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Wednesday, 1 November 2017

What is "Future and Options" in Stock Market

Many of the people who get into Equity market aka Stock Market directly only deal with one part of it called “Cash Market”, a market where one can buy and sell shares from quantity 1 to many depending on money one has. There is another part of Equity market called “Future and Options” abbreviated as F&O.

What is F&O :

F&O is Contract based trading instrument which has validity from 7 days to 90 days depending on whether it is for INDEX like NIFTY / BANK NIFTY or individual stocks. In this there is no transaction of shares until the last day of contract and there is just agreement made between Buyers and Seller to abide by contract price and date. The Price in Cash market and Price and various data points in F&O market affect each other.

Future:

Future instrument is a contract between buyer and seller about Future price of a stock or Index. In Indian market Future Contracts are of one month expiring on last Thursday of every month and the new contract starting just a day after that. One can buy individual contract of next 3 months as only 3 Contracts can be active at one time for any stock or Index. Basic component of Contract are Stock name, Future agreed Price and expiry date. So INFY 26 OCT17 FUT means Future contract of Infosys for October month expiring on 26th October 2017.

If one buys Future contract of INFY for October month, buyer is agreeing to buy INFY at price mentioned in future market, at max by last day of contract expiry which is 26th October. Suppose Current Market price of INFY is 900, and October’s Future Price is 920 (because market sentiment is positive), so buyer is agreeing to buy INFY at 920 Rs maximum by 26th October, no matter whether stock price goes down or up.  If stock prices goes to 950 Rs in that month, buyer will make profit because buyer has right to buy same stock at 920 Rs as per contract. If stock price goes down to 880, buyer will lose money because as per the agreement buyer promised to buy INFY at 920 Rs. and vice versa the contract seller will make profit and loss. There can be one more case when INFY stays around 900-905 Rs for whole month and closes at 900 on last day, in this case also buyer will lose money because buyer needs to buy INFY at 920 Rs whereas the market price is 900 Rs and hence contract seller will make profit. 

Now to summarize profit and loss cases for Futures:

Buyer will make money only when stock price moves up from price of future agreement in the Contract month

Seller will make money when stock prices goes down in the Contract Month

Seller will make money when stock prices stays same in the Contract Month

Seller will make money even if stock price goes up by any percentage but after contract expiry date.

As one can see that timing also is one big factor in Future market unlike in Cash market and Buyer and Seller need to be precise enough to make full use of this instrument of stock market. Unlike in Cash market, these Contracts are done in lots and one lot contains many shares, so to be able to use these contracts one needs to have enough capital and margin in their account. The Advantage of it is that brokerage firms let their clients use Margin money to buy or sell Future Contracts and no need to have full money in your account. To give an idea of this, to buy 500 Shares of INFY in Cash Market one needs to have 4,50,000 Rs (500 x 900) in account but to buy same in Future one needs 10% to 50% of total money in account depending on Brokers they are taking service from.

As Options are too big to explain in this post and has two part as “Call” and “Put”, I will be posting it soon as new post :) 

Monday, 2 October 2017

iBall Slide PenBook

iBall, known for its innovative and latest technology products, announces its newest Windows-based 2-in-1 ‘iBall Slide PenBook’, that comes with sophisticated design and features to inspire the creative you, and enhancing your productivity and style. The latest PenBook, integrates the most advanced features one would look for. It provides users, the experience of a Tablet with the computing power, software compatibility and overall characteristics of a Laptop. 
Take notes, create lists, sticky notes and draw to your heart’s content — it all becomes an easy-peasy task with integrated Windows Ink on digital pen provided. It is so smooth that it will make you realize what you are missing at present. No lags when you write and its precision will thrill you with the experience. Additionally, the PenBook also showcases a unique Windows Hello – Quick Fingerprint scanner feature, where you will be the password, breaking all traditional stereotype password setups. It also features Cortana with Voice – your personal digital assistant, which offers more ways to keep yourself updated and helps you to remember your tasks. Cortana with Voice works above the lock screen too.  



Key Features:

  • Fingerprint scanner
  • 6000 mAh Li-Polymer battery
  • 10 point Multi-touch Display
  • HD Clarity and IPS technology
  • Priced at Rs 24,999/- 
Inspired with your creativity and productivity, the iBall Slide PenBook sports a 2-in-1 portable and flexible built from durable yet incredibly light aluminum alloy design redefining your personal working space, even on-the-go. Supported by a massive 6000 mAh Li-Polymer battery, the iBall Slide PenBook is perfect for you to optimize productivity and mobility. It is backed by a High Definition 25.65cm (10.1) full capacitive multi-touch display with stunning HD Clarity and IPS technology. With its 10 point Multi-touch Display, use all your fingers simultaneously on the screen, and see how every movement is differentiated and well defined.   

The latest PenBook caters to high-efficiency users seeking to maximize their productivity from the comfort of their home, office, or on-the-go. Microsoft Edge helps you to go beyond browsing for a web experience that’s personal, responsive and all about getting things done Online. With Microsoft Edge, write directly on the Web pages and share your mark ups with others, read online without distractions and organize your reading list for later. 
It also comes with a powerful Intel® Atom™ processor with processing speed up to 1.92 GHz making it perfect for multi-tasking, such as web surfing, working on Microsoft® Office, streaming videos, playing games, etc.

Speaking on the launch, Mr. Sandeep Parasrampuria, (CEO and Director – iBall) said, “Our latest 2-in-1 iBall Slide PenBook, is a world class offering with latest technology wonders of  Windows inking, Hello and Cortana. It’s the next level device for those who embrace digital innovations and look for the best in technology.”

On its entertainment facet, Dual speakers is embedded to deliver surround sound experience. It also sports 5MP auto-focus camera and a front 2MP camera for video chatting. Equipped with USB Type C with Data, it also supports various connectivity options, which include in-built Dual Band Wi-Fi and Bluetooth® for faster and seamless Internet and data sharing. Simplifying it further, is the Micro HDMI port to keep the users hooked on. Along with these, it also supports Micro SD extension with 2 GB DDR3 RAM and 32 GB in-built storage expandable up to 128 GB.

The iBall Slide PenBook shall soon be available at all the leading retail stores across India, priced at ₹24,999/- only. 

Sunday, 10 September 2017

The Spartan Poker India Poker Championship Awards 2017

First edition of India Poker Championship Awards hosted by India’s leading poker gaming portal, The Spartan Poker, witnessed a grand success in Bangalore today. The first of its kind poker award ceremony was held at Sheraton Grand in the Garden City on Saturday, 9th September 2017. Recognizing excellence in the Poker industry, The Spartan Poker felicitated 72 poker players across 6 different categories in the presence of eminent Bollywood actor Emraan Hashmi and popular standup comic Naveen Richards.

The Red Carpet

The Awards were given based on the players’ winning participation in various tournaments; Emraan Hashmi and the Directors of TheSpartanPoker from the poker industry also felicitated the winners in leading categories at the function. The full list of winners can be found here.
  
Millionaire - December 2016 Winner Mayank Jaggi with Amin Rozani and Emraan Hashmi

Expressing his excitement on the success of the first edition of the IPC Awards, Amin Rozani, MD & Co-founder, The Spartan Poker said, “Hosting the India Poker Championship Awards was truly an exciting experience for us. It feels great to see the poker industry together and under one roof. The idea behind the IPC awards was to felicitate the amazing talents and contribution of poker players. We hope to continue hosting the awards every year to shed light on it as a skill-developing and mind sharpening sport as well as to encourage all the poker players across the country to continue contributing to this industry.” 

Emraan Hashmi & Amin Rozani (MD & Co-Founder of TheSpartanPoker.com) addressing  the Press

Expressing his views on the association, Actor Emraan Hashmi said, "I am truly honored to be here at the first edition of the India Poker Championship Awards and among these talented poker players and this industry’s veterans like Amin Rozani, Peter Abraham, Rajeev Kanjani and Sameer Rattonsey. Recognizing the efforts and skills of these poker players, I feel The Spartan Poker created a great platform for these players across the nation.”

Amin Rozani sharing some Poker tricks

About The Spartan Poker:

TheSpartanPoker.com is India's leading & most-trustworthy online Poker gaming portal. It is an India centric online gaming hub that aims to bring the sophistication and quality of a world-class online gaming platform to gaming enthusiasts in India. With a vast variety of Poker tournaments, offers and game offerings, TheSpartanPoker.com, founded by Poker Badshah, Amin Rozani, in 2014, has become the hotspot for Poker aficionados across India.

TheSpartanPoker.com offers unmatched technology, software and service to online Poker enthusiasts across the country. The online Poker gaming portal is recognized among patrons and Poker lovers alike as the trustworthiest online gaming portal in India as the portal operates under the highest standards with regards to payments, transaction management, customer support, etc. It is India’s first card room to offer a rake-based online poker model.

Monday, 26 June 2017

Team Indus – Towards Moon with Young legs

When I googled about Team Indus few weeks back, in search result I got many links and purposely I decided to ignore original link of Team Indus website and hopped on to some other links and in one of those links I read this statement “Team Indus is an Aero Space start up “.  Wow, doesn’t this sound really cool ?:) My cursorily to know details about “Team Indus” got even bigger than the curiosity of scientists to know about Moon and Mars.

The invite to satisfy my curiosity was there in my email box and it read “Team Indus Open House” and few days later there I was in premise of Team Indus near to Bengaluru Airport. The place looked really cool from outside and to be honest looked different from various other office premises. Sessions went one by one and I could see how curious people were to know about Team Indus including many kids. We got to see various sections inside the campus having different space equipment, It was a new thing for me personally seeing such stuff from naked eyes.

Space Rovers
We got enlightened about how all these spaces programs work including some really tough scientific terms which I have no idea about :). We got to see Rovers used to read surface and environment on moon, we got to see their development corridor and also probably one of the most important part of any space program, the mission control system. Every member of team was eager and more than happy to answer any questions throughout the sessions.

About Team Indus :

Team Indus is funded by many groups and is guided by many acclaimed scientists like Mr. N.S Hegde who was mission control director of ChnadraYan- 1. They have people across age groups, from people in their early 20s to experienced people, people from different streams of technology like IT, Mechanical and even medical. They are working on mission to send first Indian private rover on moon in order to compete for Google Lunar Prize and It Is only Indian team competing for the Google Lunar XPRIZE. The $30M Google Lunar XPRIZE is a global competition to challenge and inspire engineers and entrepreneurs to develop low-cost methods of robotic space exploration. Team Indus has been trying to promote young talents along with their growth and have done many programs for same purpose like inviting young students to send instruments they would want to send on moon and how that instrument can be useful.


  • Founded in 2010 by Rahul Narayan.
  • Have been funded and supported by many Organizations
  • Only Indian company in last 5 for Google Lunar XPRIZE competition.
  • Have done Partnership with ISRO’s commercial section “Antrix Corporation” to launch its mission craft on 28th December 2017.
  • Individuals can be part of this open mission in many ways.
The Mission Control System

As I am not a Sci-fi person at all, it’s not easy for me to write about mission details and how it is going to have an impact on space research growth but to see a startup in this field is not usual at least in India. The best people to answer all these will be Team Indus members itself and they are always active on Social media to help anyone who wants to know more.

Team Indus does many informative sessions on Twitter, do follow them if you want to know more about space. 

Wishing all the best to them and hoping that 28th December will be their date to remember for lifetime. 

Friday, 16 June 2017

A short Q and A with Shradha Sharma of YourStory

Shradha Sharma is founder of Yourstory Media, a company that gives platform to various type of startups and help them get recognized. Before starting YourStory she had worked with Times of India and CNBC TV 18. She has won many awards in media and startup space like Fortune 40 under 40, ET promising entrepreneurs of India Award, Loreal Paris Femina Online Influence Award, Villgro Journalist of the Year.


Pic: Facebook Profile 

Here is a short fun Q&A with her mostly related to personal side of her rather than the entrepreneurial side. 

Q : While starting young did you ever plan for where you have reached today or did you even imagine it? (Like motivational speakers say that visualize what you want to be in future 😊)

A : Actually no, I have let life happen to me, in fact, to tell you the truth I still don’t know how people can answer what will they do five years from now etc. I have lived in moments and max months etc. Though, have given everything to those moments.

Q : What worries you more when you are alone ? except ghosts

A : Oh, ghosts do worry me :-) losing my close ones, having experienced it once, i know its reality, though I have still not been able to accept it, and probably will never be.

Q : Given a chance to go back in time, what age would you go back and what different you would do?

A : My current age, I have totally, madly loved all the ages I have lived in. Childhood and growing up years were tough, but I wouldn’t be me if it was not for those years. No turning back :-)

Q : What is the best compliment you have got from anyone for your work?

A : That I am very perceptive and kind in most difficult situations, can see compassionately even people who are trying hard to sabotage me :-) And it may be hard to believe, but this has helped me professionally.

Q : Have you ever received any awkward comment for work? what was that ?

A : oh, all the time, mostly, she doesn’t have what it takes to get there :-) or I am too emotional, too clumsy, too stupid, too money minded, too clever, too shrewd.. its endless…. blah blah blah, honestly, it hurts a lot less now.

Q : One thing you want to tell that no one knows about you yet?

A : I am a romantic through and through :-)  believe in magic and love

Q : Funniest Startup story you have heard of?

A : So many, in fact, let me narrate you a story that happened to me many a years back, like initial years of YourStory, I interviewed this amazing, driven, young  entrepreneur on the phone and towards the end of the call I told him, please send me the best photograph of yours. And lo and behold, he sends me his marriage photo while he is sitting in the shaadi mandap, holding his bride's hand :-) and the other one was him climbing on the tree and posing. Even writing about it makes me laugh.. still..after so many years. What an adorable memory. And between I am still in touch with him.

Q : Are Facebook and twitter blocked for personal use in Yourstory during office hrs ? 😊

A : hahahaaa, of course not.

Q : Put yourself in shoes of an employee of YourStory, what would be that one thing that you want to change in your boss?

A : Haahahaa, so so so many things, one would be to have more time to interact with each and everyone. To spend quality time together. To be less emotional. 

Q : You get offer to exchange YourStory for something? What it would be for?

A : NOTHING. YS is the magic that I live everyday.

Q : What is one thing you hate most about your job ?

A : Time management, I suck big time at it. Sometimes, I want to run away to a jungle and sleep for hours and hours in the nature.

Q : Why did you agree to give this Q&A interview? 😊

A : Because, I like you and you have “still” not given up on me.

Q : Any one question that you want to ask yourself ? and also answer too ? 😊

A : What is my state of mind most times?
      Hopeful !

You can follow her on Twitter @SharmaShradha

Tuesday, 30 May 2017

How to lose money in trading in stock market

There are many ways to lose money in market, mostly in trades and in that mostly in intraday trades and in that mostly in short selling. Yes you read it perfectly right and trust me it works really well and if you want to lose money as quickly as it takes to cook Maggie, try what i am going to tell. With this approach even if you have picked right and good scrip, you will lose money in day trade.  

There are many principles that works behind to make you lose money in trades in market, let me mention just few.

Using Intraday Margin to go long in Intraday Trades: 

Intraday trading runs mostly on momentum and news and if you are late to catch momentum and getting scrip at higher price of day, you will start expecting that demand is too much so it will go even higher but it doesn’t and ironically falls below your buy price. Then you start expecting market to do things running in your mind which tells that once it comes bit down, buy more to average out your buy price, then it falls further and you add more to lessen your buy price, it comes more down and you add more using Intraday margin (almost 10 times of actual balance in your account) given by your broker. You keep hoping it will go to at least day’s high but it doesn’t as momentum has fizzled out. That’s it, you are trapped now, especially if you trade in big volumes. As you have used Margin money, you have no option but to square off your position with loss even if the scrip is good and has great chance of moving up in next few days or weeks. If you carry forward the position to next day, your broker would expect you to pay entire amount in T+2 days ( and no, you can’t use credit card to pay for stock broker companies 😊). So to make it simple if you want to lose money in trade, use Intraday Margin provided by your broker.

Short selling in Cash Market: 

Another good way to lose money is by going for Short selling option in Cash market. Google short selling if you don’t know how it works 😊. You see a stock has risen to level of first resistance and expected to come down and you short it, it still goes bit up and you again start running script in your mind that it’s just a minor upward moment and might come down, but it doesn’t. It goes further up though with less volumes and you short sell bit more to average out your sell price, It sustains at higher price despite very less volume and oh dear!! trade time for day is about to close. You are still having loss and though every chart pattern and fundamental data shows that this up move won’t sustain and price will come down in next few days, you have no option but to buy back the scrip by booking loss, this is because you can’t carry forward short selling position to next day. So if you want to lose money, try short selling in Cash market.

Thinking like Bollywood movies: 

This is easiest way to lose money in day trades, hoping against hope that at last all will be good 😊. Scrip price goes down of your buying price and you hope that it will come up as you are a good person and you have done no wrong to any one :P, but scrip is a villain and it ditches your faith as always. Scrip that you have short sold goes up and the one you have longed, goes down. You keep waiting for things to turn good by 3 PM, 3:10 PM, then by 3:20 PM and boom…. It doesn’t turn out the way it happens in movies. You can cry like SRK or be angry like Big B, market doesn’t give a F. So if you want to lose money, start trading while thinking like Bollywood movies.

Courting on Number of Buyers and sellers in trade window: 

The simple rule is if demand is more than supply, price will move up and vice versa. The question is are you sure about demand or supply you are seeing in trade window is actual value? Many times those are not as brokerage companies give you option to hide your order size by 90%, which means if you are buying 1000 shares, you can just show it as 100 in trade window and many people do it to make sure their order is executed completely rather than partially. So if you want to lose money in trade, rely on Demand and supply shown in trade window.

Well there are many more ways to lose money in trades but I guess these are more systemic ones and as I have followed all these (of course not voluntarily), I can vouch for it that it works really well 😎

Saturday, 20 May 2017

Zebronics launches India’s first Silent Mouse "Denoise"

Zebronics, India’s leading supplier of IT peripherals, Audio/Video and Surveillance products unveils India’s first silent Mouse “Denoise”. The sound of silence with no more click sound, the wireless Mouse comes with built in rechargeable battery so you no longer need to worry about running out of battery. 

The masterpiece fits a variety of hand sizes and grips. The anti-slick ergonomic rubber grip on both sides of the mouse ensures resistance to fingertips during quick movements or even while lifting the mouse. 

Its designed with higher precision of 2.4 GHz stable wireless connection, plus with high performance feet that glides across the desktop and a chrome trimmed smooth scroll wheel for hushed browsing or gaming. The advanced optical tracking allows the most precise moves on almost any surface. This Wireless mouse comes with 800, 1200 and 1600 DPI modes, making it perfect for gamers as well as for personal/ professional computing for long duration on your PC/ Laptop without any discomfort.

Key Features:

2.4GHz Stable wireless connection
Rechargeable
800/1200/1600 dpi
Extended battery life
Energy saving
Chrome trimmed smooth scroll wheel
Works on most surfaces
Nano receiver
Plug and play
Rubber grip


Enjoy the wireless connection upto 10m away, thanks to its plug and forget nano receiver. Its massive 1000 mAh, battery helps you keep going without any interruptions and helps you complete your task without any glitches.

Speaking on the newest launch, Mr. Pradeep Doshi, Director – Zebronics says, “We are excited to launch our pocket size mouse with not so pocket size functions. The mouse has been designed and built to build ease of use to the users and also ‘free yourself’ from the tangle of low wires and stress of battery change. With the advanced wireless technology in varied colors, Denoise, promises to create much more noise among users” 
Ideal for varied situations, the mouse is also an energy saver, with its multifaceted features. Available in multiple color choices, the product is already available in leading retail and etail stores across India. 

About Zebronics:

Established in 1997 and headquartered at Chennai, Zebronics has one of the industry’s widest line-up of products Computers peripherals and Consumer Electronics Totalling to 25 product categories and more than 350 SKUs. Zebronics range of products encompasses Chassis/Cabinets, Speakers, Tablet pc, PC power supply, Portable media players, Headphone, Keyboard & Mouse, LED Monitors, UPS, Gaming Accessories, TV Tuners, Add-on Cards, Computer accessories, Laptop accessories, LED Televisions and  Surveillance products. Zebronics has received more than 52 industry awards. 

Zebronics has 31 Branch offices and over 126 service centres covering all major cities. The Company employs over 900 people and operates through a network of about 12,000 channel partners throughout the country.

Tuesday, 18 April 2017

The Indian way of living - Personal Experiences

We all never miss opportunity to say that we are proud Indians, do we? We are really proud of our culture, our way of living and how we manage everything somehow despite all odds. Indian way of living has helped each one of us one way or the other, in one situation or the other though we might have never realized.

Now to start with most common thing, it is in Indian culture to wake up early and there are many assumptions written about benefits of waking up in Brahma-Muhurata ( 1.5 hrs. before Sun rise). I might not have read what those documented benefits were but when I started applying it from my 11th standard in college, I was thrilled to see change in myself. It helped me in being energetic for whole day and also helped me in managing my studies much better. The power of spending 15-20 mins in peace before sun rise with cool breeze blowing is immense and it helps you to feel good about life and makes you realize importance of being a human. Try it for one week whole heartily and I can assure that you will start to feel changes in the way you think or the way live your life. Since that day I didn’t have to wait for my parents to wake me up forcibly in early morning as I was doing it myself for my own selfish reasons explained above.

The next thing which I embedded into my daily routine was prayers and chanting of few mantras. It came more or less from being from a Brahmin family in North India but I didn’t start doing it just because I was a Brahmin, I did it because I felt the magic of doing it. Chanting of "Om" every day 5 to 7 times made me realize how relaxing feel it gives and since that day I never looked back. I have been practicing it almost every day as part of my daily routine. I am not a religious person but yes I think chanting of few mantras and praying in peace for few minutes gives one immense calmness and time to realize about oneself. I don’t do prayers to ask for something, I do it just to feel the peace within myself in those few mins.

Benefit on the spot: 

Now apart from these somewhat serious values of Indian system there were many times when one belief system or the other helped me to come out of a tough situation and trust me I am not making it out just for sake of it. Here is one such incident which took place when I was travelling from Allahabad to Delhi in night train to catch my early morning flight to Bangalore and that was my first ever flight. It was winter time so heavy fog caused trains to be late and though I had anticipated for 5-6 hours delay, it turned out to bit more than that. I can’t recall the timings precisely but I guess around 1 hour before flight departure time I was still in train somewhere in outer part of Delhi. While I was in all this anxiety of losing my flight booking money and wasting my day, I saw a beggar in the compartment and guess what?? I gave him 10 Rs 😃. This might sound normal but before that day I never gave money to beggars or never even donated in any temple thinking that was waste of my hard earned money. Somehow in few minutes train reached to station and then I started searching for my cab driver as I was not much familiar with Delhi. After few mins of zigzag running I found the driver waiting and he dropped me to the airport 30 mins before flight departure time ignoring all the speed warning popping out in his cab speed control system and then thanks to Airlines staff I managed to get the flight just in time. All these things happened so suddenly that I didn’t get time to realize what was happening and why. I had lost all hopes of getting flight when I was in train and was trying to cancel the flight to save whatever bucks I could save but as there is a phrase in Bollywood derived from Indian value system of compassion that “If you give 1 paisa, you will get 10 lakh back”. I believe this is exactly what happened with me that day and saved not only my hard earned money but also my day getting wasted.

In our everyday life we follow values of our Indian belief system, many times unknowingly. Indian culture is so vast with so many values that it has answer for everything happening. Unfortunately when the West is coming to understand and adopt some of the best values of our cultural system, we are trying to ignore what is rightly ours. This TVC from Lufthansa says it so beautifully that world is trying to replicate the way we live our life after seeing the growth we as a country are making and they have realized that to win over us world has to be like #MoreIndianThanYouThink .



Be proud of our belief system doesn’t matter how old it is. If it made sense thousands of years back, it makes sense today and it will make sense in years to come.

Sunday, 2 April 2017

Dividend Mutual Funds Or Growth Mutual Funds ??

In my previous post related to mutual funds, I have given details about Mutual funds options like Growth, Dividend and Dividend Re-investment. Just to summarize those details here:

Growth funds keep investing the profits made on investment, so if your investment makes 10 Rs Profit on 100 Rs in certain time, that 10 Rs will be invested in same fund so here your unit NAV value increases and not the count of units.

Dividend Funds share partial profit with investors and invest remaining profit, so if your investment makes 10 Rs Profit on 100 Rs in certain time, that 3-5 Rs will returned to as dividend and remaining will be invested in same fund.

If we see Growth option, expert say it gives compounding return because your profits are getting Re-invested. Note that it is not compounding interest that banks give, it is compounding return which might be uncertain. If we think bit pessimistically, what if there is a crisis in market or mid-term negativity at a time when you are already sitting on ‘supposed to be good’ profit? The profits accrued in that amount of time might get wiped out or get reduced. Assume if you keep making 10% annual return for 3 years on your investment that you did at start of 1st year, as per rule of compounding return, fund will be at 33% return at end of 3rd year. Now what if market goes down due to some issue and fund gives 15% negative return for 4th year? In this case after 4 years return will be around 13% as profit.

If we take Dividend option of same fund with exactly same scenario viz. what if there is a crisis in market or mid-term negativity at a time when you are already sitting on ‘supposed to be good’ profit? The profits accrued in that amount of time might get wiped out but you must have already got good part of that profit in form of Dividend in previous 3 years. Say on 100 Rs investment, fund gave 10% return in 1st year and you got 50% of profit as dividend, so on 10 Rs Profit you would get 5 Rs as dividend and 5 Rs will be Re-Invested. If this process is continued for 3 years, after end of 3rd year, you would have got around 16% as dividend back and 15% profit in portfolio. Now what if market goes down due to some issue and fund gives 15% negative CAGR for 4th year? after 4 years you will still have had 16% profit in pocket as dividends (as there will normally be no dividend in 4th year because of negative return) and your existing portfolio would have had 1% loss,so over and all 15% as profit.

So to summarize the case above, in exactly same scenario, Growth option will give 13% profit while Dividend option will give 15% profit, most importantly with less risk in long term.

Now things that I have mentioned might sound hypothetical but that’s how market runs. I think it is better to have Growth option when you have no worry about uncertainty of market, can wait for really really long time and have less worry of money you are putting in, but if you have little bit worry about uncertainty, go for Dividend option. With Dividend you will not only get money back on regular intervals, your risk will always be in balance. Remember that if you want great corpus after 15-20 years then always go for Growth option as you won’t be taking out any money from fund until 15-20 years in any case.  

Pessimist way:
If fund is giving consistently negative returns, Dividend and Growth option both will give same negative return.  

Optimist way:
If fund is giving consistently positive returns with very rare negative return in any year, Growth option will give better return than Dividend option.

Balanced way:
If fund is giving fluctuating returns with few years of positive return followed by negative return in any year, Dividend option will give better value than Growth option.

Keep in mind that all afore mentioned scenarios are for Equity Mutual funds as for Equity mutual funds there is no long term capital gain tax, no tax on Dividend received and also no Dividend Distribution tax ( unlike for Shares). Relevance of these options change for Debt Mutual funds as for those funds even dividends gets taxed. 

Wednesday, 15 March 2017

Dividend Mutual Funds and Growth Mutual Funds

To choose Growth or Dividend option while putting money in Equity mutual funds? Though many of us just like to invest money and don’t think much about what are the options that are there in Mutual funds, some of us do think about it in detail before taking a decision. There is enough material available to understand these options and this post can be just one of those many but in my words.  

I just want to make one thing clear that Dividend and Growth options are exactly same funds with exactly same investments, only difference is how these funds manage the Profit accrued in certain amount of time.  

Growth funds keep investing the Profits made on investment, so if your investment makes 10 Rs Profit on 100 Rs in certain time, that 10 Rs will be invested in same fund so here your unit's NAV value increases and not the count of units.

Returns in Growth Funds:

This option gives compounding return because your profits are getting Re-invested. Note that it is not compounding interest that banks give, it is compounding return which might be uncertain when mutual fund’s performance goes down after some good profitable years. Say if you invest 100 Rs on X-date and Mutual funds gives 10% return every year for 3 years, so as per rule of compounding return, after 3 years your return will be 33% .

Dividend Funds share partial profit with investors and invest remaining profit, so if your investment makes 10 Rs Profit on 100 Rs in certain time, then 3-5 Rs will returned to as dividend and remaining will be invested in same fund hence it will increase unit's NAV value but not as much as in Growth option. 

Returns in Dividend Funds:

This option gives assured (of-course only in case of profitable performance of funds) + compounding return because part of your profit is getting back to you as dividend and part is getting Re-invested. Say if you invest 100 Rs on X-date and mutual funds gives 10% return in 1st year and then gives back 50% of profit made as dividend, so on 10 Rs Profit you would get 5 Rs as dividend and 5 Rs will be Re-Invested. If this process is continued for 3 years, after end of 3rd year, you would have got around 16% as dividend back and 15% profit in portfolio which when added becomes 31% that is little bit less from Growth option. 

Apart from this there is one more scheme available related to Dividends called “Dividend Re-Investment”, I personally feel that this scheme is one of the worst options available in funds. Here Mutual fund will show that 10 Rs is dividend and then Invest that 10 Rs in same fund, just like growth fund but here difference comes in case of Debt funds for taxation. In such Equity funds count of your units will increase in portfolio. One more negative with this option is that capital gain is incremental, so if funds buy new units through dividend money, the new units need to be held for next 1 year to avoid capital gain tax and such calculation can be really messy for normal investor.

There is no tax on Long Term Capital gains in Equity mutual funds , no tax on Dividends received and also no Dividend distribution tax on Equity mutual funds ( unlike in stocks where company before giving dividend to shareholders cuts dividend distribution tax and pays to government) . For Debt funds apart from no Long term gain tax, dividend distribution and dividend received tax both are there.


*MutualFundInvestmentsAreSubjectToMarketRiskPleaseReadTheOfferDocumentCarefullyBeforeInvesting

Monday, 6 March 2017

HyperX ALLOY FPSGaming Keyboard Launched in India for INR 8,999/-

HyperX, a division of Kingston Technology, the independent world leader in memory products announced the launch of HyperX ALLOY™ FPS Mechanical Gaming Keyboard. This gaming keyboard will be exclusively available on Amazon India and later be made available in all major stores across India at a MRP of  INR 8,999/- The full-size mechanical gaming keyboard has a space-saving layout allowing gamers to maximize desktop real estate for FPS mouse movement. The HyperX ALLOY FPS keyboard features Cherry® MX Blue Mechanical switches to provide the tactile feedback and performance to support extreme gameplay and enable players to be the best gamers possible.

Built with a solid steel alloy frame, the HyperX ALLOY FPS keyboard features Cherry MX Blue Mechanical switches, HyperX red LED backlighting and six present LED modes – including custom mode. The keyboard also offers Game Mode to easily disable the Windows key to prevent game play interruptions, along with 100 percent anti-ghosting and full N-Key rollover functionality. For added flexibility and performance, HyperX ALLOY FPS features an easy access USB charging port located on the back of the keyboard, additional HyperX red-colored WASD/1234 keys, a detachable braided cord, and mesh travel pouch for protection and storage on the move.



“After extensive research and hundreds of hours of gameplay testing, HyperX developed a mechanical keyboard from the ground up to withstand the most intense gameplay, featuring a small footprint that is vital for FPS gamers. With its solid steel alloy frame and Cherry MX Blue switches, this keyboard is designed for over 50 million keystrokes per key,” saidHyperX. “Gamers who play FPS classics like CS:GO or Overwatch will appreciate its compact yet sturdy design. The HyperX ALLOY FPS keyboard design gives gamers more space to setup their desktop surface to execute intricate mouse actions.”

HyperX is an avid supporter of eSports and the gaming community developing products designed specifically for FPS genres such as the HyperX Cloud Revolverheadset, which delivers studio-grade sound stage enabling gamers to directionally target the enemy as well as enhanced comfort and superior quality. HyperX ALLOY FPS Keyboard is designed for dedicated FPS gamers which is why it has become the official keyboard of Intel Extreme Masters and used in the Intel Showcase across all events in Season 11. 
HyperX, is the high-performance product division of Kingston Technology encompassing high-speed DDR4 and DDR3 memory, SSDs, USB Flash drives, and gaming accessories. Targeted at gamers, overclockers and enthusiasts, HyperX is known throughout the world for quality, performance and innovation. HyperX is committed to eSports as it sponsors over 30 teams globally and is the main sponsor of Intel Extreme Masters. HyperX can be found at many shows including China Joy, PAX, DreamHack, and ESL One.

For more information, please visit the HyperX home page.

HyperX can be found on:

Monday, 2 January 2017

Josh Mobiles announces feature phone ‘Mint’ for Rs 995

Josh Mobiles, one of the leading players in introducing new age mobile phones in the entry level segment, brings another extension to its feature phone portfolio with the launch of its latest ‘Mint’ which is all about long battery life paired with the right entertainment value. With the announcement of its latest feature phone, Josh expands its foothold in Tier 2 and Tier 3 cities, who seek for quality yet budgeted phones with longer life.

With Compact design and bold looks, Mint sports a curvy polished body which makes the design look attractive. Its bright 1.8inch screen display gives a clearer viewing experience which is further enhanced with the VGA Camera which is supported with video recording.



The Dual Sim phones also features auto call recording facility, enabled with Bluetooth and GPRS, the phones also offers, easy access to the internet. Additional features such as wireless FM radio with recording not only lets you tune into your favorite local FM station, but also records your favorite songs without connecting any earphones. Lastly, its 8GB memory support enhances your multimedia experience and provides uninterrupted entertainment.

In terms of the battery Mint packs a huge 1000Mah battery, delivering an exceptional talking and stand by time. For user convenience, it comes with a built-in LED torch, that radiates perfect brightness for emergency use.

At Rs. 995/- Mint aims to enhance the needs and usage of feature phones in Tier 2 and Tier 3 Cities, which is driven by productive calling paired with entertainment. Josh Mint is available in black and White, with leading retail and etail stores in India.

About Josh:

Josh Mobiles was founded in 2010 with a singular aim to break boundaries and provide affordable technology. Its range of phones is across segments, and boasts of state-of-the-art innovation with a balance of professionalism and leisure.

Josh’s smart phones feature immaculate design and power-packed features at competitive prices. Harping upon its motto of ‘HarBaat Josh Se’, the indigenous firm is well on its way of sparking new trends in the ever-growing mobile phone market in the Indian region.