You can nominate only one person per mutual fund folio that is held by you. But if you have more than one folio, you can appoint different nominees for each folio.
Mutual funds invest in various financial securities such as shares, debentures and deposits. All these investments involve an element of risk, hence the returns of the mutual fund are linked to their perfomance.
The fee paid to the Asset Management Company at the time of either redemption or transfer of units from one scheme to another, is termed as exit load. This fee is deducted from the NAV at the time of redemption/transfer of units.
No. It differs from one scheme to another.
The details will be communicated to you within 3 days from the date of transaction (T + 3 days).
Yes. However, upon appointing a minor as your nominee, you would be required to provide the name and address of the minor’s guardian in the nomination form.
Yes themes bought through our thematic investing portal will reflect in your demat account.
You can invest more by either buying more of the same theme or diversifying by buying different themes. You will need a sufficient account balance to invest in either case.
Firstly, you will need to have a trading & demat account us. You can transact in the themes after using your client login credentials. Just make sure you have sufficient account balance.
The minimum investment amount will be the value of the smallest theme. You can invest any amount higher than that. Also, there is no upside limit to the amount you can invest per theme. You can also re-adjust the weightages and stocks to suit your needs.
You can hold a theme for as long as you want. You can optimize it by rebalancing it on a regular basis based on our updates. Reviewing and updating themes is based on our in-house proprietary research mechanism. Stock markets changed dynamically and swiftly. So we will keep you updated regarding these changes on our portal. However, you must note, that the purpose of thematic investing is to build a smart portfolio of stocks. So our aim is to balance your investments and not to try and time extremely short-term stock price fluctuations.
Right now, you can only buy during the stock market hours between 9:15 AM to 3:30 PM on normal working days.
Yes, all thematic portfolios are reviews and updated on a period basis. Since stock markets are in dynamic trends, we find companies poised to benefit from them and help you rebalance them to stay tuned with developments.
Our in-house research team conducts in depth market research using the top-down approach. We use a wide universe of stocks to find the most suitable investments. Extensive fundamental research is done to allocate the best stocks and alternatives. Our thematic portfolios seek to identify and exploit powerful themes that may drive profits across industries.
A theme index represents the value of the particular theme / portfolio of stocks. At the beginning, the value is set to 1000 by default. The index value is a means to track the performance of the theme. For example, if the value has increased to 1100, it means that the theme is up by 10%.
Yes, you will need to be our client. Get in touch with us for more information.
Rebalancing is a way of staying in tune with the thematic idea. A rebalancing means replacing, adding or removing stocks from a theme to make it better. You can optimize it by rebalancing it on a regular basis based on our updates. Reviewing and updating themes is based on our in-house proprietary research mechanism.
The charges are a flat fee of ₹100 per theme.
Yes you do need a demat account to buy and hold equity investments.
Since market orders (IOC) are being placed at the current market price, there is always a likelihood that stock prices have changed by the time your orders are completed successfully.
No. Since the orders placed are market orders (IOC), they cannot be cancelled or modified.
In the event that orders are not filled due to some issues, you can either place fresh orders for the orders which have failed.
The orders places are market orders with IOC validity (Immediate or Cancel). What this means is that when you place an order, it gets filled at the current market price immediately or is cancelled immediately.
This is because the weightage cannot be exactly the same due to the differing value of different stocks. This is a determining factor why your returns cannot be exactly the same as the return mentioned in the website. Since it is not possible to by fractional shares in India the limitation does exist.
You can track the performance of themes by tracking the index value. When you make the investment, the index value is set to 100 by default. If the value of the index goes up, it will reflect in the index value too. Let’s say it goes up to 110. It means that the theme is up by 10%.
No. The fees are automatically debited from your trading account and you do not have to pay anything separately. It is hassle-free.
A theme is a mini portfolio of stocks which revolve around a particular idea or sector. Themes are intelligently designed to help investors build a good portfolio surrounding different ideas rather than individual stocks only. It is a futuristic way of investing in the Indian stock market. For those who are keen on investing but don’t know how to start, this is your go-to portal for building an optimal portfolio. Choosing this route, gives you a hassle-free experience as themes are rebalanced periodically to help you stay tuned with current developments in the stock market.
You can use our portal for viewing purpose only for a limited period of time. However to start investing, you will need to open a trading & demat account with us.
Thematic Investing give you the exposure to different trends via intelligently designed portfolios of stocks. The chosen stocks tend to be suited to the specific theme and are carefully researched using the top-down approach. You can choose from the wide array of portfolios based on what you think will do well. So instead of focusing on researching stocks, you can spend time identifying large trends of the future. You can stay tuned with the dynamic shifts in stock movements by our rebalancing facility which happens on a timely basis. You can also sell one theme and buy another wherever you see fit. Overall, your portfolio will also be less volatile and you get a better exposure to what you are looking for.
The aim of balanced funds is to provide the best of both growth as well as income funds. Such funds are suitable for investors looking for moderate growth with lesser risk.
Yes. For further details, contact our support team.
These funds are also income funds and their aim is to provide preservation of capital, liquidity and moderate returns on investment. Such funds are suitable for investors looking for safety as well as to generate moderate returns on surplus funds for a short period of time.
These funds invest exclusively in government securities and have no default risk.
Such mutual fund schemes invest in the securities of only a specific sector or industry, as specified in the offer documents.
Growth plans aim to provide only capital appreciation to the investors. They do not distribute the income earned to the investors in the form of dividend.
Mutual funds dividend plans distribute the income that they earn from time to time. These plans are ideal for those investors who require a regular income.
Dividend plans have an additional option for reinvestment of income distribution. Under this plan, dividends declared by a fund are reinvested on behalf of the investor, thus increasing the number of units held by the investors.
The aim of income funds is to provide regular and steady income to investors. Such funds are less risky and are advisable for investors seeking a short term return on their investment.
The aim of equity funds is to provide capital appreciation over the period of investment. Such funds have comparatively higher risk and are advisable for investors having a longer-term outlook.
Yes. SEBI regulations stipulate that at least one of the following two exit routes be provided to investors of close-ended funds/schemes:
1) Investors can sell the units of the fund/scheme on the stock exchanges where the units are listed.
2) Some close-ended schemes provide an option of selling back the units to the mutual fund at the respective NAV prices.
Anyone who has an account with us is eligible for thematic investments. Our platform can be used by new and experienced investors alike. It allows you to choose from intelligently designed portfolios of stocks. You can get exposure to different types of trends in the Indian stock markets at the same time. It is an efficient and innovative way of building long-lasting portfolios.
Thematic investing allows you to invest in different themes or portfolios without getting into the stock specifics. Since people think more in terms of ideas than fundamental facts on stocks, this mechanism nurtures that aspect and helps you get better at identifying themes which will do well in the future rather than individual stocks. The stock selection happens at our end. So in effect, you can invest in several different portfolios at the same time without the hassle of detailed fundamental research. The themes are already diversified optimally to begin with. The stocks are chosen based on merit and their historical performance is displayed.
Mutual funds are made up of all the money pooled in by a large number of investors. This pool of money is managed by a portfolio manager, who invests the funds in various financial instruments.
The performance of a particular scheme of a mutual fund is denoted by its NAV.
Yes. Mutual funds invest the money collected from the investors in the securities markets. Since the value of the securities changes every day, NAV of a scheme also varies on a day to day basis.
Open-ended mutual fund schemes are available for subscription and repurchase on a continous basis. These schemes do not have a fixed maturity period.
These funds/schemes offer liquidity to the investors.
Close-ended mutual funds schemes are available for subscription only during a specified time period. They have a fixed stipulated maturity date.
Yes, individual investors can appoint a nominee. But non-individual investors cannot appoint a nominee.
If auction fails, then the exchange will close out the transaction by settling the buyer’s obligation in cash. The close out price paid to the buyer will be the highest price of the stock from the transaction day till the auction day or 20% higher than the official closing price on the auction day, whichever is higher.
A trailing stop limit order is designed to allow an investor to specify a limit on the maximum possible loss, without setting a limit on the maximum possible gain. These orders continuously recalculate the stop loss price at a fixed amount below the market price, based on the user-defined “trailing” amount. So as the stock price moves up, the stop loss price will also move up maintaining the user defined trailing amount. For example, Mr. X bought shares @ ₹100. He places a trailing stop loss order @ ₹90 with a trailing gap of ₹10. If the stock price goes up to ₹105, the stop loss price will also recalculate itself to ₹ 95 maintain the trailing gap. So if the price moves further up to ₹130, the stop loss price will become ₹120. But suppose the stock price starts falling to ₹125, the stop loss price will remain @ ₹120. The trailing stop loss orders will recalculate itself to maintain the trailing gap if the price moves in favour of the investor but will not recalculate in the event that the share price moves against the favour of the investor.
This order enables the investor to state the maximum possible loss without sacrificing the profits. Such orders help investors to lock in profits if the share price moves in their favour as the stop loss price will automatically recalculate to maintain the trailing gap amount.
GTD referes to ‘Good Till Day’. In the event that these orders do not get executed immediately, they remain pending until the end of the trading day. After which, the exchange cancels all the pending orders.
IOC is refered to ‘Immediate Or Cancel’. These orders get executed as soon as they are sent to the exchange, failing which they get cancelled. These orders do not remain pending in the system till a suitable match is found. In case, only a portion of the order is executed, the other portion gets cancelled automatically.
In normal orders, the entire order quantity is disclosed to the market. But an order with a disclosed quantity allows the investor to disclose only a part of the order to the market. For example, Mr. X wants to buy 100000 shares of a stock at the prevailing market price. If he does not want to disclose his order size to the market, he can set disclosed quantity to 1000. As soon as the his 1000 shares are executed, the next order will automatically be sent to the market. This process repeats until all he has purchased 100000 shares.
After Market Orders (AMO) are placed in the system after the markets are closed for the day.
Yes. After market orders have to be limit orders.
The exchanges fix price bands for stocks within which the stock price can move in a day. For F&O stocks, the price band is 20%. This means that transactions can only take place within +20% and -20% with the previous day’s closing price taken as the base price for reference. However in case of few specific scrips, the exchange may fix price band of less than +/-20%. Any orders placed outside this band will get rejected by the exchange. Incase an investor specifically wants to place an order outside the price band, then he/she would be required to take permission from the exchange in order to do so.
The investor can specify his/her profit expectation as well as the maximum risk that he/she would be willing to incur in a single order.
It is an order which enables the investor to place two orders simultaneously. 1) The price at which he/she would sell the investment to book profits, 2) The price at which he/she would sell the investment to reduce losses. For example, suppose MR.X has purchased shares @₹100. He would like to sell his shares if the stock went up to ₹110 (where he makes a profit of ₹10) or if the stock price went down to ₹98 (where he makes a loss of ₹2). Mr.X can place a take profit and stop loss order as follows: Take profit price = ₹110, Stop loss price = ₹98. If the stock went up to ₹110, then his shares will be sold and automatically the stop loss order will get cancelled. Similarly, if the stocl went down to ₹98, his shares will get sold and the take profit order will get cancelled.
Stop loss orders remain inactive until the last traded price reaches the stop loss price. During times of market volatility, the stop loss order may not get executed as price may move past the stop loss price very quickly. To avoid such a situation, the trigger price will allow the investor to activate the order even before the last traded price reaches the stop loss price.
The seller who fails to deliver the shares to the buyer will be debitted the difference between auction settlement price and the original price along with an auction penalty of .05% per day that the seller fails to deliver the shares. In case the transaction is closed out by the exchange, the seller is debited the difference between the close-out price and the original transaction price.
A market order is an order to either buy or sell an investment at the best available price in the market at that particular moment in time.
Market orders usually get executed immediately at the best prevailing prices in the market. The investor will not know the exact price at which the order will get executed while placing the order.
A limit order is an order to either buy or to sell a security at a specified price. The order will either get executed at the limit price or would not get executed at all.
Limit orders get executed only at the specified price and will remain pending until that price is reached. Sometimes, these orders may not get executed at all.
It is an order to exit an open position when it reaches a specified price. These orders are designed to limit the investor’s loss.
These orders can protect the investor against sudden movement in the security’s price.
Stop loss orders are designed in such a way that the order remains inactive until the last traded price reaches the limit order price. The stop loss trigger price enables the user to define at what price the stop loss order should get activated. Once the last traded price reaches the trigger price, the stop loss order is eligible to be executed on the exchange.
Yes, you can link additional bank accounts to your trading account for the benefit of fund transfer.
No, cheques from unknown bank accounts will not be accepted.
No, fund transfer can only be done from those bank accounts which are linked to your trading account.
Yes, the minimum balance amount can be utlised to enter into any position.
Yes. Contact our sales executive for further details.
POA enables quick, smooth and efficient functioning of the demat account. It is used to debit securities from your demat account upon your request to either sell or pledge the securities which you own.
In the absence of a POA, a client would be able to sell or pledge shares which he/she owns only upon physically submitting the Delivery Instruction Slips to the broker.
In Person Verification is a mandate issued by SEBI in the year 2008. It is to ensure that stock brokers can verify the true identity of the applicant along with verifying the authenticity of the documents submitted.
Securities and Exchange Board of India (SEBI) allows the stock broker to conduct In Person Verification (IPV) either physically or through a web camera.
Yes, it is a regulatory requirement.
Yes. It is mandatory to self attest all the documents submitted at the time of account opening including signing across the photograph of the applicant.
Aadhaar Card, Passport, Voter ID, Driving License, PAN Card with photograph, ID card, with photo, issued by Govt departments/Public Sector Undertakings/Scheduled Commercial Banks.
No, fund withdrawal is only processed through bank transfer.
No, fund withdrawals are credited only to the primary bank account.
Check our pricing page.
Yes, all account holders will be required to incur the AMC even if there are no transactions executed.
Find our charges list. (Link to charges list pdf)
You would be required to provide Proof of Address (POA), Proof of Identity (POI), PAN card, Bank statement, cancelled cheque and photographs.
Passport, Voters ID, Ration Card, Driving License, Insurance Copy, Utility bills like telephone, electricity or gas (Not more than 3 months old), bank account statement, Passbook (not more than 3 months old), ID card with address issued by Govt Departments/Public Sector Undertakings/Scheduled Commercial Banks.
Either upon collecting the account opening forms directly from you or once the necessary documents have been received, our executive will conduct the IPV through the web camera.
An auction occurs when the seller of the shares has not made available the shares on the settlement day. To fulfil the obligation to the buyer of the shares, the exchange carries out an auction for the shares in the open market.
Yes, the futures order has two criteria that need to be met: 1) Price Limit – In case of stock futures, the price has to be within the range of +/-20% of the previous trading day’s closing price. In case of index futures, the price has to be within the range of +/- 10% of the previous day’s closing price. 2) The exchange constantly updates the quantity limit for futures. You can find the latest list here: www.nseindia.com/content/fo/qtyfreeze.xls It needs to be noted that the exchange may change these criterion based on volatility.
Yes, we allow investors to take intraday futures positions with lesser margin requirements than carry forward futures transactions. But such positions will mandatorily squared off the same day itself.
You can check the margin requirements in our margin calculator. No, the leverage provided is not the same across all the stocks.
Yes, but the investor will have to meet the additional margin requirement to carry forward the position.
Yes, this is possible if the investor chooses to roll over his/her futures positions.
Rollover is a facility that enables the investor to carry forward his/her futures position beyond the expirty of the contract.
Rollover is a two legged transaction. In the first leg, the investor needs to square off the near month position. In the second leg, he/she will have to take a fresh position in the same direction in either the next month or the far month contracts.
The investor will have to bear the difference in prices between the near month contract and the next/far month contract along with brokerage and transaction costs on both legs of the transaction.
Minimum margin is the margin amount that the investor should have allocated towards the open positions. If the minimum margin level is breached, the system will automatically block further funds. Incase investor does not have sufficient funds in his/her account, the position will be squared off.
In the event that the margin requirement is increased, the investor will have to allocate additional funds towards the open position, failing which the position will be squared off.
Yes. Margin requirement may change due to the increased volatility in the prices.
Futures contracts are standardized contracts made between two parties during a course of a transaction. These contracts enable the two parties to buy and sell a particular security at a certain price in the future.
To buy or sell futures, the investor is required to place a certain percentage of the order value as margin. In futures trading, the investor uses leverage to buy or sell more of the security than what he/she could have taken in the regular cash market.
In a margin transaction, the positions are squared off the very same day whereas in futures trading, the positions can be held until the expiry of the contract. In an intraday margin transaction, the investor has the option of converting his position to delivery, provided he has sufficient cash/shares in his demat account (depending upon whether he has a buy position or a sell position). Whereas the investor has no such option in futures transaction since all futures contracts are cash settled.
Yes. Since all derivate positions are settled in cash, the investor can short sell futures contracts without having the underlying shares in his/her demat account.
Margin requirement differs from one scrip to another.
A derivative is a mutual contract between two parties which derives its value from an underlying asset. These contracts are time bound contracts whose value changes in accordance to the value of the underlying asset.
An underlying is the asset upon which the contract is based upon. The underlying refers to the stock which is widely traded in the market. The stock may have several tradeable derivative contracts based upon different criterion. But all derivative contract values are dependent on the underlying i.e., the security itself.
Derivative contracts are time bound contracts which are valid only for a certain period of time. These contracts expire on a monthly basis. Equity derivative contracts, currency derivative contracts and commodity currency contracts have their own expiry dates each month.
The margin amount is blocked to safeguard against adverse price movement. However, the amount blocked as margin at the time of transaction would be slightly greater than the minimum stipulated margin requirement to undertake the transaction. This is to avoid from squaring off of the position in case of adverse price movements.
In the event that the losses are greater than the total margin blocked, then the position will be squared off by the broker to avoid further losses. The losses over and above the margin amount blocked will be debited from the account balance automatically.
In such a situation, the client is obligated to clear the dues to the broker immediately. Failing which, the client will be charged a penalty.
Yes. Since the square off process is triggered when the available margin is less than the required margin, providing additional margin will ensure that sufficient margins are available in case you face losses.
Settlement cycle refers to the period in which the buyer and seller of shares settle their obligation to each other. In india, we follow T+2 settlement cycle. So if the transaction takes place on Monday, the settlement will be done on the second trading day, which is Wednesday, if the transaction takes place on Tuesday, the settlement will take place on Thursday, so on and so forth.
T referes to the day on which the transaction took place. This means that the buyer must pay the amount in full to the seller by the second trading day after the transaction and the seller must provide the shares to the buyer by the second trading day after the transaction.
In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. Trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd working day. For arriving at the settlement day all trading holidays are excluded.
Unlike in rolling settlement, scrips listed in Trade for Trade segment are settled on a trade for trade basis and no netting off of obligations is allowed. This means that scrips listed under this segment cannot be sold before they have been settled, which is on T+2.
Margin amount is the minimum percentage of the total transaction value which is required in order for the investor to take an intraday position.
Once an investor chooses to convert a ‘BUY’ intraday position, 100% of the cash transaction value is blocked from his/her account. In case the investor chooses to convert a ‘SELL’ intraday position, then the funds blocked for the position will be released and the equivalent quantity of the transaction value is blocked in his/her demat account.
Convert to delivery is an option for the investor to convert the intraday open position to a cash segment transaction. Once the investors chooses to convert his transaction to delivery, then he is obligated to make settlement for the transaction on T+2 day.
Typically, derivative contracts are valid for three months.
When the contract expires, all the outstanding positions in the derivative contract are closed and profit/losses are settled in cash.
Typically, derivative contracts which expire in the current month of trading are called ‘Near’ month contracts, those which expire next month are called ‘Next’ month contracts and those which expire the month after next are called ‘Far’ month contracts.
Not all scrips have derivative contracts under them. The National Stock Exchange (NSE) updates the list of securities that have derivative products from time to time. The exchanges consider only those stocks which meet the criteria of liquidity and volume.
Mark to market is a process by which the profits and losses are continously calculated based on the current market prices of the security.
It is mandatory for derivative positions to be settled in cash on a daily basis. At the end of each day, settlement of open derivative positions takes place at the exchange provided closing price. The difference between the opening price and the closing price is settled in cash (On the day of the transaction, the opening price is the acquisition price). In case of profit, the difference is added to the account of the investor and vice versa. Incase of loss, the difference is deducted from the account. The subsequent day’s opening price is the previous trading day’s closing and the process repeats at the end of the day.
In a normal transaction, to buy shares you need 100% of the value in cash and to sell shares you need 100% of the quantity available in your demat account. With margin trading, you use leverage on your available funds to buy/sell positions of larger value than what you could have taken in a normal transaction.
Transactions in cash segment are settled on T+2 basis. The buyer pays the seller in full for the shares that are purchased and the seller delivers all the shares to the buyer. In cash segment, the shares are delivered to the buyer by the seller. In intraday trading, the transaction will be squared off by you or it will be done automatically at the end of the day unless it is converted into delivery.
This refers to a situation wherein the seller of the shares does not make the shares available to the buyer on the settlement day. This results in the buyer not getting the shares credited to his demat account on the T+2nd day.