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

When it comes to investing in the stock market, you have so many options to choose from! You can choose from over 5000 companies based on your risk-taking abilities and market conditions. However, these stocks can be classified broadly into a few types that will make investing easy for you. Let’s look at the many types of stocks and how to choose them. 1. Blue-chip stocks Blue-chip stocks are top-rated stocks that you might be very familiar with. For example, Reliance, TCS, Nestle, and Asian Paints are a few blue-chip companies. But do you know what these businesses all have in common? They’ve been in business for a long time. They are well-known with a long track record of performance. Show consistency in performance Are pioneers in their respective sectors Have strong financials These companies’ stocks are good buys. Since these companies are the best in their respective industries, they can provide consistent returns. More importantly, because they are at the top of their game, you may not notice a significant decline. Are very liquid since there are always investors wanting to acquire these equities. Before we proceed, let’s discuss an important market term – beta. Who doesn’t like the attractive combination of predictable returns and low volatility? But how does one evaluate both of these combinations in a single stock? There are numerous methods for evaluating a firm, but one efficient method is to examine its Beta. What exactly is a Beta? Beta is a measure of stock volatility in relation to stock indices such as the Nifty, which has a beta of one. A stock is regarded as more volatile than the index if its beta is greater than one. It is typically favoured by aggressive investors with a high-risk tolerance. A stock with a beta of less than one, on the other hand, is considered low volatile and is chosen by conservative investors with a low-risk appetite. Beta can also be referred to as market risk or systematic risk. 2. High-beta stocks Stocks with a beta greater than one are considered high beta. Because of their high beta, these companies are volatile and are preferred by aggressive investors. They also have the potential to outperform the benchmark index in terms of returns. Stocks in financial services, infrastructure, metals, and other industries are considered high beta. So, what are stocks with a low beta value called? That brings us to our next stock kind. 3. Defensive stocks In layman’s terms, defensive stocks are equities issued by corporations that are not affected by economic cycles. Companies in this area include healthcare, utilities, and food & drinks, among others. Regardless of the state of the economy, you will require food, healthcare, and electricity. So, these are not affected by economic events. These stocks often have a beta of less than one and are considered low volatile. Despite a market slump, these equities are unlikely to decline significantly in comparison to other stocks. As a result, they are often favoured by investors who do not wish to take on a significant level of risk with their equity portfolios. But what kind of equities are genuinely affected by the economic cycle? 4. Cyclical securities Cyclical equities, on the other hand, are corporations whose performance is affected by economic cycles. When the economy is in a boom, there is a strong demand for these companies’ products, which leads to better profitability and rising stock values. When the economy is in a slump, however, demand for these industries’ products falls, resulting in fewer earnings and a drop in stock price. Steel, cement, infrastructure, vehicle manufacturers, and real estate firms are examples of companies that belong within this category. You may have guessed why by now. Because budget cuts make it less probable to buy a new automobile or a new house while the economy is struggling. In the next blog post, let’s discuss more types of stocks.

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

The majority of people invest their hard-earned money in the stock market. However, making money through stock market investing or trading is never easy. The stock market is extremely volatile, and your investments could be in danger. However, many people have become incredibly rich in the markets. What are some of India’s greatest successful stock market investment tales? Who are the Indian stock market investors who have amassed fortunes through investing and trading? #1 Rakesh Jhunjhunwala Rakesh Jhunjhunwala, dubbed the “Warren Buffet of India,” first entered the Indian stock market in 1985. He got his interest in stock trading from his father, who used to talk about it with his friends, and Rakesh would pay close attention. He enrolled in the Chartered Accountancy program and graduated in 1985 with a professional degree. He then joined the Stock Market and began trading. His first big hit was 5000 Tata Tea shares, which he bought for Rs 43 and sold for Rs 143 in less than three months. This provided him with Rs. 5 lakh, which was a significant sum at the time. Sesa Goa was his next big wager. He bought 4 lakh shares and made a fortune from them. There are a lot of stocks that earned big sums of money for him like Lupin, Crisil, etc. His portfolio is now valued at over Rs. 20,000 crores (3.2 billion dollars), with Titan, Lupin, and CRISIL as his top holdings. He is a well-known Indian stock market trader and investor known as the “Indian Warren Buffet.” #2 Porinju Veliyath – A member of the middle class who became the CEO of Equity Intelligence Porinju Veliyath was born in a lower-middle-class Kochi family in 1962. His early years were filled with difficulties. To support his family, he took on various jobs while also studying. In 1990, he moved to Mumbai in search of work. At Kotak Securities, he was hired as a floor trader. He had never worked in the stock market before. He quickly studied the ins and outs of the stock market and developed into an adept trader. He spent four years there and learned a great deal. He began working as a Research Analyst and Fund Manager for Parag Parikh Securities in 1994. In 1999, he returned to Kochi and started to invest in the stock market on his own. In ‘Geojit Financial Services,’ he made his first significant investment. At the time, the stock was trading at a relatively low price. This investment paid off handsomely, proving everyone wrong. He founded his own portfolio management service (PMS) firm, ‘Equity Intelligence,’ in 2002. He is currently one of the most well-known investors and fund managers in modern history. Stock picks from Equity Intelligence such as Emkay Global Financial Services and BCL Industries have increased by 200 percent, while IZMO and Vista Pharma have increased by 100 percent. #3 Vijay Kedia – Vijay Kedia is a successful investor who comes from a family of stockbrokers. Vijay Kedia was born into a family of stockbrokers and began his career in the stock market in 1978 out of necessity after his father died. So, in order to provide for his family, he joined the family trading and stock-broking business. He wasn’t performing well at first. He did not give up hope, though, and read about successful investors. He made the decision to invest. He started learning about business concepts. He had Rs 35,000 at the time, and according to his research, he invested it all in a stock called Punjab Tractor. The stock increased sixfold in three years, and his Rs 35,000 became Rs 2.1 lakhs. Following that, he made an Rs. 300 investment in ACC. After a year, the stock had grown tenfold and was worth Rs. 3,000. He proceeded to make profitable stock investments, amassing a fortune of 500 crores. His most important success mantra is “information to locate quality stocks, which can only be obtained by reading.” He cannot be a competent investor if he does not read often.’ #4 Nemish Shah – One of the top ten retail investors in the world. Mr. Nemish Shah is the co-founder of ENAM, one of the most well-known and respected investment firms. He is a very simple man who avoids the media and public attention. His investment strategies are smart and in high demand. In three years, he invested in Asahi India and saw his money grow by 3.4 times. He does not invest in a large number of stocks, preferring to focus on a small number of firms that are very sector-driven. With a net worth of Rs 1,300 crore, he is one of India’s top ten retail investors. #5 Ramesh Damani — A well-known Indian investor Ramesh Dhamani is well-known for his investments in both publicly traded and privately held businesses. He is known for selecting high-quality equities and holding them for long periods of time. He invests in companies with solid management credentials and processes, following Warren Buffet’s philosophy. In his career, he accomplished a lot of good things that earned him millions of rupees. #6 Motilal Oswal Group Founder Raamdeo Agrawal Raamdeo Agrawal is the MD and co-founder of Motilal Oswal Financial Services and a founding member of the Motilal Oswal Group. He began buying stocks in 1980 and amassed a portfolio of around Rs. 10 crores by 1994. Then he read Warren Buffet’s advice and worked on his portfolio to select quality stocks rather than acquiring bad ones. His investment portfolio increased in a year. He has a net worth of more than Rs. 6,500 crores (1 billion USD). #7 Dolly Khanna, is an Indian value investor. Dolly Khanna, a value investor located in Chennai, has been trading in Indian stocks since 1996. Rajiv Khanna, her husband, manages her investments. She made her debut in the fertiliser industry, focusing on a high-quality small-cap business with a monopolistic position. She has an uncanny ability to recognise multi-bagger stocks and knows when to take profits. Her portfolio includes Emkay Global Financials, PPAP Automotives, IFB Industries, and Thirumalai Chemicals. Finally, we’d like to state that there is no academic degree in the world that can guarantee you success in the stock market. In the end, it is the experience that teaches you.

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

Investing is the most important way to build wealth and you don’t need to be an expert in the share market to be profitable. If you are unsure of how to choose the right stocks, you can always hand over the burden to the experts and simply invest in mutual funds. If you stay invested even for 20 years with an approximate return of 12% per annum, you can not only beat inflation but also create an immense amount of wealth. If you are just starting out on your first job, invest as much as you can spare and keep increasing the amount with every hike that you get. Here are 5 important aspects you should know before starting your investment journey. Risk and Return When it comes to investing, Risk and Return are closely linked. The larger the risk, the higher the possible return. You should never chase high-return investments on a whim. Consider your investing aim, time horizon, and risk tolerance. Always invest in something that is right for you. Diversification of risks Any investment entails some level of risk. You can’t prevent it, but you can limit the odds of big losses by managing your risk exposure with the correct strategy. Diversifying your investments and spreading your risk is the simplest and most effective method. Diversifying your investments across asset types, such as equities, bonds, and savings, is a good way to go. Consistency By committing to a consistent schedule for investing, say monthly, you can limit the risks of loss due to sharp moves on either side. Identify quality stocks and invest in them every month for good, long-term returns. ,b>Compound Interest Because the interest generated grows your principal (the money you put in), you obtain a bigger return. It’s a snowball effect: the longer you invest, the more compound interest benefits you. As a result, it is critical to begin saving and investing as soon as possible. Inflation> Inflation has been a constant in Hong Kong for the past few decades. Your investment must have a return rate that is equal to or greater than inflation. If you don’t, your money will lose value.

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

Knowing how much it costs to raise a child and how much joy it brings isn’t always easy to compare, but it’s smart to know and plan for these costs. In general, it costs a lot to raise a child, from the time it is born to when it goes off on its own. It costs between 1.5 and 2 crores. When you think about how much it costs to raise a child now, having two kids makes sense. At different points in a child’s life, there are some costs that need to be paid. These are some of them. In light of the current trends, these costs are based on averages. Trading or investing can be a difficult journey without the right tools. That’s why you need the best Indian trading platform with a wide range of features. With Zebu, one of the best stock brokers in the country, your online stock trading journey will be drastically enhanced. Expenses at different stages of life There is a lot of money spent on medicines and vaccines in the first year after the birth of a child in urban and semi-urban areas. A playgroup or creche costs a lot of money when a child turns two. This could cost anywhere from 50,000 to 1 lakh, depending on how many amenities the creche has to offer. In the early years of a child’s life, the cost of toys and clothes is big because they tend to grow out of them. School expenses: Based on recent trends, it looks like more than half the population of parents spend more than half their annual income to pay for their children’s education and hobbies. There are times when parents have trouble making ends meet because the cost of school has gone up. A good school charges a fee of 50,000 to 2 lakh for the whole year. Expenses for the 12 years from classes I to XII would be between 11 lakh and 43 lakh if annual education costs rose by 10% each year. In addition to any tuition or extra-curricular activities that the child will be paying for, this fee will be added on as well. Higher studies: Suppose that the average cost of going to school for engineering is about 10 lakh today. In about 15 years, the same thing would cost 40 lakh to 50 lakh, too. The same thing goes for medical degrees. If they cost 25 lakh now, it’s a safe bet that they will cost more than 1 crore in the next 15 years. Even though parents can take out loans to pay for their kids to go to school, the interest rate is still high, even after tax breaks. Besides paying for their kids’ education, a family might have to spend money to make their home more private for their grown-up kids. Entertainment costs have also gone up a lot, especially in cities. There are birthday parties to plan, birthday gifts to buy, school cultural events, gadgets, hobbies to keep track of, and so much more to think about. In light of the above outflows, it is important for parents to plan their finances so that they don’t spend more than they need to and aren’t able to save for their own retirement. There are also safety nets that need to be put in place, like getting enough insurance and setting up an emergency fund. To make sure that you have a retirement fund, you can assume that you have a third child and every time you spend on your first two children, you can invest the same amount for the imaginary third child and invest it in a mutual fund. With a return of around 12-15% per annum, you will be left with a substantial corpus. You can use this as your retirement fund and can enjoy your golden years with enough funds.

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

The Securities and Exchange Board of India (Sebi) announced in November that the framework for segregation and monitoring of collateral at the client level will be implemented on May 2, 2022. Following repeated appeals from parties to the market regulator, the deadline was extended to May 2nd. The rule was supposed to go into effect on December 1, 2021, but it was pushed back to February 28, 2022, and then to May 2nd, 2022. SEBI says that they are introducing this 50% margin rule for futures and options trading to limit risks in the system. This rule was proposed after a popular stockbroking company illegally used their clients’ shares as collateral against a loan. Market experts applauded the deadline extension, saying that more time would help all intermediaries prepare for the new margin rules. Since there will be a lot of changes in technology and operational processes, this extra time has assisted all intermediaries in properly gearing up. Even though the deadline is coming into effect today, several brokerage firms have implemented this 50% margin rule even before that for futures and options trader. The clauses outlined procedures for collateral deposit and allocation, collateral value, change of allocation, margin blocking, collateral withdrawal, and default management. In a recently released circular, the regulator highlighted investor interest, market regulation, and development as reasons for the postponement. Previously, investors could use their securities to completely cover their margins. However, from today, they will be required to hold 50% of the value in cash in their account as margins in order to trade in these categories. During times of strong market volatility, stress, and a bull run, this is primarily to protect investors from big swings, as well as the high risks and pitfalls of leverage. However, many people have raised concerns about the regulation’s negative aspects. According to them, this can lead to a reduction in market liquidity and possibly upend the market’s core price-discovery mechanism. Many brokers and traders believe that both results might have a big impact on market volumes.

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

Market emotion can be gauged using a derivative indicator known as the Put-Call Ratio (PCR). Both a “call option” and a “put option” provide buyers the right to buy or sell a specific asset at a specific price, respectively. On any given day, the open interest in both a put contract and a call contract is combined to calculate the PCR. PCR = Put Open Interest/ Call Open Interest With lowest brokerage for intraday trading and at Zebu, we are constantly trying to provide customers with the best stock trading platform to make your online stock trading journey easy. Interpretation: A rising Put-Call Ratio, also known as a PCR, indicates that put contracts have a bigger open interest than call contracts. Traders are either negative on the market or using put options to protect their holdings from potential losses. There is greater open interest in call contracts than put contracts if the Put-Call Ratio or PCR falls below 0.5. This is a sign that investors are bullish on the market as a whole. A Put-Call Ratio of 1 shows that there are as many people interested in purchasing put options as there are in purchasing call options. Considerations that should be taken into account Investors can use the put-call ratio to get a sense of market sentiment before a market shifts. Aside from this consideration, it’s vital to examine demand for both numerator and denominator (puts and calls). The denominator of the ratio contains the number of call options. In other words, a decrease in the number of calls exchanged will raise the ratio’s value. Reduced call purchases without an increase in puts can raise the ratio. This is significant. To put it another way, the ratio doesn’t have to climb dramatically in order for it to do so. As more bullish traders remain on the sidelines, the market becomes more negative as a result. However, this does not necessarily mean that the market is bearish, but rather that the market’s bullish traders are waiting for a future event, such as the impending elections or RBI meetings. A Sign of Unpredictability: In India, the Put-Call Ratio is a common Contrarian Indicator. The market is due for a trend reversal if the readings are excessively high or low. Market players are overly pessimistic, and the market trend is likely to turn around soon. Similarly, exceptionally low levels signal that market participants are overconfident, and the market could turn red shortly if this trend continues. Like we mentioned earlier with lowest brokerage for intraday trading and at Zebu, we are constantly trying to provide customers with the best stock trading platform to make your online stock trading journey easy.

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

In finance, words like Face Value, Book Value, and Market Value are used very often to determine the valulowest brokerage e of a company. There is a lot of confusion about these terms, and some people think they’re all the same. Is it possible for them to be used interchangeably, and if not, what is the difference between their book values and face values? When it comes to stock selection, do these terms really make a difference? If you are someone who trades or invests regularly then you understand the importance of using the right technology. We at Zebu, as one of the best share broker in the country, offer an online stock trading platform with lowest brokerage for intraday trading best suitable for full-time traders and investors. Face Value Face Value During the earliest phases of the offering, the value of a company’s common stock is calculated and recorded on the balance sheet. Original cost might be referred to here. However, it is not an accurate representation of the market value. For example, the stock’s FV does not fluctuate and changes when a corporation goes through a stock split. In splitting the stock, the face value is taken into consideration rather than the market value. There are many different ways to split a stock, such as a 1:2 split, which will result in a change in the stock’s face value. As a result, the stock market’s value is likewise altered. Dividends are calculated per share or per percentage of the face value of the share. As an example, if the dividend is declared to be 80 percent and the stock has a face value of Rs 10, each share will receive Rs 8. As a result, investors should always focus on dividend amount rather than dividend % when evaluating a company. Face Value is based on the following two factors: Equity share capital and outstanding shares Equity share capital divided by the number of shares in issue equals the “face value.” As a result, the face value of each share is nothing more than the amount of equity stockholders have invested. It’s a theoretical number that doesn’t change. Book Value The term “book value” refers to the value of a company’s books (accounts) that is reflected in its financial statements or net worth. If all the firm’s assets are sold and all of its liabilities are repaid, this is what the company is worth. The Free equity of a company, to put it another way, is reflected in this metric. The fluctuation in Book Value is extremely rare and occurs just once a year as a result of the company’s overall performance. Using BV, you can see if the stock of a company is overvalued, undervalued, or just right. A company’s book value must be adjusted if it has a component of minority stake that is profit in the books due to a sister business under it. (i) Book Value = Total Assets – (Total Liabilities – Current Liabilities) (ii) Book Value per share = Face Value + Reserve per share Book Value and Face Value are linked in the second formula. There are few drawbacks to book value, such as the fact that it is disclosed on an annual basis. An investor won’t know the company’s book value has changed over time until after the reporting. There may be revisions to this accounting item that are difficult to understand and estimate. It is not effective for businesses that rely largely on human capital because only tangible assets are considered in the computation of book value. Market Value It is possible that the stock’s market value does not correspond to its fair value, which is determined by the stock’s current price on the exchange. It’s a measure of how much a business is worth. When the stock market fluctuates, so does MV. In the short term, it is influenced by the mood of the market, but in the long run, it is determined by the results of the company’s operations. It is the price at which we buy or sell the shares on the open market. Consequently, this is the most critical information for stock trading. This formula is used to determine a company’s market value. Market Value = Current Stock Price * Number of shares outstanding Market capitalization (MV) is another name for MV. Both tangible and non-tangible assets are taken into account when determining market value. Market value, on the other hand, is based on a shaky foundation. The market value of a firm can be affected by a variety of factors, including profitability, performance, liquidity, and even simple news. As a result, one might conclude that a company’s market value represents its current trend. Market vaue Vs Book Value If the stock is overvalued, undervalued, or just right, investors analyse the Book Value and Market Value. If the market value of a firm is lower than its book value, this implies that the market has doubts about the company’s future. Or, to put it another way, investors believe that the company isn’t worth what it’s worth on paper, or that future earnings will be insufficient. Value Investors, on the other hand, are on the lookout for such businesses because they believe the market is overvaluing them. If the market value of a firm is more than its book value, this shows that it is being valued more highly by the market. Therefore, investors expect that the company’s book value will rise in the future due to its good potential for growth, expansion, and increased earnings. Such businesses are considered attractive by investors. Stocks that are already trading at a high price may also be considered overvalued or overbought. As mentioned earlier If you are someone who trades or invests regularly then you understand the importance of using the right technology. We at Zebu, as one of the best share broker in the country, offer an online stock trading platform with lowest brokerage on intraday trading best suitable for full-time traders and investors.

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

The term “rollover” refers to the process of transferring a near-expiring front-month contract to a futures contract in a further-out month. What this means is that you’ll close out your current contract and open a new one in the same time frame. The expiration date of any futures contract or option you purchase will be clearly marked on the contract (last day until which you can trade that contract). So, for example, you can only trade the Nifty 28th August future until August 28th. If you are considering investing or trading then we recommend you try Zebu’s as top brokers in share market we offer one of the best Indian trading platform with the lowest brokerage for intraday trading. If you want to hold your position till September, you will need to sell your August Nifty futures and buy a new September futures contract, which will be valid until September 29. Rolling over refers to the act of transferring from one month’s pay to the next. Before the market closes on August 28th, you can perform this rollover at any moment. So, for example, if you bought Nifty August futures at 17070 and imagine Nifty futures is 17000 on 20th August, you now opt to roll over your position to September since you want to continue your nifty futures purchase position. This means that the Nifty August future will be sold and you will instead purchase the Nifty March future, which you can now hold until March 29th. You must pay brokerage and costs when you sell the August futures and you must pay brokerage and charges again when you buy the September futures. As with a typical buy-and-sell, there are fees involved. This SEBI circular and comments from the exchanges state that rollover of contracts during the ban period is not permitted. In the event that you hold a contract job that is currently in a ban, you will only be able to exit that contract.

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

With immediate effect on April 28th, 2022, the National Stock Exchange of India (NSE) will reinstate the “Do Not Exercise” option in stock option contracts, providing much-needed respite to stock traders. There will be a mandatory physical settlement of stock derivatives in October 2019, according to SEBI. To put it another way, if you have an open position in a stock option contract on the expiration day, you will have to deliver/take stock when the option is exercised. Only if the contract is ITM (In-The-Money) at the time of expiration can it be executed. Are you a regular trader? Then choose Zebu’s online trading platform for analysis and make your trading journey seamless. As an online trading company we ensure our customers are benefited from our lowest brokerage for intraday trading options. Some traders have the option to make a ‘Do Not Exercise’ request (DNE) in order to avoid exercising their entitlement to give or receive delivery. However, this option will no longer be available after October 2021. On October 14, the final remaining ‘Do Not Exercise’ facility was shut down. Some options traders who were unable to close their open positions on the expiry date as a result of NSE’s action burned their fingertips when they had to settle their shares physically on the expiry date. Depending on the form of option, option holders were virtually required to either take or give physical delivery of the underlying share. The option buyers, who pay a specified sum known as a premium, have the ‘right’ to buy or sell a stock at a specific price on a specific date or by a specific date, were the most impacted by this change. With the notion that their liability is limited, these traders found themselves caught off guard when their “right” to buy or sell had turned into their “obligation” to take or give delivery of the shares. In order to protect traders who are unable to close down their holdings before the expiry date, the ‘Do Not Exercise’ option has been reinstated. Choose Zebu’s online trading platform for analysis and make your trading journey seamless. As an online trading company we ensure our customers are benefited from our lowest brokerage for intraday trading options.

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

Venture capital, private equity, hedge funds, and managed futures, are some of the investments that can be made in an alternative investment fund. To put it another way, an AIF is a type of investment that does not fall under the traditional categories of equities, debt securities, and so on. In contrast to Mutual Funds, which require a lower investment amount, Alternative Investment Funds tend to attract high-net-worth individuals and institutions. Before getting into understanding Investment Funds, if you are keen on investing or trading you should always have the right tools that can support your investment journey. At Zebu, as a reputed share broker we have the best lonline trading platform and offer lowest brokerage for intraday trading. Alternate Investment Funds Types According to the SEBI, AIFs fall into one of three basic categories. Category 1: Small and medium-sized firms (SMEs) and other startups with strong development potential that are also considered to be socially and economically viable fall under the purview of Category I investment funds. They have a multiplier effect in terms of growth and job generation and are encouraged by the government to invest. Those funds have been a lifeline for firms that were already flourishing but lacking in funding. The following funds are included in Category I: Venture Capital Funds Funding for start-ups with great growth potential but a lack of capital to start or develop their firm is provided through Venture Capital Funds (VCF). For new enterprises and entrepreneurs, Venture Capital Funds are the preferred method of raising financial because it is difficult to raise funds through the capital markets. Venture capital funds (VCFs) bring together money from investors who wish to invest in start-ups. According to their business profiles and assets, they invest in a variety of startups at various stages of development. A venture capital fund focuses on early-stage investments, unlike mutual funds or hedge funds. Depending on the amount of money spent, each investor receives a piece of the company. VCFs are favoured by HNIs looking for high-risk, high-return investment opportunities. Foreign HNIs can now invest in VCFs and help the economy flourish as a result of the AIF inclusion of VCFs. The Infrastructure Fund (IF) The fund makes investments to improve public infrastructure, including as roads, railways, airports, and other means of communication. The infrastructure industry has a high barrier to entry and relatively low competition, making it a good investment opportunity for those who believe in the sector’s future growth. It is possible to earn both capital gains and dividends from an Infrastructure Fund investment. Government tax incentives could be available to Infrastructure Funds that invest in socially desirable/viable projects. Angel Fund Fund managers combine money from a number of “angel” investors and invest in young firms for their development in this form of Venture Capital fund. Investors receive dividends when the new enterprises start making money. As with Angel Funds, units are distributed to the investors. In the startup world, a “angel investor” is a person who wishes to invest in an angel fund and who also has company management experience to offer. These investors choose to invest in businesses that aren’t often supported by mainstream venture capital funds because of their uncertain growth. The Social Venture Fund The rise of the Social Venture Fund (SVF) as a vehicle for investing in companies with a strong social conscience and a desire to effect genuine change in society can be attributed to socially responsible investing. These companies aim to make money while simultaneously addressing environmental and social challenges. A return on investment is still possible because the companies involved are still expected to make a profit. The Social Venture Fund prefers to invest in projects in developing nations because of their potential for both growth and social transformation. A win-win situation for all stakeholders is created when the finest techniques, technology and significant expertise are brought to the table by the investors, businesses and society. In the following blogs, we will cover the investments that come under Category 2 of the Alternate Investment Funds. As we mentioned before, with the right tools your investment journey can be very smooth. At Zebu, as a reputed share broker we have the best lonline trading platform and offer lowest brokerage for intraday trading.