financeandtrade: March 2017

Sunday, 19 March 2017

What is forward contract in commodities?

What are standardised contracts?
What are customised contracts?
Is delivery mandatory in futures contract trading?
What are NSTD contracts?
What are TSD contracts?

Sellingor switching MF units

What are the tax implications?
Has the goal for which you were investing been met?
How has the scheme performed?
Has your asset allocation changed?

SIP in an ELSS Mutual fund

What is a SIP in an ELSS fund?
How long does it take to start an SIP?
What tenure should you choose?
What about the locking period?
Can i add lumpsum to my SIP later in the year?

Options trading in commodity futures

What are options?
So is SEBI launching european style options?
Will optins really make a difference to the market?
How will options function in the commodity futures market?

How is a stock excluded/included in the Nifty index

What is the criteria for inclusion in the benchmark index?
What leads to exclusion from the index?
When do the changes take place?
who decides which company will be part of Nifty?
Does the index level change after the changes are made?
Can differential voting rights become part of Nifty?

What is a depository?

What are its main functions?
What is the need for a depository?
What are the names of some depository organisations in india?
Who regulates depositories and depository participants?

How important is open interest?

What is OI?
Why is it important?
How's that?
Still why can it mislead, especially during result season?
What more can happen?

Currency futures : How it works

What are currency futures and options?
How does one trade?
Is there a less risky option?
What's the position limit for a domestic retail client on dollar rupee derivatives?

Transmission of mutual fund units

How does one transmit units?
What other legal document could i need?
How much time does it take?
What do you do if you hold mutual fund units in demat form?

Know the open seller

Who are option sellers?
What is the equation in terms of buy and sell?
Why is options selling risky?
What does the selling action indicate?
What is the risk buyers face?

Building an emergency kitty through mutual funds

What are emergency or contigency funds for?
What is the benefit of having emergency funds?
How big should an emergency fund be and how to build one?
How much can you earn in liquid or ultra short term funds?

A fund manager plays a key role in an MF

What is the role of a fund manager?
What is the responsibility of the fund manager?
How is a fund manager evaluated?

What is disgorgement and how it works

What is disgorgement?
Who has the authority to ask companies or people to disgorge ill-gotten money?
Is disgorgement the same as forfeiting money?
Have disgorgement cases returned money to investors?

How additional riders work in an insurance policy

What are term life insurance riders?
Can one buy standalone rider?
How popular are riders?
What is the cost of buying a rider?

Explaining interest coverage ratio

What is interest coverge ratio?
Why do banks look at this ratio?
Why do regulators attach so much importance to ICR?
Is there any ideal level of ICR?
Which are the sectors to watch?

Managing risk using Mutual funds

How do mutual funds help manage risks?
How do MFs avoid concentration risk in your portfolio?
How do SIPs help in avoiding volatility risk?
How can mutual funds help you manage taxation batter?

Sortino ratio can help select a better MF

What is Sortino Ratio?
How it is calculated?
How can one use it?

The debate over the Use of GVA and GDP

What is gross value added?
How is it measured?
What is GDP?
What is the difference between the two?
Why did policy makers decide to also give weight to GVA?
Which of the two measures is considered more appropriate of the economy?

Why MF investments in your child's name is a better idea

Can one make a mutual fund investment in a child's name?
What documents would one require to make such an investment?
Can an investor start a systematic investment plan(SIP) or systematic transfer plan in a child's name?
What additional paper work needs to be done once the minor becomes 18 years of age?

Capital Gains tax and how it's calculated

Capital Gains tax and how it's calculated
(1) what are capital gains
(2) what is the difference between long term and short term capital gains
(3) why are capital gains tax levied
(4) why has capital gains tax become relevant suddenly?

System D and its effect on economy

System D and its effect on economy
(1)What is system D?
(2)hOW is it defined in the indian context?
(3)Are there any estimates of the size of such a system at the global level?
(4)What are the problems associated with such a system?

How open interest can show stock trends

How open interest can show stock trends
(1) What is open interest
(2) why is it important?
(3) How's that?
(4) Why can it mislead, especially during result season?
(5) What more can happen?

What are international funds

What are international funds
(1)What are the various types of international funds?
(2)how do global funds invest?
(3)what is the advantage of international funds?
(4)Are there any risks of investing in these funds?
(5)What's the tax treatment of international funds?

How does GIFT(Gujrat international financial tech city) operate?

How does GIFT(Gujrat international financial tech city) operate?
(1)How is the exchange at GIFT different from other domestic exchanges?
(2)what are the advantages of such an exchange?
(3)Has GIFT begun operations?
(4)How many traders currently have offices at GIFT?

What Does a forensic Audit achieve?

What Does a forensic Audit achieve?
(1)What is a forensic audit?
(2)What is the regulatory stance on forensic audit?
(3)Are all chartered accountants equipped to do a forensic audit
(4)How can forensic audits prevent generation of non-performing assests in banks?

Haircuts : A way to address NPAs in banking system

Haircuts : A way to address NPAs in banking system
(1)What are hairtcuts in the indian banking system?
(2)When do lenders opts for haircuts in India?
(3)Why would lenders opt for such a route?
(4)why would lenders avoid this option?
(5)How does opting for a haircut impact a balance sheet?

A strategy to ride the uptrend

A strategy to ride the uptrend
(1) what is a bull call sperad?
(2) How does it work?
(3) What's the other advantage?
(4) Can this be done with multiple options?
(5) is there a variant on the bearish side?
(6) what's a call and put option?

Revisiting Commodity options

Revisiting Commodity options
(1)What is a commodity futures/option contract?
(2)How does it help?
(3)What about options?
(4)What are the contracts traded on the exchanges?
(5)Who are the participants?
(6)Is the role of speculators important?

Role of Market stabilisation Scheme(MSS)bonds

Role of Market stabilisation Scheme(MSS)bonds
(1) What are MSS bonds?
(2) Why has the RBI chosen to issue MSS bonds now?
(3) How is it different from CRR?
(4) How are MSS bonds different from regular government bonds?
(5) Has this instrument been used in the past?

How cut-off time plays a crucial role for MFs

How cut-off time plays a crucial role for MFs
(1)What is the cut-off time?
(2)what is the cut-off time for liquid funds?
(3)what is the cut-off time for equity and debt funds?
(4)why do some portals have different cut off timings?

Here's how players trade options contracts in markets

Here's how players trade options contracts in markets
(1)who buys a call and a put?
(2)what is the cost to buy one?
(3)who sells you the options?
(4)Can you get delivery in options?
(5)An example?

What is the role of ARCs(Asset reconstruction companies)?

What is the role of ARCs(Asset reconstruction companies)?
(1)what do ARCs do?
(2)shouldn't banks resolve bad loans instead of selling them to ARCs?
(3)How have ARCs performed so far?
(4)Why are banks not selling loands to ARCs?
(5)what are the challenges faced by ARCs in resolving stressed loans?
(6)How does transaction between the bank and ARCs take place?

Where liquid funds fit in your portfolio

Where liquid funds fit in your portfolio
(1)when should you invest in liquid funds?
(2)how fast can they be redeemed? how are returns?
(3)what is the risk of investing in liquid funds?
(4)how are they different from other debt funds?
(5)how are liquid funds taxed?

Why banks are purchasing for personal guarantees

Why banks are purchasing for personal guarantees
(1)what is personal guarantee?
(2)what are the risks involved in personal guarantee?
(3)what are the obligations of the guarantor?
(4)when is a personal guarantee required?
(5)when is personal guarantee not required
(6)Can an individual earn commision in giving guarantee.

Asset purchase programme: A tool to revive global growth

Asset purchase programme: A tool to revive global growth
(1)what is asset purchase programme?
(2)How does it help revive the economy?
(3)when has asset purchase programme been implemented?
(4)what is the need to include private bonds?
(5)what are the risk associated with this programme?
(6)what does an asset purchase programme mean for india?

How demonetisation will impact credit scores?

How demonetisation will impact credit scores?
(1)why will an individual's credit rating get hit?
(2)how willl the move impact loan repayments?
(3)what has the RBI done to salvage the situation?
(4)Will the recent RBI directive help individual borrowers?
(5)Will banks pass on this concession to their borrowers?

Here' All about the Algo trading

Here' All about the Algo trading
(1)what is algorithmic trading?
(2)what is SEBI's position on algo trading?
(3)what could happen if these measures are implemented?

All about day moving averages

All about day moving averages
(1)what is day moving averages?
(2)what are the different types of day moving averages?
(3)how does it help investores?
(4)why is 200-DMA tracked the most?

AMCs(asset management Companies) Consolidate, but your money's safe

AMCs(asset management Companies) Consolidate, but your money's safe
(1)when and why does a fund house sellout?
(2)what should investors do?
(3)what should investors keeep an eye on?
(4)what are the tax implications?

Now CKYC(central know your custoer) in MFs: what it means for you

Now CKYC(central know your custoer) in MFs: what it means for you
(1) What is CKYC?
(2) Why has CKYC been understaken?
(3) What does a first time investor in mutual funds have to do?
(4) how can CKYC be done?
(5) Do existing mutual fund investors have to do anything?

Decoding Bharat QR(Quick response)

Decoding Bharat QR(Quick response)
(1) what is QR code?
(2) what is Bharta QR?
(3) Why the need for BharatQR
(4) How will it be implemented?
(5) how do you make payments through BharatQR?
(6) At what stage of activation is BharatQR now?

Do you need to shell out extra for card payments?

Do you need to shell out extra for card payments?
(1)What are the different types of cards that can be used for payments?
(2) what is MDR(merchant discount rate)?
(3) what is the fuss about now?
(4) what is the charge and how much do customers actually pay?
(5) why do banks levy the charge?

How introduction of options will affect commodity markts?

How introduction of options will affect commodity markts?
(1) what are options and what do commodity exchange offer now?
(2) what is the difference?
(3) what's the reason to launch options?
(4) what's the sticking point?

Currency futures & options, and how to hedge risks

Currency futures & options, and how to hedge risks
(1)What are the currency pairs traded on homegrown exchanges?
(2) who are the participants?
(3) How does the trade work?
(4)What is the risk?
(5) What is a futures and options(F&O) contract?
(6) How many contracts run currently?

Does NAV(net asset value) of a scheme matter?

Does NAV(net asset value) of a scheme matter?
(1)Is it better to buy a fund which has lower NAV?
(2)Is it better to buy a new fund offer(NFO) priced at rs 10 and
(3)NAVs of direct plants are higher than of regular plans. what should you do?

Evaluating performance of a mutual fund

Evaluating performance of a mutual fund
(1)How do you check returns of an equity mutual fund?
(2)How has the fund compared with its peers in the same category?
(3)how often has a fund beaten its benchmark and category?

Knowing tail risk and corporate leverage

Knowing tail risk and corporate leverage
(1)What is tail risk
(2)How does RBI perceive tail risk in the context of financial stability in India?
(3)Why is RBI concerned about tail risks?
(4)Which sectors in India are highly leveraged?

What are futures and options and how they work

What are futures and options and how they work
(1)What is F&O(Futures and options) segment?
(2)What is a future and what is an option contract?
(3)Who are the participants?
(4)What do these categories do?

What is the importance of a benchmark for mutual funds?

What is the importance of a benchmark for mutual funds?
(1)what is a benchmark?
(2)How do you measure performance of a MF against its benchmark?
(3)what is the importnace of long-term performance?

Demonetisation impact on interest rates

Demonetisation impact on interest rates
(1)What happended after the high value note ban?
(2)Why should excess money in banks cause the fall of interest rates?
(3)How have they impacted the bond yields?
(4)Have the authorities stepped in?

Demonetisation and its side effects

Demonetisation and its side effects
(1)What is demonetisation?
(2)what has the governent done?
(3)How will it impact the economy?
(4)What does lower growth mean?

What are 8% GOI savings bonds?

What are 8% GOI savings bonds?
(1)who can apply for 8% savings GOI bonds?
(2)How can an investor apply for these bonds?how are the bonds issued?
(3)How much interest can investors earn from these bonds?
(4)what is the minimum and the maximum limit for investment in the 8% savings?

How Nifty options indicate market range?

How Nifty options indicate market range?
(1)What are Nifty options?
(2)when do you buy a call or a put?
(3)who are the buyers and sellers?
(4)so how can you tell market range looking at Nifty options?

What is arbitrage & what are its risks?

What is arbitrage & what are its risks?
(1)what is arbitrage?
(2)what is exchange to exchange arbirage?
(3)is it totally risk free?
(4)what is cash-futures arbitrage?
(5)who are the common participants?
(6) how do retail investores participate in arbitrage?

Dividend distribution tax

Dividend distribution tax
(1)what is a dividend?
(2)what is dividend distribution tax?
(3)what does grossing up of dividend distribution tax mean?
(4)what is effective tax rate for dividend distribution?
(5)when do companies have to pay it?
(6)what are the recent changes that have been made to tax on dividend?