Assets Under Management (AUM): MUTUAL FUND

 

A mutual fund pools money from investors and uses this money to buy assets like stocks, bonds and other securities. The total value of the assets a fund buys is called the assets under management (AUM).

• AUTOMATIC REINVESTMENT:
  A mutual fund gives return in two ways – dividends and an increase in value. The latter can be utilized only when you sell the mutual fund unit.

  The dividends, however, are accessible as soon as they are distributed. As an investor you can use this in two ways – reinvestment or payout. When you choose the payout option, the dividend amount will get credited in your bank account. In case of reinvestment, the dividend amount will be utilized to buy more MF units of the scheme.

  The automatic reinvestment option is a service the fund house provides to shareholders, giving them option to purchase additional shares using dividends automatically.

• CAPITAL GAINS DISTRIBUTIONS:
  Apart from dividends, mutual funds also distribute the profits it makes from selling some of the underlying assets at higher values. This is called capital gains distribution. This can also be used to buy more MF units (reinvestment).

• COMPOUNDING

• When you invest in a financial asset, you earn on the amount invested. Over time, you can either reinvest this amount or put it in a bank account. Either way, you earn some amount on your existing profits – either through investment returns or from bank interest. Thus, your total returns over time increase. This is called compounding. Over time, compounding can produce significant growth in the value of an investment.

• For example, you invest Rs 1000 today and earn Rs 100 profit a year from now – a return of 10%. You decide to reinvest this amount too. The next year, a return of 10% gives you Rs 110, not Rs 100. The greater the frequency of investment or interest payments, the higher is the effect of compounding.

• DEPRECIATION:

• This is the decline in your investment’s value in the mutual fund. This means, you will make a capital loss when you sell the mutual fund units. It is just the opposite of ‘appreciation’.

Difference between Futures and Options

 

Futures and options are tools used by investors when trading in the stock market. As financial contracts between the buyer and the seller of an asset, they offer the potential to earn huge profits. However, there are some key differences between futures and options.

Obligation:

A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Here, the buyer is obliged to buy the asset on the specified future date. You can read up the basics of futures contract here.

An options contract gives the buyer the right to buy the asset at a fixed price. However, there is no obligation on the part of the buyer to go through with the purchase. Nevertheless, should the buyer choose to buy the asset, the seller is obliged to sell it. If you want to know more about an options contract, you can read about what is Options trading,

Risk:

The futures contract holder is bound to buy on the future date even if the security moves against them. Suppose the market value of the asset falls below the price specified in the contract. The buyer will still have to buy it at the price agreed upon earlier and incur losses.

The buyer in an options contract has an advantage here. If the asset value falls below the agreed-upon price, the buyer can opt out of buying it. This limits the loss incurred by the buyer.

In other words, a futures contract could bring unlimited profit or loss. Meanwhile, an options contract can bring unlimited profit, but it reduces the potential loss.

Did you know that though derivatives market is used for hedging, currency derivative market takes the centre stage for hedging? You can read about it here.

Advance payment:

There is no upfront cost when entering into a futures contract. But the buyer is bound to pay the agreed-upon price for the asset eventually.

The buyer in an options contract has to pay a premium. The payment of this premium grants the options buyer the privilege to not buy the asset on a future date if it becomes less attractive. Should the options contract holder choose not to buy the asset, the premium paid is the amount he stands to lose.

In both cases, you may have to pay certain commissions.

Click here to know the brokerage offered by Kotak Securities’ Dynamic brokerage plan.

Contract execution:

A futures contract is executed on the date agreed upon in the contract. On this date, the buyer purchases the underlying asset.

Meanwhile, the buyer in an options contract can execute the contract anytime before the date of expiry. So, you are free to buy the asset whenever you feel the conditions are right.

FUTURES OPTIONS - POINTS TO REMEMBER

1. Contract details:

At the time of drawing up a futures or options contract, four key details will be mentioned:

• The asset that is up for trade
• The quantity of the asset that is available for buying or selling
• The price at which it will be traded
• The date on which (futures contract) or by which (options contract) it must be traded

The futures contract will also mention the method of settlement.

2. Trade venue:

The trade in futures takes place on the stock exchange. The options trade takes place both on and off the exchanges.

3. Types of assets covered:

Futures and options contracts can cover stocks, bonds, commodities, and even currencies.

4. Requirements:

You would need a margin account to trade in futures and options.

ZEEL Q1 profit tanks 49% to Rs 106.6 crore on weak operating performance

 Zee Entertainment Enterprises on August 12 reported a consolidated profit of Rs 106.60 crore for the quarter ended June FY23, down 49 percent compared to the year-ago period. The decline in profit was due to weak operating performance and moderate top-line growth.

Profit in corresponding period of last fiscal stood at Rs 208.8 crore. The sequential decline in profit was 41.4 percent.

Consolidated revenue for the June FY23 quarter grew by 4 percent to Rs 1,845.74 crore compared to the year-ago period, while on a quarter-on-quarter basis, there was a 20.5 percent fall in revenue, the company said in its BSE filing.

The company reported a 5.4 percent year-on-year growth in advertising business at Rs 976.3 crore for the June FY23 quarter, but the subscription business fell 5 percent to Rs 771.7 crore compared to the year-ago period.

Zee said advertising revenue growth for the quarter impacted by FTA withdrawal (Zee Anmol) and lower advertising spends by brands due to weak macroeconomic conditions, while pricing embargo continued to impact linear revenue growth in subscription business.

Hero MotoCorp Q1 Result | Consolidated profit grows 131% YoY to Rs 590 crore; revenue up 54%

 

Hero MotoCorp Ltd, on August 12, reported a 131 percent growth in its consolidated net profit at Rs 590 crore for the first quarter ended June 2022 as against Rs 256 crore recorded a year ago. On a sequential basis, the profit slipped 3.4 percent from Rs 611 crore earned during the January–March period.

Consolidated revenue for the world’s largest 2-wheeler manufacturer rose 54 percent on-year to Rs 8,448 crore as compared to Rs 5,503 crore registered in the year-ago quarter. On a sequential basis, the revenue is higher by 12.7 percent against Rs 7,497 crore recorded in the previous quarter.

The growth in the revenue was fueled by higher volumes and better realizations which were partly offset by a lower mix from the spares segment as well as lower export volumes.

“The fiscal year began on a positive note for the industry, with growth over not only last year but sequentially over Q4FY22 as well”, said Niranjan Gupta, Chief Financial Officer while commenting on the performance for the quarter. “While the macro economic environment globally is facing headwinds of inflation, Indian economy is relatively better placed to move on path to recovery and growth”.

Certain key indicators like GST collections, PMI, consumer confidence index are all moving in the right direction, he added.

On a standalone basis, the company earned a profit after tax (PAT) of Rs 625 crore at a YoY growth of 71 percent from Rs 365 crore PAT achieved during the same period last year. On a sequential basis, the PAT remained flat.

Standalone revenues for the quarter jumped 53 percent on year to Rs 8,393 crore from the revenues of Rs 5,487 crore during the prior year period. On a sequential basis, the revenues were higher by 13 percent.

The volumes for the quarter stood at 13.90 lakh vehicles at a YoY growth of 36 percent

The company’s standalone EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter increased by 83 percent on year to Rs 941 crore as compared to an EBITDA of Rs 515 crore for the same period last year.

The EBITDA margins for the quarter at 11.2 percent remained flat on the sequential basis.

“As the country enters the festive season, we expect the 2 wheeler demand to be on a healthy trajectory supported by micro factors like normal monsoon, crop cycle, opening of all sectors of the economy etc”, Gupta added. He expects the margin pressure on the industry is also likely to ease in coming quarters, as commodities cool off and price recovery moves ahead of cost impact.

Hero MotoCorp intends to launch its much awaited electric vehicle during the coming festive season and has been collaborating with partners for the same, including the setting up of charging infrastructure.

Hero MotoCorp closed Rs 23.4 lower at Rs 2,761.9 on August 12 at the National Stock Exchange. The stock has been trading flat compared to its price a year ago and is down 4 percent over the past one month.

Retail inflation falls to 6.71% in July, but RBI just 2 months away from likely failure

India's headline retail inflation rate, as measured by the Consumer Price Index (CPI), fell to a five-month low of 6.71 percent in July, according to data released on August 12 by the Ministry of Statistics and Programme Implementation.

In June, CPI inflation had come in at 7.01 percent.

At 6.71 percent, the July CPI inflation figure is in line with the consensus estimate. As per a Moneycontrol poll, CPI inflation was seen falling to 6.7 percent in July.

Even though inflation fell to a five-month low in July, it has now spent 34 consecutive months above the Reserve Bank of India's (RBI) medium-term target of 4 percent and seven straight months outside the central bank's 2-6 percent tolerance range.

As such, the central bank is only two months away from failing to meet its inflation mandate, which is deemed to occur when average inflation is outside the 2-6 percent tolerance range for three consecutive quarters.

CPI inflation averaged 6.3 percent in January-March and 7.3 percent in April-June. For inflation to average 6 percent or lower in July-September, it cannot exceed 5.7 percent in both August and September.

As per the RBI's own forecast, CPI inflation is expected to average 7.1 percent in July-September. This means CPI data for September, scheduled to be released in mid-October, will likely show the RBI has failed.

In the event the RBI fails, it is required to submit a report to the central government detailing the reasons for failure, the steps it plans to take to return inflation to target, and how long it thinks it would take for inflation to return to the target.

LIC Q1 Result | Net profit comes in at Rs 683 crore, firm sees rise in market share

India's largest life insurance company, Life Insurance Corporation (LIC) reported a net profit of Rs 682.9 crore for the quarter ended June (Q1FY23), a sharp rise from a mere Rs 2.6 crore in the corresponding period last year.

But on a sequential basis, the net profit was down from Rs 2,371.5 crore logged in the March quarter. In a call with the press post the release of its earnings, the insurer said that going forward, the volatility in its profit would be low.

More importantly, LIC's profitability metrics too showed a hit for the June quarter on a sequential basis. Its value of new business dropped by more than 80 percent sequentially to Rs 1861 crore from Rs 9920 crore in the March quarter. The VNB margin slipped to 13.6 percent for the June quarter from 15.1 percent in the March quarter.

Chairman M R Kumar said that the life insurer is focusing on increasing the share of non-participatory policies in its product mix that this should aid margins in the coming quarters. Non-participatory policies are where policyholders do not get the share in the profits of the company and are simple and plain life covers. The share of these products was 7.7 percent in the June quarter. Kumar said that LIC will increase this share to 10 percent by the end of the current financial year.

LIC's business growth was healthy with total new business premium showing an increase of 36 percent year-on-year. "The trajectory seems upwards for sure and we are looking at increased business volumes as is evident in our market share in the year to date since January 2022," said the company in its release.

On an annualised premium equivalent basis, LIC's total business was Rs 10270 crore of which the share of individual segment was 62.8 percent. The life insurer sold 59 percent more policies in the June quarter compared with what it sold in the corresponding quarter of the previous year.

Its market share increased to 65.4 percent in the June quarter from 63.25 percent in the previous year. Kumar said that the life insurer would continue to report healthy business growth for the rest of the year but stopped short of giving any numerical projection.

LIC not only managed to increase its market share but more policyholders stuck with the insurer for longer. Persistency ratios improved across tenures. The persistency ratio for the 13th month rose to 75.75 percent compared with 72.49 percent a year ago.  For the 49th month, the ratio was 60.82 percent, up from 59.87 percent a year ago.

The life insurance behemoth managed its investments deftly even as sharp rise in bond yields showed a notional hit on its portfolio. Yield on investments for policyholders excluding unrealised gains was 7.74 percent, down from 8.39 percent. Adjusted for unrealised gains or losses, the yield came down to -2 percent, an indication of a  large mark-to-market hit.

The management refrained from giving any target for equity or debt investments for the year. During the June quarter, LIC's equity investments increased by Rs 34000 crore on a net basis.

What should investors do with Ashok Leyland, Tata Steel & Hindalco?

Indian market witnessed gains for the second day in a row pushing benchmark indices to another record high. The S&P BSE Sensex closed above the 48000 mark for the first time while Nifty50 also scaled above 14,100 levels on Monday.

The S&P BSE Sensex rose 307 points to 48,176, while the Nifty gained 114 points to close at 14,132 on Monday.

Sectorally, the action was seen in metals, auto, IT, and oil & gas while some profit-taking was visible in banks and consumer durables.

Stocks in focus included Ashok Leyland which rallied over 5 percent, Tata Steel that gained more than 7 percent, and Hindalco that rallied more than 6 percent.

Ashok Leyland: HOLD |Target: Rs 122

The stock has witnessed a breakout above its 200-week average with strong volumes and positive price action.

The RSI is also holding above the higher band of Rs 70 levels and will continue to outperform in line with the price action.

Any decline towards the short-term average of Rs 95-97 levels would be a good opportunity to add longs.

Hindalco: HOLD |Target: Rs 288

The stock scaled an all-time high on Monday after trading in a narrow range over the past month.

It has made a double bottom near sub 230 levels and we expect a target of 288 levels which also coincides with an all-time high of 285 levels it achieved in Jan’18

We would recommend holding for a higher target of 288 from current levels.

TATA Steel: BOOK PROFITS at Rs 740 levels

The stock is one of the consistent outperformers in the metals sector and will attempt to test its multi year high of Rs 740 levels in the current momentum.

RSI has inched upwards to 79 levels and risk-reward is not in favour of longs as the recent up move is sharp.

We recommend booking profits in a higher range of Rs 740 levels over the next few days.

WhatsApp Pay ~ In-Chat Payment

WhatsApp Pay ~ In-Chat Payment

What'sapp is not only a communication tools which is act an important platform for many individual small business entrepreneurs by Whatsapp Business feature, which helps consumers to convey their requirements better to the business persons clarify their doubts by just few clicks and some typing. The key missing component in this business is payment service which includes the user to open additional application or any other payment gateways and complete the payment process.

The introductions of What’sapp pay service and integrate that with what'sapp business sounds great.

"Take the order, send the bill and obtain the payment all on one app"

Businesses are too excited about the idea of doing business and receiving payments in the same window.

There is no doubt that WhatsApp Payments is extremely new and limited in functionality in its current state. All you can do is send or receive money at the moment. In comparison, apps like Google Pay, PhonePe and PayTM also allow you to make payments for services and products.

WhatsApp Pay is a Unified Payments Interface (UPI)-based payments service will allow users to make payments to anyone from their WhatsApp contact list; It will enable WhatsApp users to both send and receive money.

The UPI interface allows customers to form instant fund transfers through a virtual address, also referred to as, Virtual Payment Address (VPA). The fund transfer process is fast, easy and may be done on a 24/7 basis on all three hundred and sixty five days during a year.

Whatsapp Pay: Modes of transaction

During the initial phase, WhatsApp Pay allowed users to send money only to their contacts after which it enabled UPI ID. WhatsApp Pay users could enter the UPI ID and send money. Later in March WhatsApp introduced QR code for its payments service. Each WhatsApp Pay user features a unique QR code which users can scan and send money.

Whatsapp Pay in India

Whatsapp's payment gateway WhatsApp Pay has been on its Beta tests for nearly two years and Facebook has been struggling to launch it in India for quite a while now. However, the Facebook-owned messaging application is reportedly launching its payments option in partnership with three private banks in India within the coming months.
Whatsapp's two-year delay even after getting restricted testing clearance from the National Payments Corporation of India was mainly because the corporate faced multiple legal and regulatory hurdles.

RBI has also directed the NCPI to not allow a full-scale launch of a payments business by WhatsApp, on the Unified Payments Interface (UPI) till they're fully compliant.
The latest development damages the company’s aspirations to have a payment play in India on the fast-growing UPI network. WhatsApp Pay has been restricted to 1 million users in beta-mode since February 2018. The Facebook-owned social messaging app has quite 400 million users in India and quite 2 billion users worldwide. With these many subscribers to the app, India is that the largest marketplace for the app currently. For this reason, the upcoming WhatsApp Pay service is touted to be hit among the users in terms of digital transactions. In this manner WhastApp Pay aims to require on already established digital payment gateways within the country, mainly Google Pay and Paytm.

Features and Benefits of WhatsApp In-Chat Payment

·        Make payment to anyone on WhatsApp contact list from anywhere and at anytime.

·        User-friendly ‘pay’ feature that makes transferring funds as simple as sending a photo or a message.

·        The payee/beneficiary will receive a payment notification on their chat window once the fund transfer has been made

·        There is no need to ask the payee for account details such as account number or IFSC Code. All you would like may be a virtual address to form payment

·        The WhatsApp In-Chat Payment application is a one-of-a-kind payment feature.

The WhatsApp Payments feature are going to be directly competing with Google Tez and BHIM UPI app. Unlike its predecessors, WhatsApp Payments currently doesn't offer any cashbacks to its users.

WhatsApp security features 

WhatsApp has decided to intensify the safety round the app. In the first beta update this year, WhatsApp has introduced the Authentication feature for an additional layer of security. The feature has been unrolled in WhatsApp beta update 2.19.3 version for Android devices. It is available for devices running Android Marshmallow or higher and equipped with a fingerprint sensor. The Authentication feature on WhatsApp for Android uses either a pre-registered fingerprint on the device or a fresh one on the app. This feature is analogous security feature to what has been seen during a few payment apps just like the Google Pay and Samsung Pay. While there are third party apps which may put a fingerprint lock, it'll be interesting to ascertain how effective native fingerprint protection for WhatsApp is. WhatsApp has already implemented FaceID and TouchID on iOS.

But these features are still under development and it will be some time before they are rolled out for open public. Meanwhile, WhatsApp has begun work on Authentication feature for its Android version. Now already in beta, the feature fingerprint unlock for all WhatsApp is predicted to be unrolled soon. For WhatsApp beta users, they have to travel the Privacy section within the Settings menu.

Here is an choice to enable fingerprint authentication which has got to be toggled on. Once done, the appliance will ask you to register your fingerprint afresh or use the already saved fingerprint data on the device. This completes the setup for WhatsApp's Authentication feature.

Two-step authentication

The two-step authentication feature adds an optional security layer to your application. When enabled, WhatsApp asks users a six-digit passcode whenever you log-in together with your WhatsApp account on another phone. This code is different from OTP, so even if someone gets hold of your SIM card, no one will be able to log into your WhatsApp account.

Biometric Lock

While most Android phones with custom skins on top accompany some sort of app lock, it's safer to use the native biometric lock on WhatsApp. WhatsApp for Android now has the choice to line fingerprint lock for the app, whereas on iPhones, it comes with the choice of setting the FaceID or TouchID for the app– whichever is available for that specific phone. This way, you'll rest assured that nobody is reading your messages while you're away.

Work From Home- Top 10 jobs in India for your bright future | Online jobs for students without investment

#1 Freelancer Content writing 

The content writing jobs are basically all about writing for a company. Many individuals have good writing skills plus have good qualifications. Content writers are expert writers who create appealing content that is used in online activities. They're Internet-savvy people who design articles, captions, blogs, website content and other kinds of written Web stuff. This job can easily be done by sitting at home and utilizing your time. You just have to research and set your own hours of working. Fixing rates of work all depend on you, free to ask for the financial independence infinite. Freelance work is a fabulous idea to expose your creativity. Unlike a traditional job, you can come to work and go. This is beneficial for women who are sitting at home and qualified.

#2 Data Entry Agent 

Data Entry jobs include inserting data from multiple sources into the company computer system for processing and control. A person working in a data entry job will require to effectively handle a high amount of data that is frequently delicate or private. The person working from home get all the data through the special accounts by the company. They explain everything on a phone call about the working of the company and a lot you work. After that, it's on you to work according to your flexibility and time. Operators of data entry are more easily managed, thanks to excellent technology.

#3 HR-Recruiter 

HR Recruiter to run complete circle recruitment. From recognising potential hires to questioning and judging applicants. That is a complete job of HR in a company. This job is way easy to do at home. A company will provide you with a list of applicants. You can call them and cross question them, after that they can come for an interview in a company. HR Recruiter duties comprise sourcing applicants online, refreshing job ads and handling history checks. Screening CVs and conducting telephonic interviews with applicants is an enjoying job in work from home, you can work in a few hours in a stress-free manner and enjoy doing that.

#4 Online Tutor 

Online educating is the method of tutoring online and adaptable, practical background or networked setting in which tutors and students are divided by space and time. While watching tuition video and even live online video help students to understand better. The travel time is zero and no expense is costed in travelling. This gives education in budget and usually very accessible to schedule. Comfortable access to everything you require for a tuition session. If you have great experience, education and knowledge as a teacher, then you can apply with this job of work from home. It's interesting and self-learning for tutors.

#5 Graphic Designer 

The graphic designer job specifies the whole method of determining elements, visualizing and designing graphics including pictures, logos, designs etc. Using photoshop and coral draw is an easy task. a company hires an online graphic designer gives a description of the images need to be designed and the graphic designer work according to the instructions given by the company. Sitting at home may give refreshing and good ideas to create a unique design. The pay is high of the graphic designers. Its a cheerful job as work from home you have to work in fixed hours which is decided by you only.

#6 Social Media Marketing 

This job is made for the online purpose only as the name itself suggest social media - All the networking sites are part of social media and the social media marketer will promote the company and its products on this platform. Its digital platform is the most trendy job that can be done from home.

#7 Language Translation 

The language translators have the most joyful job. You learn so much from it.No targets as such an easy to cater to the languages you know. When it is a home-based job the level of productivity is much higher than what you think. Writers and translators transform ideas in the original language to similar concepts in the target language. Gather data, such as specialised words used in constitutional frameworks, into glossaries and vocabulary databases to be practised in interpretations of translations.

#8 Web Development 

Web Developer Job role is he/she is for creating, coding and transforming websites from layout to perform and according to a client's blueprints or instructions. In work from the company conveys all the details to web developer provided by the client to the company. They aim to produce visually appealing and attractive sites that highlight the user-friendly layout and innocent navigation. This a home based job a web developer can create websites sitting at home. They have great knowledge of CSS/HTML As a web developer, you'll require to learn the basics of coding and markup language, JavaScript, SEO and photoshop.

#9 Business Development Manager 

Promoting a business can be done from home. You just have to communicate with clients and tell about the products and helps in making a profit for the company. Sitting home and making calls is not a big deal and money making the process. Business development manager job is to recognise sales heads, delivery goods or services to fresh clients and secure a good working relationship with fresh contacts. The work has developed the company by communicating on calls with clients and building a great relationship for the betterment of the company. Discussing fresh product advancements to proposed clients. Managing the expansion of marketing research.

#10 Video Editing 

Video Editings are a home based job which can be easily obtained as Video Editors are usually bound for editing and compiling recorded raw shoots or footages into a proper, complete product ready for programming. The material may comprise a camera dialogue, sound effects, special effects, animation and graphics. Its a money making job and amazing too. No workloads online enjoying in making the series of the shot. Sitting at home and doing this will save your time and you can work according to your mood and environment.