Dematerialisation of Shares – Meaning, Process & Benefits

Posted by Rushabh H. Mehta | Published on 06 Mar 2020
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Dematerialisation of Shares – Meaning, Process & Benefits

The online platform has revolutionised the way we live. Whether it is transacting, connecting with a loved one, getting updated about the happenings in the world, everything can be done online. When it comes to investments, the online platform provides ease and convenience.

Investment in shares and share trading is a prevalent activity undertaken by many investors. They invest their money in the stock of a company with a view to earn profits when the stock value rises. When shares are purchased, share certificates are issued in physical form containing the details of the investor and the investor. However, these physical share certificates are inconvenient, and so the concept of dematerialisation has been introduced. Do you know what it is?

What is dematerialisation?

Dematerialisation of shares means converting physical shares and securities into an electronic format. The dematerialised shares and securities are, then, held in a demat account which acts as a storage for such shares. Dematerialised securities can then be freely traded on the stock exchange from the demat account.

How does dematerialisation work?

For the dematerialisation of securities, you need to open a demat account with a depository participant. A depository is tasked with holding shares and securities in a dematerialised format. As such, the depository appoints agents, called, Depository Participants, who act on behalf of the depository and provide services to investors. There are two licensed depositories in India which are NSDL (National Securities Depository Limited) and CDSL (Central Depository Services (India) Limited).

Need for dematerialisation of shares

Dematerialisation of securities was needed because it became difficult for depository participants to manage the increasing volume of paperwork in the form of share certificates. Not only were there chances of errors and mishaps on the part of the depository participant, but physical certificates were also becoming difficult to be updated. Converting such certificates into electronic format frees up space and makes it easy for depository participants to track and update their investor's stockholding.

Benefits of dematerialisation for investors

As an investor, you can get the following benefits from dematerialisation –

  • You don’t have to handle the physical safekeeping of share certificates. Since your investments are converted in electronic format, you can easily store them without the risk of theft, loss or damage
  • You can access your online demat account and manage your investments from anywhere and at anytime
  • The charges associated with the demat account are low. Depository participants change holding charges which are minimal and you don't have to pay any stamp duty on dematerialised securities
  • Since no paperwork is required to be done, the transaction time is considerably reduced

Given these benefits, dematerialisation proves advantageous. Nowadays, the practice of holding physical securities has become almost obsolete and buying through a demat account has become the prevailing norm for investors.

How to convert physical shares to demat?

To convert physical shares to demat, the following steps should be followed –

  • You should open a demat account with a depository participant. A depository participant can be a bank, financial institution or a stockbroker who is registered as a depository participant with the two licensed depositories of India
  • You would then have to avail a Dematerialisation Request Form (DRF) from the depository participant and fill the form
  • Submit the form along with your share certificates. The share certificates should be defaced by writing ‘Surrendered for Dematerialisation’ written across them.
  • The depository participant would, then, forward the dematerialisation request to the company whose share certificates have been surrendered for dematerialisation. The request should also be sent to Registrar and Transfer (R & T) agents along with the company
  • The company and the R & T agents would approve the request for dematerialisation if everything is found in order. The share certificates would also be destroyed. This approval would then be forwarded to the depository participant
  • The depository would confirm the dematerialisation of shares and inform the depository participant of the same
  • Once the approval and confirmation is complete, the shares would be electronically listed in the demat account of the investor

Buying securities in a dematerialised form

If you are looking to buy stock in a dematerialized form, here the simple steps that you can take for the same –

  • Choose your broker for buying the securities and pay the broker the Fair Market Value of the securities that you want to buy
  • The payment would be forwarded by the broker to the clearing corporation. This would be done on the pay-in day
  • The clearing corporation would, then, credit the securities to the broker’s clearing account on the pay-out day
  • The broker would then inform the depository participant to debit its clearing account and transfer the shares to the credit of your demat account
  • The depository would also send a confirmation to your depository participant for the dematerialisation of shares in your account. The dematerialised shares would then be reflected in your demat account
  • You would have to give ‘Receipt Instructions’ to your depository participant for availing the credit of shares in your demat account. This is needed if you hadn’t already placed a Standing Instruction for your depository participant when you opened your demat account.

Similarly, for sale of dematerialised shares, the process is opposite.

Trading in stocks in a dematerialised format is simple, quick and convenient. It has also become the practice of the current market. So, if you want to buy or sell securities, open a demat account and start trading in dematerialised securities. Should you have any doubts, get in touch with the team at IndiaNivesh who will look into your requirement and lead you towards a quick resolution. 

 

Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing. 

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What is CAGR & How to Calculate it?

Posted by Rushabh H. Mehta | Published on 06 Mar 2020

There are different types of investment avenues in the market and each of these avenues promises you a compounded rate of growth if you remain invested. Compounding of return means earning a return on the return earlier generated. So, if you invest INR 100 and earn a return of 10% in the first year, the amount would become INR 110. Thereafter, in the second year, you would earn 10% on INR 110 giving you a return of INR 11. This compounding helps grow and multiply your wealth considerably over a period of time. In the case of market-linked investments, the rate of return is not guaranteed. It varies over the investment period. To know the average rate of return on your investments, the concept of CAGR is used. Let’s understand what CAGR is and how it helps you find the growth of your market-linked investments. What is CAGR? CAGR’s full-form is Compound Annual Growth Rate. The Compound Annual Growth Rate, in simple terms, is the average rate of return of an investment over a one year period. CAGR takes into account two important factors - the time period of the investment and the fluctuations in the return. Since the returns vary depending on the market fluctuation, finding the return over a specific time period becomes difficult. CAGR gives you the average growth rate offered by the investment over the said time period. CAGR shows the approximate growth rate considering that there is no market fluctuation and that the returns earned are reinvested into the investment. How to calculate CAGR? It is very easy to calculate CAGR. There is a CAGR formula which you can use to find the Compound Annual Growth Rate of your investment. The CAGR formula needs three important details which are as follows – Value of the investment made initially (VI) Term of investment (T) Value of the investment at the end of the term (VE) Using these three inputs, the CAGR formula becomes – CAGR = (VE / VI) ^ (1/T) – 1 Let’s understand with an example – Mr. A invested INR 10,000 in a market-linked investment avenue. After 3 years, the value of his investments stands at INR 13,500. The CAGR for Mr.A’s investment could be calculated as below – VI – INR 10,000 T = 3 years VE = INR 13,500 CAGR = (13500/10000) ^ (1/3) – 1 = 10.52% How CAGR helps understand the mutual fund growth rate? Mutual funds are market-linked investment avenues which do not offer a guaranteed rate of return. Since the returns are subject to market fluctuations, CAGR becomes an accurate tool to measure the performance of the fund over a specified period. Investors can check the annual CAGR of mutual fund schemes and use the rate to find out which scheme offers better returns than others. The fact sheet offered by the mutual fund house contains returns generated by the fund over different time frames. These returns can prove to be confusing and so CAGR is an easier alternative to understand the performance of the fund. CAGR acts as a ready reckoner for investors to assess returns from a mutual fund scheme and also highlights the compounding of returns on mutual fund investments. Important points to know about CAGR The investment risk inherent in the scheme is not highlighted by CAGR. CAGR is merely a yardstick to measure the growth rate CAGR proves to be a good measure of growth for a short-term period, i.e. up to 6 or 7 years. If you are considering long-term investments, the growth trends over a short-term period would be averaged out. In such cases, CAGR would give an average rate even if the fund performed excessively well in a two or three year period and then the returns fell in later years. CAGR changes every year since the investment period changes CAGR for two investment funds can match one another even if the funds are different. This might happen if one fund performed well initially and the other one performed well in the last few years. As a result, the performance is averaged out and the CAGR Other modes of calculating returns from investments Besides CAGR, there are other ways to calculate the returns generated by market-linked investments. These ways are as follows – Returns since launch Under this model, the return earned by the fund ever since it was launched and till the present date is calculated. Trailing returns Under the trailing returns approach, you measure the performance of your fund daily, weekly, bi-weekly, monthly or annually. Annualised returns Annualised returns are calculated as the geometric average of the return yielded by the fund over a given period of time. CAGR v/s Absolute returns Absolute returns measure the total return yielded by an investment. The time period is not considered. CAGR, on the other hand, measures the return over a specific time period. For instance, in the previous example, INR 10,000 grew to INR 13,500 over a 3-year period. The absolute return would be 35% since it measures the total return earned on the investment. However, when CAGR is considered, the time period of investments is also taken into consideration thereby considering the time value of money. As such, CAGR comes to 10.52% which is a more realistic figure. While absolute returns show the returns generated, the time period is missing. You cannot figure out how many years it took the investment to generate this return. But CAGR shows you the annual return making it easier to make a judgement on the performance of the fund. The next time you invest in mutual funds, stocks or other market-linked investment avenues, consider their CAGR to choose the fund or investment which has better returns over its peers. So, visit IndiaNivesh and find out a mutual fund scheme of your choice and then compare the scheme’s CAGR with its peers to choose the best performing fund.   Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing. 

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Section 80 Deductions - Income Tax Deductions under Section 80D

Posted by Rushabh H. Mehta | Published on 06 Mar 2020

Health is wealth goes a famous saying, and it is quite right. You cannot live a fulfilling life if you don't take of your health. In today's times, medical expenses have become quite unaffordable, and with medical inflation steadily on the rise, the costs are expected to increase. Meeting such high medical expenses might prove prohibitive for many, and that is why there are health insurance plans available in the market. Health insurance plans cover the medical expenses which are incurred in a health emergency. Besides providing financial assistance, health insurance plans also allow you tax benefits under Section 80D. Do you know how? Let’s understand – What is Section 80D deduction? The Income Tax Act, 1961, allows health insurance premiums to be claimed as a deduction under Section 80D. This deduction is contained under Chapter VI A of the Income Tax Act, 1961. Under Section 80D deduction, the premium paid for health insurance is allowed as a deduction from your taxable income. Eligibility for availing 80D deductions To avail deduction under Section 80D, the following parameters should be kept in mind – 80D deduction is available for individual taxpayers and Hindu Undivided Families (HUFs). The deduction is not allowed to any other type of taxpayer. Non-resident individuals can also claim deduction under Section 80D The deduction can be availed only if the premium is paid towards a health insurance coverage The coverage can be taken for self, spouse, dependent children and dependent parents The amount of deduction available under Section 80D depends on the age of the member being covered under the insurance policy The premium should not be paid in cash Section 80D deduction is available even if you have claimed deductions under Section 80C on eligible investments and expenses, Section 80CCC on life insurance pension plan premium and Section 80CCD towards investments in the National Pension Scheme Amount of deduction available under Section 80D There is a maximum limit up to which deduction under Section 80D can be claimed. This limit, as mentioned earlier, depends on the age of the insured member. The limit of deduction available for taxpayers who are below 60 years of age is INR 25,000, and for senior citizens, it is INR 50,000. Moreover, if the taxpayer buys an additional policy for his dependent parents, he/she can claim additional deduction under Section 80D. Let's understand the allowed 80D limit under different instances – Let’s understand the deductions with some examples –  Example 1 – Mr. Sharma, aged 45 years, buys a health insurance policy for himself and his family by paying a premium of INR 20,000. He also invests in a health plan for his senior citizen dependent parents, and the premium paid is INR 30,000. The deduction available to Mr. Sharma under Section 80D would be INR 50,000, i.e., INR 20,000 for the premiums of his family floater health plan and INR 30,000 for the premiums paid for senior citizen parents. Example 2 – Mr. Khurana, aged 30 years, buys a health plan for him and also covers his dependent senior citizen parents under the same plan. The premium paid is INR 32,000. In this case, the maximum deduction available to Mr. Khurana would be INR 32,000 since the plan also covers his senior citizen parents and so the limit of deduction becomes INR 50,000. Thus, the premium of INR 32,000 would be allowed as a deduction from Mr. Khurana’s income. Example 3 – Mr. Verma buys two health insurance plans. One covers him and his spouse aged 34 years and 32 years respectively and the other covers his dependent senior citizen parents. The premium paid for his policy is INR 26,000, and for his parents' policy is INR 30,000. The deduction available would be limited to INR 55,000, i.e. up to INR 25,000 on his policy and INR 30,000 on his parents' policy. Thus, Mr. Verma would not be able to avail a deduction of the extra INR 1000 which he paid on his health insurance policy since the premium exceeded the available deduction limit of INR 25,000. Deduction for preventive health check-ups Section 80D also allows you a deduction towards the expenses incurred on preventive health check-ups in a financial year. So, if you undertake preventive health check-ups, you can claim the expenses incurred as a deduction from your taxable income under Section 80D. The limit of deduction is INR 5000, which is included in the limit of INR 25,000 or INR 50,000 as the case may be. When you are planning your taxes, do remember the deduction is allowed by Section 80D, and if you have bought a health insurance policy or have invested towards preventive health check-ups, the expenses incurred would be allowed as a deduction, which would help in lowering your tax liability. For a hassle-free experience, IndiaNivesh experts can help you to choose the right products as per your goals and guide you on tax deductions as well.   Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing. 

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  • Cost Inflation Index - Meaning, Calculation & Benefits
    Posted by Rushabh H. Mehta | Published on 06 Mar 2020

    Inflation is an economic term and referred to the continuous rise in the price of goods and services, thereby reducing the purchasing power of the money. The pinch of inflation is felt by all sections of the economy, be it, the consumers, investors, and the government.  And, even though it increases the cost of living, inflation is a necessary evil and desirable for the growth and development of the economy. For the reason of inflation, it is only fair to pay more for your goods like comb and brush over the years due to an increase in the price. For the same reason, it is unfair to pay capital gains tax on your assets without taking into account the impact of inflation on the value of the asset. Cost Inflation Index(CII) is the index to calculate the increase in the price of assets year-on-year due to the impact of inflation. What is the Cost Inflation Index? Cost Inflation Index or CII is an essential tool for determining the increase in the price of an asset on account of inflation and is useful at the time of calculating the long-term capital gains on the sale of capital assets. It is fixed by the central government and released in its gazetted offices by the Ministry of Finance every year. Capital gains are the profits arising from the sale of assets like real estate, financial investment, jewellery, etc. The cost price of the asset is adjusted taking into account the Cost Inflation Index of the year of purchase and the year in which the asset is sold, and the entire process is known as Indexation. Cost Inflation Index Calculation The cost inflation index calculation is done by the government to match the inflation rate for the year and calculated using the Consumer Price Index (CPI). Cost Inflation Index India for the financial year 2019-20 has been set at 289. Change of the base year for the Cost Inflation Index The cost inflation index base year was changed in the Union Budget 2017 from 1881 to 2001. The base year was changed by the government to enable accurate and faster calculations of the properties purchased before April 1, 1981, as taxpayers started to face problems with valuations of older properties. The base year has an index value of 100, and the index of the following years is compared to the index value in the base year to determine the increase in inflation. With the change in the base year, the capital gains and tax burden has reduced significantly for the taxpayers as it now reflects the inflated price of the asset realistically. The current Cost Inflation Index Chart for each year is as under- How is the Cost Inflation Index (CII) used in calculating capital gains To calculate the capital gains on your assets the purchase price of the asset is indexed by the cost Inflation Index using the formula below- Indexed cost of the asset at the time of acquisition = (CII for the year of sale/ CII for the year of purchase or base year (whichever is later))*actual cost of acquisition If suppose you purchased a flat in December 2010 for Rs 42 lacs and sold in Jan 2019 for Rs 85 lacs. Your capital gain from the sale of the flat is Rs 43 lacs. The CII in the year in which the flat was purchased is 148, and the CII in the year the flat was sold in is 280. The purchase price of the flat after taking into account the Cost Inflation Index is = (280/148)*Rs42 lacs= Rs 79. 46 lacs  This is the indexed cost of acquisition. Your long-term capital gain after taking indexation into account is Rs 85,00,000- Rs 79,45,946 = Rs.5,54,054. Long-term capital gains on the sale of property are taxed at 20% with indexation benefit. So, your tax liability, in this case, would be- 20% of Rs 5, 54, 054= Rs 1,10,810 Without indexation benefit, the capital gains are taxed at 10%. In this case, the capital gains would be- Sale price of the flat - purchase price of the flat = Rs 85,00,000 – Rs42,00,000 = Rs.43,00,000.  The capital gains tax without indexation benefit will be 10% X Rs 43,00,000 = Rs.4,30,000. Thus, indexation helps reduce the long-term capital gains and reduce the overall tax burden for the taxpayer considerably. Indexation benefit can be used for investments in mutual funds, real estate, gold, FMPs, etc. but is not applied for fixed income instruments like FDs, recurring deposits, NSC, etc. Few important tips to remember about the Cost Inflation Index- If you receive an asset as a part of the will, then in such the CCI for the year in which it was transferred will be considered and not the CCI of the purchase of the asset Indexation benefit for the cost of improvement of the asset is the same as the cost of improvement of the asset. Cost of improvement incurred before 1981 to be ignored. CONCLUSION Cost Inflation Index is an important parameter to be considered at the time of selling long-term assets as it is beneficial for the investors. Reach out to our experts at IndiaNivesh for any queries about capital gains arising from the sale of assets for correct guidance.   Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing. 

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  • High Dividend Mutual Funds
    Posted by Rushabh H. Mehta | Published on 02 Mar 2020

    Dividend mutual funds are a type of mutual fund that pays a regular dividend to the unitholders of the mutual fund scheme, thereby creating a regular source of income for them. The investment strategy of the fund manager is to invest in a basket of companies that have a steady flow of income and promise to pay periodic payment to the investors. Some investors prefer a regular source of passive income from their investments. Mutual fund schemes that offer a high dividend are a popular choice for such investors. The frequency of payment of dividends is decided by the fund manager and is usually fixed. Dividends can be paid daily, monthly, quarterly, six-monthly, or yearly, and the frequency of payment is mentioned beforehand. However, there is no guarantee on the rate and amount of the dividend to the investors and the payment of dividend is subject to the performance of the fund. There are 2 types of dividend mutual funds based upon the asset class that they invest in. 1. Dividend Yielding Mutual Fund (Equity) • Mutual fund schemes which invest more than 65% of their corpus in equity shares of companies • Like any other equity scheme, they have the potential for higher returns, but also carry a higher risk • Investors should invest in these schemes with an investment horizon of medium to long term 2. Dividend Yielding Mutual Fund (Debt) • Mutual fund schemes which invest more than 65% of their corpus in debt instruments of government and corporations like treasury bonds, commercial papers, etc. • These funds carry low risk and provide average returns to investors • Interest received from the various instruments is paid as a dividend to the investors• Investors should invest in these schemes with an investment horizon of short to medium term Tax treatment for dividend mutual funds Till now, dividend income received by the investor used to be recorded under the income head of “Income from other sources” and such income was tax-free in the hands of the investor. However, as per the Union Budget 2020, the DDT is now abolished for companies and mutual funds. From April’20 onwards, any dividend received above Rs 5000 will be taxed in the hands of the investor. It will be taxed as per the individual tax slabs for both equity and debt schemes. 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The benefits of dividend mutual funds which should be kept in mind while investing in such funds• Fund managers of dividend mutual funds invest in companies which can pay steady dividends and even if there is a slowdown in the economy, as companies do not want to send any negative signals, they avoid curtailing payment of dividends, thus making them less volatile than other funds.• Overall returns from these funds are less affected as compared to other funds as the dividends provide a hedge against market volatility.• In a low-interest rate regime, investors looking for a higher consistent income can opt for dividend mutual funds. Disadvantages of a dividend mutual fund scheme • Returns generated by dividend mutual fund schemes are lower as compared to growth schemes in case of rising markets• These funds are not suited for aggressive investors looking for higher returns from their investment• Moreover, with the abolition of Dividend Distribution Tax (DDT), investors in the higher tax-bracket will have to pay higher taxes on the dividend income. Role of dividend mutual funds in a portfolio Invest in dividend mutual funds with an investment horizon of 7 to 10 years for optimal returns. Investment in such funds should be a part of your strategic asset allocation and to lower the volatility of the overall portfolio. Aggressive investors can allocate less than 10% of their portfolio in such funds. Conservative investors, on the other hand, can allocate a higher percentage to these funds. Essential things to keep in mind while investing in dividend mutual funds • Conservative investors looking to invest in dividend funds should invest in large-cap funds, preferably of blue-chip companies that pay a higher dividend. Investing in companies with a higher proportion in mid & small-cap companies will increase the risk of the investment, thereby defeating the purpose of investment• Invest in a fund which has been in existence for some time and witnessed a few market cycles• Avoid investing in a fund with a small corpus to minimize risk as few wrong investment calls can significantly hamper returns• The expense ratio plays a vital role in determining the overall returns from a scheme. Choose funds with a lower expense ratio   CONCLUSION Investing in high dividend mutual funds is a good option if you are looking for a regular income through dividends. Consult our experts at IndiaNivesh to help you guide through the allocation of funds in these schemes as per your investment horizon and risk profile.   Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing. 

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  • Algo Trading India – Know about What is Algo Trading, Benefits & Future
    Posted by Rushabh H. Mehta | Published on 02 Mar 2020

    The Introductory Guide to Algo Trading India In today’s fast-moving world, technology has become an indispensable accessory of everyday life for most people, and investors are no exception. A growing number of investors today are exploring algorithmic trading for trading financial securities. What is Algo Trading? Algorithmic trading, also known as Algo trading, is automated buying and selling of shares in the stock market using intricate mathematical models and defined set of commands known as algorithms to carry out financial transactions at a high-speed. The instructions are programmed in the trading software as algorithms concerning specific variables like time, price, and volume, and the computer then executes the trade as per the instructions. 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Reduction in transaction costs: Algo trading India enables traders to execute multiple orders in a short time, thus reducing the transaction cost and increasing the overall profits. Minimization of human emotions: Algo trading strategies in India are pre-defined and formulated, thus keeping investor emotions at bay, which is one of the most significant advantages of algorithmic trading in India. As soon as the pre-required objectives are met, the execution of trade takes place automatically. As the psychological element is eliminated from the trade, so there is no room for deviation from the strategies. Diversification of trades: The use of algorithms and computers Algo trading enables investors to execute multiple trades and trading strategies at one time, which is not possible in case of manual transactions. So, trading opportunities over a range of markets and securities can be scanned and executed simultaneously. Thus, Algo trading in India allows investors to take benefit of diversification, which is difficult to attain in traditional trading.   Disadvantages of Algo Trading  Faulty algorithms can result in massive losses: As this strategy is entirely based on technology, the biggest drawback of algorithmic trading India is that the wrong algorithm can result in significant losses as many transactions take place simultaneously and any fault in the algorithm can be catastrophic. No control by humans: As the strategy is completely automated, there is minimal scope for discretionary choice for investors. Even if the investor realizes that a particular strategy may fail, he cannot abandon the program or stop the execution.     Types of Algorithmic strategies After understanding what is algo trading, one needs to know the different types of algo trading strategies India.  Let us look at some of the most popular Algo trading strategies used by institutional and retail investors- Momentum/Trend Following: Trend following is one of the most popular used algorithmic trading India strategies. This strategy involves finding a trend in the price of security using different indicators to analyze the available information. The trades use technical analysis charts and patterns to execute them. Technical indicators like moving averages, oscillators and price movements form the basis of analysis, and buying and selling of securities take place automatically when pre-defined conditions are satisfied based on the technical indicators. Simplicity and relative ease of design make it one of the most widely used algo trading strategies amongst traders. Arbitrage Strategy: An arbitrage opportunity is created when there is a difference in the price of the security on different exchanges on which it is traded. This Algo strategy uses computers to identify arbitrage opportunities and create risk-free profits as quickly as possible and uses them for profits. If a security price is listed on more than one exchange and its price is lower on one and higher on the other, then the algorithm identifies the different pricing and buys on the exchange with lower price and sells on the exchange with a higher price.  Speed and accuracy are of paramount importance for this strategy and hence it is more efficient in comparison to manual trading. Statistical Arbitrage Strategy: It is a short-term trading strategy and it tries to make profits from opportunities that arise due to price inefficiencies and misquoting of price. The complex mathematical algorithms help discover the price inefficiencies swiftly and execute the trade before price correction, which is tough for investors to analyze on their own. Mean Reversion Strategy: Also known as a reversal strategy, it is based on the fact that the price of a security will move up or down but eventually come back to an average value at some point. The average price is calculated based on the historical data, and the strategy finds out the lower and higher price limit for stock and executes orders when they are beyond the range. This strategy works when there is extreme movement in prices, and the unexpected swings generate profit for the investor.   Conclusion Algorithmic trading has immense potential, and the benefits of this strategy are yet to be fully explored by retail investors. Brokers like IndiaNivesh provide valuable market data to traders and the right platform and tools to build on their algorithmic trading strategies.   Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing. 

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