Author name: viratbhushan22@gmail.com

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.

 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.

Stock Market is full of example where your wealth multiplied by stocks with the passage of time. Wipro is one of them. Before study the case  we need to know few things about Wipro: Suppose you have purchase the stock in 1990 at 10 Rupees and bought 100 Shares. Wipro is giving bonus to its shareholder and quantity of the share increasing with passage of time. After investment in Wipro you have hold the share like other assets and didn’t sell till 27 years ( 2017) Bonus Details of the Wipro :       1990: 100 shares        1992: 200 shares (1:1 bonus on 12-08-1992)        1995: 400 shares (1:1 bonus on 24-02-1995)        1997: 1,200 shares (2:1 bonus on 20-10-1997)        1999: 6,000 shares (5:1 split on 27-09-1999)        2004: 18,000 shares (2:1 bonus on 25-06-2004)        2005: 36,000 shares (1:1 bonus on 22-08-2005)        2010: 60,000 shares (2:3 bonus on 15-06-2010)        2017: 1,20,000 shares (1:1 bonus on 13-06-2017) Note :  Finally 100 Wipro Share has been converted 120000 at the end of 2017 Value appreciated at the end of 2017 Total no. of Share : 120000 Price as on 29th Dec 2017 : 320 Total Value : 120000*320 = 3.84 Crore Dividend is also a Tax free income up to 10 lakh per year : Now hope you are clear about Why to invest in to Stock Market : We are also giving few more reason to think : Liquidity Flexibility of amounts invested Operated under high level of regulatory framework to safeguard investor rights Technology based Investment High return Capital growth Dividend   Annual dividend per share by WIPRO for last 4 years– 2014: Rs 8.00 2015: Rs 12.00 2016: Rs 6.00 2017: Rs 4.00 Note : Please don’t forgot you have 1.20 lakh share of Wipro and you are getting dividend accordingly.

How to Earn from Stock Market ? Top 10 ways to earn from stock market ? Stock Market is a ocean of money.  It is favorite destination for those who want to create passive income source for long term. Everyone in this world wants easy money in his / her life. Some people believe in miracles, lottery, gambling etc. But these things happen only in movies or in dreams not in real life. We in our country very often hear that stock market is a gambling its not work in real life. If anyone have the passion about the market then his near and dear demotivate him by showing so many drawback of market, they never show the positive side of this business. If you just Google, total no. of billionaire in this world and how they earned money in life. You will find USA is on top, second is Europe then UK and China. You will surprise that most of them have earned money from stock market especially from “Hedge Fund”. So how this things can be wrong in India. If you will check the list of Indian billionaire then you will surprised to know that everyone have the participation in the stock market directly or indirectly. If you also want to earn the money from stock market you have to know top 10 ways to earn from stock market: – Your investment must be 40% to entire life in financial assets rather than physical assets. Mostly people fails to identify who they are ? A Trader or Investor. You must be decide first then you can invest in to the market. There are two way to analyze the stock market, first one is Fundamental Analysis and second one is technical analysis. If you are investor then you choose first one and if you are a trader choose second one. Stocks is like your friends, So always work with limited number of stocks not more than 10 -15. Because in real life your good friends list can not exceed more than this. Always check fours point to trade in stock for better profitability in short term :  Volume, Price Movement, Volatility and Trend. Your portfolio must be well diversified as per the market trend but it should not be broad diversified. You can add five to six sectors in you portfolio. You must be know the business of company, products, promoter and financial health before buying the stock in your portfolio. If you want to know the minimum check point of the stock you can download portfolio management sheet. Never dependent only on Equity market because you can’t expect it evergreen every time. Be cause assets class always move in cycle only. Before 2014 equity return was negative but Gold has give very good ROI. Currency market also give good return when Dollar rally from 40 to 75 Rupees. Never take advise from external source like advisory services or paid services not because they might be wrong every time but they will make you dependent on them and your mind will never work for research. Must remember “PPP” concept in the market and always work on it.  First P means: Paisa,  you must have to maintain liquidity in your portfolio.           Second P means : Patience, after buying the stocks or trade in the market you must wait for it target, stay away from intraday trading.           Third P means:  Preparation : being a investor or traders you must be always ready to learn new things and mistakes of others traders in the market so that you can avoid them. Disclaimer : –  Post is only for education purpose kindly take expert advise also before actual investment in to stock market.

What is Arbitrage Trading in Stock Market ? What is Risk free model to work in stock market ? What is arbitrage strategies in stock market. How to understand it. How to learn arbitrage in stock market? What is Arbitrage in stock market :- Arbitrage means mispriced   between two market at a time. It might be due to so many reason. We understand with a example in live market. Simple Market Example : Apple price in Delhi wholesale market is 60 Rs per kg buy in Gurgaon wholesale is 80 Rs. It can create a opportunity for a trader / merchant. Any one who in this business can buy from Delhi and sell in Gurgaon. He will earn 20 Rs per kg. But the all expenses related to transport and labor we have to cover from this 20 Rs only. Stock Market Example : – Maruti Stock is trading 7100 in NSE and 7080 in BSE Exchange then the same opportunity is creating for earning. So only one condition that the participant must  have the excess for both market for trading. Even all the trading related expenses must be covered from this profit only. Profit ratio might be low but it can be increased by bulk quantity. Types of Arbitrage in Stock Market : – Spot Market Arbitrage Cash and Future Market Arbitrage Options Trading Arbitrage Commodity Market Arbitrage Currency Market Arbitrage Spot Market Arbitrage :-  We already have discussed with Maruti Share in first column. Cash and Future Market Arbitrage:-                                                                  We people always pay for time value of money. Either in home loan, personal loan, Car loan etc. Same formula in being used in stock market. If we want to buy share in future then we also paying some cost of carry or time value of the money. In lemon language you have to pay extra then what you are paying today. We understand with a example : – Stock Market Example : –                                                   We have two separate market name equity market and Derivatives market in stock market trading. Its like Delhi market and Gurgaon market. Both have different price. Now supposed Delhi Market in for cash only if you want to buy the share you have to pay full in cash but Gurgaon market is Derivatives market where you have to pay only 10% of total amount right now buy full amount on a later date. Delhi Gurgaon Equity Market –  Cash Derivatives Market – Credit Maruti Share Price Maruti Share Price 7090 7115 Above example is showing arbitrage opportunity for trader where trader can buy Maruti share in spot market can sell in future market. End of the month he will get the price matching as per the exchange rules of future expiry. Per share he can earn 30- 35 rupees but the cost of the transaction have to be deducted from profit. There is endless opportunity in stock market for such kind of the examples. Formula to be used to identify Arbitrage opportunity : – Black Scholes Formula Options Trading Arbitrage :-  It is advance level of arbitrage method but very cheap for execution in live market with minimum loss and maximum profit. But Everyone who want to enter here must have to understand complexities of the options trading strategy. Once you get expert in this then you no need to worry about the market ups and down. You can earn in any situation in the market. We are sharing few model of Arbitrage in this market :- Put Call parity and Arbitrage Opportunity Strike Price Arbitrage Opportunity Box Spread Arbitrage Conversion & Reversal Arbitrage  Participants in Arbitrage Market : – Its seems Arbitrage market is in favor of institutional investors like mutual funds, FII, DII etc,   because of HFT trading access and transaction charges is so high, A retail investor is not able to grab this opportunity. But if we learn advance level options trading strategy and technical analysis of stock market then we can also earn from Arbitrage market. Disclaimer : – Investment in stock market is risky so please take expert advise before investment. Article is only for educational purpose only, ISFM – Stock market School is not responsible any kind of loss occur during live trading.

How to start business in Stock Market ? Career in Stock Market having vast opportunities in India. Indian Stock Market is developing with passage of time and penetration of stock market is very low as compare to others developing country. You can cross check the fact by total number of Demat a/c is only 3.5 Cr out of 136 Cr. Peoples. It is again surprising that only 50 % Demat a/c is active rest of the demat are doormat. Securities market facing shortage of skilled person. Only few people who have knowledge about this industry are investing directly, rest are giving money to mutual funds, insurance etc. If we just look around the world like US and Europe 40% people are investing in stock market are directly. But in Indian numbers are less than 5% which is showing endless opportunity. Indian economy is just surpass the France and stand $2 trillion. Now mutual fund size is just 25 lakh Cr. Which is 12% of the total economy. It is very less again as compare to the others countries. Now whatever development is going on in western culture same would be possible in India due to cultural effects and demands. ISFM – Best Stock Market School have prepared a details reports on this sector and found that it is much better to enter in this sector as compare to overcrowding sector like Engineering etc. Types of Work in Stock Market : – Job point of view Business point of view Job point of view :- If anyone is looking for job in this sector then candidate must have the good conceptual knowledge of the stock market so that he / she can understand duties and responsibilities during the work. Now there are list of the qualifications which you can enroll for this sector so that you will get more weight as compare to fresher. Types of Qualifications : – Full Time Education :- MBA / BBA M.com / B.com Part Time Courses:- NISM Certifications CFP – Certifies Financial Planners CFA – Charted Financial Analyst DSTO – Diploma in Stock Trading & Operations After completing these courses you can enter in to the market and can convert your theoretical  knowledge in to practical task. Its required one to two year to sharp yours trading skills to handle fund of the clients. Once you get expert to generate ROI from market your career ladder will climbed very high. We can understand all this hierarchy of the things from the picture given below : – Business Point of View : – We are personally more aggressive on business or self employed model in stock market because of high potential of growth. Now everyone know you need a huge capital to start a new business but after all there is no guarantee that our business will be success. It might because of competition or any others else. You also required to take high risk and need to work hard to promote your business. But in stock market your advertisement, promotion role is handled by regulators and others entities now a days. Govt. is very bullish on this segment and making entrepreneur friendly policy to boost this sector. Hope you also seen “Mutual Fund Sahi H” campaign so many times. Well established player in this sector are working on welfare due to CSR activities. SEBI which is most active regulator in our country organizing time to time investment awareness program in different part of the country. Types of Business category in Stock Market : – Sub broker or Stock Broker Mutual Fund Agent Arbitrage House Proprietor Trading House Investment Advisor – Independent Equity Research Company Sub Brokers / Stock Brokers : – Indian stock market is one the most regulated stock market in the world thanks to SEBI for all reforms have been taken since of its inceptions. Its very easy to be a Sub broker /  Authorized Participants now a days. You just need to contact a well – established brokers, I will recommended in top 10 brokers in India only. You required one to two lakh capital to start this business along with NISM certification. If you want to become a Stock Broker then you need 2 Cr. Capital and have to fulfill the SEBI’S criteria. To be a full fledge broker there is lot of formalities that you need to fulfill even after getting broker tickets. But you don’t want to acquire client then you can apply for proprietor trading desk in this segment. Only 25 lakh required for mini broker setup. Mutual Fund Agent : – Mutual fund is one of the most favorite product for investor. If you want to take benefits of this era then you can become a AMFI Reg. Mutual fund agent. You have to pass NISM Series V – A distributor exam. After that you can apply for ARN number and sell mutual fund policy to clients. Mutual fund agents are getting commission twice in industry which is very lucrative. First one is upfront and second is trail commission. Mutual fund business is expanding from metro city to tier -2 city also. Proprietor Trading House : –   Small and medium enterprises now a days working on quants trading model and working as a proprietor trading desk. Delhi and Mumbai are having most of these house. Currently 40% turnover in Indian stock market is based on this model. Investment Advisor : – Investment advisor is one of the most attractive option after you complete SEBI Investment Advisor certification. Registered investment advisor is very new in India but it is very common in UK and USA. Being a advisor you can get paid by client for advising investment options and financial planning. How to Start in real life : – Without implementation knowledge is poison. So you must have to know how to take right action at right time. Just to become a sub broker or any other form in this market you need to learn first. Education always pay the best interest and if

Everyone know about SIP today and approx. 10 Cr. People in India investing on regular basis. Thanks to all Doctors, Engineers and other professional who is contributing 8000 Cr. On monthly basis. Average SIP is approx. 3500 Rs. But still India is having just only 12% of MF penetration of 2 trillion economy. Being a wise investor we must know whom we are giving money and what they will do with this money. Because Mutual fund success totally depend on the fund manager, if your fund manger is having good experience and traits to make money in stock market then you will get a handsome return otherwise you may get real fruits which you want. ISFM – Best Stock Market School have collected data from market and sharing with you, it will help to gain some knowledge about  mutual fund market. But your own research is also matter so it is endless efforts to digging about market in search of best. Top  10 Mutual Fund Manager in India. 1. PRASHANT JAIN HDFC Mutual Fund Prashant Jain is the Executive Director and CIO of HDFC MF. He has over 27 years of experience in fund management and research in the mutual fund industry . He has been associated with HDFC Asset Management COMPANY SINCE  June 2003. He is also the fund manager for the large cap and multi cap schemes of HDFC AMC-HDFC top 100 fund and HDFC equity Fund. 2. HARISH KRISHNAN AND HARSH UPADHYAYA KOTAK MF Harish Krishnan is a Fund Manager with Kotak AMC and Manages large cap,  thematic equity funds. The schemes include  Kotak 50, Kotak India Growth Fund, Kotak infrastructure &Economic Reform Fund. He has more than a decade of experience  spread over equity research and fund management. His Kotak Blue Chip Fund Regular Growth is one of the best performers in large cap segment of mutual fund schemes. Chartered Financial Advisor (CFA) Harsh Upadhyaya  is the CIO of Equity and Fund manager at Kotak Mahindra Asset Management Company. He joined the fund house in August 2012. 3. VINIT SAMBRE DSP MF Vinit Sambre is a Fund Manager and Head of Equitys at DSP MF.  He has been managing the DSP Micro Cap Fund since June 2010. He is also the fund Manager for the DSP Small and Midcap Fund. Sambre specializes in the small and mid cap space and has over 16 years of relevant work experience. DSP Midcap Fund has performed decently over the years. 4. MAHESH PATIL  Aditya Birla Sun Life Mutual Fund CFA Mahesh Patil served as a Co-CIO- Equity and fund Manager of Aditya Birla sun life AMC. He joined Birla sun life Asset Management in October 2005. Patil has an extensive experience in fund management,equity research and corporate finance. Aditya Birla Sunlife Frontline Equity Fund-Growth is one of the best funds managed by him with stellar returns and exceptional growth 5. JANAKKIRAMAN RENGARAJU AND ANAND RADHAKRISHNAN. FRANKLIN TEMPLETON INVESTMENTS Jankiraman  Rengaraju is a Vice President and a Templeton investments he manages Franklin India Prima Fund and Franklin India smaller companies fund. He has been investment management industry for 13 years. Franklin India Prima Fund managed by him is one of the performing funds in the mid cap segment. Anand   Radhakrishnan  is the CIO of Franklin India- Equity segment. He has over 25 years of investment industry experience. 6. NEELESH SURANA MIRAE ASSET MF Neelesh Surana is a fund manager and the CEO – Equity at Mirae Asset Global Investments (India). He joined Mirae  Assest in 2008 . in his capacity as CIO-Equity he heads the equity research and investment functions. He is responsible for managing equity funds of Mirae Asset (India) as well ass providing research support for the global mandate . Mirae Asset Emerging blue chip fund under him, is one of the best in the large and mid cap category. 7. SAMIR RACHH RELIANCE MF Samir Rachh is a Fund Manager with Reliance Nippon Life Asset Management. He was previously an assistant Fund Manager and Senior  Investment Analyst. He specializes in the mid cap stocks at the firm. Rachh joined Reliance Nippon life asset management in October 2007. Reliance small cap fund scheme that is managed by him is one of the leaders in the small cap category. 8. JIGNESH GOPANI Axis Mutual Fund Jignesh Gopani is a Fund Manager and head of Equity at Axis AMC. He has a total experience of 16 years, in which eight years are in equity fund management. Currently , the key funds under him are Axis focused 25 and Axis long – term Equity Linked Saving Scheme category –Axis long term Equity Fund is one of the favourites and has performed consistently for years. 9. SANSKARN NAREN ICICI Prudential MF Sankaran Naren is a Fund Manager and the CIO for Equity at ICICI Prodential Asset Management company since 2008. He is also the  Executive Director since 2016. Naren oversees the entire investment function across the mutual fund and the international advisory business. He is instrumental in the overall investment strategy  development and execution. He has several years of experience in the financial services industry ranging from investments  banking , fund management, equity research, and stock  broking operations. He manages one of the most innovate scheme-the ICICI Produce Balance Advantage Fund-the founder of this category. 10. SOUMENDRA NATH LAHIRI L&T Financial Holdings Soumendra  Nath Lahiri is a Fund manager and CIO at L&T finance holdings. He manages L&T Equity Fund , L&T Tax Advantage Fund , L&T india special situations fund , L&T emerging bussness fund and   ,L&T infrastructure fund . lahiri also manages the equity component of L&T India prudence fund and L&T dynamic equity fund ,and co-manages the L&T Midcap fund. He has been the Head of Equities at L&T Investment Management since September 2012. Disclaimer : – Ranking is personal view of author it is not showing any kind of reputation of Mutual fund / AMC. Source :  Contents and knowledge based on Outlook Money.