Category Archives: Finance

This article will look into the three best large-cap categories of ETFs. But before that, let's understand what large-cap is. What is a large cap?  Even if they're young, large-cap corporations are likely to be well-established and dominating in their respective industries. Some corporations go public and have a market cap of more than $10 billion right away.   A corporation having a market capitalization of more than $10 billion is known to be a large-cap (or "big cap"). According to the Wilshire 5000 Overall Market Index, large-cap companies account for roughly 93 percent of the total U.S. equity market.  Large-cap corporations are usually well-known, having a track record of generating high-quality goods and services. Many of these businesses have grown their businesses beyond the United States and may have a diverse business that spans multiple industries.   As these businesses seek to expand, they will look for possibilities to buy smaller businesses or even consolidate with competitors of similar size. Large-cap companies are less volatile and less susceptible to significant price movements. As a result, large-cap stocks are a safer investment option.  Key indices to track the large-cap market  1. Dow Jones Industrial Average Apart from transportation and utilities, the DJIA exclusively analyses the performance of 30 businesses considered "blue chips," or those that are dominating champions in their respective industries. The DJIA is not indicative of the large-cap market as the S&P 500 Index. a 2. S&P 500 Even though it focuses primarily on the large-cap sector, the S&P 500 is the benchmark for the U.S. stock market.   This index measures the performance of the 500 most significant and most profitable corporations in the United States across 11 distinct industries. Top 3 ETFs in the large-cap category  Rank ETF1 Schwab International Equity ETF 2 BlackRock U.S. Carbon Transition Readiness ETF 3 Schwab Emerging Markets Equity ETF  Schwab International Equity ETF   SCHF delivers a market-like basket of worldwide stocks. The fund's portfolio closely resembles our benchmark in performance statistics and sector coverage.   SCHF removes most of the small caps in our standard, although this hasn't substantially influenced performance. The fund is also unique because it includes South Korea. Korean shares wind up in the basket because the fund's index classifies South Korea as an advanced nation.  Unlike many of its competitors, it also carries Canadian stocks. The MSCI ESG Fund Rating for the Schwab International Equity ETF is AAA, based on 8.93 out of 10.   The MSCI ESG Fund Rating assesses a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables. Performance  Performance [as of 14/03/22]1 year3 years5 years10 yearsSCHF-5.52%6.52%6.33%5.65%MSCI World ex USA IMI Index-3.89%6.67%6.37%5.86% SCHF Top 10 Countries’ exposure Source: etf.com SCHF Top 10 Holdings  Source: etf.com SCHF Details BrandSchwabExpense Ratio0.06%YTD Return-10.91%AUM$27.25BNumber of Holdings1491Avg. Spread ($)$0.01Average Daily $ Volume$309.56M BlackRock U.S. Carbon Transition Readiness ETF  Firstly, LCTU strives to outperform its index, the Russell 1000 Index, a broad equity index comprising the 1,000 largest U.S. corporations. The fund employs proprietary scoring criteria to evaluate companies' readiness for a low-carbon economic transition in comparison to their industry peers when selecting shares from the Russell 1000.   Five categories make up the 'transition ready' score: fossil fuels, clean technology, energy management, waste management, and water management.   LCTU favors high-scoring companies while minimizing risk. Firms may also be evaluated on their governance in addition to their strategy. The fund adviser may invest in Russell 1000 securities that aren't necessarily green economy investments despite the low-carbon orientation.   The MSCI ESG Fund Rating for BlackRock U.S. Carbon Transition Readiness ETF is A.A., based on 8.02 out of 10. The MSCI ESG Fund Rating assesses a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables.  Performance Performance [as of 14/03/22]1 month3 monthsYTDLCTU-5.37%-10.67%-13.31%No underlying index. The fund performed poorly not because of its inherent structure but due to the volatile markets and emerging uncertain geopolitical situations as of March 2022.  The fund invests entirely in the USA.  LCTU Top 10 holdings  Source: etf.com LCTU details BrandBlackrockExpense Ratio0.14%YTD Return-13.31%AUM$1.34BNumber of Holdings329Avg. Spread ($)$0.05Average Daily $ Volume$215.49K Schwab Emerging Markets Equity ETF   According to FTSE, SCHE follows the FTSE Emerging Index, which comprises large and midcap companies from emerging market countries. Market capitalization is used to choose and weigh stocks.   South Korea is not a part of the index as an emerging market, notable from other comparable indices. Instead, countries like India and China have gained more clout. Every March and September, component are assessed on a semi-annual basis.   The MSCI ESG Fund Rating for the Schwab Emerging Markets Equity ETF is BBB, based on 5.56 out of 10. The MSCI ESG Fund Rating evaluates a portfolio's long-term resistance to risks and opportunities posed by environmental, social, and governance variables.   The best ESG Fund Rating is AAA, while the poorest ESG Fund Rating is the worst (CCC).  Performance Performance [as of 14/03/22]1 year3 years5 years10 yearsSCHE-18.35%2.69%4.52%2.33%MSCI Emerging Markets Investable Market Index-17.99%3.31%4.98%2.53% SCHE Top 10 countries Source: etf.com SCHE Top 10 holdings Source: etf.com  SCHE Details BrandSchwabExpense Ratio0.11%YTD Return-13.54%AUM$8.51BNumber of Holdings1708Avg. Spread ($)$0.01Average Daily $ Volume$75.29M FAQs What is the large-cap category?  A large-cap company refers to a corporation having a market capitalization of more than $10 billion. What is an example of a large-cap stock? Some examples of large-cap stocks are Microsoft, TATA, Apple, Amazon, Alphabet, Reliance, and Facebook. What are the top 3 ETF large-cap funds? Schwab International Equity ETFBlackRock U.S. Carbon Transition Readiness ETFSchwab Emerging Markets Equity ETF Is S&P 500 all large-cap? S&P 500 is a market index that contains large-cap stocks. One should look out at these ETFs before investing in the large-cap category in the USA. Consult an expert advisor to find the right plan for you TALK TO AN EXPERT

In the previous article, we read about what are equity mutual funds. In this article, we will talk about the benefits & types of equity mutual funds. Equity mutual funds invest in shares of different companies. The fund manager aims to maximize the returns by diversifying the portfolio across stocks of various industries and companies with varying market capitalization. There are various types of equity mutual funds based on different categories. Let us have a look at them Types of Equity Mutual Funds Market capitalization-based differentiation  1. Large-cap funds These equity mutual funds invest more than 80% of their assets in the shares of large-cap companies (companies with a market capitalization of > Rs 20000 crores).  Large-cap funds are safer than mid-cap and small-cap funds because the stocks in the large-cap funds are of stable and solid companies with a proven historical track record. 2. Mid-Cap funds As the name suggests, equity mutual funds invest around 65% of the total amount in shares of mid-cap companies (companies with a market capitalization of > Rs 5000 crores but < Rs 20000 crores).  These funds tend to provide slightly better returns than large-cap funds because most of the stocks in these funds are of companies that are still growing to become bigger and better. Apart from offering higher returns, the funds are relatively more volatile. 3. Small-cap funds  Small-cap equity mutual funds invest around 65% of the assets in equity shares of small-cap companies (companies having a market capitalization of < Rs 5000 crores).  This is the riskiest type of fund in the market-cap-based category because the fund invests in companies that are potential superstars that may multiply your money by significant amounts and the risk of capital wipeout if the company fails.  A considerable number of companies in India fall into this category Investment style-based categorization 1. Active funds  These equity mutual funds are ones that fund managers actively manage; they use their knowledge of the markets and situation of the industries to choose stocks that become a part of the portfolio. 2. Passive funds Usually imitate a particular segment of the market, and with that, the stocks that will become a part of the portfolio are determined. A fund manager plays no active role in this regard 3. Sectoral funds These types of equity mutual funds invest the majority amount in particular sectors; that is, there is a concentration of investment into specific sectors in the economy, like FMCG, pharma, technology, PSUs (Public sector undertakings), etc. Only investing in a particular industry concentrates your portfolio on all the close activities in the industry. Taxability based categorization ELSS (equity-linked savings scheme) funds allow deductions under section 80C of the Income Tax Act. ELSS schemes allow for up to Rs 1.5 lakh deductions under the act mentioned above of law.  Equity-linked savings scheme funds invest more than 80% of total assets in equity and related instruments. Also, there is a lock-in period of 3 years for these schemes. Other than ELSS, all the additional equity mutual funds in the market are subject to given rates of capital gains tax. Benefits of Equity Mutual Funds 1. Diversified portfolio Equity mutual funds offer diversification by investing in various sectors thereby offering better exposure to the market. 2. Capital appreciation As the company grows, it earns more profits and invests it back in the company, thereby leading to the company's growth, which in turn is reflected in the stock price and thus benefits the fundholders. 3. Small ticket size  Sometimes, buying stocks of companies can be costly, as some good companies' shares are trading in a high price range. However, you can invest in equity funds starting with amounts as low as Rs 500 to Rs 100. 4. Professional management In the event of an actively managed fund, your money is being taken care of by professionals who have tremendous experience in the market. Your money is invested in a way such that your returns are maximized. 5. Risk mitigation  A fund manager follows the rules laid out by asset management companies (AMCs) to mitigate various risks. For example, the risk is reduced by limiting over-exposure to any particular stock or industry. Additionally, parameters like volatility and liquidity are also studied for better risk mitigation strategies. FAQs What are the types of equity mutual funds? Equity mutual funds are divided into three categories- Large-cap mutual funds, Mid-cap mutual funds, and Small-cap mutual funds. Large-cap mutual funds invest more than 80% of their assets in the shares of large-cap companies. While mid-cap mutual funds invest around 65% of the total amount in shares of mid-cap companies. Small-cap equity mutual funds invest around 65% of the assets in equity shares of small-cap companies. Which type of equity mutual fund is the best? Equity Linked Savings Scheme funds offer investors high returns over a long time compared to other funds under Section 80C. For new investors, large-cap mutual funds are the best as they are safer compared to mid-cap and small-cap mutual funds as they invest in big companies with good reputations. Large-cap mutual funds are not likely to offer higher returns than mid-cap and small-cap mutual funds. What are the four types of mutual funds? Mutual funds usually fall into four categories—money market funds, stock funds, bond funds, and target date funds. What are the benefits of equity mutual funds? There are many benefits to investing in equity mutual funds. Equity mutual funds offer diversification by investing in various sectors, thereby offering better exposure to the market. It provides capital appreciation. Professional fund managers look after your portfolio, reducing investment risk. A fund manager follows the rules laid out by asset management companies (AMCs) to mitigate various risks.

Do you know that the value of 1 crore after 20 years will be much less than what it is now due to inflation and high consumption?  Yes, over a longer time frame, the importance of inflation cannot be understated. The buying power of the rupee is reduced by inflation, and the value of each rupee keeps falling over time.  Twenty years from now, assuming a 5 percent annual inflation rate, the value of one crore rupees would be equivalent to about 37.68 lakh rupees. That is the crumbling effect of inflation on our money. Numerous SIP calculators and monthly savings formulas are available to assist you in determining how much you should invest each month if your goal is to save Rs 1 crore. For instance, if you invest 10,000 per month for 20 years at an expected annual growth rate of 12%, you may save Rs 1 crore.  In simple terms, you might have bought a lot more with 1 crore rupees 20 years ago than you can purchase today.  The actual worth of it at that point would therefore be significantly smaller even if you save for one or two decades and are able to accumulate Rs 1 crore or more.  One should remember that even if the economy is experiencing inflation at a 5–6% rate, inflation in the fields of education and medicine will be greater. Therefore, inflation is a crucial element that influences your financial plans, especially long-term objectives like retirement and schooling for your children. Value of 1 lakh after 20 years Read More How can you counter this devaluing of money?  The solution to this issue is to manage your assets by tying them to the rate of inflation. To achieve that, multiply that quantity of the savings plan by the rate of inflation. After that, you can begin a SIP to save for the adjusted inflation amount.  Let's imagine you have higher education plans for your child that will cost about Rs. 15 lakhs over the next twenty years. The cost of the course could increase to about Rs 40 lakh if inflation is projected to be 7%. As a result, you can start saving Rs 8000 per month to amass roughly Rs 40 lakh and put the plan together without difficulty.  In a similar manner, you can manage your long-term objectives by multiplying the present value by inflation. Investing so that you can beat inflation can be tough, which is why taking care of your expenses and seeking sound financial advice can help you maximize the value of your money.  FAQ What will be the value of 1 crore after 30 years?  The value or buying power of Rs 1 crore will be around Rs 23 lakh after 30 years if you really are trying to save Rs 1 crore for a target that is 30 years away.  What would be the value of 1 Cr after 25 years?  In 25 years, a rupee will be valued at around Rs 29.53 lakhs, given a 5% average annual inflation rate. What is the value of 1 lakh rupees after 20 years?  After 20 years, the price of one lakh would be approximately INR 37,000, using a 5% inflation target.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

Are you thinking of buying digital gold? But not sure if digital gold is a good investment or not. We will help you.   As India embraces financial education and the desire to engage in different types of investments, the idea of investing in the digital version of a commodity that the country has been both physically and emotionally tied to is slowly beginning to take shape.  In India, physical gold is still the most popular traditional method of gold investment. Digital gold assets are currently being examined. We will discuss the options and how to invest in digital gold in this blog.  Advantages of digital gold It allows you to keep gold digitally without ensuring a secure bank locker. Consequently, you will not have to worry about storage or security. The custodian's vaults have verified 24-carat, 99.99 percent pure gold, which is used for digital gold investments. Impurities are a common problem with physical gold. Purchasing actual gold also implies expensive manufacturing fees. Except for 3% GST, a digital gold account is free. Since digital gold prices are the same throughout India, you may buy and sell gold digitally at completely transparent, real-time market rates.   Additionally, you are not subject to any deductions when selling your gold back to the platform online. If exchanged in this way, the majority of platforms offer the perk of inexpensive home delivery of the physical gold. Additionally, compared to genuine physical gold, digital gold enables purchases in far smaller amounts.  Additional read: Benefits of digital gold Disadvantages of digital gold Ah, to feel as though you were wrapped in gold! Something that digital gold would never provide you. In countries like India, acquiring gold is an obsession. Therefore, digital gold might not resonate with all demographics. However, only some hold that opinion, which is a blessing. Some people view gold as a pure investment, and when given a choice, they choose digital gold since it is quick and secure. Steps to buying Digital gold A Demat account that is connected to a bank account and PAN card is required for investors.  Consumers can purchase specific gold goods via reputable stock exchanges after opening a Demat account, or they may do so straight through a mutual fund for gold ETFs and the RBI-announced SGB (Sovereign Gold Bond) series for SGBs.  Consumers have two options for selling their gold digitally: either they can hold it till maturation and then release it, or they may sell it on the secondary market, or stock exchanges.  Additionally, a few businesses give customers the possibility to buy digital gold starting at INR 1.  Know-your-customer (KYC) documentation must be accurate and checked prior to purchase. E-KYC and video KYC are two available Demat KYC modes that streamline and hasten the procedure of creating an account to purchase gold digitally.  Generally, KYC includes the person's PAN and Aadhar Card information. Additional read: Physical gold vs Digital gold Risk related to digital gold The main risk associated with every investment is that it will often lose value, which will lead to slower growth. That risk applies to digital gold purchases as well  In the case of digital gold, India still lacks a well-established regulatory structure to control metal transactions. It's necessary to think about this possible risk. Investors must conduct due diligence on the honesty and business model of the provider of digital gold until the government announces the required regulations to control the buying and selling of digital gold.  Any online payment is at significant risk from cyber-attacks. This also applies to purchasing the commodity in digital form.  To prevent any hazards, it is important to assess the reliability and standing of the somersaulting company where the gold is kept as well as the sufficiency of insurance if administrators are chosen by digital gold-providing firms.  Another ambiguity is hidden fees. Check any or all charges associated with the product before investing. If not, they will have a negative impact on the investment's overall results.  Conclusion The Indian federal government made it clear in the Plan for FY 21-22 that the markets regulator SEBI will serve as the supervisor for gold markets. This action is anticipated to increase confidence across the board in the commodities market, especially among retail gold buyers and gold traders.  With SEBI functioning as the regulator, the procedure of buying and selling gold is being simplified, like how shares are now dematerialized. This has led to a simpler delivery of the gold product in one trading day plus two more days, or T+2 days.  Investors must be smarter with money and receptive to novel investment products for the idea of purchasing and selling digital gold to become more widely accepted. FAQ Is digital gold better than gold?  There is no difference in price between physical gold and digital gold. Additionally, a person dealing in digital gold should not worry about storage since it is safely kept in free, guaranteed vaults.  Who is buying digital gold?  MMTC PAMP, Augment Goldtech, and Digital Gold India are the 3 best-known companies offering digital gold in India (Safe Gold) in partnerships with several financial service providers, including Paytm, Google Pay, Amazon Pay, and Phone Pe, among others, these businesses sell digital gold. Can I get profit from digital gold?  Virtual gold is a profitable investment choice despite some downsides, such as investment caps and a lack of a governing organization. It supplies adaptability, purity, and the right financial worth. Consult an expert advisor to get the right plan TALK TO AN EXPERT

It is always a good idea to have a financial expert manage your money. A mutual fund firm or an Asset Management Company (AMC) is exactly that expert when it comes to investing.  What are Asset management company(AMC)?  Asset Management Companies are businesses that collect money from different institutional and individual investors and invest it in a variety of securities. The corporation uses the money to buy capital assets like stocks, bonds, and other types of property. The research team chooses the appropriate assets, and the asset management companies employ specialists known as fund managers to oversee the investments.  Fund managers discover investment possibilities that align with the fund's goals. To safeguard the investment and generate a consistent return, they invest money in debt funds such as bonds and government securities. To maximize returns for investors, an equity fund is typically invested in company shares. Start Investing in Mutual Funds How are the funds managed by an Asset management company?  Direct mutual fund investments can be made through an AMC. The corporation is primarily in charge of managing the mutual fund and making choices that are beneficial to investors. It makes investments as per the scheme's set goals under the direction of a fund manager. The general steps are described below 1. Asset allocation  The specific investment goal of mutual funds aids the fund manager in selecting the assets in which investments can be placed. As an illustration, the majority of debt-oriented funds manage a sizable amount of their assets in bonds and other fixed-income securities. Another instance is how the majority of balanced funds blend their investments in stocks and fixed-income assets. 2. Research and Analysis  A lot of research and analysis of the performance of the asset classes goes into building the fund's portfolio. Experts conduct market, micro, and macroeconomic analyses and communicate their findings to the fund manager, who bases investment choices on the fund's goals.  3. Portfolio Building  The fund manager is often updated on market trends and results by a team of researchers and analysts who work for the AMC. The fund manager then determines which securities to acquire or sell based on these results and the investing goals of the fund. This is how a business develops a portfolio.  4. Performance Evaluation  AMCs are required to give their unit-holders information that directly affects their mutual fund investments. Additionally, it must regularly update investors on sales and repurchases, NAV, portfolio information, and other matters. Simply put, AMCs have a responsibility to represent and protect the interests of mutual fund participants. Additionally, they must address client complaints about their mutual fund schemes. source: pexels What criteria should an investor use to select an Asset management company?  Before selecting an AMC, you must look into both the AMC's track record and the assets it is currently managing. Selecting an AMC with substantial assets under management that can withstand rapid redemption demand from major investors is important.   When selecting an AMC, investors should take the following factors into account:  Credentials of the fund manager: You must look at the manager's history and investment philosophy. The investment approach and expertise of the fund manager determine the performance of many mutual fund schemes.  The AMC's reputation: It might take months or years for a fund house to establish its standing in the industry. An AMC usually develops a solid reputation after continuously performing for five or ten years.  Look at the ratings: Speaking with other investors will help you determine whether prior performance has been consistent and whether the AMC has had any complaints.  Are fund houses as reliable as banks?  There is a common misconception that mutual funds are less secure than bank accounts or bank-sponsored investing programs. People worry that AMCs might go out of business or steal their money at any time. People frequently forget that AMFI is responsible for investor education and that SEBI, the capital market regulator, oversees mutual funds.  AMFI and SEBI's Role in AMC Operations  AMCs operate under the direction of a trustee board. However, they must answer to the Securities and Exchange Board of India (SEBI), which oversees the country's capital markets. Another regulatory organization that answers investor complaints and protects their interests is the Association of Mutual Funds in India (AMFI). The set of risk management standards established by SEBI and AMFI must be followed by every mutual fund house.  The AMFI was created by mutual fund companies, whereas SEBI is a government organization. Together, they maintain the industry's ethical foundation and transparency. Mutual funds require clearance if they are establishing guaranteed schemes, and the RBI is crucial in regulating AMCs. Finally, all of these regulators are under the control of the Ministry of Finance. Guidelines for investors from SEBI and AMFI  Some of the standards and regulations that SEBI, AMFI, and RBI prescribe for mutual fund firms include the following:  SEBI has set some guidelines for the reports that AMCs must provide to the trustees.   The trustees must receive the compliance certificate from AMCs every two months.  They must provide the trustees with quarterly updates on their operations and adherence to these rules.  The firm is not allowed to invest in any of its schemes unless the offer documents fully disclose the company's intention to do so.  The AMC Chairman is not allowed to serve as a trustee for any mutual funds.  AMC's top employees should have a spotless record (not convicted of any financial offense such as fraud or insider trading).  The AMC should be under Rs 10 crores in net value.  AMCs are not permitted to act as mutual fund trustees.  FAQs Which is the best AMC for mutual funds? Some of the best AMCs in India for investing in mutual funds are: SBI Mutual Fund ICICI Prudential Mutual Fund TATA Mutual Fund DSP Mutual Fund Kotak Mutual Fund How many AMCs are there in India? There are over 44 AMCs in India managing thousands of mutual funds. SBI mutual fund is one of the oldest mutual fund management companies in the country. How do I invest in AMC mutual funds? You can directly invest with a particular AMC by visiting and setting up an account on their official website. Many AMC lists their mutual funds on different investment platforms which you can visit and select the best fund based on your financial preferences. How do I choose the right AMC? To choose the right AMC, you need to answer certain financial questions - What is your investment objective and goal of investing? What is your time horizon and how long can you stay invested? What is your risk tolerance? What kind of performance and growth has the particular AMC recorded in the last few years? What is the consistency of performance, fund manager's experience, AMC Track Record, and investment objective? Are fund houses as reliable as banks? There is a common misconception that mutual funds are less secure than bank accounts or bank-sponsored investing programs. Which is the biggest AMC in India? SBI Mutual fund is the biggest AMC in India. There are over 44 AMCs in India managing thousands of mutual funds. If you are interested in investing via AMC curated mutual funds for your child’s education then check out the EduFund App and select the top performers!  TALK TO AN EXPERT

You've probably heard of Nasdaq if you follow financial news. After the New York Stock Exchange (NYSE), Nasdaq is the world's second-largest stock exchange and is home to tech titans such as Apple, Google, and Amazon.  The Nasdaq market has grown to accommodate over 4,000 corporate listings since its inception in 1971, including many of today's largest corporations.  The value of the Nasdaq-listed portfolio changes with the performance of the companies under consideration.  But what is the Nasdaq, and how does it function? Let's have a peek at one of the most well-known stock exchanges in the world. What is Nasdaq?  Nasdaq stands for National Association of Securities Dealers Automated Quotations; in case you didn't know. It was a division of the National Association of Securities Dealers (NASD), now the Financial Industry Regulatory Authority (FINRA).   Nasdaq was set up as a platform for investors to trade assets automated, fast, and transparently.  The Nasdaq split from the NASD in 2006 and formed its own company. Nasdaq announced in 2007 that it would merge with the OMX Nordic Exchange to form Nasdaq OMX the following year.  How does the Nasdaq work?  The Nasdaq was built from the ground up to deliver automated quotes. It regularly supported over-the-counter (OTC) trading in the years after its creation, when Nasdaq became associated with OTC and was frequently synonymized as an OTC market by mainstream and trade magazines.  Later, the implementation of automated technologies was done to generate trade and volume information – it became the first exchange to offer electronic trading.  All deals made by investors on Nasdaq's electronic exchanges are executed through dealers, often known as "market makers," rather than directly through auctions.  Trading hours on the Nasdaq  The Nasdaq, like the NYSE, is open for trading from 9:30 a.m. to 4 p.m. ET. Traders can take advantage of Nasdaq's "pre-market" and "post-market" hours. From 4 a.m. to 9:30 a.m. ET and from 4 p.m. to 8 p.m. ET are the pre-market and post-market hours, respectively.  It is critical to account for the time difference between the United States and India while investing in India. The NYSE and NASDAQ open at 8 p.m. and close at 2.30 a.m. respectively, in Indian Standard Time (IST). The US stock markets open at 7 p.m. IST and close at 1:30 a.m. IST during daylight saving time. Source: Freepik Requirements for Nasdaq listing  A corporation must meet the following criteria to be on the Nasdaq electronic exchange  Meet specific financial, liquidity, and corporate governance standards.  Be a member of the Securities and Exchange Commission (SEC) (SEC)  At least three market makers are required.  Companies should meet the criteria regarding their size and trading volume  The approval of a company's listing might take anywhere from four to six weeks after an application is submitted.  Nasdaq Market Tiers in the United States  A corporation's shares will be offered under one of three market tiers, depending on the listing requirements:  1. Global select market This composite is weighted based on market capitalization and comprises stocks from domestic and international companies.   Companies listed here must meet Nasdaq's strict criteria. Nasdaq's Listing Qualifications Department Reviews Global Market listings on an annual basis and, if they are eligible, moves them to the Global Select Market.  2. Global market Nasdaq's Global Market comprises equities from companies listed in the United States and worldwide – classified as a mid-cap market.  3. Capital market Before Nasdaq changed its name, the Capital Market was known as the SmallCap Market. It is an extensive list of companies with smaller market capitalizations.  Nasdaq performance  Nasdaq's overall performance has been quite robust in the previous quarter-century because it is mostly tech stocks. The NASDAQ-100 index, which comprises the exchange's top 100 stocks, had a five-year return of 196.31 percent and a 10-year return of 552.24 percent as of November 3, 2021.   Meanwhile, the Composite Index returned 171.64 percent over five years and 444.12 percent over ten years. The Nasdaq has outpaced other vital indices, such as the S&P 500.  The Nasdaq Composite and Nasdaq 100 indexes  Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Tesla (TSLA) make up most of the Nasdaq Composite Index. On the other hand, Nasdaq includes corporations in the oil, industrial, consumer products, and healthcare areas.  The Nasdaq 100 index, for example, measures 100 of the Nasdaq Composite's largest and most commonly traded securities.  All things considered, the Nasdaq is a stock market where businesses can list their stock. Investors can purchase and sell corporate shares on these markets through brokers. Nasdaq is famed for its ingenuity.   To summarize many of the world's most prestigious businesses are now listed on the Nasdaq, and you trade in their securities either directly or via instruments like ETFs and mutual funds FAQs What is Nasdaq? Nasdaq stands for National Association of Securities Dealers Automated Quotations. It was a division of the National Association of Securities Dealers (NASD), now the Financial Industry Regulatory Authority (FINRA).   Nasdaq was set up as a platform for investors to trade assets automated, fast, and transparently. How does Nasdaq work? The Nasdaq was built from the ground up to deliver automated quotes. It regularly supported over-the-counter (OTC) trading in the years after its creation, when Nasdaq became associated with OTC and was frequently synonymized as an OTC market by mainstream and trade magazines.  What is in the Nasdaq? Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Tesla (TSLA) make up most of the Nasdaq Composite Index. On the other hand, Nasdaq includes corporations in the oil, industrial, consumer products, and healthcare areas.  The Nasdaq 100 index, for example, measures 100 of the Nasdaq Composite's largest and most commonly traded securities. Who owns the Nasdaq? Nasdaq is one of the largest stock exchanges in the world and the USA. It is owned by the AB Wallenberg family.

If you pay attention to your daily routine, you'll see that many firms' products/services have a link with your life and the lives of millions of families across the nation and the globe. But it begs the question: Are you taking advantage of such opportunities?  During talks, we frequently hear statements like, "The Pradhan Mantri Jan Dhan Yojana is a terrific program introduced by the government to make banking inclusive" but what are we doing to turn this into wealth?  Today's world is constantly evolving, and there has been a massive paradigm shift due to disruptive ideas, unparalleled technical advancements, and changing consumer tastes. Thematic investing is a type of investment strategy that identifies more significant macro-level trends as well as the firms and sectors that will benefit from those trends materializing.   A good investor seeks to predict these trends and buy in the underlying assets and businesses ahead of time. The goal of thematic investing is to profit from these transitions by selecting and investing in firms most likely to gain from them.   It entails matching our values and ideals to our assets. Thematic investing is gaining popularity to identify future contributors of return from stock investments allowing investors to outpace traditional broad indexes, which reflect the market's overall movement. The good news for many investors is that thematic investing offers the potential to assist in positioning holdings for long-term growth. What is the process of Thematic investing?  A conventional thematic investing strategy considers the following variables when selecting stocks, ETFs, bonds, mutual funds, and other assets.  You can engage in themed mutual funds or exchange-traded funds (ETFs), which provide you with expert investment analysis and management benefits.   While investing in ETFs or mutual funds, you can benefit from experienced financial planners and research groups who strive to build high-performing products.   Investing in a thematic fund enables you to diversify your risk by investing in a single theme.  Manually creating a thematic portfolio involves the following steps Finding Themes and Categories - As a first step, you should screen out the themes you are interested in.  Research and Choice - Examine various concepts and sectors, compare them to other asset classes, and decide.  Managing Weights - Consideration is for the market-cap-weighted or risk-weighted allocation in the portfolio. You can, however, shuffle and personalize your portfolio based on your risk appetite.  Rebalance - It is customary to restructure your portfolio regularly to get optimal returns and risk balance. As the performance of the constituents diverges, you should change your portfolio to bring the weights back into line with the original strategy. Sector Investing vs Thematic Investing  Since sector investment and thematic investing are similar, it's easier to get these two methods mixed up. Targeting companies in specific parts of the economy, like information technology or energy, is known as sector investing.   On the other hand, a theme investing strategy can span many industries to correspond with a potential market or specific goal.  1. Sectoral investing Investing in companies that are parts of a specific industry, such as semiconductor manufacturers, healthcare, or social media companies.  2. Thematic investing Investing in one or more of the following industries simultaneously, as long as they are related to a disruptive communications theme: semiconductor manufacturers, mobile phone tower operators, and social media firms.  Benefits of Thematic Investing Thematic investing allows you to profit from future trends. It assists you in investing in 'Future Businesses' due to its forward-looking character.  A themed investment strategy focuses on a single theme, idea, event, or government policy and invests in linked industries.  To understand future trends, thematic investing necessitates a thorough awareness of the impact of all patterns on various areas and sectors and a forward-thinking cognitive process.  Thematic investing can operate as a portfolio hedge since it focuses on global trends and disruptive innovations.  Thematic investing gives the possibility for investors to earn more alpha.  Limitations of Thematic Investing  Thematic funds carry a high level of risk because of their basis on a single idea or subject that may or may not generate high returns, particularly during market cycles.  If you invest in themed mutual funds, you should expect a higher expense ratio than conventional mutual funds.  FAQs What is Thematic investing? Thematic investing is a type of investment strategy that identifies more significant macro-level trends as well as the firms and sectors that will benefit from those trends materializing. This type of investment allows you to take advantage of upcoming trends and invest in profitable upcoming investments. What does thematic mean in investing? Thematic investing researches a particular theme and its consequent investment opportunities. It you to profit from future trends. It assists you in investing in 'Future Businesses' due to its forward-looking character.  A themed investment strategy focuses on a single theme, idea, event, or government policy and invests in linked industries.  How do you do thematic investing? Fund managers or advisors research a theme that they believe will become profitable in the future. They develop a strategy to study its development and investment opportunities. For example, digitization and AI are considered futuristic themes worth evaluating from a thematic investing perspective. Is thematic investing risky? Yes, just like any form of investing, thematic investing carries a level of risk and return. Emerging opportunities and structural transformations that can provide superior returns or intangible gratification to the investor are the focus of thematic investing.  To create optimal returns and maintain a balanced risk profile, you should regularly monitor and review your portfolio. Consult our expert advisor to get the right plan  TALK TO AN EXPERT

The economic impact of Covid-19 has kept Indian and global markets volatile. Markets can trade at higher valuations and drop suddenly without investors realizing it.   This has caused a lot of confusion among investors about how to protect their investment portfolios.  With markets still unpredictable, experts suggest it's the right time to invest in overseas equities like the U.S., especially for investors looking to manage risk through diversification.  Market experts suggest investing in U.S. stocks through Exchange Traded Funds (ETFs) and Funds of Funds (FoFs). So how can you invest in U.S. stocks through a mutual fund?  Read on, to know about U.S. stock mutual funds. What are the mutual fund options to invest in U.S. stocks? 1. Actively managed international mutual funds  International equity mutual funds are the funds that invest a subsequent portion of their total amount in U.S. equities; meanwhile, maintaining some portion focused on Indian equities can be an ideal choice for fresh investors who want to have exposure to the U.S. stock market.   2. ETFs and FoFs  Barring exposure to the U.S. stock markets, Exchange-traded funds and Funds of Funds can provide diversification benefits to the investor's portfolio looking for portfolio stability. ETFs track an underlying index, providing an organized and transparent investment approach while providing exposure to foreign markets. Fund of funds invests in several other mutual funds and allows investors to benefit from exposure to various investments with minimal investment amount. ETFs or FoFs are the cost-effective mode of investment to gain exposure to the U.S. market.  3. Index mutual funds  These funds are passively managed funds and track a specific index from the U.S. stock market. These funds replicate the composition of an index and try to match the returns generated by the same index while charging a low expense ratio.  Benefits of investing in U.S. stocks  Many investors ask why they invest in U.S. stocks when many Indian stocks offer high growth. Let's discuss some benefits of investing in U.S. stocks: Portfolio diversification: By investing in U.S. stocks, an investor can broaden & diversify the overall investment portfolio across the U.S. economy. This helps in mitigating any India-specific economic risks.  The benefit of dollar appreciation: In 2011, the USD-INR exchange rate stood at about Rs. 47. And today, it is around Rs. 82. This indicates that an investor who has invested in the U.S. stock market could have gained 36% by simply taking advantage of the currency appreciation. This gain is apart from the gains that could be made from the U.S. stock market.  Higher returns possibility through international exposure: Compared to the Indian stock market, the trends in the U.S. market have reflected comparatively lower volatility. The former has also provided higher returns on a currency-adjusted basis.  Exposure to companies with higher growth potential: The U.S. market is considered a leader compared to other international markets due to technological innovation, pharmaceutical advancements, and industrial expansion. Investing in U.S. stocks allows Indian investors to benefit from many innovative and high-potential companies.  Who invests in U.S. Stocks through Mutual funds?  Investing in U.S. equities through mutual funds is ideal for investors who:  Are seeking to attain diversification by widening their portfolio's geographical exposure  Want to gain international stock market exposure but at lower risk levels  Seeking higher gains beyond what domestic markets could provide  Have a longer investment horizon and higher risk appetite  Mutual funds help reduce the overall risk that can arise from exposure to the U.S. stock market, but investors should be aware that equity investments carry the risk of loss.  Factors to consider when investing in International mutual funds Investors should be aware of the following risks and tax considerations associated with investing in international mutual funds.  Every international fund has some common risks that investors must be prepared to take while investing in these to gain exposure to U.S. stocks. These are:  Exchange rate risk  Foreign market risk  Concentration risk  Investors must also remember that any returns from international fund investments attract taxes in India. Some points to note here are:  Any dividends of more than Rs. 5,000 from these funds attract TDS at 7.5% for resident investors.  Long-term capital gains tax at 20% is applicable on returns from units redeemed after staying invested for three years.   Short-term capital gains tax is applied per an individual's tax slab for returns from fund units that are redeemed before the completion of 3 years.  Conclusion  The pandemic has forced the world to adopt a new normal in many ways: how we invest, spend, and think about saving. Investors are now focused on keeping their available capital safe. At the same time, more investors are more willing to take risks when working internationally with their portfolios. What better way to explore international markets than to invest in U.S. stocks easily through mutual funds? Consult an expert advisor to get the right plan TALK TO AN EXPERT

Dozens of colleges, universities, and institutions have hundreds of scholarships. The criteria for winning the scholarship differ; some are need-based and merit-based, some are for specific communities, and some are for specific courses. Need-based scholarships for students  1. Fullbright-Nehru Master's Fellowships It’s given to students who are extraordinary to further study in master in the US universities.  Type of scholarship: merit-based  Total expenses covered: tuition cost, J-1 visa support, living expenses, transportation allowance, health or emergency help.  Eligibility criteria: a master's degree from a well-known Indian institution.  Time period: one to two years 2. Fulbright-Kalam Climate Fellowship  It's given to students who are doing research related to climate change in India and the USA.  Total expenses covered: a monthly allowance, j-1 visa support, round trip economy class flight allowance, and health/emergency help.  Eligibility criteria: this is given to students who are registered as Ph.D. students in Indian colleges and affiliated with the U host association. The Ph.D. thesis submission should not be before than 3 months earlier than the given date. Required copies of articles published or presented should be there given.   Time period: one to two years 3. National Overseas scholarship scheme by the Indian Government  It’s given to those students who uplift economic and students with low family income of SC, Denotified nomadic and semi-nomadic tribes, landless agricultural laborers, and traditional artisans who are in need of higher education.  Type of scholarships: Student-centric  Total expenses covered: Tuition fees, cost of books, air allowance, living expenses, health/emergency expenses, and visa fees.  Eligibility: Comes from SC, denotified nomadic and semi-nomadic, landless agricultural laborer and traditional artisans  Scored: at least 55% marks in UG or 55% in PG   Below 35 years  Combined family income less than 6 lakh.  Not having more than one sibling who got the same scholarship.  4. Great Wall program  The Chinese Ministry of Education provides learners and intellectuals from poor nations who want to study and support research in China the completely financed Great Wall Program Scholarship. The program offers support to both junior and senior research fellows. If the program being considered is offered in Chinese, the individual's competence in the language will be assessed.  Total expenses covered: tuition fees, monthly stipend, health insurance, and accommodation.  Eligibility: less than 45 years and having a bachelor’s or master's degree.   Time period: 1 year  5. GREAT Education Scholarships  Type of scholarship: merit-based and chosen college. Amount covered: £10,000 (Rs 9,41,648.52) for one year.  Eligibility: student has to be an Indian resident and has got admission to a selected college in the UK.  Time period: one year  6. Scotland’s Saltire scholarships  Type: merit-based  Expenses covered: £8000 (Rs753318.81), towards tuition fees  Eligibility: Indian residents, admission to selected universities in Scotland, also need to prove they can afford the remaining tuition fees.  Time: one year  7. The JN Tata Endowment  A partial fund of between INR 1-10 lakh to Indian candidates of masters, doctoral, postdoctoral, or research studies abroad.   Type: Rs 1- 10 lakh  Eligibility: It’s the most popular loan for students. Students applying for it should be an Indian resident. Students in their final year can also apply for this scholarship.  FAQ Which scholarship is best for Indian students?  These are some scholarships that are provided to students:  Oxford and Cambridge Society of India scholarships.  QS undergraduate scholarship  Cornell university TATA scholarship etc. Which country provides free scholarships to Indian students?  Germany offers to finance for all higher education programs, regardless of country, making it one of the best free college education nations for Indian students and their foreign colleagues.  Can poor Indian students study abroad?  Scholarships are among the keys to achieving your ambition of studying abroad if you're struggling financially. There are A lot of scholarships available, so regardless of your major, history, final destination, or financial circumstances, there is one with your name on it.  Which country is the cheapest for Indians to study in?  Norway has long been well-known for its high-quality, cost-free education system. Now that everyone, regardless of nationality, is entitled to free education at public universities, it can be regarded as the least expensive country for an Indian student.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

How to earn money by investing and where to invest so that you can save a good amount for later years is a dilemma that many individuals encounter. There are numerous options, and an individual needs to choose the best-suited investment plan to grow their savings. We will look at some of the most popular investment opportunities to help investors understand “How to earn money by investing”. Some investment options to earn money 1. Debt Mutual Fund Schemes Debt Mutual Fund Schemes are fixed-income generating securities with a fixed interest rate and maturity date. These are good options for short and medium-term investments and ideal for risk-averse investors who are looking for good returns and stable investments.  The gains from the Debt Mutual Fund Schemes are eligible for indexation benefits after three years and are taxed at 20%.  Some of the important Debt Mutual Fund Schemes are Certificates of Deposit, Commercial Papers, Treasury Bills, Corporate Bonds, Government Securities, etc. There are different types of Debt Mutual Funds, like Liquid Funds, Money Market Funds, and Corporate Bond Funds and investors must choose the right option. Open an account on the Edufund App and start investing in Direct Mutual Funds with no hidden costs.  2. Equity Mutual Fund Schemes Equity Mutual Fund Schemes are the preferred investment tools of investors who are ready to take high risks for higher returns. The fund manager has to invest 65% of the assets in equity shares of different companies and the balance in any other money market instruments.  The Equity Mutual Fund Schemes can be actively managed by the fund manager by handpicking the stocks or passively managed by tracking the market index like the ETFs. These schemes are categorized based on investment strategies like the Sectoral Funds, market capitalization like the Large Cap Funds, or tax treatment like the ELSS Funds.   3. Investment in Gold Investment in actual gold, like bars, coins, or ornaments, is one of the traditional investment options, but it has several drawbacks like safety and higher cost. Gold ETFs and Sovereign Gold Bonds are comparatively safe and cost-effective investment schemes. 4. Equity Shares Investing in equity shares is not for faint-hearted investors as the risk is very high, and there is no guarantee of returns. Over the years, equity shares have delivered higher returns compared to other asset classes. Hence investors should invest with care.  5. Bank Fixed Deposits Bank Fixed Deposits have been the most common choice for investors who are looking for safe and secured investment options and assured returns. FDs can be for short, medium, or long periods depending upon the individual choice.  Banks offer a 5% to 7% rate of interest depending upon the tenure, although senior citizens are granted better interest rates than the general population. The Government of India has recently increased the limit of insurance cover on Fixed Deposits for both the principal and interest in case of bank failure to INR 5 Lakhs from the previous amount of INR 1 Lakh for each depositor in a bank.  6. Sweep-in Fixed Deposit The Sweep-in Fixed Deposit allows the investor to enjoy the interest rates of a regular bank FD with liquidity and flexibility features that the FDs do not enjoy.  For such a scheme, the account holder of a savings or current account gets his account linked to an FD. He has to specify a certain amount, above which the additional amount must be converted into an FD without any hassle. It is easy to withdraw the amount without penalties.  7. Post Office Schemes The Post Office Schemes are government-backed safe, and secured investment options. Some of them also offer tax-savings benefits U/S 80C of the Income Tax Act. The interest rates are generally set by the government at the start of every quarter of the fiscal year.  Prime examples of Post Office Schemes are National Savings Certificates with 6.8% per annum interest compounded annually, Sukanya Samriddhi Account with 7.6% per annum interest compounded annually, and Kisan Vikas Patra with 6.9% per annum interest compounded annually. 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 flagship product – DSP Nifty 50 Equal Weight Index Fund. DSP Nifty 50 Equal Weight Index Fund  Investment objective The primary investment objective of the Scheme is to invest in companies that are constituents of the NIFTY 50 Equal Weight Index (underlying Index) in the same proportion as in the index and seeks to generate returns that are commensurate (before fees and expenses) with the performance of the underlying Index, "subject to tracking error".  Investment process   By matching the Nifty 50 Equal Weight TR Index, it allows you to invest in India's top 50 companies, each with the same weight in the portfolio. The portfolio is re-aligned every quarter so every stock's weight is brought back to 2%.  Portfolio composition  The portfolio has an entire equity exposure of 100% in large-cap companies. The top 5 sectors hold nearly 48% of the portfolio, with major exposure to the banking and automobile sectors. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com https://www.youtube.com/shorts/MlOiPHJjTjs Top 5 holdings Name Sector Weightage % Axis Bank Ltd. Bank 2.34 Coal India Ltd.  Coal Mining company 2.19 Sun Pharmaceutical Industries Ltd. Pharmaceutical 2.16 HCL Technologies Technology 2.16 Power Grid Corporation of India Ltd.  Electric Services 2.12 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC Performance over 5 years  If you had invested 10,000 at the inception of the fund, it would be now valued at Rs. 16,625. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch as on Nov 11, 2022. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of more than 5 years by generating a CAGR (Compounded Annual Growth Rate) of 10.58%. Fund managers  Anil Ghelani - Total work experience of 22 years. Managing the scheme since June 2019. He was also the CIO of DSP Mutual Fund.  Diipesh Shah - Total work experience of 20 years. Managing the scheme since November 2020.  Who should invest in the DSP Nifty 50 Equal Weight Index Fund?  Investors  Aiming to build wealth by investing conveniently & equally in the top 50 Indian companies.  Have the patience & mental resilience to remain invested for a decade or more.  Why invest in the DSP Nifty 50 Equal Weight Index Fund?  Can help you beat the impact of rising prices over the long term.  A well-diversified portfolio avoids undue concentration in a few stocks/sectors.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This is a zero-bias product since it only replicates an index and does not carry any stock or sector bias & does not have an 'active' fund manager. Relatively low-cost, with a comparatively lower expense ratio than active large-cap funds. It offers a well-diversified portfolio and avoids undue concentration in a few stocks/sectors. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

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 flagship product – DSP Nifty 50 Index Fund. About DSP Nifty 50 Index Fund  - Investment objective To invest in companies that are constituents of the NIFTY 50 Index (underlying Index) in the same proportion as in the index and seek to generate returns that are commensurate (before fees and expenses) with the performance of the underlying Index, "subject to tracking error".  - Investment process   The portfolio of this index fund replicates the Nifty 50 TR Index - same stocks, same weights. The portfolio is rebalanced semi-annually to adjust for any stock additions or subtractions to the Index.  - Portfolio composition  The entire portfolio exposure of 100% is only in large-cap stocks replicating the Nifty 50 Index. The top 5 sectors hold nearly 67% of the portfolio, with major exposure to the banking sector. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % Reliance Industries Ltd. Conglomerate 11.01 HDFC Bank Ltd. Bank 8.25 ICICI Bank Ltd. Bank 7.93 Infosys Ltd. Information Technology 7.05 Housing Development Finance Corporation Ltd. Financial Services 5.61 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 3 years  If you would have invested 10,000 at the inception of the DSP Nifty 50 Index Fund, it would be now valued at Rs. 17,368. The DSP Nifty 50 Index Fund has outperformed the benchmark in all time horizons.  Note: Performance of the fund since launch; Inception Date – Feb 21, 2019. Source: Moneycontrol  The fund has given consistent returns and has outperformed the benchmark over the period of more than 3 years by generating a CAGR (Compounded Annual Growth Rate) of 15.98%. Fund managers  Anil Ghelani: Total work experience of 22 years. Managing the scheme since June 2019. He was also the CIO of DSP Mutual Fund.  Diipesh Shah: Total work experience of 20 years. Managing the scheme since November 2020. Who should invest in DSP Nifty 50 Index Fund?  Investors looking for  Aim to build wealth by investing conveniently in the top 50 Indian companies.  Relatively low-cost funds, with a comparatively lower expense ratio than active large-cap funds.  Why invest in DSP Nifty 50 Index Fund?  This fund can help you beat the impact of rising prices over the long term.  It has no sector or stock concentration.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This DSP Nifty 50 Index Fund offers an affordable way to buy the top 50 Indian stocks. Since the fund only replicates an index & does not have an 'active' fund manager, it carries no human decision-making bias.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

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 flagship product – DSP Quant Fund. About DSP Quant Fund - Investment objective The investment objective of the scheme is to deliver superior returns as compared to the underlying benchmark over the medium to long term through investing in equity and equity-related securities.  - Investment process   The portfolio of stocks will be selected, weighed, and re-balanced using stock screeners, factor-based scoring, and an optimization formula that aims to enhance portfolio exposures to factors representing 'good investing principles' such as growth, value, and quality within risk constraints.  - Portfolio composition  The equity exposure is majorly in large-cap stocks at 83% and sectoral major exposure is to banks and financial services. The top 5 sectors hold nearly 53% of the portfolio. Note: Data as of 30th Sep 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings Name Sector Weightage % ICICI Bank Ltd. Bank 5.16 Housing Development Finance Corporation Ltd. Financial Services 4.36 HDFC Bank Ltd. Bank 4.28 Bajaj Finance Ltd. Financial Services 4.07 Bajaj Finserv Ltd. Financial Services 4.06 Note: Data as of 30th Sep 2022. Source: ICICI Pru AMC  Performance over 3 years If you would have invested 10,000 at the inception of the DSP Quant Fund, it would be now valued at Rs. 15,891. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch; Inception Date – Jun 10, 2019. Source: dspim.com  The DSP Quant Fund has given consistent returns and has outperformed the benchmark over the period of 3 years by generating a CAGR (Compounded Annual Growth Rate) of 15.02%. Fund managers  Anil Ghelani - Total work experience of 22 years. Managing the scheme since June 2019.   Diipesh Shah - Total work experience of 20 years. Managing the scheme since November 2020.   Prateek Nigudkar - Total work experience of 9 years. Managing this fund since May 2022.   Aparna Karnik - Total work experience of 17 years. Managing this fund since May 2022.   Who should invest in DSP Quant Fund?  Investors looking for  Long-term wealth creation solution.  Looking for a portfolio with fundamentally strong sectors and stocks that do not experience very high volatility.  Why invest in DSP Quant Fund?  Investment in the active portfolio of stocks screened, selected, weighed, and rebalanced on the basis of a predefined fundamental factor mode.  It has no sector or stock concentration.  Horizon  One should look at investing for a minimum of 5 years or more.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The fund has a strategy of quality, value, and growth while selecting the stocks for its portfolio. This fund uses a multi-factor approach to assess companies in a holistic manner. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.