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  • How To Invest In The Share Market

    NIWS (National Institute of Wall Street) 11 Jul 2022

    How to invest in the share market: Are you one of those new individuals in the world, and investing seems complicated to you. If yes, then don’t worry about this article. You will learn how to invest in the share market easily just by sitting at your home via online applications on mobile phones or direct websites. As a beginner, learning plays an essential role in every field. In the case of the stock market, it is also the same for investing in the right way or manner. One must have to enrol in Stock Market Course In Delhi

    How to Invest In The Share Market In India?

    Are you looking for the right ways or places where you can learn about how to invest in the share market?  Or how to buy shares through the online process? Then below the simple and easy steps are mentioned by following one can easily buy or invest in the share market of India just by sitting at their home. 

    1. In the first step, one needs to open a DEMAT account where the stocks store in electronic form and link it with a pre-existing account which helps to carry out each transaction easily. 
    2. Through a mobile-based application or direct website platform, sign in to your DEMAT account. 
    3. Before investing it is always advisable to do good research on stocks which you are willing to buy 
    4. Before buying shares, always ensure that you have a sufficient amount in your bank account by which you can purchase the desired share.
    5. At the given price, buy the share by selecting the number of units or quantity.
    6. Once the seller reciprocates the request then, your order will be executed. And at the time of the transaction, the required amount from your bank account will be debited. Simultaneously, shares will be received by you in your DEMAT account. 

    Documents Required For Opening DEMAT/Trading Account

    Perhaps for opening a DEMAT account, individuals need some essential things or documents with themselves. Check the complete list of some documents which are mandatory while opening a DEMAT and trading. 

    • PAN Card
    • Proof of Identity 
    • Bank Account 
    • Address Proof
    • Cancelled Check 
    • A Stockbroker 

     

    Important Factors To Consider Before Investing in Stocks

    Some factors should be kept in mind for those individuals who want to learn how to invest in the share market. Below the complete list of some essential elements is mentioned. 

    Investment Objective

    Identifying the financial goals should be the first work that every investor does before taking the step of investing. The purpose of every investor is different so never think that the goals of investing are universal.’

    Deciding the investment horizon before investing in the share market is mandatory. And if you are wondering how to invest in the share market, then also start wondering how to make the right financial goals.

    Risk Learning Ability 

    Risk-taking capacity is another essential factor that should be important while investing in stocks. If you are an investor and your ability to take risks is low, it is advisable to invest in those stocks that give stable returns and infected less because of market validity. 

    Diversification 

    The loss can be prevented by maintaining a diversified portfolio. In simple words, we can say that the more you invest your money in different sectors, the risk capacity becomes more lower your investment. 

    Two Types of Stock Market

    Investing in stocks can be done in two major markets: 

    1 Primary Market 

    When any private company wants to go public by offering its shares for the first time, through Initial Public Offering (IPO), once the claims are open, interested individuals can apply for them. It is mandatory to have a DEMAT account if an individual is interested in applying for an IPO. 

    Investors will get a certain number of shares depending upon the company's market performance. Simply put, we can say that based on demand and supplies, the number of shares allotted to investors. 

    Once the shares are listed in the primary market, trading these shares can also be done quickly in the secondary market. 

    2 Secondary Market

    Generally, the secondary market is where every investor talks to invest his money. A DEMAT and Trading are mandatory if an individual wants to trade in the secondary market. 

    Conclusion 

    When investing in the share market, it is mandatory to learn everyday things about share market investing. Before investing in the share market, keep certain things in your mind that you never invest in without making a proper plan. Because it is not fixed that you will earn higher returns from investing, there might be chances of loss also. But the loss can be minimised just by basic knowledge of investing in the stock market. NIWS, the best Stock Market Institute in Delhi offers complete share market guidance that helps every investor make the best investment decision.






     

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  • Advantages And Disadvantages of Mutual Funds Investing

    National Institute of Wall Street 7 Jul 2022

    Generating savings or plans of investing have different kinds of benefits. Short and long-term plans of investment can be made by an individual. Because of the risk management, there are various investors you would like to invest in mutual funds. But for every investor, before investing in mutual funds, it is mandatory to know about the advantages and disadvantages of mutual funds. In this blog, one will get complete information about the advantages and disadvantages of mutual funds

    What Are Mutual Funds?

    A mutual fund contains the money pooled from various investors. A dedicated and professional fund manager invests the pooled money in different investment securities in each type of mutual fund scheme. Investing securities can be silver, gold, stocks, bonds, treasury bills and commercial papers. 

    Investing in mutual funds is done based on different classified securities. Hybrid funds, equity and debts are the most prominent of all the types of securities. In stocks or shares, equity funds invest their money, and in the case of debt, the money is invested in fixed-income securities. But in the case of hybrid funds, cash is invested in different proportions in both stocks a d fixed income securities. 

    However, choosing from these types all depends on the investor's choice and objective. 

    Advantages of Mutual Funds 

    Below the complete list of the advantages of mutual funds is given. Learn about the advantages of mutual funds in this article and then take the decision of investing in mutual funds as per your comfort. Perhaps, after reading this article, if you have confusion or some questions which have to ask, then you can visit at Stock Market Institute In Delhi, and under the guidance of experts, you can solve your every query.

    By Assets Managers Mutual Funds Are Managed Professionally. 

    In India, the fund house hires assets managers or fund managers who help to manage the mutual funds. These managers perform sound research and find the right stocks where an individual can generate profit by investing his money. 

    Through Diversification, The Risk Can be Minimized

    In multiple sectors of shares or stocks, the money is invested in the case of mutual funds. By diversification, the loss in one asset class can be minimized by profit earning in another. 

    Liquidity 

    The most overlooked advantage of mutual fund investing is liquidity. Buying and selling of mutual funds can quickly be done during market hours. That's why it is considered highly liquid. Funds like ELSS are not highly liquid as there is a need to invest in some specific lock-in period. 

    Mutual Are Low in Cost 

    An individual can invest with a minimal amount in mutual funds. 1% to 2.5% is the fund manager's fee in India. With the advantage of the low cost of investment, one can make higher returns if one stays for the long term. Returns growth is based on the amount grown at the given time frame. 

    Advantages of TAX Benefits 

    Individuals can benefit from tax savings if they invest in mutual funds via the equity market. Up to Rs 1.80 lakh, the investment made in ELSS is free from tax as per the government's section 80C

    East To Afford Mutual Funds

    Individuals can start investing in mutual funds with a minimum amount of Rs 500. Hence one can opt for SIP or the lump sump method of investing in mutual funds as per their convenience and comfort. 

    Safe And Transparent 

    Investing in mutual funds comes with high transparency. All companies need to work under the guidance of SEBI by following its rules and regulations. Hence every disclosure is made by them. 

    Disadvantages of Mutual Funds 

    Below the complete list of the disadvantages of mutual funds is given. Also be aware of the disadvantages of mutual funds, avoiding the disadvantages of mutual can increase the chances of loss. 

    Cost

    In the above section, we mentioned cost as an advantage and disadvantage. In India, there are some mutual funds which associate with higher prices. Sometimes you have to pay extra charges as a penalty if they exit from mutual funds before the predetermined time. Perhaps before the given or predetermined time, money withdrawal is not possible. 

    Diversification of Funds 

    Through diversification, you can prevent the chances of loss, but on the other hand, it can be proven as a disadvantage as it prevents the options of earning profits. Various sectors can generate huge profits; not investing in them can be a significant loss for you. 

    Locked in Period 

    The worst disadvantage of mutual fund investing is a lock-in period. Before completion of a given predetermined time, it becomes difficult to withdraw your invested amount. Hence, converting your money into liquidity during an emergency becomes quite challenging. 

    Fluctuating Returns 

    Based on market conditions, the returns on mutual funds have fluctuated. Hence returns are not fixed while investing in mutual funds. However, investors must be aware of its risks before diving into mutual funds. 

    Key Take-Aways 

    • With a small amount of Rs 500, mutual funds can be invested. 
    • Based on your budget, money can be supported via systematic investment plans (SIP), daily, weekly and monthly.
    • On your behalf investment manager will manage your portfolio and make the right decision for the investment 
    • As per section 80 C of the government, investing up to Rs 1.5 lakh in mutual funds is tax-free.
    • Before predetermined selling, you need to pay the exit load amount 
    • Returns in mutual funds are not fixed and guaranteed. It all depends on the market condition 
    • If you invest in mutual funds with some specific lock-in period, withdrawal money is not possible before the given time. The duration of the lock-in period can be three years also.

    Perhaps it doesn't seem very easy to choose the right investment type, or after selecting the investment, if it's challenging to find where to start, then join Stock Market Course In Delhi at NIWS and learn how to invest in the right investment type. At NIWS, the experts will guide you and teach you how you can make the right decisions on your investment path, which makes the track hurdles free. 


     

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  • NISM Certification: Complete Guide To Kickstart Your Finance Career

    NIWS (National Institute of Wall Street) 22 Jun 2022

    If you are willing to pursue the stock market or select the stock market as a career option and search for the right Stock Market Institute In Delhi, then NIWS (National Institute of Wall Street) is your answer. At NIWS, with the NISM certification course, students can easily find the different ranges of courses that suit their needs and financial goals. To give your career kickstart in the financial market NISM certification courses are the best way.

    This blog will discuss every important thing about the NISM exam, so keep your focus here. 

    What Is NISM Certification?

    The national arm of SEBI (Security Board Exchange of India) is NISM (National Institute of Security Market). In the year of 2006, SEBI founded NISM as a public trust by conducting the various range of courses. Currency derivatives certification, merchant banking system and investment advisory come under it. It provides market players with credentials. This institute has six schools which work to teach people about the professionalism and standards of the security markets. 

    Doesn’t matter what your educational background is. NISM certification is open to all, including students, workers and employees. 

    List of NISM Certification Exams 

    Once you know what NISM is and how to apply for it, it’s time to satisfy your curiosity by giving you information about different NISM certifications.

    1. Series I: Currency Derivatives Certification Examination: If any student wants to build their career in forex trading and international trading, then this course is the right to enroll. Hence in this course, students will get basic knowledge and information about the Currency Derivatives Market. 
    2. Series II: Registrar and Transfer Agents Certification Examination: This certification by NISM has been separated into two parts one is mutual funds transfer agent and the other is a corporate transfer agent. Both certifications are mandated by themselves. Hence to build a career in the same, one can enroll. 
    3. Series III: Securities Intermediate Compliance Certification Examination: If you are willing to become a stockbroker, depository participant, sub-brokers, merchant brokers, and underwrites, then you must have to choose securities intermediate compliance certification. In this series, there is a B-part exam as well. This helps determine compliance requirements for compliance officers. But this exam is optional or depends on the participant's choice. 
    4. Series IV: Interest Rates Derivatives Certification Examination: Enrolling in this certification acknowledges you about the interest rate derivatives markets and fixed income securities. Hence, any student who wants to build a career in the derivatives market must choose this course. 
    5. Series V: Mutual Fund Related Examination: This exam takes place for the employees of AMCs, who distribute and sell the mutual funds. Students need to cover three sub-modules from which the third module is optional. 
    6. Series VI: Depository Operations Certification Examination: For individuals who want to work in NSDL and CSDL depository, this NISM course suits them.
    7. Series VII: Risk Management and Securities Operations Certification Examination: In this kind of NISM certification working at a settlement firm and a stock broker is compulsory.
    8.  Series VIII: Equity Derivatives Certification Examination: If you are willing to pursue or develop your career in options trading and futures, then go for this certification. Hence working in the equity derivatives segment is mandatory. 
    9. Series IX: Merchant Banking Certification Examination: If you are among those participants who are willing to develop a career in sectors related to banking, then this course and certification is the only one which suits best based on your career requirement
    10. Series X: Investment Adviser Certification Examination: In this NISM certification course, there are two different types of modules, and both modules are mandated to cover. After completion of this course guiding to your clients about the right path of investment becomes easier. For instance, allocating funds in different instruments is the best example. 
    11. Series XII: Securities Markets Foundation Certification Examination: We all started as beginners at some point. Hence NISM also knows this. That's why to help every beginner at the end of entry-level, NISM introduced this examination. As a beginner, this exam is mandated for every participant. This course teaches you the prospects of the financial market from basic level to advance level. 
    12. Series XIII: Common Derivatives Certification Examination: This certification of NISM conducts the separate exams of currency, derivatives, equity and interest rates. But in this series, all of them are covered simultaneously.
    13. Series XIV: Internal Auditors for Stock Brokers Certification Examination: Did you know how ian nternal audit for a broker is held? Well, to get the knowledge of the same, this exam is conducted. Hene Individuals can also skip these exams if they are not interested in them as this exam takes as a non-compulsory.
    14. Series XV: Research Analyst Certification Examination: For those participants in the financial market who want to work as a research analysts, for then completion of this course becomes mandatory. By clearing this exam, you can quickly analyse the company's fundamental analysis. Hence if you want to invest wisely in the stock market, enroll yourself in the Stock Market Course In Delhi.
    15. Series XVI: Commodity Derivatives Certification Examination: To diversify your portfolio, investing in the commodity market is one of the best options. So if you want to invest in the commodity market, enroll in this NISM certification exam. 
    16. Series XVII: Retirement Adviser Certification Examination: Planning for retirement at an early age becomes more essential. Because most of the time, generating active income in old age becomes quite tricky. After clearing this exam, you can guide people on how they can save and invest money for the time of retirement. Nowadays, this option for building a career has become lucrative. 
    17. Series XVIII: Financial Education Certification Examination: To assess your final literacy, this certification helps you. Hence this exam is taken as voluntary. 
    18. Series XIX-A: Alternative Investment Funds Distributors: Like mutual funds, alternative funds work. Hence in this exam or NISM course, one will learn the correct way of investing in alternative funds. Further, this exam is considered voluntary.
    19. Series XXI-A: Portfolio Management Services Distributors: Did you know the right place where rich people invest their money? For managing their money, this exam will make you qualify.

    Why Take NISM Certification Examination? 

    Below, some important points have been mentioned that help to solve your query about why to take the NISM certification examination

    • The orders of SEBI conduct both exams and institutions. Also, SEBI fund the exam of NISM. Hence all over the country, NISM is considered as the best financial institution. 
    • On your CV, the NISM certification makes a tremendous and positive impact. Having a NISM certification can increase the chances of job opportunities in financial markets.
    • The NISM provides a compressive kind of study material. Any student and participant can easily pass the NISM certification exam by learning the given study material. Hence there is no need to use any other or outer resource to pass the exams. 
    • Compared to other financial courses, the courses provided by NISM are less expensive. The cost of NISM certification lies between Rs 1500 and Rs 3000. 
    • Based on your academic background, one can apply for the NISM exams. Hence there are no particular restrictions for any individual. All is required to develop your curiosity on this topic of the financial market. 

    Eligibility For NISM Certification 

    For various security market participants, NISM helps to conduct certification exams, and SEBI (Security Board Exchange of India) also functions Intermediary as a mandate. However, if any person or student is eager to learn about the stock market or Indian Security market, they take the exam. 

    For the NISM examination, having some exceptional degree or being at some specific age is not compulsory. Anyone eligible to take the NISM certification exam or the person willing to learn about the Indian stock market or security market can also enroll in it.


    How To Register For NISM Certification Examination?

    1. By using the next of its test administrators in India, NISM conducts certification examinations across the 150 cities. For applying for the NISM certification exam, follow some simple steps mentioned below: 
    2. By registering yourself at the official website of NISM, you can create your account quickly. When creating your account, you need to submit your details with ID proofs. Click on the given link, which redirects you to the official website of NISM- https://certifications.nism.ac.in/. 
    3. In the second step, you have to click on the activation link sent to you on your registered mail. With a time duration of 72 hours, your account will be activated. 
    4. In the third step, by using your registered email id and password, sign in to the NISM portal and select the exam enrollment option. 
    5. In the fourth step, you can select the centre, timing, preferred city, and date& day of the exam as per your requirement. Once you have finalized all these options, it’s your turn to pay online. After completing the method through the online process, you will be able to receive your admit card online. 
    6. In the last step, you must visit the exam centre on the date you chose. You must have to visit along with your Aadhar Card, and identity proof ( PAN card, passport or driving licence)

    How Many Fees Need to Pay For NISM Examination?

    An amount of Rs 1500 needs to be paid by every student who needs to enroll for the NISM examination. Payment can also be made through debit/credit cards and other mobile wallets.

    What is the Validity of NISM Certification?

    For the duration of three years, the value of certification remains valid. This validation detail of the certificate is available on the Association of Mutual Funds (AMFI) website.

    What is The NISM Exam Pattern

    • In the examination paper, there will be 100 questions.
    • Each question contains one mark, so the total marks for the NISM examination are 100.
    • Scoring 50% is mandatory for passing the examination 
    • No kind of negative marking is there.

    Closing Remarks

    After reading about all the courses, One can quickly become confused and can’t be able to decide which option is best for himself. But don’t worry. The National Institute of Wall Street (NIWS)  is always here to solve your every problem related to the financial market and the stock market. If your motive is to build or develop your career in the stock market, then visit NIWS and take the complete guidance from the 15 years of well-experienced faculty and build your dream career with the best finance experts.

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  • 10 Best Types of Investments And How They Work

    NIWS (National Institute of Wall Street) 13 Jun 2022

    Because of various types of investments, the availability of investment can easily intimidate anyone. Among the multiple options, it becomes difficult to find out the correct type of investment for your portfolio. This article is a complete guide that tells you the different investment types and provides the correct information on how you may consider these investments in your portfolio. Hence, if you are serious about your assets, get an expert or financial advisor at Stock Market Institute In Delhi and learn the right ways of investing. Per experts' guidance, you can quickly achieve your financial goals. 

    1 Stock 

    image contains graphs which tells how the price of stocks goes up and down

    Equities or shares is another name for stocks. This is very well known, and every type of investment is considered the easiest because it comes with a high liquidity rate. When you buy stocks of any company, you accept the ownership stake in a publicly-traded company. The biggest company's stocks are- Facebook, Apple, Tata, Reliance Etc. one can easily buy the stocks of these companies. 

    How you can make money: To earn a profit, you buy stocks and sell them at a higher price. Hence, always remember that the cost of stocks can go down, and in that case, you may lose your money. 

    2 Bonds 

    Lending money from an entity all refers to buying a bond. Generally, the entity can be a business or a government. Corporate bonds are issued in the case of companies, and government municipal bonds are issued. 

    How you can make money: The lender will be able to get paid with specific interest once the money is being lent. For example, the bond is generally a fixed income instrument, just like a bank FD and a liability for the company.

    3 Mutual Funds

    Various people collect pooled money and further invest in different companies. Actively and passively, management can be quickly done. Fund managers manage funds to support the investor's money in other securities. Fund managers often attempt to beat a designated market index by choosing investments that will outpace such an index. Index funds are another name for passively managed funds. In a broad array of securities, mutual funds can invest such as equities, bonds, commodities, derivatives, currencies, etc.

    Just like bonds and stocks, investing in mutual funds comes with risk. The factors of risk all depend on which kind of investment scheme you choose. Because of naturally diversification, the risk is comparatively less. 

    How can you make money: When the value of stocks, bonds or funds in which they invested goes up, investors will be able to make money. Through discounted brokerages and managing firms, you can buy it. But remember that there might be a condition of minimum payment or some particular annual fee amount. 

    4 Exchange Traded Funds (ETFs)

    Just like mutual funds, ETFs work; they also refer to the collection of different investments that track the market index. In the case of mutual funds, it can be bought through a fund company, but on the other hand, the purchase and sale of ETFs will be made through the stock market. Through the trading day, the price of ETFs fluctuates, and in the case of mutual funds, they refer to the net assets value of your total investments. Total calculations will be done at the end of every trading session.

    How can you make money: For new or beginner investors investing in ETFs is always suggested because, compared to stocks, they are more diversified. You can also minimize risk by selecting an ETF that follows a global index. One can also make money through ETFs by selling them at higher rates or a price

    5 Certificates of Deposits (CDs)

    CDs are the best option if any person is searching low a risky investment. For some predetermined period of time individual need to deposit money to the bank. And when the predetermined time is over, you will get back your principal amount, with some special rate of interest on it. The longer the loan period, the higher the interest you will get. 

    How can you make money: As per the basis of saving money, investing in CDs can be long-term. There is no significant risk while investing in CDs. If your bank collapses for any reason, there is FDIC- insured of $250,000, which helps cover up your real money. In the case of CDs, if you withdraw them earlier, you have to pay a significant amount of penalties. 

    6 Retirement Plan

    personal financial planning concept - napkin doodle with cup of espresso coffee  

    In the queue of types of investments, here come the other investment types: retirement plans. There are numerous retirement plans, including work retirement plans sponsored by your employees and Employment-based Pension Plans. Senior Citizen Saving Scheme and Public Provident Fund etc. 

    How can you make money: Retirement plans are not a separate category of investment per se but a vehicle to purchase shares, bonds and funds in two tax-efficient ways. And the second advantage of retirement plans is that individuals can withdraw without paying a single cent of tax. The risks associated with investing are the same as if you were purchasing out-of-plan investments.

    7 Options 

    Golden symbolic figures on Finanzzeitung  

    Buying stocks have become quite tricky in the way of options. When you buy a stock through the opportunity, you are responsible for selling those stocks at a particular time. There are options for purchasing an asset and put options for selling an option. Each opportunity has fix time of expiry. Before that time investor needs to sell it. If he fails to do so, he will lose his real money invested in options. 

    How you can make money: As an investor, you buy any stocks at a particular price hoping to earn a profit when the cost of that specific stock goes up. However, in the case of an option, you need to sell your holdings or stocks at a particular given time. If you fail to sell them, then it may become the reason for your loss and leave you behind with an empty pocket. Generally, the advanced level of trading comes in options. Hence, if you don’t know how to analyze them for your investment, then never invest in it. One needs to understand technical and option chain analysis for investing in options. 

    8 Annuities 

    For many people, annuities are used as part of retirement plans. In the case of annuities, once you buy an insurance policy, then in return, you become able to get the periodic payments. There are numerous varieties in which annuities have been separated. They may remain until death or at some particular given time. One needs to pay a fixed or lump sum payment if he is interested in investing in annuities. They can be partly linked to the stock market or an insurance policy that is not directly related to the markets. Sometimes one needs to pay immediately, or it may defer for a particular period. Aunties may be variable or fixed. 

    How you can make money: At retirement, aunties can become an additional way of generating extra income. Investing in annuities comes with lower risk and growth. Rather than the current source of income, annuities must choose as the options for retirement savings. 

    9 Cryptocurrencies 

    In the different types of investments, cryptocurrencies have become the newest option of investment, which comes with different kinds of profits. In cryptocurrencies, Bitcoin has become the most famous way of investment. Hence, Bitcoin, Ethereum, and Litecoin are other well-known cryptocurrencies in which one needs to invest. Furthermore, digital currencies don’t have any backing from the government. On cryptocurrency exchange, you can easily buy or sell them. Also, some retailers offer you to purchase these digital currencies with them. 

    How you can make money: With the high rate of fluctuations investing in cryptocurrencies becomes a risky way of investment. However, various investors trade in cryptocurrencies only to make a diversified portfolio. From the cryptocurrency exchange, you can buy them.

    10 Commodities 

    Dices cubes to trader. Cubes with the words SELL BUY. Selective focus 

    The term commodities refer to the physical products you can invest in. They are common in forwarding markets where producers and commercial buyers – in other words, professionals – seek to cover their financial stake in commodities.

    Based on some important types of commodity market is broken down:

    • Metals: Gold and Silver (precious metal) and copper (industrial metal)
    • Agriculture: Soybean, wheat and corn 
    • Livestock: Feeder cattle and Pork bellies 
    • Energy: Natural gas, crude oil and petroleum products.

    How you can make money: As the hedge for the portfolio at the time of inflation, investors divert themselves to the commodity market and buy them. Through stocks, bonds,  mutual funds, ETFs and futures contracts commodities can be easily purchased in an indirect way.

    Different Ways to Buy Types of Investments

    Generally, there are two main ways by which one can easily buy the different ways of investments. Below are the best two ways by which you can buy the different types of investments in simple steps: 

    1 Start an online brokerage account: You can manage your investments by opening a brokerage account. Once you get your brokerage account, you can easily invest in stocks, bonds, mutual funds, and many more investment options in just minutes. Making the all final financial decision by own self is the only downside. 

    2 Hire a Financial Advisor: Hiring a financial advisor is the other best way to invest in multiple types of investments. Advisor will help you to figure out the right way of investment and also in the selection of the right kind of investment, the advisor will guide you. Your advisor will help you increase your earnings and capital from your current investment plan to your retirement plans. It's more of an automated process that you only need to approve trades or investments, and the advisor takes care of that too. 

    The Bottom Line

    When it comes to the different types of investments, then there are countless types. Some of them are perfect for beginners, and for some, there is a need for a healthy search and experience. Each kind has different risk and reward, which lies in other factors. Hence, before investing in any of these kinds, one needs to set financial goals.

    Before investing in any kind of these options, first, one must enroll in Stock Market Course in Delhi and get some basic and advanced knowledge of this investment, then choose the right one according to their investment capital and financial goals. 

    To gain more practical insight into Investment concepts, financial planning and portfolio management you can enroll for the Fundamental Analysis and Portfolio Management Course at NIWS - Best Stock Market Institute in Delhi. 


     

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  • Difference Between Equity And Preference Shares

    NIWS (National Institute of Wall Street) 10 Jun 2022

    The term share refers to the company's ownership stake, which has an exchangeable value. Market forces can influence that. As per section 43 company act 2013, the company's share capital is divided into equity and preference. Voting rights and distribution of dividends is of the essential difference between equity and preference shares. Hence selecting from any of them is become quite tricky when it comes to the investment opportunity. When choosing any of these shares, one needs to know how the share market works and what are the right ways of selecting shares. It is always suggested to join the Stock Market Institute In Delhi, where you will find the best stock market strategies, which help to invest your money in the right and appropriate way.

    What Are Equity Shares?

    With the motive to raise the company capital, the company issues its equity shares. And once the company gets the funds from the common public, it will use them for expansion and growth. Hence, the equity shares are non-redeemable, so they serve as the companies' long-term finances. The company held the share capital throughout, and in the event of winding up, it is distributed. In the case of equity shares, shareholders will get the voting rights, and its holders have the right to receive companies surplus. The company's management can determine the dividend rate which will be distributed among the shareholders.

    Moreover, these kinds of shares can be easily transferable without consideration. Notably, the proportion of ownership determines based on shares held by the investors. Hence with the help of the stock exchange, all claims can be easily traded. Issue price, face value, book value and intrinsic value is the way of expressing the value of these shares. 

    Types of Equity Shares 

    On the liability side of companies' balance, sheet equity shares appear. When it comes to equity shares types then, they don't have such kinds of types; hence they are considered ordinary stock, so they are categorized on a different basis:

    1. Subscribed Share Capital 
    2. Authorized Share Capital 
    3. Issued Share Capital 
    4. Right Share
    5. Sweat Equity Shares 

    Substantial dividends have been received by shareholders in the case of equity shares and grant them price appreciation in investment value.

    Also, with the benefit of liquidity, shareholders can quickly sell the equity shares effortlessly, which makes another difference between equity and preference shares. With the base of equity capital, it is easy to secure credit. Hence equity is considered the permanent source of money. Now let's proceed toward the next step of this article which is about preference shares because if you want to know the clear difference between equity and preference shares, you need to understand each of them briefly.

    What Are Preference Shares?

    The issuance of capital raised by preference shares is called preference share capital. With fix rate of dividend, these shares are issued, and at the time of liquidation preference, shareholders have to avail profits and raise claims for the company's assets. In terms of capital and profit repayment, these shares are ranked between debt and equity. However, likewise equity shares, preference shareholders are also the partial owners of the company's capital. Although they don't have any voting rights, in any company important, the existence of preference shareholders is less in comparison to equity shareholders. Although preference shareholders don't have rights to claim bonus shares, this becomes the most crucial difference between equity and preference shares. 

    The most important thing is converting preference shares into preferred stocks is easy as they are similar to the debentures. Furthermore, preference shareholders have the right to repurchase the shares at a particular time. In the case of this share, shareholders will receive an extent substantial dividend, but it doesn't come with the closing date. 

    Based on management, the decision of dividend distribution lies on which is not fixed at the time of loss. Like every difference, this is also considered the essential difference between equity and preference shares. Although if it decides not to pay dividends at a particular, the company will transfer it in the next year.

    Hence you can join the Stock Market Course In Delhi and learn the basics and advanced aspects of the stock market, which will help you choose the proper share for your investment purposes based on your financial goals.

    Types of Preference Shares 

    Below are the essential types of preference shares.

    1. Cumulative Preference Shares
    2. Non- Cumulative Preference Shares
    3. Redeemable Preference Shares
    4. Non-Redeemable Preference Shares
    5. Convertible Preference Shares
    6. Participating Preference Shares
    7. Non- Participating Preference Shares

    Always remember that dividends paid to preference shareholders are never deducted from the taxes. Also, redeeming such shares becomes a burden on the company's capital. 

    Difference Between Equity And Preference Shares

    Once we have discussed preference and equity shares, the next important part is to discuss the difference between equity and preference shares. 

    Based on Nature

     Equity Shares

    Preference Shares

    Definition

     Equity shares represent the extent of ownership of the company.

     When it comes to paying a dividend or repaying capital preference, shareholders get priority of repayment first.

    Dividend Payout 

     Once all the liabilities are paid off, shareholders will receive the dividend.

     Regarding dividend distribution, preference shareholders will get priority of  repayment over equity shareholders

    Rate of Dividend

     Based on earning rate fluctuates.

     The dividend rates remain fixed

    Bonus Share

     Against existing shareholding, these shares have the right to receive a bonus.

     In the case of these shares, they don't have the right to receive the shares bonus

    Capital Repayment

     In the end it becomes repaid

     Before equity shares, preference shares get the priority of repayment 

    Voting Rights

     Equity shares come with voting rights.

     Don't receive any advantage regarding voting rights.

    Role of Management

     In every important decision regarding the management of company equity shareholders can participate with the benefit of voting rights

     In the case of preference shares, they don’t receive extended voting rights

    Redemption

     It is not possible to redeem equity shares

     It is easy to redeem preference shares.

    Convertibility

     Not possible to convert

     Possible to convert into equity shares

    Areas of Dividend 

     In the case of equity shares, shareholders don't have the right to avail themselves of areas of dividends.

     Along with the current year's dividend, shareholders have the right to avail of dividend

    Types

     Based on ordinary stocks of the company, they have been categorised

     In the case of preference shares, they are divided into serval parts, including convertible, non-convertible, cumulative and non-cumulative.

    Financing Terms

     Long-term financing has been served in the case of equity shares

     In the case of preference shares, long and mid-term financing has been performed.

    Mandate to Issue

     It is mandatory to issue the equity share capital for the companies

     There is no need to issue preference shares to all companies

    Investment Denomination

     In the case of equity shares, they have a low denomination

     One can get higher denomination preference shares

    Types of Investors

     For risk-taking investors, it is suitable to invest in equity shares

     For a risk-averse investor investing in preference is suitable

    Associated Burden

     It is not mandatory to pay the equity dividend. Hence all factors depend on the company's profit.

     It is necessary to pay a dividend to the shareholders of the company.


    Similarities Between Preference and Equity Shares

    • Under the Indian companies act 1956, section 85 both preference and equity shares are defined
    • Company capital owned both equity and preference shares

    Conclusion

    We can say that in case of a difference between equity and preference shares, investors in case of both will get different kinds of benefits. While at the time of the company’s important decisions, equity shareholders will enjoy the voting right. On the other hand, preference shareholders will get the priority to be paid off at the time of liquidity as it is always said that investing in any of these two shares all depends on the personal financial goals, risk tolerance and total amount of dividend received.  

     

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  • List of Upcoming IPO's 2022

    NIWS (National Institute of Wall) 1 Jun 2022

    Upcoming IPOs 2022 List- Like the previous months of January and February, the upcoming month of 2022 is also tipped with a massive list of Ipo's. As per research and analysis, LIC Ipo was the largest Ipo for India. Most people said it would cover all the losses occurring due to Ukraine and Russia. Still, LIC Ipo is issued at a lower price than the allotted price. 

    Although at the end of March 2022, many companies issued their IPOs that performed well and hit the market IPO just before the closing of financial year 20222, like Ruchi soya FPO, Uma Exports IPO, Veranda Learning, etc. Hariom Pipes. 

    Although SEBI (Security Board Exchange of India) has shown interest or witness for approving the DRHPs sectors IPO, such companies have been slow to announce such type of plans for IPO. These companies are waiting to watch the variables like the impact of higher oil prices, the IPO risk bunching and the retail appetite. 

    The calendar of the year 2021 shows that 65 IPOs are issued in 2021, which are raised with the amount of 1.32 trillion, and from them, 64 are issued and getting oversubscribed. There are aggressive targets for 2023, but the start has been very tepid. 

    Although if you want to get an allotment of the initial public offering, then the timing of applying should be proper. And remember, not every upcoming IPO is issued at a higher price. You can see LIC IPO from the list of the forthcoming IPOs in 2022. It was the biggest Ipo for Indian country. Most people think it will give huge profits, but it is issued at a lower price, which is not acceptable. So studying and analysing the stock market is essential for every person to do before investing in it. For excellent studies and knowledge, you must visit the Stock Market Institute In Delhi

    Upcoming IPO's 2022

    Now let's have a look at the upcoming IPOs 2022 list. Below is every detail regarding the upcoming IPOs 2022 with the issued size amount. 

    Emcure Pharmaceuticals IPO

    The total issue price is Rs 4,500 crore, from which Rs 1,100 crore is the new issue comprises, and Rs 3,400 is Offered for sale (OFC). Active params ingredients and generics are the company's main focus, and the repayment of debt will use the new issue component. 

    Skanray Technologies IPO

    Rs 400 crores the new issue comprises Skanray Technologies IPO and 141.06 lakhs shares are Offer for sale (OFC), which needs to be decided. Medical devices, marketing and design and developing and manufacturing medical devices are this company's primary focus. 

    VLCC Healthcare IPO

    Rs 300 crores is the new issue comprised by VLCC Healthcare IPO, and 89.23 lakhs shares are offered for share (OFC), which needs to be decided. Health-conscious beauty and wellness of the Indian country are the main focus of this company. 

    Delhivery Ltd IPO

    Rs 5,000 cores is the new issue comprised by Delivery Ltd IPO, and 2,460 are the total number of shares for Offer for sale (OFC). By the first generations of entrepreneurs, this company was developed and established. This company's primary focus is end-to-end logistic solutions and last-mile logistics solutions. And also, with FedEx, this company has decided to make a long term tie-up.

    API Holdings Ltd (PharmEasy) IPO

    Rs 6,250 is the new issue comprised by PharmEasy company. This company has built a platform which brings doctors, patients and pharmacies to one place. And after that, in India, it became the most trusted and popular brand in digital retailing pharma. Also, it offers online consultation with doctors and delivery of the medicines at your doorstep. 

    Droom Technology IPO

    Rs 2,000 crores is the new issue comprised by Droom Technology IPO, and Rs 1,000 crores is the Offer for sale (OFC). The motive of the room is to sell or buy the cars and two bikes online. 

    Ixigo IPO

    Rs 1,600 crores is the new issue comprised by Ixigo IPO, and Rs 750 crore is an offer for sale (OFS). Around 14 years from now, this company provides the facilities of booking flights, trains and hotels based on artificial intelligence software. 

    Aadhar Housing Finance IPO

    The total price raised by this IPO is Rs 7,300 crores, from which Rs 1,500 crores is the new issue comprises and Rs 5,800 crores is an offer for sale (OFC). Adhar housing finance is the largest funding intermediary in the affordable segment in AUM. To boost its capital base, it will use the funds.

    Arohan Financials IPO

    The total amount raised by IPO is Rs 1,800 crore, from which Rs 950 crores is the new issue comprises and Rs 850 crores is an offer for sale (OFC). 

    Utkarsh Small Finance Bank IPO

    The total amount raised by this IPO is Rs 1,350 crore, from which Rs 700 crores is the new issue comprises and Rs 650 crores is an offer for sale (OFC). 

    Fincare Small Finance Bank IPO

    The total amount raised by Fincare Small Finance Bank IPO is Rs 1,330 crores, from which the new issue comprises Rs 1,330 crores, and the Offer for sale (OFC) is 1,000 crore. A small finance bank will issue new issue components.  

    Penna Cement IPO

     The total amount raised by Penna Cement IPO is Rs 1,550 crores, from which the new issue comprises Rs 1,300 crores, and the Offer for sale (OFC) is Rs 250 crores.

    Sterlite Power Transmission IPO

    The whole issue is Rs1,250 crore which will comprise the new topic. And this IPO is the part of Vedanta group. This company manages and owns the power transmission assets across Brazil and India. These are separated. 

    Paradeep Phosphates IPO

    Rs 1,225 comprises new issue and 12 crore shares for existing shareholders. This company is Odisha based company, and the phosphatic manufacturer is the work of this company. 

    Keventer Agro IPO

    The total raise of this IPO is 800 Crore, from which the new issue comprises Rs 375 crore and an offer for sale (OFC) of Rs 425 crore. The company Deventer performs the work of food packaging, dairy products, and food products. Frooti, Appy, Appy fizz and Parle Agro are its franchises.

    Gemini Edibles and Fats IPO

    The Rs.2.500 crore IPO will consist essentially of an offer for sale (OFS). Food-related FMCG products are the main work done by this company, and the sunflower oil and freedom brand is the most important thing for which they are well known.

    Go Airlines IPO

    Rs 3,600 is the comprises, which is for the new issue. The issue is to proceed to reduce debt, including payables and rentals on aircraft. 9.1 % market share has covered by go air in domestic routes, this analysis is given by the DGCA data

    Tracxn Technologies IPO

    386.72 lakh shares will be comprised for Offer for sale (OFC). For investment bankers, Tracxn Technologies provide subscription services. 

    Ola IPO

    Best ridding hailing company ola has decided to go public by issuing its shares for the first time in the half of the year 2022. Riding hailing ola beats its competitor uber technologies, and it plans to come up with the $ 1 trillion (Rs 7,500 crore) through the initial public offering process. Since the year 2010, ola company raised $4 trillion, and as per research, it may rise from $8 to $9 trillion. 

    BYJU's IPO

    The current valuation of BYJU is $21 trillion, and India is the largest education tech start-up. Under BSE/NSE BYJU’s IPO will be listed at the time of the second half of the year 2022. Through a particular purpose acquisition company (SPAC), this IPO is also considered for listing in the US. BYJU aims to list at the $48 trillion. 

    What Are Upcoming IPOs 2022?

    The meaning of the term upcoming IPOs 2022 tells us that the companies who field their DRHP with SEBI and expected to open in the forthcoming year or time. 

    Based on the previous year's research, the IPOs come in heavy demand by many investors. As per data, when we combine all the collections of IPOs, it crosses 100 lakh crores market or line in the current year. And before ending this financial year a month ago, investors might hope to invest similarly in upcoming IPOs in 2022. 

    How To Apply For an IPO?

    1. Select The Broker account by which you can apply for an IPO.
    2. Enter the lot size or number of lots you want to apply and then select the bid price you wish to use. 
    3. Once you select the number of lots and price amount, select the UPI id from which you have to pay for an IPO and click on the submit button. Once you press the submit button, your bid will be placed by the stock exchange. 
    4. After this, you will get a notification which is a mandate to receive about blocking your funds. This notification comes from the app where you submit the request for an IPO.
    5. After receiving the mandate request or message, you need to approve it, and then your amount will be blocked till the issue date of IPO.

    How To Enhance The Chances of IPO Allotment

    Applying with multiply Demat accounts is the best way to enhance or increase the chance of getting allotted for an IPO. Multiple applications can be increases by odds of allotment. If you want to get an IPO allotment, you need to bid with the highest price.. And the most important thing is not to wait for the end day- Before investing themselves, investors often wait for the HNI and QIB subscription figures to determine. Although application summation timing is 4 pm by the bank, after this time, if you submit your application, then your application may be rejected on the final day of the IPO subscription. And at last, it always suggested investing in the parent company by applying to the shareholder's category. Although if, in any case, the company launches its IPO and already its parent company is listed under stock exchanges, then getting the allotment chances will be increased by the shareholder category. 

    Pre-Request For Applying An IPO

    In India, a citizen can open a Demat account with the help of a PAN card and efficiently apply for an IPO. There is no need for a trading account for applying for an IPO, although you need it when you have to sell your holding if IPO is credited to your account. 

    You can easily research the company and then apply for an IPO based on the company's qualifications. For an IPOs previous year was tremendous, and still, most of the companies showed lacklustre performance. Hence, doing proper research is the essential thing which needs to be done by every investor before investing in IPO. You can also join the Stock Market Course In Delhi to learn about the stock market. 

    Payment Option By UPI- By UPI, one can easily apply for an IPO. You need to fill in the application detail for applying for an IPO and then pay it from your UPI id. You can use the UPI payment method in three ways: UPI as part of the payment for shares post allocation process, UPI as part of blocking, and UPI as part of the bidding. 

     Another appropriate method for applying for an IPO is ASBA (Application Supported By Blocked Amount). . And a sufficient amount balance is required in your bank account for applying for an IPO. 

    Final Say 

    Hence, this article can see the complete upcoming IPOs 2022 list. Every IPO has its different base capital, or the list price of every IPO is different. Go through the detail and get every information about IPOs in 2022. Although it is also advisable to never invest in IPO without taking the complete knowledge of the company you are investing in. Because it is not fixed, every IPO share price reaches high. After LIC IPO you can check this. 








     

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