Know the difference between Demat Account and Trading Account

Know the difference between Demat Account and Trading Account

If one wishes to invest or trade in the stock market, there are two types of accounts that need to be opened. These accounts are demat and trading account. These two accounts are different in their uses but both are necessary for investing in the stock market.

What is trading account?

In earlier times, trades used to take place between brokers who acted on behalf of their clients. These trades used to happen on an open floor and brokers used to call out the prices of their orders. When two brokers found the right price for their orders, they would transfer the share certificates and the funds and the transaction would get complete. With the digital revolution and online trading, the open outcry method for transacting has become completely obsolete. With all the stock exchanges going completely online, these manual trades by brokers has been replaced by online trading through the trading account. Read more about online share trading here.

The trading account is an account used to purchase and sell –

1. Equity shares
2. Equity, Debt and Hybrid mutual funds
3. Bonds
4. Government securities
5. Derivatives
6. Commodities
7. Currencies
8. ETFs
9. Other instruments traded on the stock exchange

Using a trading account to buy and sell is extremely simple. Each broker offers their own trading system through their website or mobile application. These trading systems are connected to the stock market’s proprietary online systems. This offers a price matching system. An investor or trader just has to put in his order request and when the system matches the price and quantity for the order, the order gets executed. This order matching system provides seamless execution of transactions without any human intervention.

The trading account is basically a link between your demat account and the exchange’s order matching system. Once the trades get cleared at the exchange, the shares or other instruments are debited and credited from the respective demat accounts.

The trading account makes it extremely simple to buy and sell any investment. Since most of the investments are listed on the exchange, price discovery is easy and transparent. All you need to do is select the instrument you want to purchase and the price, and the exchange’s order matching system will ensure the transaction goes through.

Brokers charge brokerage for transactions executed through the trading account. Along with that, there are exchange fees and securities transaction tax that is levied on each transaction.

What is demat account?

A demat account is an electronic record or repository of the financial instruments owned by an investor or trader. It shows the different investments made, the date of purchase, the price at which it was purchased and the current market price. This account allows the investor to hold shares and securities in an online form. Physical securities held by a person can be dematerialised into their electronic form and held in the demat account. One of the primary advantage of a demat account is that your shares are safe. Shares in their physical form can get damaged or lost. But shares in your demat account are safe and you don’t need to fear losing them.

A demat account, like any other account, lets you easily scan all the transactions. A demat account will show the current market value of all investments held in that account as on a particular date. It also shows whether a share is partly paid up or fully paid up, thus providing clarity to the investor. However, unlike a bank account, a demat account can have zero shares or securities and still be functional.

A demat account is a very convenient way to handle all investments. Unlike earlier times where all securities were in physical form, a demat account holds everything in electronic form. This makes it very convenient to handle and operate.

A demat account offers all facilities like a normal bank account such as nomination facility, joint accounts, change in name and address etc. A bank account is usually linked to a demat account, which makes it easy for dividends and interest to get credited to the investor’s account directly. Read more about a Demat account here.

Trading account vs demat account

The difference between trading account and demat account is simple, a demat account is an online account for storing shares and securities. A trading account is an account for purchases and sales of investments.

A trading account inherently has no balance. It draws from the demat account once the purchase or sale transaction has gone through from the exchange’s side. A trading account also cannot exist in isolation. It has to be linked to a demat account from which the required shares or securities can be debited or credited.

A demat account can exist without having a trading account. An investor can just invest in IPOs or Mutual Funds through a broker and hold these units in his demat account. However, to sell these units, a trading account will be needed.

The difference between demat and trading account is very fine. However, it is essential to know how these two accounts operate and what their nature is. This understanding will help you open these accounts and get started with your investments.

How to open a trading account:

1. Select a broker of your choice like IndiaNivesh Securities Ltd. Bear in mind that each transaction requires a certain brokerage so be sure to research about the different brokerage rates for both delivery based trades and intraday trades.
2. Check the services offered by each broker. Make sure you choose a broker who provides extensive customer support, especially if you are a beginner. A good broker who provides detailed research reports could be the difference between earning profits and earning wealth.
3. Fill in the account opening form and provide the mandatory KYC details. If you have a demat account with the same broker, the KYC details may be exempted, but that depends on the broker. Some of the KYC documents required are:
a. Identity proof (Aadhar Card, Passport, Voter ID, Driving License, PAN card)
b. Address proof (Aadhar Card, Passport, Voter Id, Driving License, Electricity bill, Gas bill, Telephone bill, Rental agreement, Loan agreement)
You will need to submit a proof of income i.e bank statements, income tax returns, Form 16 etc.

4. You will also need to submit passport size photographs.
5. Some brokers request a verification check and witnesses while filling up the account opening form
6. Once the broker processes your application, you will get details about your trading account
7. You also need to link your bank account to your trading account so that funds received from a sale can be credited into the bank account.
8. Once you receive these details, you can start trading.

However, before you execute any trades, you must know where you are investing and what your investment strategy is. Without knowing this, it is very easy to lose money in the stock market, especially while engaging in intraday trades which is susceptible to price fluctuations. Now that you know the difference between these accounts, why not open a demat and trading account with a reputed broker like IndiaNivesh Securities Ltd.

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


What is IPO – Introduction, Meaning, Pros & Cons

Introduction to IPOsStock market is one of the most lucrative investment avenues in India. People invest in the stock market because it has the potential to generate handsome returns in a small span of time. Investors trade in the stock market either through the primary market or through the secondary market. The primary market involves investing in the stock market by applying to the Initial Public Offering (IPO) of a company while the secondary market involves purchasing and selling shares directly from the stock exchange. This article, will walk you through the details of what is IPO, its concept and everything related to it.Let us begin by understanding IPO meaning.Understanding Initial Public Offering / IPO DefinitionIPO stands for Initial Public Offering. It is the process by which a private company can go public by selling its shares to the public. The company bringing it can be a new company or an old company. With Initial Public Offering, the company gets its shares listed on the stock exchange.Companies float it to raise funds by issuing new shares to the public. However, the existing shareholders can also sell their holding to the public without the issue of fresh capital. Let us now learn about IPO details and understand the process through which the company brings it.Process of IPOThe first thing that a company does before bringing an IPO is to hire a merchant banker to handle the process. An underwriting agreement is entered between the merchant banker and the company to work out the various financial details of the IPO. The merchant banker underwrites the shares of the company by buying all or some part of the shares and sells it to the public. Later, both the parties file registration statement with the Securities and Exchange Board of India (SEBI) along with the underwriting agreement and necessary documents. SEBI then goes through the details of the statement submitted to it and if the information submitted is found correct, it allots a date to the company to announce its Initial Public Offering.The initial listing fee of the company is Rs. 50,000 and depending upon the paid-up share capital of the company the subsequent annual listing fee is determined. The company determines the price band of the shares and the merchant banker offers its shares to the public. Many roadshows and awareness advertisements are done to generate interest among the public to subscribe to the shares of the company.Let us now understand the various reasons why a company floats an IPO.Reasons for floating an IPO● The main purpose of floating it is to raise money. Companies are in constant need of funds to expand, upgrade or repay their loans. Depending upon the requirements, a company floats it to raise funds.● Through an Initial Public Offering, the shares of the company list on the stock exchange. This increases the liquidity of stocks which promotes various employee stock ownership plans. ● By going public, the credibility and brand value of the company increases. The name of the company being flashed on the stock exchanges is a matter of pride for the company.● When the demand in the market is more, the company can issue higher number of stocks. This opens the door for the company for mergers and acquisitions as the stocks can be issued in exchange for the deal.The above-mentioned are the reasons why a company floats an initial public offering, let us know about the various checks you must do before investing in a company’s offerings.Things To Do Before Investing in an IPO● Check Company’s BackgroundSince the company is coming up with its Initial Public Offering, often there won't be any historical data available to check your decision about investing in the company. However, the company floating it does provide a prospectus. You must carefully scrutinise and read all the details provided in it before arriving at any decision about investing in the company. ● Check the UnderwritersThe success of the IPO depends upon the big broker who is endorsing the new issue. If the underwriters are well established then you may look at investing in such offerings. ● Lock-in PeriodBefore applying for an IPO, you must read the contractual obligation of the company’s executives and investors about the lock-in period of their shareholding. Often, the prices of shares drop drastically after the company completes the offerings as the shareholders of the company sell their shares in the open market once the lock-in period ends.The above points will help you in taking the right decision about investing in an IPO. Let us now read about the points that you must be aware of before investing in them.Points to Remember Before Investing in an IPO● When you invest in an IPO, you invest in the business of the company. The long term returns on the shares allotted to you will depend on the fortune and performance of the company.● The stock market is subject to volatility. Investing in Initial Public Offering can reward you with unbelievably high returns but at the same time, they also have the potential to erode the invested capital so be vigilant while investing.● While applying for it, you must be aware of the fact that the company is not liable to public investors to reimburse the capital.Therefore, while investing, you must be aware of the potential risks and rewards. Let us now read about the advantages and disadvantages of an IPO.Advantages of an IPO● The biggest advantage of an IPO is that it fulfills the financial needs of the company. It is an easy option to acquire capital for its growth and fund a massive expansion. With it, the company can invest in infrastructure and acquire new equipment. It also helps in paying off its debts.● With Initial Public Offering, the shares of the companies are available for mergers and acquisitions. Also if the company wants to acquire any other company, the shares of the company can act as a means of payment.● It attracts talented employees because the company can offer them many stock options and hire them at relatively lower wages.● The owners of the company get the reward of their hard work by listing their company on the stock exchange. In the IPO, they can get for themselves a certain percentage of shares in the company and enjoy the prestige of being a listed company.Disadvantages of an IPO● IPO is a long process and it requires a lot of legal compliances. This distracts the company from its core business and can dent the company's profits. Also, companies are required to hire merchant bankers to ease the process of IPO and in return, they charge hefty fees.● In many cases, the business owners are not able to take as many shares for themselves. Many a times they may not be able to sell their shares in the market due to the lock-in period. Therefore, the business owners are sometimes at a loss when they float an IPO.● Securities and Exchange Board of India (SEBI) conducts many checks before a company floats an Initial Public Offering. This process can be time consuming and requires huge disclosures. Besides, the promoters are required to submit details that may be used by competition and can hamper their business. ConclusionThe above mentioned article will help you learn about IPO right from what it means to how to invest in them and what are the risks and benefits associated with investing in them. Investing in newly launched public companies can be extremely rewarding. However, you must also know that it can be risky and at the same time profits are not guaranteed. Having said that, over the years, Initial Public Offerings have offered good returns to investors. You may consider investing in it after researching about the company and its management. Every month a lot of IPOs list on the stock exchange, all you have to do is find the companies with higher potential and invest in them. Remember, an informed investor always performs better than one who is not.   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 Online Trading – Meaning, Tips & Benefits

Trading in the stock market has rapidly evolved in the last 30 years. From earlier offline trades done via the phone, we have moved to a trading ecosystem that is completely online. Offline trades earlier used to involve investors calling their brokers to relay an order. After the order was confirmed, the broker would go to the stock market floor to execute the order. The stock markets operated on an open floor trading system where brokers would call out their orders and the prices and transactions would get finalized. This was also called as open outcry where brokers would use hand signals and gestures to communicate with each other. Once the order was finalized along with the price, the share certificates switched hands and also owners. This transfer of share certificates was marked in ink behind the share certificate stating the change in ownership. Once this transfer was done, funds would change hands indicating that the transaction was complete. As cumbersome as this process may sound, all stock transactions the world over followed this system till the 1980s after which stock exchanges slowly began transitioning to dematerialized shares and online trading. What is online trading? Online share trading is nothing but transacting, i.e., purchasing and selling shares online. This is done through the broker’s online trading system. The broker’s online trading system is registered with the stock exchange’s online share trading system and can thus be used to conduct trades. Some of the instruments that can be traded using an online trading account are: • Equity shares• Mutual funds• Bonds• Derivatives• Commodities• Currencies• Any other listed funds Online trading is a convenient way for a person to begin investing in the stock market. It is no longer necessary for your broker to find the right price match based on your orders. This process can completely be done online through the exchange’s price matching mechanisms. Instead of brokers competing to find buyers, the system operates through a matching mechanism where buy orders and sell orders are matched based on the price. The price of the instrument can be obtained from the listed price on the exchange. Online trading allows an investor the flexibility to choose the price at which he wants to sell the instrument and depending upon the order matching system, the order is fulfilled when it is matched. The fund transfer and securities transfer happens within the next two days of the date of transaction, thus making the entire process seamless. With the introduction of online trading, India is looking at an increased participation from first time investors in the financial markets. Online trading in India is extremely easy and each broker provides videos, blogs and customer support to ensure their customers can trade on their platforms with ease. Online trading allows the investor to set different types of orders such as: • Market orders• Stop loss orders• Limit orders These accounts allow the investor to access their holdings and make immediate decisions to enter an instrument or exit it. Benefits of online trading: 1. Cost:The biggest advantage of online trading is the brokerage costs. Trading using an online system is cost effective not only for the broker but also for the investor. The absence of a human element allows brokers to slash their brokerage costs, which makes it very cost effective. 2. Efficiency:Online trading is very efficient. There is very little room for human error. An order once placed is almost always executed. Plus, your online trading account sends emails and messages on the confirmation and execution of orders. 3. Research reports:Most brokers offer a wide range of market research reports and analysis about different market instruments. These research reports give you an insight into the share market. You can rely on these reports because you know that these are made by industry experts. Thus, a research report from a good broker is also bound to save you time that you would otherwise spend in doing research. 4. Scrip tracking:It is possible for investors to track different shares that they’ve invested in. Online trading provides the investor a chance to track the movement in shares. It provides reports like price movements over a period of time, the different buy and sell orders currently placed in the market etc. 5. Watch lists:Traders can put a few shares in their watch lists which provides an easy way for them to track the prices of the stocks that they intend to purchase.. 6. Speed:Using an online trading account is extremely simple. It allows a person to execute a trade in a matter of a few seconds. How to trade online? 1. Open a demat and trading account:The first step to trading online is to open a demat and trading account. A demat account is an online repository or record for all your investments. Whenever you make a trade, the instruments such as shares are debited or credited from your demat account. A trading account is an account that enables you to buy and sell in the stock market. 2. Learn all about the different instruments:For novice investors or traders, it is very important to understand the different instruments and learn about how the markets work. This can help place the right trades and use the stock markets to earn a return. With many resources available online, it is easy to learn all about the market. Before you invest or trade, make sure you know where you’re investing. 3. Pick your investing strategy:This step means to decide if you’re an investor or a trader. If you’re an investor, you are investing for the medium to long term. Traders generally focus on short-term trades which can either be intraday trades or trades over a few months. Both these strategies are vastly different so it is important to know what your strategy is for each stock or mutual fund when you invest. 4. Make your trades:The final step to online share trading is to place the order and make the trades. Depending on your investment strategy, you can purchase or sell the shares. Remember to track your shares and exit at the right moment so you can achieve your earning targets. Online trading meaning has evolved over the years and has made investing and intraday trading affordable and accessible to a large number of people. Considering investing online? Well, why wait? Open a demat and trading account with a leading broker like IndiaNivesh Securities Ltd. 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 NCD (Non Convertible Debentures)? – Meaning & Features| IndiaNivesh

    What is NCD (Non Convertible Debentures) Investors are continually looking for new investment avenues, especially in a market where conventional investment instruments and sometimes falter in a volatile market. One such attractive proposition that can help you manage liquidity and risks while offering significant profits are nonconvertible debentures (NCDs).What is NCD?Nonconvertible debentures meaning, NCDs are financial vehicles issued by reputed companies for a specified period of time with a guarantee of a fixed interest to investors. Unlike standard debentures, nonconvertible debentures cannot be transformed into equities or company shares. The company that issues the NCD decides on the interest rates. On maturity, investors receive the principal amount and the interest together. Nonconvertible debentures can be held by individual investors, banking institutions, primary dealers, unincorporated establishments, registered corporate bodies and other bodies incorporated in India. Companies issuing upcoming non convertible debentures in the market, do so to raise funds from the public. These NCDs can be secured or unsecured. Secured nonconvertible debentures are supported by the issuing company's assets to accomplish the debt responsibility. Hence, if the company fails to pay its investors, they can claim the payment by liquidating the company's assets. On the other hand, unsecured NCDs are ones that are not supported by the company's assets. Thus they hold far higher risk than secured NCDs.Features of nonconvertible debentures:Interest rates Typically, the interest rate of NCDs overs between 10 to 12%. Fixed deposits on the other hands could offer a maximum of 8% returns. Hence, compared to most investment options, NCDs can be lucrative due to its high-interest rates. However, how credit rating agencies grade a company’s NCD can be inversely proportional to the interest, it provides. For instance, a highly rated NCD could provide low-interest rates. But compared to corporate fixed deposits, bank fixed deposits and government bonds that give a maximum of 8% returns; nonconvertible debentures offer returns up to 11%, which makes it an attractive investment instrument.Pay out options If you are looking to invest in nonconvertible debentures, you can benefit from a variety of interest pay out options such as on a monthly basis, quarterly, six-monthly or annual basis. Typically, NCDs could mature from 90 days to 20 years. Hence, you have the opportunity and flexibility of choosing short and long-term tenures depending on your investment objectives.Liquidity Non convertible debentures are listed on stock exchanges and offer secure withdrawal options. Redeeming your investment from NCDs can be easier than bank fixed deposits, and hence, can be considered as providing better liquidity than FDs.IssuanceA company that offers nonconvertible debentures through open issues can be purchased within a specified timeframe. Similarly, NCDs can also be purchased from the stock market. To understand what is ncd in stock market, you may want to look into the open stock market and exchanges for easily tradable NCD options.Stringent credit ratingNCDs are only authorised to be issued by companies that have good credit ratings. Credit rating agencies rate NCDs and revise ratings regularly.Things to consider before investing in non convertible debenturesIt is critical to understand how NCDs can be vulnerable to risks. These risks could be related to how a company's business is handled and how it utilises its funds. An NCD’s credit rating could take a hit if the company's turnover is impacted negatively. To address the impact, companies then borrow additional funds from banks and lending institutions. This is why it is critical to consider a few points before investing in nonconvertible debentures. These include:Issuer's credit ratingOpt for a company that has a credit rating of AA and above. The score is a crucial indicator of the company's potential to raise funds from external and internal operations. The rating is also evidence of the company’s sustainability. Credit rating is a valid parameter that can expose the financial position of the company.Debt levelsIt is essential that you conduct background checks on the asset quality of the organisation if you are considering to invest in its nonconvertible debentures. If a company is allocating more than 50% of its entire assets in unsecured loans, it can be a sign to stay away from such companies.Understanding CARCapital Adequacy Ratio or CAR looks into the company's capital and calculates if it has adequate funding to outlive potential losses. It can be an excellent idea to look into the company you plan on investing to see if it has at least 15% CAR. Alternately, you must also ensure that the company has historically maintained the CAR over a period of time.Looking to NPAsA company issuing NCDs must set aside at least 50% of their assets towards Non-Performing Assets or NPAs. This can be an optimistic indicator of the company's asset quality. In the event that the company's quality declines due to bad debts, you may want to take it as a warning.Gauging ICRA company's ability to settle the interest on any of its debts at any given time can be witnessed in its Interest Coverage Ratio or ICR. The ICR of a company reveals how it can handle potential non-payments.Tax bracketIf you belong in the 10% and 20% tax plan, you may find nonconvertible debentures as a lucrative investment option. This is because, if your tax bracket is low you stand to earn more from NCDs.ConclusionThere is a marked difference between fixed deposits and non convertible debentures. It can be an excellent idea to look into specific factors before selecting an NCD as an investment option. Consider the company's financial health and how it employs its funds if you notice a diversion from its core business; it can be a sign to stay away from the said company. Going through the credit rating of companies can also give you a fair idea of how your investment is secured. For instance, you may want to steer clear from companies that have low ratings but temptingly attractive, high returns. Such propositions could be risky in the long run, especially if the overall financial health of the company is not stable.   Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

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  • Mutual Funds KYC - Know about How to do KYC for Mutual Funds

    How to do KYC for Mutual Funds Recent media accounts reported that mutual fund industry now has over Rs. 23 trillion in Assets Under Management (AUM) in February 2019 alone. This could be considered to be a sign that an increasing number of people are taking financial planning earnestly and are setting distinct financial goals for their future.With regards to secure investment schemes that provide above-average yields, mutual funds beat most other options to stand out as the emerging winner. Given the effortlessness through which one can invest in mutual funds, an upbeat market and a wide variety of mutual fund types make it an attractive investment proposition for new and seasoned investors alike. If you are looking to invest in mutual funds, first and foremost, it is essential to know that you can only invest in mutual funds if you are KYC compliant.Understanding KYC for mutual fundsKnow Your Customer, also known as KYC, enables financial institutions to validate your identity. As a first-time investor, you must undergo the KYC process before transacting in a mutual fund. Because it is a mandatory customer identification process, it is critical to submit your identity details to a mutual fund house, a stock broker like IndiaNivesh or any other financial institutions. This is because, according to the Prevention Of Money Laundering Act, 2002, AMCs must abide by the rules and guidelines established by the Act to implement a Customer Identification Proof. Furthermore, there are specific requirements prescribed by SEBI concerning KYC norms of financial institutions and intermediaries to know their customers. KYC for mutual fund requirements are typically in the form of verifying the customer's identity and address, financial standing, occupation and vital demographic data. These rules and regulations are continually updated by SEBI periodically.Valid from January 1, 2012, every investor regardless of the investment amount in mutual funds must comply with KYC to carry out any transaction. Since money laundering is a major issue worldwide, mandating KYC formalities is regarded as an efficient way of preventing illegal activity. The chief objective of the KYC process is to ensure that a real person or individuals are making investments rather than fictitious names. Every mutual fund investor must adhere to the KYC procedure via a KYC Registration Agency (KRA). This information held by the agency is stored in a single repository for all fund houses and intermediaries to access. Examples of these agencies include NSE, CAMS and KDMS.Documents required for KYCTo initiate your KYC process, you must submit the following documents along with the KYC application form and passport size photograph. Documents include:• Identity proof such as driving license, passport copy, voter ID, Aadhar card, bank photo passbook, or PAN card• Address proof such as recent landline or mobile phone, passport copy, electricity bill copy, voter ID, driving license or Aadhar cardTypes of KYC proceduresTypically, you can complete the mutual fund kyc form either through the off-line or online method. CDSL Ventures Ltd has been nominated and authorised by the mutual fund industry to conduct the Know Your Customer procedure.Off-line method• Visit the CDSL Ventures website and download the KYC application form• Fill in the details• Submit the signed application form through the specified mutual fund authorities or intermediaries• Provide identity proof and address proof and the passport size photograph to go along with KYC form• The duly filled form can be physically submitted at any of the following places. These include the Asset Management Company (AMC) through which you are making the investment or the Registered Transfer Agent  (RTA) such as CAMS.Online Method• Create an individual account on the official website of the KRA. Fill in your credentials to initiate the online kyc for mutual fund• Key in your registered mobile number and enter your Aadhar card number• Verify the details through the OTP sent on your registered mobile number• Upload a self-attested copy of your e-Adhaar• Accept the consent declaration terms for the eKYCAadhar based KYC through biometricsYou can also opt for Aadhar based KYC if you have the Aadhar card. Request the fund house or agency to send their representative or an official to visit you personally and collect the details from you in person. You can submit a copy of your Aadhar card to the representative, and they will enter your biometric information on the scanner and link it to the Aadhar data repository. As your fingerprints get matched to the database, your credentials stored with the Aadhar database will reveal that your KYC has been validated. This process can ensure that you can go ahead with your mutual fund investment.KYC for non-individualsHowever, if the investor is not an individual, the KYC process must be completed in a different manner. For instance, here are some cases on how to complete the KYC based on the following:• Joint applicants. All or both applicants in a joint applicant setting must complete the KYC individually.• Power of attorney. The power of attorney holder and investor must complete the KYC process individually.• NRIs/PIOs. All NRIs and PIOs must complete the KYC formalities individually.• Minors. If a mutual fund investment is being made on behalf of a minor, the parent or legal guardian who wishes to operate the account on behalf of the minor must complete the KYC procedure. When the underage individual attains adulthood, he or she must complete the KYC formalities at the time.It is important to note that if any KYC documents are found incorrect, insufficient or not in order, the investor's compliance status can get cancelled. Under such a situation, the investor is informed of the status by the relevant authority.To know your mutual fund kyc status and the progress of your KYC process, you can check on the following websites. Here, it is important to note that you can visit any of the below sites depending on where you have given the KYC application form:• CDSL Ventures Ltd. CVL - • NSE (DotEx International) - • NSDL Database Management Ltd (NDML) - • CAMS - • Karvy - know more about your mf kyc status, you can visit any of the above sites and enter your PAN number.Conclusion On completing the KYC procedure successfully, you will be able to purchase mutual fund units from your respective AMC or RTA. You can freely invest in a wide variety of mutual funds of your choice and any amount, after completing your KYC formalities.   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 Intraday Trading?

    What is Intraday Trading and How to Do It?Stock market offers numerous opportunities to traders. In fact, it is one of the daily sources of income for many people. The reason why stock market trading is popular is because it has potential to generate enormous wealth. Moreover, with the right trading strategy in place, the sky is the limit for making profits. In this article, we will learn about intraday trading meaning and its related concept.Let us first learn about what is intraday trading.What is Intraday Trading?Intraday trading or day trading is buying and selling the stocks or securities on the same day. To put it in simple words, intraday trading is squaring off the transaction on the same day it takes place. The main objective of the trader in intraday trading is to book profits on the same day and not carry any overnight position in the market.As you are now very well aware of the intraday meaning. Let us read about some tips that would help you in becoming a successful intraday trader. The tips for Intraday Trading are as follows;Intraday Trading Tips• Trade in Liquid StockSince intraday trading involves squaring off the transaction on the same day, trading in liquid stocks is recommended. Liquid stocks means the stocks that have higher volume and one can easily find buyers and sellers for these stocks. Intraday trade can be settled only when there are sufficient buyers or sellers to purchase or sell a stock. This is possible only when the trading volume is high in stock. • Follow the NewsAnother important intraday trading tip is following the news regarding stocks. Stocks which are in news are often the most volatile. Intraday traders want to trade in volatile stocks due to big price movement which gives them immense opportunities. Also it is easy to predict the price movement of the stocks that have news inflow. A positive news brings the price up whereas a negative news brings the price down. • Technical ChartsTrading on the basis of technical chart reading is always the best. Charts help in predicting the future price movement. The different patterns on the chart suggest the possible future movement in the stock price. Technical chart reading is possible only after good training. If you want to trade in stocks on the basis of chart reading, you can open a demat account with IndiaNivesh. • Prepare a Trading ListTrading in a particular script or stock gives you a better hold of those stocks. You are able to easily predict the price movement in those stocks and trade accordingly. One can prepare a trading list after detailed analysis and in-depth study of the stocks. • Resistance LevelsAnother important intraday trading tip is trading as per the resistance levels of the stocks. The resistance levels of the stocks is that level beyond which the stock does not move. A trader keeps a watch on the resistance levels of the stock and then takes a trade. When the stock breaks the resistance levels, the trader quickly takes a position in that stock and grabs the advantage of sudden price movement. • Top Gainers and Top LosersTop gaining and losing stocks of the day offer immense opportunity to traders to trade in them and make a good profit. However, the selection of stocks for trading must be done carefully. Blindly following the list of top gainers or losers for intraday trading can lead to heavy losses and wipe out your capital. • Weekly Movement of StocksThe traders often trade in stocks after seeing their weekly price movement. They take the position in the stocks after studying the weekly close of the stock price. A detailed analysis of stocks suggests which stocks are suitable for intraday trading. As you are now aware of the tips for intraday, let us have a look at how to do intraday trading.How To Do Intraday TradingThe first and foremost requirement for Intraday Trading is to open a trading and demat account. The demat account can be opened with any broker who provides these services. Selection of a broker must be done by comparing the brokerage rates and services offered by the different brokers in the market. IndiaNivesh is one such broker that provides hassle-free services at competitive rates. After opening the demat account, the beginners in the stock market must know when they can execute intraday trades and the timings of the market. Timings of the Stock MarketThe stock market in India is open from Monday to Friday. Saturday and Sunday are holidays. The stock markets opens at 9 a.m. and closes at 3.30 p.m. The intraday traders can take positions in the stocks during the above-mentioned time period. It is recommended by the experts to avoid taking any trade position during the first trading hour of the market as during that time the stock market is volatile and taking an intraday position can be a risky strategy.Let us now have a look at the benefits of intraday trading.Benefits of Intraday Trading There is no risk of taking overnight positions in intraday trading. Any adverse event after the closure of the market does not affect the intraday trader. In intraday trading, traders have higher margin in comparison to the investors. The potential of Intraday Trading to generate returns is very high. If right trades are taken, an individual can make fortune out of intraday trading. The brokers often give a discount to the intraday traders and charge lesser brokerage. The goal of the Intraday Trading is to generate higher profits. If you are a beginner in the stock market, you can start intraday trading with lower amounts initially. And when you are well equipped, you can slowly increase the trading amount. All you need to do is trade in the right stock and understand the correct entry and exit points of the stock.Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

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