The derivative market in India, like its counterparts abroad, is increasingly gaining significance. Since the time derivatives were introduced in the year 2000, their popularity has grown manifold.
Derivatives are financial contracts that derive their value from an underlying asset. These could be stocks, indices, commodities, currencies, exchange rates, or the rate of interest. These financial instruments help you make profits by betting on the future value of the underlying asset. So, their value is derived from that of the underlying asset. This is why they are called ‘Derivatives’.
PMS is a tailor-made professional service offered to cater to the investments objective of different investor classes. The investment solutions provided by PMS cater to a niche segment of clients. The clients can be individuals or institutional entities with high net worth. Simply put, a portfolio management service provides professional management of client's investments to create wealth. The service providers offer various thematic strategies themes ranging from large cap, small & mid cap, flexi cap, focused products etc to suit the specific needs of the investors. The minimum investment amount is Rs 25 lakh.
The portfolio of stocks bought for the investor are then housed in a de-mat account opened in the investor's name only, and can be transferred back to him in case he decides to close his PMS account. This is one of the main differentiating features between a PMS and mutual fund. PMS provides a hassle-free, transparent and customized platform for investor participation in equity markets.
When considering investment opportunities, the first challenge that almost every investor faces is a plethora of options. From stocks, bonds, shares, money market securities, to the right combination of two or more of these, however, every option presents its own set of challenges and benefits.
So why should investors consider mutual funds over others to achieve their investment goals?
Mutual funds allow investors to pool in their money for a diversified selection of securities, managed by a professional fund manager. It offers an array of innovative products like Fund of Funds, Exchange-Traded Funds, Fixed Maturity Plans, Sectoral Funds and many more.
Whether the objective is financial gains or convenience, mutual funds offer many benefits to its investors.
Share market for many is gamble and they find the stock jargons to be alien. But the reality is something far from that. Stocks are also a viable investment option that can give the investors huge returns if the investment is done meticulously. There are so many factors that make the share market a chosen area of investment for millions of investors.
Stocks can give multiple returns on investment that no other asset class can match. If you can invest wisely in the potentially strong stocks, you are all set to gain hugely from your investment.
There are so many options in stock market investment. You can choose to do intraday trading or delivery trading and you can trade in cash segment or in derivative segment. You also get a variety of choices in equity trading itself. You can invest in growth stocks to gain rapidly, or you can invest in dividend stocks for long term and enjoy the dividends that keep coming to you. In short share market investments have plenty of options that you can choose according to your need and your budget.