Author name: Mr. Sushil Alewa

Sushil Alewa is the Founder & Director of ISFM – International School of Financial Market, established in July 2014 with the aim of bridging the gap between academic finance and real, practical market participation. A Certified Financial Planner - CFP from US (Reg. No. IN 51734) and SEBI Registered Research Analyst (Reg. No. INH100009433) with an MBA in finance, Sushil has spent more than 16 years in the Indian capital markets. His career spans equity advisory and research at Sharekhan, India Infoline, Indiabulls and Religare, followed by HNI portfolio advisory at Anand Rathi Wealth Management — experience that shaped the practitioner-first approach ISFM is known for today. He is an active trader and researcher, and his teaching draws directly from live market work rather than theory alone. His areas of focus include technical analysis, derivatives and options strategies, equity research and fundamental analysis, and investor awareness. Sushil is currently a PhD scholar researching options trading strategies, and regularly conducts investor awareness and financial literacy programs for students, professionals and corporate audiences.

Stock Market

How to buy Foreign Stock ?

How to invest in abroad in stock market? How to invest in overseas markets?  Why to invest in foreign stock? Every Indian is fan of foreign company and using the services in daily life routine everyday. We are making social circle using Facebook, We are searching on Google. We are shopping on Amazon etc. Business model of the all above companies is successful and its going to be remain valid further also. If you want to get benefited from the growth of these companies then you always try to invest in the foreign companies also time to time. Because Sensex doubled in the last 10 years, the well-known Amazon, which has become part of our everyday lives, rewarded shareholders with gains of 21 times. Apple Inc., another well-known company in India, rewarded shareholders with gains of close to eight times. There are many other well known names like Facebook, Google, Microsoft, Starbucks, Nike and Walt Disney, among others, which have beaten the Sensex hands down in this period. How to select the Foreign company to invest:-  Market capitalization should be more than $10 billion. How to buy foreign Stock ? Indians are allowed to invest $250,000 annually as per the current norms of the RBI. But mostly don’t know how. Methods:- Denmark. However, this is more of a client referral programme and ICICI Direct’s role is quite limited. ICICI Direct completes your formalities in India and then you become a client of Saxo Bank. After that, you have to deal directly with Saxo Bank. What about the charges? Saxo Bank has a slab rate for trading in various markets. Interactive Brokers charges flat $1 for US trades. Its charges (including taxes) vary for the other markets. It also has a monthly minimum of $10. That means even if you don’t transact in a particular month, you will still have to pay $10. Popular Name of the Foreign Stock :- Source : Value Research. To know more about these stock follow the July edition of Wealth Insight.

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What is SME IPO in Stock Market ?

How to apply SME IPO online ?  Bright Solar SME IPO details ? Bright Solar ltd IPO is a SME platform issue. Investors know only Public issue but SME (Small and Medium Enterprises ) is new concept in the market. SME are playing major contribution in the Indian economy and they contribute 40% of the employment to the public. But financing option are very difficult and they have to work hard to raise the fund in the market. NSE and BSE now providing platform to raise the capital to SME with a separate window. SEBI also giving permission with following condition : Bright Solar IPO details : About the Company: Bright Solar Limited is engaged in assembling of DC/AC Solar Pumps and Solar Pump Systems under the registered brand name of “PUMPMAN”, “BRIGHT SOLAR”, and “BRIGHT SOLAR WATER PUMP”. The company is also engaged in EPC contracts of Solar Photo voltaic Water pumps which include supplying, installing and commissioning of the pump system along  with comprehensive maintenance contract for a specific period of 1-5 years. In solar pump system, it has a wide range of products of DC Solar Pump, Solar Pump Inverter, and AC Solar Pump. Motto to Raise Money: The objects of the Issue are: ISFM Recommendation: We can apply for this issue because future of the solar energy is bright in India and Govt of India also giving huge subsidy scheme to enhance the productivity of the players in the industry.

Blog, Stock Market

How to find Multibagger Stocks

What are Multibaggers Shares:- How to find Multibaggers Stocks:- Why to buy Multibaggers Shares:- What are Multibaggers Shares:- Multibaggers stocks are the companies which gives multiple time return on their investment value. For example if you have bought the stock at 100 rupees and the stock price is right now is 1000 rupees then we can say it is ten bagger stock. Investor always try to find out the multibaggers stock time to time so that their money can be multiply with passage of times. To identify the multibagger stock is very crucial task and its need vast experience to select. ISFM have collected few point which you can see during search the multibagger stocks. Major Common Factors are:- Market Cap:- They have a small market cap between 1000 Cr. To 4000 Cr. ( Smaller is  better ) Liquidity- The stock is illiquid. They are not tracked by brokerage houses and there is no/negligible institutional investor present. Management- They have a first generation management. (Like Sunil Mittal of Bharti, Dhirubhai Ambani of Reliance) Debt to Equity Ratio- Zero debt or Debt to equity ratio of less than 0.5. ROE- High ROE (return on equity) and High ROCE (return on capital employed) 6. P/E Ratio- Low P/E ratio as compare to industry For example if the Industry PE ratio is 40 then stock PE ratio must be less than 40. (It’s not a norm but chances are high since P/E re-rating exponentiates your return. There are many high PE stocks which go further up but that judgement will come from experience and knowledge. It can’t be taught.) Ethical and Efficient Management – The single most important factor to watch out for while hunting for a multibagger. Since, it’s an intangible factor and can’t be found by equations or an excel sheet. It can only be evaluated by reading annual reports, articles on the management, researching about their past, their views on the business, and if you need a shortcut then look out for the business’ ROE. If it’s high, then most of the time the management will be efficient. Scalable Business Model – Rakesh Jhunjhunwala gave example of Lupin, how it went up from 1 to 2000. It went up because the business was scalable. The Pharma industry is huge. It can accommodate 10 more Lupins. Sector Leader – There are high chances of sector leader in a scalable sector to become a multibagger. Future Growth Potential- In 1995, Hero Honda had a market cap of 200 crores. They sold one bike for ₹20,000. By conservative estimate, even if we assume that 10 million people will buy a bike, the whole 2 wheeler market was pegged at ₹20,000 crores (10m x 20,000). So, the sector leader was quoting at ₹200 crores and the whole sector was ₹20,000 crores. That itself gave Hero Honda 100x potential. Whoever spotted that potential, is happily retired.

Stock Market

What is ADX in Stock Market ?

What is ADX in Technical Analysis of Stock Market? How to Earn money to use ADX in stock market? Top 10 things you have to know about ADX? What is ADX in Stock Market? ADX mean Average Directional Index which is use to measure the strength of the trend in market without regards the market direction. ADX developed by Mr.  Welles Wilder. ADX is having 3 line in which Blue line representing the ADX level Red line is Minus Directional Indicator (-DI) and Green line is  Plus Directional Indicator (+DI). How ADX Calculated: Directional movement is calculated by comparing the difference between two consecutive lows with the difference between their respective highs. Directional movement is positive(plus) when the current high minus the prior high is greater than the prior low minus the current low. This so-called Plus Directional Movement (+DM) then equals the current high minus the prior high, provided it is positive. A negative value would simply be entered as zero. Directional movement is negative(minus) when the prior low minus the current low is greater than the current high minus the prior high. This so-called Minus Directional Movement (-DM) equals the prior low minus the current low, provided it is positive. A negative value would simply be entered as zero. How to Measure the ADX Strength: How ADX Work :- ADX system has three components – ADX, +DI, and -DI ADX is used to measure the strength/weakness of the trend and not the actual direction ADX above 25 indicates that the present trend is strong, ADX below 20 suggest that the trend lacks strength. ADX between 15 and 20 is a grey area A buy signal is generated when ADX is 25 and the +DI crosses over –DI A sell signal is generated when ADX is 25 and the –DI crosses over +DI Once the buy or sell signal is generated, take the trade by defining the stop loss The stop loss is usually the low of the signal candle (for buy signals) and the high of the signal candles ( for short signals) The trade stays valid till the stop loss is breached (even if the +DI and –DI reverses the crossover) The default look back period for ADX is 14 days Golden Rules of ADX uses : –

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SEBI – RBI Joint Program for Haryana Police

SEBI / RBI Joint program for Rewari Police on 23th Aug 2018 Title      : ” How to handle Investment Related Fraud”Venue  : SP Office RewariKey Speaker : Sushil Alewa, Amit RanaMajor Topic : Collective Investment Scheme, Customer Grievances SystemAudiences     : Police Officers &  Selected Civilians You can download the ppt of this seminar, link is given below. To know more about what the RBI – SEBI is giving guideline to Police officers for investment products you can download below attach ppt. SEBI PPT for plice officers RBI Seminar PPT

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Career in Stock Market- SGT Gurgaon Seminar by ISFM

Succesfully conducted Seminar in SGT University Gurgaon. Seminar Title   : ” Career in Stock Market ”Key Speaker     : Sushil Alewa from ISFM – GurgaonKey Speaker     : Mr. Sukumaran from – NISM – MumbaiAudience           : MBA, M.Com & BBA studentsVenue                 : SGT University Gurgaon, Haryana Note : To get the ppt of this seminar kindly find the link below this post :– International School of Financial Market – ISFM organize a seminar on “Career in Stock Market ”  in SGT University Gurgaon, for Management students. ISFM invite NISM’S Dean Mr. Sukumaran Sir to aware the students and faculty members of SGT on this topic. Participants show massive response to make career in the field of financial market.Mr. Sukumaran sir explain golden rules of investment for beginners and nitty gritty things of the securities market and what has been changed in last 25 years in our country. How a beginner investor can start investing by a little amount of money every month. Students also get informed by Sushil Alewa how NISM Certification  can help them to boost their career in securities market with easy placement. Some important certification features also has been explained during seminar. Eco Reforms& Indian Securities Market

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Hero Moto Corp – Gurgaon Seminar on -Investment Awareness

SEBI’S Seminar in Hero Moto Corp, Gurgaon on “Alternatives of Investment for Investors”  Seminar Title : ” Alternatives of Investment for Investors ” Key Speaker   : Sushil Alewa from ISFM – Gurgaon Key Speaker   : Mr. Devinder Singh from – UTI MF Audience      : Managers, Sr. Manager, Dept. Heads Venue         : Hero Moto Corp, Sec -34, Gurgaon, Haryana Note :  To get the advance  ppt on Mutual Fund analysis and Myth  kindly find the link below this post :- SEBI organize a session in Hero Moto Corp Gurgaon, Haryana on “Alternatives of Investment for Investors”. Mr. Sushil Alewa from ISFM, Stock Market School Gurgaon has clear all the myth about the securities market and explain how to start investment from a little amount of the money in life. Mr. Devinder Singh from UTI mutual fund explain importance of the mutual fund in our life and how we can get big return using little SIP in life. Audience show enthusiasm to start the investment but also explain how difficulties they are facing in life during starting of investment without knowledge. Everyone thanks to SEBI for such kind of informative session.  UTI  Hero  Motocrop  Gurgaon ppt

Blog

How to be a SEBI Reg. Investment Advisers

What is SEBI Advisers Act 2013 ? How to Enroll for SEBI’s Certification ? What is SEBI Investment Advisers  Act  2013 ? SEBI has mandated to all the agents who are working in financial market that they must have the minimum standards of knowledge before giving advise to the clients. Although insurance and pension agents are not falling in this category. If you will check out of India like UK or others developed nations  there is  RIA model applicable to sell / advise in the financial market. But it is dilemma of our country that agents who are selling financial products to us they are not well educated, mature to give the advices.  Even they oneself  don’t have the deep knowledge about the product. As per this act agent and financial advisers must be two person. A person who has became the financial advisor he / she can get the advisory fee from the client but can not became a agent of any intermediaries. SEBI Notification for RIA                    How to Enroll for SEBI RIA Certifications : SEBI’s having a sister concern name NISM which is taking care of all the securities market education in India. NISM has launch his own certification at different levels. Any one who want to be a part of the securities market can grab that certification according to the requirement and can legally  work . SEBI RIA Certification FAQ            SEBI RIA Certification : There are  two way to get  these certifications : NISM Certifications NISM-Series-X-A: Investment Adviser (Level 1) NISM Series-X-B: Investment Adviser (Level 2) NISM accredited Certifications: CIEL  Advance Wealth Management Certifications AAFM wealth Management Certifications CFP course by FPSB India Chartered Institute for Securities and Investment Click here for online registration:- To know more about these certification & enrollment  fill inquiry form we will get back you.

ISFM
Blog, Stock Market

What is Bank Nifty in Stock Market ?

Most popular strategy to trade in Bank Nifty ? Bank Nifty is an index which is representing the banking sector in Nifty. It is comprises of top 12 banking stock of stock market. Bank nifty calculated on free float market capitalization in the market. Now a days Bank Nifty in most volatile index in our country which is favorite among traders. Brief details of Bank Nifty are giving below :- Index Name  Bank Nifty Current Market Price 25000 as on dated 4th Oct. 2018 Date of Inception 15th September 2018 Base Value 1000 as on Jan 1, 2003 Expiry Monthly and Weekly 5 Years Return 19.55 % Total Return (Since Inception) 21 % PE Ratio 58 Total no. of Bank 12 Banks Lot Size 40 Margin Required 10% Approx. Daily Movement Expected 1% to 2% Average. Means 250 to 500 points Bank Nifty Weight-age by Banks : HDFC Bank Ltd. 33.27 ICICI Bank Ltd. 17.29 Kotak Mahindra Bank Ltd. 13.48 State Bank of India 9.11 Axis Bank Ltd. 8.77 IndusInd Bank Ltd. 7.64 Yes Bank Ltd. 4.97 RBL Bank Ltd. 1.84 Federal Bank Ltd. 1.26 Bank of Baroda 1.14 How to trade in Bank Nifty :- Bank Nifty is a derivatives contract so first you need to activate F&O segment in your demat a/c. Trader ensure that minimum 2 lakh should be in your portfolio before trade so that if  you  face MTM pressure your position would be safe. We frequently can buy sell the nifty as per signal given by the technical analysis. Bank nifty trading strategy  for intraday and deliver are based on the news also because whenever  the RBI change the interest rate in the country it react a lot due to direct connectivity of the banking sector to the interest rate. So we have to keep eye on monetary policy of RBI time to time. Bank Nifty also have huge volume in option trading. Because of the weekly expiry trader are always attractive towards to the bank nifty options. Traders are getting nice opportunity every week because its easy to arrange cash flow for one week rather than a month. Bank Nifty Trading Strategy :- If the volatility is high :- Long Strangle Short Call butterfly If the volatility is low Short Strangle Long Call butterfly Note:  Use stop loss always in Bank Nifty Trading because it is high volatile index and simultaneously check open interest time to time of current month future contract. Risk and reward ratio must be 1:4 in bank nifty and but in certain condition it can not go below 1:2 level. Disclaimer :  Post is only for education purpose kindly invest at your own risk with expert advise.

ISFM
Blog, Stock Market

Top 25 Mutual Fund terms you must know

 Mutual Fund is a panacea for all the investors who don’t have the these top 3 investment traits : Don’t have enough fund to invest in stock market Don’t have enough time to study the market Don’t have enough knowledge to understand the market Indian Mutual fund industry in growing very fast and as of now total 25 Trillion AUM having with 43 AMC from top 30 cities of India. Thanks to all doctor, engineers, lawyer’s, teachers and other professional due to their SIP, Mutual fund market is now 12.5% of the GDP. Although it is low as compare to the developed nation but it will cover all the deficiency very soon in future. SEBI and AMFI is also doing endless efforts to make Mutual Fund transparent and easy but still now a common man is not able to understand pros and cons of the fund. So here ISFM – Stock Market training institute in Gurgaon trying to make easy to the Mutual fund terminology. Net Assets Value means unit price of the Mutual Fund. It can be calculated with total Assets / total no. of units AMC :  Assets Management Company which manage the capital of the Investor. The role of the AMC is to manage investor’s money on a day to day basis. Thus it is imperative that people with the highest integrity are involved with this activity. AMFI:– All India Mutual Fund Association is a association of the mutual fund amc. It is not constitutional authority by its play a significant role to regulate the market apart from SEBI. ARN Holders : AMFI issue a unique number to every agent who want to sell the mutual fund in the market. First person have to clear NISM distributor certification then can approach to the AMFI. NFO :-  New Fund offer by a mutual fund company to the investors. AMC launches new schemes, under the name of the Trust, after getting approval from the Trustees and SEBI. The launch of a new scheme is known as a New Fund Offer (NFO) Folio no. : Folio number like a bank a/c which is used to keep the mutual fund in electronic form. Offer Documents : Official detailed information about mutual fund given by sponsor. The investor must read the Offer Document (OD) before investing in a mutual fund scheme. KIM : Key information Memorandum is small document which provide snapshots of the important information to the investor in a brief view. Open Ended Fund :-  open ended scheme allows the investor to enter and exit at his convenience, anytime except under certain conditions. Close Ended Fund : Close ended scheme don’t allow the investor to enter or exit any time but they give some lock in period to the investor. Total AUM :- How much fund manager have the total amount collected by all the investors in his scheme called AUM. Load :  Load means Charges to entry or exit in mutual funds. There are two kind of charges Entry load : When u invest in Mutual fund then you have to pay some amount to the AMC but from 2009 itself it is free of cost in India.  Exit load : When a investor sell the mutual fund the he have to pay few charges to the AMC called exit load. For example, Suppose you are selling a fund of 50000 Rs and exit load is 1% then you have to pay 500 rupees being a brokerage. Expenses Ratio : It is a Annual fee charge by fund master to the investor to manage the fund of the investor. Now a days SEBI is trying to reduce the fee from 2.5% which is maximum slab from 1% so that investors can get relief. Portfolio : – Where the fund master have investment the money of the investors.  As per rule of the SEBI Mutual fund manager must have to show his portfolio to the public on his website so that investor can know where he has invested.  Portfolio Turnover:- It is define as ‘Lesser of Assets bought or sold/ Net Assets’. A scheme with Rs. 200 cr as net assets sells Rs 40 cr of its investments. Thus its Portfolio Turnover Rate would be 40/ 200 = 20%. If this scheme’s net assets increase to Rs. 220 cr and the fund manager decides to churn the entire portfolio by exiting all stocks, then the Portfolio Turnover would be 220/ 220 = 100% CAGR : Compounding Annual Growth return of the Fund year on year, its showing actual growth of the fund in the market. Churning : How a fund manger can switch his portfolio from one securities to other securities time to time.  Even there is no cap how many time a fund manager can switch but they generally use value investing strategy for investment. Rating of Mutual fund : How credit rating company giving him rating after checking his position in the market. Although now a days it is not a matter of proud for anyone Fund of Fund :  When a investor invest his fund in a others mutual fund special to the foreign funds then it called fund of fund.  ELSS Scheme : Equity Linked Savings Schemes (ELSS) are equity schemes, where investors get tax benefit upto Rs. 1.5 Lakh under section 80C of the Income Tax Act Redemption : When investor sell his mutual fund to the AMC not to the other investor called redemption. The redemption  NAV would be the latest NAV of yesterday. 22. Indexation Benefits: Indexation is a procedure by which the investor can get benefit from the fact that inflation has eroded his returns. 23. LTCG on MF:Long term capital gain tax is applicable on mutual fund now a days, but it is free up to 1 lakh rupees within a financial year. If you are earning more than 1 lakh you have to 10% if you redeem. 24. CAN number: Common A/c number is a unique number provided by the MF utilities to invest in direct plan of mutual  at one place. It is provided after opening a/c on mfuindia. We can bring all the investment under one roof.

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