Author: shrinath Iyer

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

Since March 2020, when the stock markets plummeted, asset values have rebounded at a similar rate. What develops is a type of agreement that, regardless of short-term blips, equities do well in the long run. While the volatility persisted into 2021, it also demonstrated that the stock market is not just a home for the bulls and that prices do fall. So what moves up the prices of stocks? Corporate earnings and growth prospects in the years ahead are what ultimately drive equities asset prices. Current valuations appear to be on the high side, and many companies’ input costs are under pressure. However, truly valuable companies come with good promoters and a sound business fundamental and are always good investments in the long run. Here is how you can diversify your investment across multiple asset classes to build over wealth over a long period of time. Before we start… Before investing a lump sum in your portfolio, make sure to have an emergency fund that covers the basic health and life risks for your family. This way, your family can stay financially secure in any emergency. It is also important to apply and obtain enough health insurance for every member of your family. You can also choose a term insurance plan that covers at least 15 times your annual income and reassess it every five years or if new financial obligations arise. Another thing to keep in mind is to choose the right investment partner for your financial objectives. Zebu is one of the leading share market brokers for online share trading. Get started in a few minutes with us to own one of the best trading accounts in India. Fixed Incomes The fixed income asset class, which is the most popular among Indians, is one of the most trusted and oldest types of investments. Two examples are fixed deposits and public provident funds (PPF). Is this, however, a sound investment? You’re simply allowing the bank to borrow money from you under the terms of capital protection, pre-agreed returns, and liquidity. You will not lose money if you invest in fixed income asset types because they have no risks. Furthermore, you receive consistent profits as promised at the time of investment. Fixed income plans may offer yields of 7% to 8%, but they are hardly inflation-beating rates. Fixed income plans only provide security and are subject to STCG or LTCG depending on the term. SIPs Start SIPs (systematic investment plans) in a few equities mutual funds with a good mix of large, mid, and small-cap schemes. When you have a large sum of money to invest, put it into your current folios. Also, take advantage of market dips to add extra shares to your roster. Importantly, diversify among stock, debt, and gold to maintain asset allocation and avoid switching from one asset or scheme to another based on short-term performance. You can put funds in a liquid fund and migrate them to equity schemes at periodic intervals using the STP (systematic transfer plan) technique. These strategies assist in taking a managed approach and regularly subjecting your funds to the prospects of the equity market for a better risk-adjusted return. Depending on your risk profile and the general economic climate, a portion of your portfolio can also be invested in sector-specific funds such as pharma and IT funds. Mutual funds A mutual fund is managed by an analyst or fund manager who handles the money from multiple investors and invests it in stocks, bonds, and short-term debt. The mutual fund comprises stocks from various market segments that the fund manager deems well-performing. And shares of the mutual funds are purchased by investors. With every share you own, it is a representation of the fund’s ownership and revenue. Mutual funds are seen as a relatively risk-free tool for investors to diversify their portfolios. Debt funds Debt funds are mutual fund schemes that are focused on fixed income instruments such as government and corporate bonds. In these finds, your capital is relatively safe and you also earn a small interest on it. Debt funds now include floating rate bond funds. These are debt instruments whose interest rates vary with the value of the underlying instruments. These can be chosen by investors for goals that are at least three years away. Gold Over the last year, gold has remained nearly unchanged. However, in light of growing inflation, one can consider a 5-10% exposure in their portfolio. You could invest in gold using sovereign gold bonds rather than physical gold. Depending on your risk appetite and capital, you can tap into a sea of investment options that are right for you. At Zebu, we complement your financial goals with the best trading account we can give you. We are one of the leading share market brokers in the country and come with a wide range of products and services to help you make the right financial and trading decisions. We give you the ideal platform for online share market trading as well for the risk-taking individuals. To know more about our products and services that will help you maximise your returns across all asset classes, please get in touch with us now.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

You conduct research, select a mutual fund plan that meets your aims, budget, perform all kinds of analysis, and then invest in a mutual fund scheme. Then, when the investment period comes to a close, you can reap the rewards of capital growth. It is as simple as that, right? Not always. Investing in a mutual fund entails more than just putting money into it and waiting for it to pay off at the end of the investment term. To truly enjoy its full benefits, more effort is required from your end to constantly monitor and analyse various parameters of your portfolio. To achieve optimal capital growth, you must keep a careful eye on it and manage it well during the investing period. Sometimes, switching between funds is necessary to avoid market risks, avoid fund underperformance, and avoid fund performance stagnation. Signs that you need to change your mutual find scheme Change in investment goals Before you begin investing in mutual funds, you must first devise a strategy that is tailored to your specific objectives, risk appetite, investment horizon, budget, and other objectives. The type of mutual fund schemes you should invest in is determined by these criteria. Mutual fund investments can be divided into three categories based on their investment horizon: short, long, and intermediate. Risk appetites are divided into three categories: aggressive, moderate, and conservative. It is important to keep your expectations in check in terms of the kind of profits do you hope to get from your mutual fund investment. In this instance, mutual fund schemes might be classified as income-oriented, balanced, or growth-oriented. When investing in a mutual fund scheme, you may have had a certain goal in mind. But what happens if your goal shifts in the middle of the project? You can switch between funds in this situation to suit your new investing goal, horizon, and risk tolerance. On a side note, one of the first things to keep in mind when it comes to investing in mutual funds is to identify the top brokers in share market . Zebu is a leading online share broker that offers one of the lowest brokerage fees when it comes to investing in mutual funds. Read on to know more about when to change your mutual fund plans. Your scheme is underperforming There’s no guarantee that the mutual fund scheme in which you invested will perform well over time. You may have analysed prior fund performance and tried every permutation and combination to find the right mutual fund investment for you. Despite your best efforts, you never know when your scheme will underperform or become vulnerable to hazards, even in favourable market conditions. To ensure that your portfolio does not become stagnant, you must switch to a different fund. To keep the portfolio balanced, over-weight mutual funds should be rotated. You simply feel like you made the wrong choice When it comes to even the safest investment options, mistakes are bound to occur (especially if you are doing the research by yourself). Fortunately, investing in mutual funds is not one of them. Worry not if you bought in a mutual fund without doing your homework or understanding key technical features, only to discover later that it isn’t a good fit for your goals or risk tolerance. Your current assets can easily be reallocated into a portfolio that matches your needs. In the world of mutual fund investing, erroneous predictions are more common than you would think. Sometimes, even seasoned fund managers can get their analysis proved wrong. For these reasons and more, it is crucial that you keep a close eye on your mutual funds and keep your options open and diverse. Apart from this, to maintain balance and enhance fund performance, an investor should rotate the assets in his or her portfolio on a regular basis. With Zebu’s seamless investment platform, which is one of the top brokers in share market, you can get started with direct mutual funds and make more than 1% of the returns you would otherwise make with managed mutual funds. And with our lowest brokerage fees, you can confidently make changes to your scheme as per your requirements. We are, in fact, one of India’s leading online sharebrokers. To know more, please get in touch with us now.

Large Cap vs Mid Cap vs Small Cap: Key Differences That Actually Matter

Being one of the fastest-growing brokerage firms in India, we feel that it is our responsibility to educate investors and traders and empower them with the right technological tools they need to make informed financial decisions. In that aspect, we have been our end-user tools like Zebull and Smart Trader. constantly updating

Here are the products and services that were updated to become more feature-packed for our customers.

1. Zebull Web Zebull is the web application from Zebu that allows traders and investors to make use of a plethora of indicators and screeners to form their biases for intraday trading, swing trading or long-term investments. With our latest upgrade to the mobile version, users can now view and make use of the average MTM to exit a trade properly. 2. Smart Trader Web This is a standalone trading application that can be downloaded and installed on a PC. This year, we launched the mobile version of the same to help traders access their trades very quickly. These web and mobile versions come with additional functionalities like advanced charting and screening, as opposed to the ones you can find in the regular apps from Zebu. 3. New eKYC system Opening an account with Zebu has never been easier with our new eKYC system that enables paperless and real-time customer onboarding. With frictionless digital onboarding in place, any customer can quickly open an account online in a few hours. 4. Online ReKYC With our new paperless systems, you can do a reKYC at specific intervals to stay compliant with SEBI’s regulations. You can even effortlessly change or update your personal information in a few clicks. 5. Online SGB Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold. They are substitutes for investment in physical gold. On redemption, cash is deposited into the investor’s registered bank account. These Bonds are issued by the Reserve Bank of India on behalf of the Government of India and are traded on a stock exchange. Zebu makes it easy for you to make an investment in SGB. 6. Upgraded Website With an extremely easy-to-use UI and improved usability, we have launched a new and responsive website for Zebu. You can access more information about the products and stay up-to-date on any updates from us. 7. Single sign-on An SSO component adds an additional layer of security to your trading account with us. API users can also use this to log in to their accounts without their credentials. 8. UPI fund transfer Users can now use their default UPI gateways to add funds to their accounts. The money will be added to the customers’ ledger without any latency. 9. Online pledge Our customers can use our highly secure online platform to pledge their securities without providing any physical documents. 10. Span calculator Clients can now easily calculate margin requirements for their trades and investments through a real-time calculator.

Outreach through financial education

Our Founder & CEO Mr. Vijaykumar has written information-rich articles for Vikatan, a regional magazine in Tamil Nadu. These articles contain insights and information that will allow readers to connect the dots between news events and their impact on the share market. Here are a few titles of the articles he has authored. 1. The Reserve Bank ordered the dissolution of the board of directors of SREI and recommended a three-member panel to run the company. This article follows the measures taken by the RBI to restructure SREI and bring it back on track to become more accountable to its employees, customers and shareholders. 2. What’s the problem with China’s Evergrand real estate company? This one outlines the problems of the company Evergrand in China. The debt-ridden company suddenly seemed to put on a clown show for the public by constantly shifting its business focus. 3. T1 settlement from SEBI This is his take on SEBI’s new rule to change settlement duration from T+2 to T+1. He shares his insights on what this means for traders and investors. 4. Can start-up companies invest when it comes to IPOs? Lessons from Zomato In this article, Mr. Vijaykumar analyses the IPO of Zomato and drives a few lessons that can empower retail investors going in for the next few IPOs of the year. 5. Can I buy a stock just by looking at the PE ratio? Attention investors PE ratio forms an integral part of fundamental analysis and in this article, he explains its relevance in today’s investment decisions. 6. Recession… But why is the stock market rising? Answer to the question of investors In this article, he helps new traders and investors understand the relationship between inflation and market movements. At Zebu, we work constantly to improve our products and services. We always appreciate any feedback that we can incorporate to improve your experience with us. We would love to hear from you at grievance@zebuetrade.com