Category Archives: Finance

Barclays made a substantial strategic attempt to build the ETF industry in 2000, launching over 40 new products under the iShares brand, backed by intensive education and marketing.   BlackRock bought the iShares brand and company from Barclays in 2009 and now manages a group of exchange-traded funds (ETFs). The listing of iShares funds London Stock Exchange New York Stock Exchange Hong Kong Stock Exchange iShares provides portfolio building blocks for small and large investors through the medium of ETFs. iShares offers more than 900 different investment products and has an AUM of over $ 3 trillion.  iShares provides a varied range of investment products based on strategies, assets, themes, goals, etc iShares has several ETFs and Mutual funds.   However, ETFs dominate the space. As of February 2022, iShares ETFs dominated the Market capitalization of the most significant exchange-traded funds (ETFs) worldwide. Blackrock iShares offers various investment products in ETF and mutual fund parlance. They include underlying assets of bonds, stocks, real estate, commodities, etc., in developed and emerging economies.   One of the unique traits of iShares is that it is a leading player in offering sustainable ETFs. iShares has been providing ESG-based ETFs for its investors. ESG funds are funds that have underlying securities of firms and countries which have passed rigorous  Requirements of being ESG compliant. Only assets with a high sustainability score are included; this would rule out sovereign bonds with unsound ESG track records.   An ESG in security selection leads to better-informed investment decisions, and sustainability funds may outperform non-sustainable funds due to superior risk management.   Companies having a lesser carbon footprint incur less regulatory scrutiny than others, thus making their stock stable over time.   Sustainable funds include ETFs classified as Screened ETFs mimic specific indices that eliminate the risk of exposure to certain areas of business. iShares ESG Screened S&P 500 ETF is an example of a screened ETF.   A broad ESG ETF is a group of ETFs that track ESG-compliant sectors, businesses, and indices. It has several subcategories.  Broad ESG ETFs screen sectors and indices based on their ESG compliance- having several subtypes, namely. Thematic ESG ETFs focus on one of the ESG themes of Environment, Social, or Governance. One such fund classification in thematic ESG is Carbon transition readiness.   These funds focus on companies and sectors that Blackrock feels are ready to work in a low carbon footprint economy. Impact funds generate sustainable outcomes alongside a financial return.  iShares also provides investors with a technologically superior core portfolio builder, which helps investors build their long-term wealth growth portfolio.   It also provides investors with ETFs based on various goals of wealth creation, income earning, active factor-based wealth creation, etc.  Income ETFs provide investors with two choices of ETFs One for yield Fixed income. Yield ETFs include ETFs in the likes of Equity Income ETFs, High Yield Bond ETFs, International Bond ETFs, Tax-Free Muni ETFs, Hybrid Security ETFs, Real Estate ETFs, and multi–Asset ETFs.   Fixed-income ETFs include ETFs like Core Bond ETFs, Investment Grade ETFs, Short Duration Bond ETFs, Tax-Free Muni ETFs, International Bond ETFs, Inflation-Protected ETFs, Interest Rate-Hedged ETFs, etc.  Along with ETFs, iShares also has a comprehensive collection of mutual funds that invest in asset classes like equities, bonds, real estate, etc. iShares mutual funds started as early as 1993, with the iShares S&P 500 index fund.   Some iShares Mutual Funds are Russell 1000 Large-Cap Index Fund iShares Developed Real Estate, Index Fund Short-Term TIPS Bond Index Fund iShares U.S. Aggregate Bond Index Fund, etc.   The bottom line is that whilst building a portfolio, neglecting iShares should not be the case.  FAQs What is an ETF? An ETF stands for exchange-traded fund (ETF). One single ETF is a basket of securities that can be bought and sold like mutual funds through a brokerage firm. ETFs track a specific index such as S&P, sector, commodity, or other assets. Much like stocks, ETFs can be traded on the market. Is an ETF better than a stock? Investing in an ETF is less risky than investing in a stock, as ETFs are diversified. In the case of ETFs, investors do not control what happens to the portions of the ETFs. ETFs have a diversified profile of assets, and the risk associated with the investment is reduced significantly. In stocks, the risk attached is higher as the stock price depends entirely upon the company’s performance and other exogenous factors of the world.    Does BlackRock run iShares? Blackrock is responsible for iShares ETFs and it is the largest asset manager in the world. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Investors can invest in exchange-traded funds to acquire access to an index, a commodity, a bond, or a basket of assets, similar to an index fund. When investing in ETFs, an investor can choose from various order types. i.e.: market order or limit order, each having significant differences affecting the price.  When it comes to trading ETFs, should investors prioritize price or speed? Although there is no definite answer to this topic, distinguishing between market and limit orders might help you make more intelligent selections. We'll go over the differences among order types and why an individual might prefer one over the other. Market orders: A type of order that ensures execution  A market order is an order to purchase or sell an ETF at the next best price available. If there is contra-side liquidity, a market order is almost always executed, but not at a price.  It's not the same as a limited order, which specifies the maximum price you're willing to buy or the lowest price you're ready to sell. If there are no contra-side orders at the price, a limit order is guaranteed at a price but not execution.  If you place a market order, you take the chance that the prices are accessible when the venue receives your order and are the same as the ones you had seen when you sent the order in the first place.   For example, if you sent a market buy order, the ETF's prices remain the same or fall while your order was in transit.  Even if the following available prices are worse for you than the previous ones, you will still receive your assured execution. A notable difference between a market order and a market-on-close order, which intends to participate in the official exchange auction and then execute at the closing price.  Even though shares can always be redeemed with the issuer at the end of the day to tidy up the market maker's holdings. An ETF market maker should theoretically be interested in buying and selling an unlimited amount of ETF shares at their fair value price.   However, this does not imply that an ETF market maker will place an unlimited number of ETF shares on the bid or offer price throughout the day, every day, or when an investor's market order hits the exchange's order book. For an ETF market maker, the expenses of attempting to adopt such a strategy far exceed the benefits.  Market makers for ETFs must consider the number of ETF shares they are quoting throughout the industry's ETFs. They distribute their bids and offers throughout most US equities exchanges and off-exchange venues during the trading day to gather as much customer order flow as possible.   However, there's only so much liquidity available at any particular time during the trading day. While an ETF market maker may be ready to price an entire order at fair value and buy or sell the ETF shares that an investor wishes to trade, finding and interacting with such liquidity takes time. A market order won't always do that since it changes as soon as it enters the market.  Limit orders: A type of order that has a safety feature  A limited order will eventually arrive at a fair value price, but it will take some time while waiting for a contra-side order. A limit price specifies the highest price at which you are interested in buying an ETF or the lowest price at which you want to sell an ETF to the market maker.   An investor can fix that value higher (or under) the best available offer (or Bid) to allow short-term price changes while still protecting against significant fluctuations. Why is it important to select the correct order types?  When choosing the proper order type, the investor must examine what risks they are ready to tolerate in their execution plan. This entails selecting more important: transaction execution speed or trade price protection.   Limit and marketable limit orders can help you take advantage of the time it takes for an ETF market maker to replenish their liquidity supply to execute the trade properly. FAQs What is a market order? A market order is an order to purchase or sell an ETF at the next best price available. If there is contra-side liquidity, a market order is almost always executed, but not at a price. For example, if you sent a market buy order, the ETF's prices remain the same or fall while your order was in transit.  What is an ETF? An ETF stands for exchange-traded fund (ETF). One single ETF is a basket of securities that can be bought and sold like mutual funds through a brokerage firm. ETFs track a specific index such as S&P, sector, commodity, or other assets. Much like stocks, ETFs can be traded on the market. Are ETFs good for beginners? ETFs are generally suitable for beginners as they are inexpensive compared to a few other investment tools. ETFs have a diversified asset profile, reducing the risk associated with the investment significantly.    Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT

The high volume of trading of an ETF can help us judge the three most traded ETFs in 2022. Let's understand ADTV or the Average Daily Trading Volume for an ETF.  What is ADTV or Average Daily Trading Volume?  Investors refer to the number of shares of a specific stock that change hands on average during a single trading day as Average Daily Trading Volume (ADTV). The average daily trading volume (ADTV) can be determined for five days, ten days, etc. The average trading volume for 20 or 30 days is a regularly used ADTV metric.  ADTV of a single stock, options on a stock, or market indexes like the Nasdaq 100 are all tracked.  The average daily value indicator is an alternative to the average daily trading volume indicator. The average daily value calculates the average dollar amount traded d  William O'Neil's 'How to Make Money in Stocks' popularized the use of average volume as one of several data sources for investing decisions.  O'Neil emphasized the importance of paying attention to ADTV for two reasons Ensure that a stock is liquid enough to trade fast. To ensure that stock traders' present supply and demand are on your side.  When a stock's price declines, its daily volume should be lower than the usual daily volume, indicating that selling pressure is easing. When a stock's price has been consolidated and isn't growing much, you would like to see increasing volume as the prices begin to rise, indicating more buyers are entering the market. When a stock's price increases, you want the increased volume to indicate that it will continue to rise. Three most traded ETFs based on three months of ADTV SymbolETFAvg Daily Share Volume (3mo)AUM in $ 1000sTQQQProShares UltraPro QQQ116,601,047$15,408,300.00SPYSPDR S&P 500 ETF Trust112,241,844$385,693,000.00UVXYProShares Ultra VIX Short-Term Futures ETF82,200,375$893,935.00 1. ProShares UltraPro QQQ Overview TQQQ is a leveraged fund that provides 3x exposure to NASDAQ 100 stocks over a one-day holding period. The underlying index contains 100 of the top non-financial listed companies on NASDAQ based on market capitalization.   Technology businesses have historically dominated TQQQ's underlying index; therefore, its future outcomes may have a strong connection to the tech industry.   The fund uses a quantitative approach to determine the type, number, and combination of investment positions that it expects to deliver daily returns commensurate with its investment objective.   The fund is a very short-term tactical vehicle and, like many levered products, is not a buy-and-hold ETF. The expense ratio of the ETF is 0.95%. Performance Performance [as of 03/02/22]1 year3 years5 years10 yearsTQQQ13.55%59.06%49.35%47.24%Nasdaq 100 Index9.84%26.86%22.73%19.72% 2. SPDR S&P 500 ETF Trust  Overview  SPY is the most well-known and oldest US-listed ETF, and it consistently ranks first in terms of AUM and trading volume. The fund tracks the S&P 500, a widely followed US index.   Few investors are aware that the S&P index committee selects 500 equities to reflect the US large-cap space, not usually the 500 most significant by market capitalization, resulting in occasional single-name absences.  Nonetheless, the index provides excellent coverage to the US large-cap market. It's worth noting that SPY is a unit trust, an older but still functional structure. SPY, as a UIT, must completely replicate its index (which it almost certainly would) and forego the negligible risk and return of securities lending.   It also can't reinvest portfolio income between distributions, resulting in a cash drain that hurts performance in rising markets but helps performance in down markets. SPY is a popular vanilla trading instrument. The ETF's expense ratio is 0.09 percent.  Performance Performance [as of 03/02/22]1 year3 years5 years10 yearsSPY14.81%17.98%14.97%14.49%S&P 500 Index14.94%18.06%15.06%14.61% 3. ProShares Ultra VIX Short-Term Futures ETF  Overview  UVXY is a commodities pool wrapper that provides daily leveraged exposure to short-term VIX futures, which are designed to capture the volatility of the S&P 500.   UVXY is a short-term trading instrument, not a long-term investment vehicle because it is a geared instrument with daily resets.   Returns for a holding period of more than one day, and frequently do, differ significantly from 1.5x. UVXY, like its others, offers scaled returns on the front and 2nd-month futures contracts rather than the VIX index itself.  Investors will receive a K-1 at tax time if they participate in a commodity pool, but they will eliminate the counterparty risk of an exchange-traded note. The fund provided 2x leveraged exposure before February 28, 2018. The expense ratio of the fund is 0.95%.  Performance  Performance [as of 03/02/22]1 year3 years5 years10 yearsUVXY-97.86%-83.44%-78.78%-85.05%S&P 500 VIX Short-term futures Index-58.07%-40.15%-- FAQs What is ADTV? Investors refer to the number of shares of a specific stock that change hands on average during a single trading day as Average Daily Trading Volume (ADTV). What is a high ADTV? An ADTV is high when more investors are interested in a stock and there is a high demand for it while a low ADTV means the stock is not in demand. What is the average daily volume indicator? Average Daily Trading Volume is an indicator that refers to the number of shares of a stock brought and sold on a trading day. What are the 3 most traded ETFs based on three months of ADTV? The 3 most traded ETFs are: ProShares UltraPro SPY SPDR S&P 500 ETF Trust UVXY ProShares Ultra VIX Short-Term Futures ETF TALK TO AN EXPERT

Louis Mayberg and Michael Sapir, both former Rydex workers, created ProFunds Group in 1997 with $100,000. It also introduced bear market inverse mutual funds that year.  ProFunds Group introduced ProShares, its first inverse exchange-traded fund, in 2006. The business created an exchange-traded fund that invests in Bitcoin futures contracts in October 2021.  ProShares created several ETF product strategies that are available to investors.  With more than $60 billion in assets, ProShares currently has one of the most extensive ETF line-ups. Dividend growth, interest rate hedged bonds, and geared (leveraged and inverse) ETF investing are all areas where the company excels.   ProShares continues to develop new solutions that give investors strategic and tactical options for increasing returns and managing risk.  The company also offers several Proshares ETFs Equity ETFs Non-equity ETFs.   What are Equity ETFs and Non-equity ETFs? Equity ETFs consist of dividend growers, thematic, rising rates, ex-sector, and factors. Non-equity ETFs have bitcoin-linked, interest rate hedged, alternative, and volatility.  ProShares is one of the few firms to provide geared ETFs, i.e., leveraged and inverse ETFs.   ETFs are of two categories: equity and non-equity   Equity ETFs are of types such as broad market, sector, international and thematic investing.   Non-equity ETFs are ones like fixed income, commodity, and currency ETFs. Proshares ETFs strategies are of seven types   Explore Dividend Growth   Thematic Opportunities  Eliminate an S&P 500 Sector  Gain Exposure to Bitcoin Returns  Hedge Against Rising Rates  Leveraged & Inverse Strategies  Opportunities in Market Volatility.  Let’s elaborate on them one by one.  1. Explore dividend growth strategy Aims to capture dividend-rich stocks as underlying assets. The hallmarks of the quality of a firm are evaluated by stable earnings, fundamentals, and a strong history of profit and growth.  The indicators of consistent dividend growth are company health, strong management and durability, and staying power. The ETF follows several dividend-aristocrats indices like the S&P 500® Dividend Aristocrats Index, Russell 2000 dividend growers ETF, MSCI EAFE, MSCI EM, etc.  2. ProShares Thematic ETFs Give investors access to firms at the forefront of trends that reshape our economy and reinvent our future. These include online retail, pet care, transformational changes, big data, nanotechnology, innovative materials, etc.  The Proshares ex-sector ETFs allow investors to eliminate specific sectors that the firm thinks will underperform from the underlying index; the S&P 500 ex-energy ETFs exclude oil, gas, and fuel sectors from the S&P 500. S&P 500 Ex-Financials ETF excludes banks, diversified financials, consumer finance, asset management, investment banking and brokerage companies, insurance companies, and REITs.   3. S&P 500 Ex-Health Care ETF Excludes pharmaceuticals, biotechnology and life sciences tools and services companies, health care providers, equipment and services companies.   4. S&P 500 Ex-Technology ETF Excludes information technology companies, including software and technology hardware and equipment, and semiconductor companies.  5. ProShares Bitcoin Strategy ETF (BITO) It is a novel U.S.-designed ETF to provide investors with an easy way to add bitcoin exposure to portfolios.   The ETF provides investors with a one-stop solution by eliminating the need to maintain separate accounts and wallets to manage bitcoin investments. It is regulated, unlike crypto, and is available all day to trade.  6. ProShares Investment Grade Interest Rate Hedged (IGHG) and ProShares High Yield—Interest Rate Hedged (HYHG) are corporate bond ETFs with an interest rate hedge built-in that aims for a duration of zero, effectively eliminating interest rate risk.  Since 2006, ProShares’ line-up of ETFs has helped investors use leverage to increase their buying power and inverse strategies to profit during or protect a portfolio from declines.   7. Leveraged ETFs Increase exposure to enhance profits and inversely do the same in the opposite direction, thus, providing a hedge against a company or a sector.   8. UltraPro QQQ leverage is some leveraged ETFs  Short QQQ,   Ultra-short QQQ  Triple inverse leveraged ETFs.   Volatility ETFs are for experienced investors who want to profit from losses in the predicted volatility of the S&P500, as defined by the pricing of VIX futures contracts, while also lowering their risk in their U.S. stock portfolio.   Some volatility ETFs are VIX Short Term Futures ETF, VIX Mid-term futures ETF, VIX Ultra short futures ETF and Short VIX short-term futures ETF.  FAQs What are Proshares ETFs? Louis Mayberg and Michael Sapir, both former Rydex workers, created ProFunds Group in 1997 with $100,000. It also introduced bear market inverse mutual funds that year.  ProFunds Group introduced ProShares, its first inverse exchange-traded fund, in 2006. The business created an exchange-traded fund that invests in Bitcoin futures contracts in October 2021. What are Equity ETFs and Non-equity ETFs? Equity ETFs consist of dividend growers, thematic, rising rates, ex-sector, and factors. Non-equity ETFs have bitcoin-linked, interest rate hedged, alternative, and volatility.  ProShares is one of the few firms to provide geared ETFs, i.e., leveraged and inverse ETFs. Is an ETF better than a stock? Investing in an ETF is less risky than investing in a stock, as ETFs are diversified. In the case of ETFs, investors do not control what happens to the portions of the ETFs. ETFs have a diversified profile of assets, and the risk associated with the investment reduces significantly. In stocks, the risk attached is higher as the stock price depends entirely upon the company’s performance and other exogenous factors of the world. TALK TO AN EXPERT

While analyzing investments, investors use a variety of financial measures. Before purchasing a security, it is vital to have a good understanding of the potential of an investment.   The beta parameter, used in fundamental analysis, is one of the most extensively used metrics.  Amongst the essential financial measurements, you've probably never heard of is beta. This article will explain beta in ETFs and how it affects your exchange-traded funds.  First and foremost, it is important to learn more about beta and how it affects stocks and ETFs.  The statistical metric beta is often used to analyze investments. It examines a stock's sensitivity to the larger market, which is commonly quantified by an index such as the Nasdaq 100, S&P 500, etc. The Direxion Nasdaq 100 Equal Weighted Index (QQQE) is one ETF that tracks the Nasdaq 100 Index.  Beta measures just how much security is likely to go up or down daily concerning the tracking Index. It is, in essence, a measure of a security market or systemic risk.   A stock with beta 1.0 swings in lockstep with the general market, that is, a 1% increase or decrease in the underlying index, in our case, the Nasdaq 100, is mirrored by a 1% gain or fall in the company's price.  Let us look at it with the help of a simple hypothetical illustration Source: EduFund Research Team As you can see, QQQE tracks the Nasdaq 100 perfectly, leaving the tracking error behind. The ETF perfectly mirrors the changes in the Nasdaq 100. However, this is not the case always. In our example, the beta is 1.  The lower the beta, the less susceptible the underlying instrument is to the market. The QQQE has a beta of 1.04, according to ETF.com, suggesting that if the Nasdaq 100 rises by 1%, the ETF will climb by 1.04 percent. This is because the ETF's fundamental driver composition differs from the index, it has a differing beta value.  According to Yahoo Finance, the Aberdeen Standard Physical Gold Shares ETF (SGOL) has a beta of 0.08, which means that if the S&P 500 rises 1%, the gold ETF will advance only 0.08 percent. Since the ETF's fundamental drivers differ from stock ETFs, it has a lower beta value.  As a result, putting together an investment portfolio with composite or blended beta value can be an effective risk management strategy. If the equity markets fall, an investor can place himself with downside protection with a beta of 0.08, the Global Beta Low Beta ETF, For example, has low market fluctuations than the S&P 500 because the index is re-weighted on a revenue basis and is designed to reflect the results of components from the S&P 500 with a minor beta comparable to the S&P 500.  GBA restricts each index element at 5% through quarterly rebalancing to mitigate concentration risk at the issuer level. Similarly, fixed-income ETFs have lower beta values than stock ETFs since bonds are less volatile than equities.   A bond ETF that invests in investment-grade bonds is the iShares Core U.S. Aggregate Bond ETF (AGG). It has a low beta, implying it is not affected much by market fluctuations.  Investors might also look for volatile ETFs with elevated amounts of market-related volatility. The SPDR S&P Emerging Markets Small Cap ETF, for example, invests in small-capitalization shares in emerging markets. This ETF has a higher beta value.  In financial analysis, beta can be a precious instrument. Depending on the investor's risk tolerance, statistics can assist in determining which stocks are generally steady and low or more volatile.   Investors who are risk-averse and would not want to be subject to higher risks (such as pensioners) should tend to favor ETFs with lower beta values in their portfolios.  Younger investors with a broader investing horizon, on the other hand, may prefer to own ETFs with greater beta values. Those ETFs are likely to have a higher risk-reward profile, making them a good option for youthful investors who have the luxury of time to ride out any losses. FAQs What is an ETF? An ETF stands for exchange-traded fund (ETF). One single ETF is a basket of securities that can be bought and sold like mutual funds through a brokerage firm. ETFs track a specific index such as S&P, sector, commodity, or other assets. Much like stocks, ETFs can be traded on the market. Is an ETF better than a stock? Investing in an ETF is less risky than investing in a stock, as ETFs are diversified. In the case of ETFs, investors do not control what happens to the portions of the ETFs. ETFs have a diversified profile of assets, and the risk associated with the investment is reduced significantly. In stocks, the risk attached is higher as the stock price depends entirely upon the company’s performance and other exogenous factors of the world.    Connect with an expert advisor to get the right plan for you TALK TO AN EXPERT

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant.  The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries   Let us talk about the consumer product: DSP World Agriculture Fund.  About the DSP World Agriculture Fund  Investment objective The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of BlackRock Global Funds - Nutrition Fund (BGF - NF).  The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. It shall be noted, similar overseas mutual fund schemes shall have investment objectives, investment strategies, and risk profiles/considerations similar to those of BGF-NF. The Scheme may also invest a certain portion of its corpus in money market securities and/ or money market/liquid schemes of DSP Mutual Fund, in order to meet liquidity requirements from time to time.   Portfolio composition  The portfolio holds major exposure in ingredients that account for roughly 15% of the portfolio. The top five sectors hold nearly 53% of the portfolio Note: Data as of 31st Dec 2022. Source: DSP MF  Top ten holdings DSP World Agriculture Fund Name Weightage % Deere & Co 4.9% FMC Corporation 4.8% Graphic Packaging Holding Co 4.7% Agco Corporation 4.4% Symrise AG 4.2% Salmar ASA 4.2% Zoetis Inc 4.2% Barry Callebaut AG 4.2% Grocery Outlet Holding Corp 4.1% Koninklijke DSM NV 4.1% Note: Data as of 31st Dec 2022. Source: DSP MF Performance Note: Data as of 31st Dec 2022. Source: DSP MF  The fund has generated a CAGR (Compounded Annual Growth Rate) of 6% since its inception.  Fund manager  Mr. Jay Kothari, Vice President & Product Strategist has been managing the fund since March 2013. He is the dedicated Fund Manager for overseas investments and has been with DSP Investment Managers since May 2005, and has been with the Investment function since January 2011. Jay joined the firm as a member of the Sales team (Banking) in May 2005. Prior to joining DSPIM, Jay worked for Standard Chartered Bank for a year in the Priority Banking division. Jay completed his Bachelor of Management Studies (Finance & International Finance) from Mumbai University, followed by an MBA in Finance from Mumbai University.  Who should invest in DSP World Agriculture Fund?  Experienced Investors with a well-set core portfolio, looking to diversify no more than 10-15% of portfolio internationally.  Investors who strongly believe in the future growth potential of international agriculture-related companies and also have the sectoral understanding to 'extract value' from changing international agriculture sector cycles.   Investors looking for international diversification, especially in US companies & wanting to hedge portfolios.  Investors have the patience and mental resilience to remain invested for a decade or more and not look to chase the highest returns.  Why invest in this fund?  Offers the potential to grow your wealth by investing in the global agriculture & agri-related sectors.  Get access to sector-leading companies that are difficult to invest in directly for Indian investors like Koninklijke DSM, Tractor Supply Company, Costco Wholesale Corp, Kerry Group, Nestle, etc.   Time horizon  One should look at investing for a minimum of 10 years or even more.  Investment through Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The DSP World Agriculture Fund was launched in October 2011, and in its track record of eleven years, the fund has delivered ~6% CAGR consistently. Thus, it is best for investors who are willing to take international equity exposure in the portfolio with an agriculture bias and wants to remain invested for a longer period.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

I came across a folklore about Mahabharat some time ago about how did Draupadi come to have 5 husbands. The story told that Draupadi had asked Shiva for a husband who was noble and strong, skilled with the bow, handsome and wise. Since no single man could possess all five traits, Shiva gave her five husbands, each with one trait. Just like it’s hard to find all your favorite qualities in one person, it is impossible to find them in one single stock. The solution here is mutual funds! It is the only investment option that gives you multiple benefits such as higher returns, lower risk, professional management, no lock-in, and low-ticket size.   What is a Mutual Fund?  The concept of mutual funds is very simple. Suppose I am a person who has a small investible amount but I do not know how to invest and generate good returns. Hence, I need some professional help. But the amount with me is so little that I won’t be able to get any professional help because the professional fees themselves would exceed the returns.   Like me, there are many people who have small amounts available with them but either doesn’t know how to invest or they don’t have resources such as time or information. In that case, such potential investors come together, collect their money, give it to a professional manager, and ask him to invest it on their behalf so that it can generate good returns and promise to pay him his fees from the return so generated. In order words, they make investments in mutual funds to get a profit.   A mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. It manages the investor's money by investing in securities to generate a return and charges its fees from that return generated and the remaining return is passed on to the investors. The only difference between the actual concept and the example given above is that instead of many people coming together and selecting a professional fund manager, the mutual fund collects the money from all the investors in real life. Types of Mutual Funds  There are different types of mutual funds based on various criteria. But on the basis of securities in which the funds are invested, there are broadly 3 types viz. Equity Mutual Funds, Debt Mutual Funds, and Hybrid Mutual Funds. In equity mutual funds, the funds are invested in the shares of various companies. This is suitable for long-term investments to generate higher returns. On the other hand, in debt mutual funds the funds are invested in debt securities of various corporations, government bonds, etc, that carry relatively lesser risk but also have very little potential for returns. And hybrid mutual funds invest in both equity and debt mutual funds so that you get returns better than debt mutual funds and take risk lesser than equity mutual funds Benefits of Mutual Funds  Higher Returns: Equity Mutual Funds have the potential to beat inflation and offer returns higher than FD, Gold, and Real Estate over the long term.  Lower risks: Since one mutual fund invests small amounts in various securities, your risk reduces because your money is not invested in a single security. This is called as reduction of risk through “Diversification”.  Professional Management: In mutual funds, the money is managed by professional fund managers who have the experience, knowledge, and skills to manage large amounts of money.  No Lock-In: Most mutual funds do not have any lock-in period. However, in the case of equity mutual funds, an exit load of 1% is applicable if the units are redeemed within 1 year.  Low Ticket Size: Minimum amount for mutual fund investments can be as low as Rs.500 p.m. Risks and disadvantages of Mutual Funds  Market Risk: Since the amounts are invested in securities, there would always be a market risk howsoever small.  No Guarantee: There is no guarantee that you would get a minimum of this much return or that your principal is protected.  Management Risk: There is a risk that the fund manager may not perform well and would not be able to generate the requisite return.  Points to be considered while deciding Mutual Fund Schemes  AUM of the Mutual Fund and the Scheme: Check the AUM of the scheme and the mutual fund house. It is better to go with a mutual fund having a higher AUM than a smaller one.  Expense Ratio: Check the expense ratio of the scheme. The lower the expense ratio better it is to invest.  Experience of the Fund Manager: Consider the professional qualifications and experience of the fund manager in managing the funds as it plays a crucial role in the management of your investments.  The objective of the Scheme: Decide whether the objective of the mutual fund scheme is in line with your goal other wise you will have to suffer a financial loss.   Investments in mutual funds are an easy and apt way to enter the market. It helps investors grow their wealth without the added stress of additional payments or monitoring the market for gains. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Deciding which category of mutual funds to invest in can be tricky especially when there is a number of options available. But if you are someone who is looking for stable growth and unwilling to take too much risk at once, then high-dividend-yielding mutual funds are the category you should definitely have a look at!  What is High Dividend Yield Mutual Funds?  Before getting into what is high dividend yield mutual fund, let us first understand what dividend yield actually means. Companies distribute their profits to the shareholders by way of dividends. So, if I were to invest in any company, I need to know how much return I would generate if I invest today. That’s exactly what dividend yield is. It is nothing but a dividend paid per share as a percentage of the current market price of the share. High dividend yield mutual funds are basically funds that are looking to invest in those companies well known for such high dividend yield.  The objective of these funds is to predominantly invest in dividend-yielding stocks and generate regular income for its investors. Hence these are also known as Income Funds. These are open-ended equity funds which mean they are compulsorily required to invest a minimum of 65% of the total assets in equity. And generally, fund managers prefer those companies that have relatively stable earnings and higher dividend payout. Benefits of Investing in Dividend Yield Funds  Investing in Companies that generate profits: Since dividends can be paid only if the company has earned distributable profits, these schemes invest only in such companies that have a good track record of generating high profits and distributing them. Also, generally but not compulsorily, these are the large companies that pay consistent dividends such as ITC, HUL, Infosys, etc.   Regular Income: Investors can get steady income flows by investing in Dividend Yield Funds as companies generally maintain their range of dividend payments.  Capital Appreciation: While primarily the fund is focused on high dividend yield stocks providing regular income, it also has the potential for capital appreciation.  Reduced Volatility: Since the funds are invested in companies that generate high and consistent profits, the prices of the shares are relatively less volatile as compared to growth stocks and hence Dividend Yield Funds provide a good option to reduce the volatility of your portfolio.  Risks or Limitations of Dividend Yield Mutual Funds  Limited Capital Appreciation: Since the funds are invested in companies that give higher dividends, there is a limited scope of capital appreciation as compared to funds that invest in growth stocks.  Taxation of Dividend: Currently the dividend is taxed in the hands of investors but if in the future the same is taxed in the hands of companies then the returns of the Dividend Yield Funds would be impacted as companies would be reluctant to pay dividends.  Market Risk: Like all mutual fund investments, dividend yield mutual funds are subject to market risk.  Who should invest?  Considering the structure, benefits, and risks of the Dividend Yield Funds, it can be said that a person who is looking for steady income flows with limited growth potential and who does not want to take risks aggressively by investing in small companies such as pensioners or retired people can consider these funds.  List of High Dividend Yield Mutual Funds Following is the list of Dividend Yield Funds in India  *Data as on 03rd Feb. 2023, Source – AMFI, EduFund Research Consult an expert advisor to get the right plan TALK TO AN EXPERT

An inverse ETF (exchange-traded fund) is a type of ETF that rises when the underlying asset prices fall.   Contrarian traders who want to profit from the decrease in the value of an asset generally tend to use such instruments. Contrarian investing is the investment strategy of profiting from trading against the market direction.   For example, if the market is bearish, i.e., falling, the contrarian investor is bullish, i.e., expects growth, and hence will look for buying prospects.  Simply put, when the index 'sees' the ETF 'saws.' illustratively.  Inverse ETFs are similar to short-leveraged ETFs but differ in the gearing ratio. The gearing ratio is the means of measuring financial leverage to equity. Inverse ETFs generally have a gearing ratio of 1, whereas short-leveraged ETFs can have a gearing ratio of 2 or 3.   Short-leveraged ETF is ProShares UltraPro Short QQQ which provides a 3x daily short exposure on Nasdaq 100. Inverse ETF is ProShares Short Russell2000 which provides a 1x daily short on the Russell 2000. The inverse of an ETF is also called a short ETF or a Bear ETF Like short-leveraged instruments, inverse ETFs also hold swaps to achieve their exposure. A short Russell 2000 will hold swaps paying the return to the counterparty. If the index trades up, the fund will pay the return to the counterparty, decreasing the ETF value; otherwise, the index goes down.   The ETF rebalancing needs daily attention to achieve this kind of balance. Inverse ETFs are balanced daily; hence they are best suited as a short-term instrument.   In the long run, the ETF will exactly replicate the index; on the contrary, no guarantee of direction.  The illustration below helps us comprehend this with ease DaysDaily market performanceExpected index levelExpected 1x Inverse ETF levelDaily ETF performance00%100100 1-5%95.00105.005%2-5%90.25110.255%3-5%85.74115.765%4-5%81.45121.555%5-5%77.38127.635%6-5%73.51134.015%7-5%69.83140.715%8-5%66.34147.755%9-5%63.02155.135%10-5%59.87162.895%10-day cumulative change -40.1362.89  There are significant differences between holding an Inverse ETF and short selling. Short selling requires a margin account. The trader borrows these securities to sell at a higher price to other traders, and they can repurchase the asset at lower prices, thus winding up the trade by returning the lent securities.   However, there is a risk of costs rising after a short time in short selling, which exposes the investor to a virtually unlimited upside. When an investor has an inverse ETF, and the underlying exposure is going down, the investor's exposure in ETF is going up, i.e., the ETF NAV moves up, increasing the notional exposure to the position if the overall direction is correct.  Thus, this is precisely the opposite of what happens in short selling. Inverse ETFs allow the investors to short with a maximum loss of the value of the ETF, i.e., the NAV of the ETF. Inverse ETF NAV moves up when the market is going down and converse if the market is falling. Several types of inverse ETFs can be used to profit from declines in the market indices, such as Russell 2000 or Nasdaq 100. Some ETFs are also sector-specific such as energy, banking, FMCG, etc. Some investors use these inverse ETFs to hedge their portfolios against falls.   For instance, if an investor owns an ETF tracking the Nasdaq100, he could hedge his position with an inverse ETF that tracks the Nasdaq100.  However, such hedging can have its own set of risks since one of them is sure to make a loss in your portfolio. While this may appear appealing, losing money is also significant.  Inverse exchange-traded funds aren't for everyone or even most investors. More experienced traders who understand what they're investing in and why are better suited to use them.   Regular ETFs can still provide strong returns, and investors should stick to lower-risk products that can still generate attractive returns. FAQs Are inverse ETFs a good idea? An inverse ETF is a high-risk investment option that may not suit risk-averse investors. This investment vehicle is suitable for highly risk-tolerant investors who are comfortable with the risk that inverse ETFs possess.   Who buys inverse ETFs? Inverse ETFs are for highly risk-tolerant investors. Inverse exchange-traded funds aren’t for everyone or even most investors. More experienced traders who understand what they’re investing in and why they are investing in a particular asset are better suited to use them. What is an example of an inverse ETF?   Several types of inverse ETFs can be used to profit from declines in the market indices, such as Russell 2000 or Nasdaq 100. Some ETFs are also sector-specific such as energy, banking, FMCG, etc. Some investors use these inverse ETFs to hedge their portfolios against falls.    For instance, if an investor owns an ETF tracking the Nasdaq100, they could hedge their position with an inverse ETF that tracks the Nasdaq100.    What does an inverse ETF do?   An inverse ETF (exchange-traded fund) is a type of ETF that rises when the underlying asset prices fall.   Inverse ETFs are similar to short-leveraged ETFs but differ in the gearing ratio. The gearing ratio is the means of measuring financial leverage to equity. Inverse ETFs generally have a gearing ratio of 1, whereas short-leveraged ETFs can have a gearing ratio of 2 or 3.    Short-leveraged ETF is ProShares UltraPro Short QQQ which provides a 3x daily short exposure on the Nasdaq 100.   Inverse ETF is ProShares Short Russell 2000 which provides a 1x daily short on the Russell 2000.   Consult our expert to discuss the right plan for you.  TALK TO AN EXPERT

The key to understanding any concept is the often-neglected details. Thus, knowing the ETF creation and redemption process becomes of paramount importance. This process tells us how exchange-traded funds gain exposure to the market and the secret behind their affordability. Let's have a look at the ETF creation and redemption process ETFs creation process  The process begins with the ETF manager filing a plan with the competent authority.   For instance, the manager will file a project with the Securities and Exchange Commission (SEC) if in the USA or the Securities and Exchange Board of India (SEBI) in India. Once the approvals are in place, the ETF manager, often called a sponsor, agrees with the Authorized Party (AP). In some cases, the sponsor and the AP are the same entity.  Step 1:  The creation of exchange-traded funds starts with a party called an Authorized Participant (AP). An Authorized Participant can be a professional, financial institution, market maker, or a person with tons of money Step 2:  Now, it is the job of this Authorized Participant to get hold of all the assets or securities that the ETF wants to hold.  For instance, if the ETF tracks the Sensex, the Authorized Participant buys some quantity of all the constituent shares of the Sensex. Similarly, if the ETF tracks the Dow Jones Industrial Average, the AP will buy some shares of all the 30 companies that are a part of the index.  Step 3:  After that, the Authorized Participant will then deliver these to the Exchange Traded Fund. The Authorized Participant will get a block of ETF shares of equal value as payment for his services.   Usually, a block consists of 50,000 shares. The swap is a one-on-one fair value based on the NAV of the ETF share and not the market value. Both benefit from this transaction; the AP gets the ETF shares that he can resell for profit, and the ETF provider gets the stocks it needs to track.  Step 4:  The ETF shares received by the AP are listed in the secondary market and traded just like standard stocks.   ETFs redemption process  The redemption process can be associated with two people  The Authorized Participant  Retail investor. For the Authorized Participant, it will be as under:  Step 1:  The Authorized Participant buys the shares trading on the stock market.  Step 2:   The Authorized Participant will deliver the shares to the fund.  Step 3:  The ETF will give the underlying securities back to the Authorized Participant.  Step 4:  The Authorized Participant will then sell these securities in the stock market.  An investor can sell off his Exchange Traded Fund in two ways-  Sell openly in the stock market, the most chosen one.  Gather enough ETF shares to make a creation unit (mostly 50,000 units) and sell it back to the fund. Generally, only Institutional investors have this option open due to its higher costs. When the fund gets this creation unit, it is destroyed, and the underlying security goes back to the redeemer.   The study of this creation and redemption is crucial because it keeps the share price of the ETF near its underlying NAV, i.e., the Net Asset Value. Net Asset Value represents the fund's per share/unit price on a specific date or time.   For instance, if the ETF price falls below the NAV, the AP will interfere in the open market and buy up the ETF shares, raising its price and bringing it back to the level of its NAV. Similarly, if the ETF price increases well above its NAV, the AP will intervene and buy the underlying securities and sell off new ETF shares - bringing the price of the ETF shares back to its NAV value.  This arbitrage process is not perfect, but it helps contain the volatility of the ETF share price quite effectively. FAQs How is an ETF created?  Ans. When an ETF is created, a financial organization known as a sponsor purchases a selection of equities to represent the ETF's holdings. The sponsor issues ETF shares that reflect the value of the holding's portfolio once these shares are placed in a trust.  What is an example of ETF creation redemption?  Ans. The AP could sell the shares it was given when the ETF was created and earn a spread between the cost of the assets it purchased for the ETF issuer and the selling price from the ETF shares if the ETF is in high demand and trades at a premium.  What is the creation redemption process of ETFs and the function of authorized participants?  Ans. ETF shares are created through a process known as creation and redemption, which takes place in the primary market at the fund level. It permits authorized participants (APs), like licensed market makers, to trade a predetermined basket of securities, including cash, for a specific number of ETF shares.  Consult an expert advisor to get the right plan for you TALK TO AN EXPERT

Studying abroad can be a life-changing experience, but it can also be expensive. The cost of tuition, accommodation, travel, and other expenses can add up quickly, making it difficult for many students to make the most of this opportunity. Fortunately, there are abroad education loans that can help you finance your study abroad program or gap year. However, you have to understand that these loans are typically designed to support students who are pursuing a degree program, not those who are taking a gap year or participating in a study abroad program. So, if you're looking to use an abroad education loan to fund a non-degree program, you'll need to take a different approach. https://www.youtube.com/watch?v=4gTQkdePOWM The first step in securing an abroad education loan for a study abroad program or gap year is to research your options. Start by exploring different loan programs offered by private lenders, such as banks, credit unions, and online lenders. You may also be able to find scholarships and grants specifically for study abroad programs, so be sure to check with the host institution, study abroad organization, or government agency for information about funding opportunities. Once you have a list of potential loan programs, it's essential to compare their terms and conditions. Look at the interest rate, repayment terms, and any other fees or charges associated with the loan. Make sure you understand what the loan will cost in the long run, so you can make an informed decision. You should also consider any restrictions on how you can use the loan proceeds, such as restrictions on the type of program you can attend or the length of time you can spend abroad. When applying for an abroad education loan, you'll typically need to provide some basic information about yourself, including your name, date of birth, and contact information. You may also need to provide proof of your enrollment in a study abroad program or gap year program, such as a letter of acceptance or a letter from the host institution. You may also be asked to provide financial information, such as your income, expenses, and assets, to help the lender determine your ability to repay the loan. If you're approved for an abroad education loan, it's important to use the funds wisely. Make sure you use the loan proceeds to cover your necessary expenses, such as tuition, travel, and housing. Avoid using the loan for frivolous expenses, such as shopping or dining out, as these expenses can add up quickly and make it more difficult for you to repay the loan. When it comes to repaying your abroad education loan, you have to be proactive. Review your loan agreement carefully to understand your obligations, including the monthly payment amount and the due date. Make sure you have a budget in place that includes the loan payments, so you can stay on track and avoid falling behind. You may also want to consider setting up automatic payments so you never miss a payment. If you're having trouble repaying your abroad education loan, reach out to your lender as soon as possible. They may be able to work with you to find a solution, such as reducing your monthly payment or extending the repayment term. However, keep in mind that taking these steps can increase the overall cost of your loan, so always consider all of your options carefully. Tips for using education loans to fund your study abroad program or gap year Here are a few tips to help you make the most of your education loan and make your study abroad experience a success: 1. Plan ahead Start planning and researching your options as soon as possible to give yourself enough time to find the best loan for your needs and to get your application processed. 2. Be mindful of your budget Make a budget for your study abroad program or gap year and stick to it. This will help you avoid taking out more loans than you need and minimize the amount you need to repay later. 3. Consider a co-signer Some lenders ask you to provide a co-signer for the eligibility of the loan in case you are not qualified for it or there are some discrepancies. Conclusion  In conclusion, abroad education loans can be a valuable resource for students who are looking to fund a study abroad program or gap year. However, the cost of such programs can be a significant barrier for many students. Fortunately, there are education loans available to help you fund your study abroad program or gap year. Be sure to research your options, compare the terms and conditions of different loan programs, and use the funds wisely to make the most of it. In case you need more information or advice, EduFund’s team of financial advisors is always available for help. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Education loans for MBAs in India can be easily found but applying for them is harder than you think. The process is rigorous and time-consuming. Here is everything you need to know about education loans for MBAs in India before you start preparing for your application.   Want help with your loan application? Click here to connect with our experts and apply for loans with multiple banks with one application!  Why an MBA education loan? MBA is considered one of the most expensive and career-altering courses in the world, it can cost you anywhere between 10 to 40 lakhs! Many students opt for an education loan for this program. This is because an education loan is the easiest and most efficient way to finance your MBA program without any added financial stress. It allows you to complete your education and start paying for the loan after the course is over. The interest rates are reasonably designed to help students and professionals pay off their loans over a period of time. Advantages of taking loans for college  Boost your pocket: An MBA school loan can make it possible for you to complete a degree that you otherwise might not have been able to afford.  Don’t miss opportunities: Without taking out a student loan, many students would be unable to pay the MBA course cost. It is a crucial investment that can boost your professional standing and open up new development prospects for you.  Nearly all of the expenses you'll pay while completing an MBA will be covered by your student loan, which offers almost 100% coverage.  Affordability: An MBA program might cost thousands of rupees. At IIMs, tuition prices range from INR 13 lakhs to INR 23 lakhs. The leading business schools charge between INR 10 lakh and INR 20 lakh in tuition. The cost of the student's personal expenses, project costs, and dorm fees should also be included. Therefore, if you want to feel confident and at peace, while enrolled, paying for an MBA program is just as important as being admitted. Alternative methods of Achieving Dreams  A spot in one of the best MBA colleges in India requires funding the program, which is a difficult task given the high cost of the curriculum. Therefore, whether an MBA is given in India or abroad, managing the program's funding through educational loans is the most common and effective option. List of National Banks that Provide MBA Education Loans  MBA education loans are available from a number of major banking organizations at competitive interest rates. Below are a few of the most important student loan programs offered by various financial organizations that can assist you in paying for your MBA programs:  State Bank of India  Canara Bank  Dena Bank   Punjab National Bank   Union Bank of India   Central Bank of India List of private banks and NBFCs providing loans for MBA education  In addition to the above-mentioned public institutions, one should look at what private banks and NBFCs have to offer. the following have been mentioned:  ICICI Bank   Axis Bank   Kotak Mahindra Bank  Charges paid for by Education Loan  Education loans help you cover a variety of expenses. From lab fees to tuition fees, they can help you cover financial woes easily. However, these loans only cover educational costs and are not for personal use. Some of the expenses paid for by the education loan are:  Fees due to the hostel and the college  Examinee costs  Library fees  Laboratory costs  Traveling costs (if pursuing MBA abroad)  If applicable, the student's insurance premium  Buying a laptop (if required for the course)  Other costs, such as travel for research, project work, or a thesis  Acquisition of books, tools, and instruments  Building fund, refundable deposit, and caution deposit  If you want to know how much loan you need to take and your eligibility, check it out here.  Documents needed to apply for an MBA Education Loan  Address and age verification if you do not already have a bank account  copies of the qualifying exam score reports (CAT, GMAT, IELTS, TOEFL, and others)  A schedule of the course's costs (course prospectus where the course fee is mentioned)  Statement of the borrower's or co-bank borrower's account for the previous six months  Income tax assessment orders for students or parents that are no older than two years  A concise list of the borrower's assets and liabilities  Copy of a passport Loan application in bank format  Evidence of enrollment in the course (in India or abroad)  Passport-sized pictures  Don’t let finances stop you from achieving your dreams, get an education loan to pay for your college with us!

Everyone wants a slice of the American Dream and with globalization, benefiting from the world's largest economy is no longer just a dream. Now Indians are investing in US markets from the comfort of their homes yet there are some common mistakes to avoid when investing in the US stock market that you should know before entering! The US stock market offers significant opportunities for investors worldwide, from selected securities to exchange-traded funds across a variety of indices and themes.  However, before you invest in US equities, you need to know how to prevent the following US stock investing blunders. While some will be similar to stock market investing blunders to avoid if you're a newbie, others will be exclusive to supporting in the United States.   Ten mistakes to avoid when investing in the US stock market  1. Holding only equities  While it is natural to desire to invest in a few of the world's most well-known companies, focusing solely on choosing specific equities is one of the most common mistakes to make when investing in the United States.  Your investing strategy should be customized to your risk tolerance and include a nice blend of equities and exchange-traded funds (ETFs). If you're new to the stock market in the United States, you should begin with an ETF-only strategy.  2. Lack of investment goals  A lack of adequate investment goals is among the most prevalent blunders when investing in global stock markets. You must carefully craft your investment goals and use the most suitable financial tools to attain them.  3. Going with the trend, don't  Please do not purchase a stock simply because it has come up in the press or because you believe you have already lost money due to a company's surge and therefore cannot afford to lose any more. Remember, you're investing in a company, not a stock.  4. Timing the market  Another classic stock-trading gaffe is attempting to time the market. It's difficult to gauge the demand, and experienced investors frequently make mistakes.   According to an American Pension Fund Returns study, correct asset allocation accounts for roughly 94 percent of portfolio returns, not market timing or individual stock selection.  5. Ignoring tax liabilities  Keep in mind this flowchart  6. Not knowing forex rates  The exchange rate is essential when depositing Indian cash into your US brokerage account. Your bank will also charge you a foreign exchange conversion fee.   As a result, it's best to go with a platform that has partnered with banks to offer better exchange rates and a reduced markup cost.  7. Violating LRS regulations  The LRS regulates how much money an Indian person can send abroad and for what purposes. An Indian cannot use margin to invest internationally, in speculative products, or trade-in FX pairs under the LRS.  8. Asset class allocation   The secret to a good investment portfolio is asset allocation. On the other hand, investors make the typical mistake of focusing on individual equities rather than doing adequate asset allocation.  9. Over diversification   When used correctly, diversification is an excellent risk management technique. When assets have various risk profiles and little correlation, it add value.   Over-diversifying, on the other hand, can be counterproductive. Adding US equities ETFs to a diverse US stock portfolio, for example, may well not make sense.  10. Being impatient  Long-term investing requires only 1% action and 99 percent patience. On the other hand, many investors lack patience and wind up constantly fiddling with their portfolios.   To maintain a disciplined attitude, you must look past short-term volatility and concerns and focus on the market's long-term growth potential.  Morgan Housel, in his book “The Psychology of Money”, modifies a quote from the great Napoleon while talking about investing:   "A good definition of an investing genius is the man or woman who can do the average thing when all those around are going crazy."  Keep the above mistakes and the quote in mind if you want to get the most out of your investment in the United States. FAQs What are some common mistakes to avoid when investing in the US stock market? Here are some common mistakes to avoid when investing in the US stock market: Lack of investment goals and a time horizon Blindly following trends and investing randomly Violating LRS regulations and not consulting your CA in terms of taxes Over diversification and investing in multiple stocks Being impatient and over-monitoring the markets What are 5 mistakes investors make? The most common mistakes that investors make are: An attempt to time the market and wait for the right time to invest, Try active trading Misunderstanding financial markers and performance details, Working alone or choosing the wrong investment advisor Not attempting to understand the tax dynamics and liabilities What is the golden rule of investing? The golden rule of investing is greater the risk, the greater the returns! A bonus rule is always to consult your financial advisor before investing your money in any scheme. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT