well established roots in Indian market. 

 Why It’s a Top Pick: 

• Sector-Specific Exposure: these rely on the banking sector which sets or leads the rest of the market most of the times. 
• High Liquidity: One of the most volatile sectors is a banking sector which guarantees high liquidity of shares. 
• Who Should Invest: Suitable for: Investors who are positive on the prospects of the Indian banking sector or wish to adjust the sector allocation of their portfolio.

7. Motilal Oswal NASDAQ 100 ETF is an exchange traded fund launched in May 2014. 

Overview: To clients seeking global diversification within NASDAQ, the Motilal Oswal NASDAQ 100 ETF provides investment in the first one hundred and non-financials companies with their stocks listed in NASDAQ. 

 Why It’s a Top Pick: 

• Global Exposure: Exposes the investors to some of the most famous technological and consumer oriented companies in the world including Apple, Amazon, Microsoft among others. 
• Currency Diversification: Added the value of diversification benefits occasioned by the exposure to the US dollar. 
• Who Should Invest: It is most suitable for investors who are interested in introducing their investments to an international market and particularly to particular sectors such as the technology sector. 

 8. Edelweiss Bharat Bond ETF 

Overview: The product called Edelweiss Bharat Bond ETF is a government supported product which is categorized in the bond field and invest in public sector bonds which provide assured returns. 

Note – How to start investing in stocks in 2024?

 Why It’s a Top Pick: 

• Low Risk: The ones most preferred for investment are the AAA-rated bonds in the public sector making it secure. 
• Regular Income: Gives stable cash inflows slightly less risky than equity ETFs but with similar frequency of cash flows. 
• Who Should Invest: Most suitable for those, who seek stable income with low-risk profile investment. 

 9. FEZ Mirae Asset NYSE FANG+ ETF 

Overview: This ETF also gives investment in NYSE FANG+ Index, which includes technological and internet solutions suppliers such as the Facebook, Amazon, Netflix or Google. 

 Why It’s a Top Pick: 

• High Growth Potential: Targets technology industries with growth rates much above the average for the economy, and those are market leaders. 
• Global Diversification: It opens the door to find out international technology companies with which Glaxo Nutra can expand itself other than dependence on the domestic Indian market. 
• Who Should Invest: Ideal for nonlinear risk-takers seeking to ride the wave of leverage in market trending of global leading technology companies. 

You may also check out – What are the two classes of stock and stock market

 10. It consists of the Aditya Birla Sun Life Nifty 200 Momentum 30 ETF, which tracks the Nifty 200 index of reputable Indian companies. 

Overview: This ETF reflects the Nifty 200 Momentum 30 index and operates with the list of the companies that demonstrate the highest momentum in rates. 

 Why It’s a Top Pick: 

• Momentum Strategy: The first approach for selecting a stock is the momentum based approach whereby the theory works with stock that have risen in the recent past. 
• Diverse Holdings: Still exposes the investor to both large cap and mid cap companies. 
• Who Should Invest: Most suitable for those investors with high risk tolerance or desire to work with a higher degree of risk to harness more profit from momentum anomalies. 

For those who are interested in money market funds this blog is going to be very helpful. Read this blog and then know how you can take the merits of money market funds. You will get a very detailed discussion on it.

Gather the best information about money market funds and then invest rightly. You will have the best outcomes by choosing these funds. So let us start the money market fund discussion in the next section.

Main advantages of money market funds

Money market funds usually have larger tenure of loans. The returns are also good in these funds. Moreover the other main advantages of money market funds are shared as follows.

• If you want to invest for a period of 3 to 6 months then this is the ideal one. The duration is generally long. Thus it gives the best outcomes.
• The risk is also tolerable. One can invest without worrying more about risks. 
• The returns on these funds are high too. The plus point of them is that they give higher returns.
• Many good options are present in money market funds. You can choose from a wide range of options. Choosing the best one can really help you alot.

Money market funds are right for you if you are into larger investment horizons. They can be perfect for great returns. Invest in them and then get the best outcomes. 

Key features of money market funds

The key features of the money market funds are to be known. Check out the key features of money market funds that are shared as follows.

• Money market funds have a varied number of instruments. Be it credit risk, debt structure, etc. The instruments help the investors.
• The liquidity of money market funds is good too. Great income is fixed in this.
• The other good feature of money market funds is that they are regulated by the RBI. RBI has a great power of handling the entire process of money market funds.
• Investment horizons are different and one can choose it according to need.
• People like these types of funds because they ensure good returns. This is also a main feature of this market fund.

Key features of money market funds are discussed here. The features tell about their speciality. It’s best to choose the right money market fund so that you can gain the right benefits.

Best money market funds for you.

If you are all set to invest in money market funds then you need to know about the top types of money market funds. The best money market funds are shared as follows. Consider them.

1.Axis money market fund- This type of fund is known for its good return rates. Fund size is Rs 12 crores. It is considered by many for investment. You can choose it.

2.Aditya Birla fund- The fund size of this group is great. The budget is of Rs 26 crore rs. Return ratio is also good. One can choose this fund for investment. You will get good results.

3.SBI savings fund- This is another market fund that is chosen by many. The fund size is Rs 30 crores. You can get a return ratio of 7 percent. Get this and then have the best outcomes.

4.Baroda market fund- If you are looking for more great fund sizes then you need to consider this fund. It has a budget of Rs 200 crores. Investing in it will be a great thing.

5.Kotak money market fund- Kotak is very well known as it has superb fund size. The fund size is Rs 25 crores. One can have good merits by choosing this market fund. 

If you were confused about choosing the right market fund then these are the options that you should definitely consider. Know about them and then finalise yourself. 

How to choose the right money market fund?

For choosing the right money market fund you need to go through some points. The following points will help you in making the right decision. Check out the tips and then proceed.

• Check all the resources and then gather the information related to the money market fund.
• Go through the merits and demerits of it. They will help you a lot.
• Shortlist the best funds and then check them.
• Go through the ratios and then know about them.
• Invest wisely and then make the best changes in your investment routine.

By following these things you will get the right market fund. Choose the fund and then get best results. You will obtain suitable results in a short time span.

Some money market funds related instruments.

Money market works with the help of instruments. Some instruments that are included in it are shared as follows.

• Treasury bills are considered safe as they are related to the government.
• Repurchase agreement works on the basis of short time loans. One can make them in between two banks.
• Commercial papers are also considered as the form of instruments. One can take help from them.

Choose the instruments accordingly and then get the best results. The money market fund will give you a lot of exploring options. You can explore it the way you want.

Conclusion

Money market funds are considered good and special. You can get a lot of benefits by choosing them. If you are someone who is into mutual funds or other types of funds then you should definitely consider this. Money market funds and information related to it is shared here. Check out this blog and then get the best results. Make the right decision by getting professional help. Go through this blog and then start the money market fund journey. Invest wisely for good and precise results.

You may also consider the below links –

Investing for Retirement: Strategies to Build Wealth Over Time

The Best Investment Plans in India for the Middle Class

The Best Mutual Funds for Tax Loss Harvesting

There are main types of stocks in the stock market and also there are types of stock market too. It’s best to know about all of this. This blog is going to be very helpful for you as you will learn many things. 

The different types will help you in your further journey. Let us talk about stocks in detail. The next section is going to help you in knowing them and their types.

Reasons why people invest in the stock market

People invest in the stock market because there are a very great number of returns or benefits. Nowadays you must have seen an emerging trend where many people are exploring this field. You can check out the main reasons why people invest in the stock market.

• The possibility of higher return is something that keeps people motivated. By investing in the stock market one can get the best returns.
• In companies when you buy their shares then also the benefits are taken. When the company grows then you can have the profit too.
• For long term wealth people invest in the stock market. As the time passes, wealth increases.
• One can transfer the shares into cash whenever they want. It helps in many ways.

For these top reasons people invest in the stock market. People get a lot of benefits by investing in the right stock market. For getting the right returns, the best strategies should be there.

Main types of stock market

Stock market consists of two main types. You can know about the two main types by checking this blog. Read the points below and then know about the main types of stock market in India.

1.Equity market- This type of stock market revolves around the process that stocks of a company are sold and the investors buy them. When the company faces profit then the investors get higher returns. Some of the main features of this type of market are shared as follows.

• Investors can look for public and private stocks in this market.
• Risk and rewards both are associated with it.
• The process of investing is great in this. One can continue the process without any worry.
• One can get good ownership by following the path of this stock.

2.Derivative market- This is the market which includes stocks, bonds. Risks are also associated with this. Some of the key features are shared as follows.

• Risk management is done in this case. One needs to check out the best precautions.
• Swaps, warrants, other options are included in this.
• Best returns can be gathered.

These are the two types of stock markets that are available. Both can help you in getting good returns. Take proper precautions and then step into the world of stock market.

Note- How do I start the stock market as a beginner?

Classes of stock outstanding

Stock outstanding is the stock that is held by shareholders of a company. Some restricted shares are also present in this. There are several classes of stock outstanding. The classes of stock are shared as follows.

• Preferred stocks are the stocks in which paid dividends are included. It is best for liquidation. 
• A class of common stock is also included in outstanding stocks. It is a very common one.
• The other class is bond stock, it has stability. These types of stocks are less volatile. 

Some other forms of stocks are also included in this. You can check out the classes like fully diluted shares, floating shares, etc. Choose the stock that can be helpful for you. Pick the right stock for the right investments. The types of stock market influence the return outcomes.

For more information visit landing page – Understanding the Basics of the Share Market: A Beginner’s Guide

Best ways to choose stock for investing?

As you now know that there are several types of stocks. There are many options that you already know. Here are some tips that we have shared so that you can choose the right stock for investing. 

• Determine the stock that aligns with your budget. Budget is the most important thing that is to be considered. Stocks that are best according to budget can be helpful.
• The financial ratios of the stocks are to be checked. It’s important because the ratios can give you the best idea about the company.
• Always keep checking the market for analysis. The analysis can be helpful and it will help in making the right decision.
• Complete knowledge of the company is to be taken. The insights about the company will make sure that you are having the perfect one.
• Take help from a professional. Professional guidance will make things easier for you. 

Always choose a stock that can give you benefits. Get more insights upon diversification as it will surely help in reducing the risk. Classes of stocks are helpful so that you can pick the right one. Dual structure of stocks includes classes A and B. Many types of stocks are covered under them. You can invest in stocks after knowing everything about the classes . Get the best guidance and then make the best changes in your tactics of stocks. You will definitely have the best outcomes.

You may also check out – What are the best Indian stocks to buy?

Conclusion

Stock market has various types. The types include different classes. The main types of stock market are equity, derivative. Both the types have specific features. One can get the best outcomes by picking the right stock. You can read this blog to learn about the stock market. Get the best tips too by checking this blog. Always choose a stock that is beneficial for you. Get proper information about the stock company and then invest in it accordingly. You will explore many things about stocks in this blog. If you want to invest in stocks then read this blog first. Best results will be obtained by you after getting the best information.

We all are well aware about the benefits of stocks but many of us still don’t know what are the right methods of investing in stock. If you also want to have the right benefits of stocks then you need to know about investing.

This blog is made to share the best insights upon stock investment. Read this blog and then know how you can invest in stocks. Let’s start discussing the right methods.

You may also check out the link – How do I start the stock market as a beginner?

Right investment strategies for 2024 stocks

In 2024 you should aim high to get better outcomes of stocks. This can happen if you follow the right strategies or steps. The steps that you can follow for investing in stocks are shared as follows.

1.Make a goal- Goal setting is really important. By setting goals you can have a clear idea. Make a goal that is achievable according to your budget for investing. Goal setting is the first step that needs to be followed.

2.Make a fixed budget- Investment needs budget. For stock investment you need to know your budget. Be clear about your budget. The budget will help  in motivating you to invest more. Clear your debts, increase your savings for better investments.

3.Set the risk tolerance- The risk tolerance is another thing that needs to be settled. When you set the risk tolerance then you can maintain the portfolio. Your portfolio will help in finding the right opportunities for you.

4.Choose account type- Investment accounts are to be chosen accordingly. The accounts like managed accounts, brokerage accounts, retirement accounts, etc are present. You can choose the account on the basis of need. Your investment goals can help you in choosing the right account.

5.Get help from a broker- A broker can also give you the best resources. Choose the broker that can help you at every step. For beginners the best broker can guide them. It’s best to choose a good broker for better results.

6.Choose stocks- Stocks are to be chosen accordingly. There are many different kinds of stocks and one can choose the stock that aligns with your goal. Choose from ETFs, defensive stocks, etc.

7.Keep learning- After investing in the right stock you need to monitor it. The monitoring can be done so that you can take the right actions. Always research about market trends and keep gaining information. This will help you in getting better outcomes.

These are the strategies that you can follow for investing in stocks. If you are investing for the first time then it will help you alot. Do a lot of research and gather the best information. This will help you in having best results.

Stocks that are good for beginners

Some specific stocks are good for beginners. As a beginner you can pay attention to some good stocks for investment. Read the stocks that are shared here and then choose one from them.

• Blue chip stocks- The stocks of blue chips are well known. They have a lot of value and that is why they are to be preferred. They can offer you long term returns.
• Quality factor Etfs- They can be the best one for having good results. You can choose them for better precision. Select it according to debt level, earning, etc.
• Index funds- The features of this stock make it preferable. Be it long term or short term returns, index funds are good ones.  

For more information visit the landing page – What are the best Indian stocks to buy?

These stocks are good to be considered. You can know more about these stocks by getting insights about them. Finalise the stocks and then maintain them. Keep an eye on how they respond so that you will get higher returns.

Additional things to take care of while investing

Things that can help you in making the investments great are shared here. You can check these things and then you can work accordingly. The points to take care of are shared as follows.

• Diversification is important. It increases the chances of your productivity. Learn more about diversification and then use it.
• Your finances are to be maintained properly. It’s good to monitor your budget so that you can invest rightly.
• Invest in stocks that are right for you. Learn about companies that can be beneficial. Make the right decision by investing nicely.
• Research is also a good thing that you need to do. Do a full research that can help you in getting best outcomes.
• Market analysis is beneficial too. You can do the analysis and comparison. It will be helpful.
• Monitor the well known stocks and then invest in them. Reputed stocks are good and one can invest in them. 

Note – Unlocking the Secrets: What is the Best Way to Earn Money in the Stock Market?

These are the things that can help you in making the stock investment great. You can read these points and then you can start your journey of investment. In 2024 you can make your journey of investment more great. It’s best to use the right tactics so that you can make the right stock investments. Taking help from a professional is always advised. Make sure that you take help from the right professional for reaping great benefits. 

Conclusion.

Stock investments are of great use. One can multiply the income with the right methods. It’s best to use the good ways so that you can have the right outcomes. This blog is here to tell you about the right steps of stock investment. Invest accordingly and then make yourself more secure. The methods that you need to follow are shared in this blog. Read all the points and then enjoy the results. You can even take help from a professional. Learn diversification, compare all the things, read about market trends and then start the journey of your stock investment. This year you can also get best results by investing in the right stocks.

Understanding the Investment Landscape

Indian middle class is a diverse class in terms of investment where they seek investment which is safe, liquid and also earning good return. Investment from its perspective has various instruments available in the market and they all can be characterized by different features including risks and returns. There is need to coordinate investments with individual’s financial objectives, involuntary capacity to incur losses and period of investment. Here are some of the most popular and effective investment plans for the middle class in India: 

 1. Public Provident Fund (PPF) 

 Key Features: 

• Safety and Stability: PPF is a government-supported investment plan to provide interest rates and a secure investment plan to save for long term aim like retirement. 
• Tax Benefits: Investment in PPF comes under section 80C of the income tax act and the interest earned is also free from tax. 
• Flexibility: Potential investors are in a position to deposit as low as INR 500 per annum, thus being suitable for any class of the society. 

Why It’s a Good Option: 

PPF is most suitable for the conservative investor who is in the lookout for a long term investment which can be made without any risk and which also has tax benefits to boot. Its lock-in period of 15 years makes the product suitable for the savings it encourages; retirement saving. 

 2. Mutual Funds

 Key Features: 

• Diversification: Mutual funds are where each individual investor invest in a large pool of funds, where the money is later invested in a number of stocks, bonds, or other securities to minimize the risks. 
• Professional Management: The funds are being managed by professional fund managers and are usually associated with greater return prospect as compared to other conventional investment opportunities. 
• Systematic Investment Plans (SIPs): SIPs enable investors to invest a fixed amount periodically so that there is discipline of saving and minimize the volatility of the market. 

Why It’s a Good Option: 

SIP type of mutual funds are appropriate in the middle class investor who is willing to invest for a long period. They afford the ability to select a variety of assets with different risk reward profiles in an attempt to suit every investors needs. 

 3. Fixed Deposits (FDs)

 Key Features: 

• Guaranteed Returns: FDs guarantee a fixed level of interest which gives a measure of guaranteed return on investment in a given period. 
• Low Risk: Belonging to the low-risk category, the FDs are suitable for conservative traders. 
• Liquidity: FDs provide the provision for the flexible term, and one can prematurely break the term, but there might be charges involved. 

Why It’s a Good Option: 

Fixed deposits are appropriate for respectable income earning persons who wish to invest but want little risks and equal returns. It is right to use it for short and middle-term objectives, and it is the emergency source of funds necessary in urgent situations. 

 4. National Pension System (NPS) 

 Key Features: 

• Retirement-Focused: NPS is one of the pension scheme which is backed by the Indian government for enabling workers to have an income stream during their post-retirement period. 
• Flexible Investment Options: The investors are able to decision make, within the various ASSET CLASSES, selecting the different fund managers. 
• Tax Efficiency: The amount contributed to the NPS is tax-exempted by way of deductions under section 80C and 80CCD of the Income Tax Act. 

Why It’s a Good Option:

It has been identified that the said NPS is feasible or reasonable for middle class and can actually be used for planning retirement. It is a long term investment product which has features of a pension plan and the returns of the market. 

For more information visit the landing page – Investing for Retirement: Strategies to Build Wealth Over Time

 5. Gold 

 Key Features: 

• Hedge Against Inflation: Most people say gold is a tool for hedging against inflation and fluctuations in the currency market depending on political turmoil. 
• Various Investment Forms: It is more flexible and easier for the investor to invest in physical gold, gold ETFs or sovereign gold bonds. 
• Liquidity: Gold is an extremely liquid instrument since can be easily sold back for cash at later point if required. 

Why It’s a Good Option:

Gold is therefore a perfect asset to add to the various services portfolio in order to balance between the risks with the returns. It is especially very relevant to investors holding large amounts of capital in the course of economic fluctuations. 

 6. Real Estate

 Key Features: 

• Tangible Asset: Real estate is tangible and can be negotiated for with the hope of achieving accruing returns in the long run. 
• Rental Income: Real Estate is therefore known to generate passive income in sense that investors can simply receive rental income on the property periodically. 
• Leverage: Real estate can also be invested through loan thus enabling investors use other people’s money to secure higher returns. 

You may also check out – Long-Term vs. Short-Term Investments: Which Strategy is Right for You?

Why It’s a Good Option:

As it has been already implied, real estate is the preferred type of investment among middle-income people who plan their financial Strategies for the long term. It provides both the opportunities for capital gains and regular rental income, and therefore it is a rather complete type of investment. 

Making the Right Choice 

Investing in shares, money-market instruments, bonds or any other investment opportunity depends on the investor’s objectives, his/her appetite for risk, his/her investment time frame. Here are some tips to help middle-class investors make informed decisions: 

• Diversify: Never take a chance and risk all of your money on a single bet. Invest in varied security categories so that you are not overexposed to a certain type of investment and can gain the highest amount of income. 
• Set Clear Goals: As for your financial objectives on the way, and they can be simple as saving money for child’s education, buying a home, or preparing for your retirement period. This will in turn assist in the selection of the right investment plan. 
• Assess Risk Tolerance: Maharashtra understand your risk tolerance level and only venture in to investment opportunities that you are comfortable with. Affordable but risky investment offers higher returns, and no one is certain that they will gain from these investments. 
• Stay Informed: It is important to monitor market trends for certain investments, new economic factors or a change in the policy with regard to specific type of investments made. They should make it a practice to assess and possibly alter the investment portfolio from time to time. 
• Seek Professional Advice: It is wise consult a financial planner when it comes to the investment because the assisityne will advise you base on your current position or in a bid of achieving your financial aspiration. 

Read more – What REITs are? How they work, their benefits and risks

Conclusion 

It is important for the middle class in India to be able to save well so as to protect its capital and hence take great care when investing. As will be clear in this article, there are various investments available and one must be aware of the features, advantages, and drawbacks of each. Special attention should be paid to diversification of investments and their relation to middle-class goals and tolerance to risks so that solid financial portfolio for middle-class investors can be created.