The need for having an alternate source of income has become a very predominant thing in our generation. It is seen that more and more people are looking for alternative investment platforms that will help them to get the security that they require in order to lead a stress free life. Till a few days back, there were only a certain types of platforms that were considered safe for high investors.
But with the advancement of strategies and technologies, it is seen that most people are looking for newer platform to invest in. This rise in demand for such platforms leads to the rise of Smart Beta strategists who are encouraging ETF investments.
Why should you opt for such investments?
There are many different types of platforms that you can opt for when you are looking to make investments. But not all of them are a good option for people who are looking for an alternative form of investment. ETFs are a platform which have a very low risk attribute and gives high returns. This itself makes it a very good option for all those who want to invest their money and get high returns on the investments.
Seek professional help
Most people are of the opinion that investing n ETFs will help them to get sure shot returns. But the truth is like all other investment options, these too have their risk. So you need to make sure that Equity Index is checked before you make the investments. But for someone who does not have a very good idea regarding all these factors, it can get difficult to understand what the exact thing to do is. So it is best to take the help of professionals. There are many professionals who are equity or ETF strategists who will be able to help you with your investments.
Hire a professional
There are many individual professionals and firms who will be bale to create a portfolio for you. The best thing about this portfolio management is that they will be able to understand your needs and get you the best help possible. They will investment your money and help you earn returns on it. Along with creating your portfolio, they will also help you to manage it. Though they charge some management fees on the management process, your returns are going to surpass your expectations. The professionals have a thorough knowledge regarding all the different types of strategies that are there. They will be able to implement such strategies and get you the best returns.
It is very important to have an alternate source of income these days. Investing your money and earning returns on it is one of the best things to do. You can easily get the help of a professional and get the work done easily. Make sure that you are choosing a professional who will be able to help you get the best returns from all such investments. All the good platforms have some form of risk attached to them. The professionals make sure that the amount of returns received is much greater than the amount of risk taken.
A blue-chip stock belongs to a well-established and financially sound company which has operated for many years. Market capitalizations of such stocks are in billions and are the leaders of market or among the top companies in its respective sector. These stocks have good record of growth and are known for paying dividends to their shareholders consistently. A blue-chip stock is usually the component of the benchmark indexes of NSE and BSE. Some of these stocks are Infosys, TCS, SBI, Coal India.Trading in these stocks is done similarly like others and all executed orders will be reflected in demat account of traders and investors.To be on the safer side and earn desired returns experts suggestions on stock tips can be considered .
There is no particular criteria on the basis of which a stock qualifies to be a blue chip stock. Generally a perception is formed that these are safe mode of investment as they are having good market reputation and survived through various market cycles . However these factors does not make blue-chips stocks safer then others . There are various good performing companies who have been bankrupt and shareholders have lost their capital. Therefore traders must devote time and study companies performance before concluding its stocks are blue chip or not.
Following are some of the characteristics of blue chip companies
These companies are large and old with good reputation.
They have shown consistent growth rate from past years and has survived during economic down turns.
Great management and belong to the leaders of their industry .
They have diversified global operations and their earning are predictable.
Blue chip stocks are considered to be good from long term investment as they tend to offer consistent returns. They should be a part of your portfolio but not your entire capital should be invested in them. A portfolio should be well diversified according to investors risk tolerance capability with different large , mid and small cap companies .
Few blue chips companies of India are : Sun Pharma, CRISIL , ITC Limited, ICICI Bank Limited , Reliance Industries Limited. The stocks of blue-chips companies are relatively more expensive. Therefore investors should not blindly invest in such stocks. Company’s performance , how it is likely to perform in future, margin of safety all such parameters should be carefully analyzed. As these stocks are expensive along with this a brokerage amount has to be paid. Traders should pick brokers who charge them less . Discount broker can be a good choice as they charge low and no unnecessary restrictions are imposed by them. There are financial analysts who give recommendations on trading tips, mcx tips which they suggest after performing good research work. Traders can use such experts suggestions to improve their performance in the market.
This is when the modern day algorithmic trading techniques are of a great aid to the investors.
A huge amount of data is of a particular stock of a firm is analyzed using the Data Analytics. Every record of a stock right from its initiation to the current date performance is recorded and analyzed to determine whether a particular stock is worth investing in or not. Algorithmic trading also popularly known as the Algo Trading, also makes an analysis of the potential scope of the growth of a stock in future. This helps to minimize the risks involved in the trading processing by studying the detailed trend performance of a stock. Apart from the discrete knowledge of the financial realms of the business, the stock market advisory services largely depend on the results deciphered from these trend analysis to give the best possible services to their investors.
Another factor that helps to minimize the risk efficiency of the algorithmic trading is the ability to draft accurate graphs, charts in the form of bar graph, pie chart, histograms or line charts for the investors to view the performance of stock at the very first glance and have a precise idea about the stocks to invest in. These stock technical analysis tools gives a quick and a precise idea about the sticks without having to manually go through the data tear wise. The visible changes in the figures help to accurately decipher the trend pattern without consuming much time.
Every possible level of customization can be made in algorithmic trading on the programming front to eradicate any error that might occur by human calculation. All the decisions are taken by the system at the fraction of a nano second thus enabling the investors to take quick effective decisions without any errors. Indices Master is one such Indian stock market advisory services which serve its clients with an efficient stock trading tool.
One of the other key features that help to curb the risks is the best trend following system which enables the investors to evaluate one’s trading strategy based on the previous historical data. This particular technique helps the investors to have an idea about the effectiveness of particular strategy had it been applied in the past for trading the stocks and what effects it would have bore on the performance of the stock. This strategy is popularly known as back-testing which helps to mitigate the risks to a great extent in the algorithmic trading.
Hence by employing a various techniques like back testing, forward testing(to predict the future growth), customized parameters of trading and generating and optimizing the portfolio, one can achieve maximum profits with minimum risks under one umbrella in equities, NIFTY, Forex or any other future markets.
The commodity market has primarily two types of participants as speculators and hedgers.A hedger is a person or company whose business is related to some commodity. Commodity market is highly price volatile so they try to hedge against this future price risk by entering in to future contracts of commodities. MCX Tips as recommended by market analysts are also helpful to perform better while trading in commodities.Hedging means to control risk or reduce its impact. It is a two step process done by taking position that is opposite to the one taken in physical market with an aim of reducing the risk associated with future price changes.
The way by which hedging can be done is explained below:
While hedging the hedger makes an attempt to fix the price at a level with an objective of ensuring certainty in the revenue that will be generated through sales.There are other participants as well like speculators and arbitrageurs who are present in commodity market trying to make benefit from price fluctuations.
Let us take an example of copper-
A manufacturer of electronic products buys huge quantity of copper as raw material.He further enters into an agreement to supply electronics products to a dealer three months later. Contracts expiration date and other conditions are pre decided. Now there is risk if price of copper increases. In order to successfully hedge against this price risk he can take long position of copper future contract with a maturity date of three months.
In case the price of copper increases after three months it will increase the value of contract in which manufacturer has taken long position.But he also has to buy copper in physical market to meet his dealer obligations.This means he faces loss in physical market. But this loss is compensated by gain made in the future market.
On the other hand if price of copper decreases after three months the value of future contract will decrease. Manufacturer has to buy copper in physical market to meet his dealer obligations , which means he will earn significant profit. This profit earned in physical market will help in compensating loss made in future market.
This is how hedging is done to cope up with risk of price fluctuation prevailing in commodity market in a better way. Both producers and consumers of commodities face risk of price. Producer of a commodity has risk if price gets lowered and conversely consumers has a risk if price gets higher. Market experts can be consulted as well for better management of risk and returns in commodity market.They can give their valuable recommendations on mcx trading tips after carefully analyzing the market. For making precise prediction on market fluctuations having a good knowledge about market is must.