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CFA Program Registration Process, Requirements, Qualifications, and Fees
The CFA program is a global financial program conducted by the CFA Institute. A peculiar fact about the program is that the registration process, fees, and conduction of examination are equal and fair to all its candidates across the globe.So it doesn’t matter on which part of the little blue globe you reside on, there is only one way to pursue the CFA qualification, and here’s how it goes.Before jumping on to all the important information, you should know that before you can pursue the CFA program, there are several requirements that you have to fulfill.Furthermore, even if you are eligible for the CFA exams, you still need at least 4 years of work experience to get the CFA charter.The basic eligibility criteria/requirement for taking on the CFA level-1 exam is to either have a bachelor’s degree, or 4000 hours of work experience.An alternative criterion for taking the CFA level-1 exam is also having 4000 hours of education+work experience.Another important requirement for registering in the CFA program is the presence of a valid international passport.CFA Program Registration FeesAfter ensuring that you meet the CFA program requirements, all you need to do is prepare your documents and register through the official website of the CFA Institute.The first-time enrollment fee for the CFA program is $450. After this, there are additional fees constraints on each of the CFA exam levels that you take.In total there are 3 CFA exam levels.For each exam, the registration fees depend on the time you take to register for the exam.On average, there are 2 fees constraints namely, Early bird and Standard.There is also an added fee if you reschedule or postpone your exams.For more detailed information on the fees structure for the CFA program in the year 2022, visit here.If you have cleared all the eligibilities, and have a valid international passport, you can start registering for the CFA level-1 exam.The registration process for the CFA level-1 examThe registration process for the CFA exams is quite simple.You will need to first create an account on the CFA institute’s official website.Here’s the link for the registration.Once you are registered, you will need to upload all your qualification proofs, your international passport and move on to the payment window.Now if you have a scholarship then your fees will be substantially reduced, otherwise, you will have to pay the displayed amount and submit your application for review.The next step is to schedule your examination window.For the CFA level-1 examination, there are 3 windows for giving the examination.For the year 2022, the CFA level-1 examinations will be held in February, May, and August.You need to register for the examinations at least 3 months in advance.Here’s a comprehensive table depicting the fees structure, the registration date, and exam window for the CFA level-1 examination in the year 2022.EventsFeesFebruary 2022May 2022August 2022Enrollment Fee$450At Registration (if applicable)Early Registration$700-November 1, 2021February 1, 2022Standard registration$1,000October 26, 2021February 8, 2022May 3, 2022Scheduling-November 17, 2021February 16, 2022May 25, 2022Rescheduling$250January 15, 2022April 16, 2022July 23, 2022As can be seen from the table, in case you have registered for the exam and want to reschedule the date, you have to pay a rescheduling fee of $250.For more information on how to crack CFA level 1 exam in the first attempt, read here.ConclusionIn essence, once you have registered for the examination, you have the option of scheduling and rescheduling the exam as per your convenience.The CFA examinations are designed in a way that they can be conveniently applied for.However, they are extremely difficult and it takes a substantial investment to register for them.Thus, if you are planning to pursue the program, you will have to dedicate both your mental and personal resources to it.
More detailsPublished - Fri, 21 Jan 2022
Created by - Jobaaj Blogs
8 tips for clearing the CFA level 1 exam in the first attempt
The CFA level 1 exam is hard!And let’s face it, the pressure is also quite big.Almost all students giving these exams are under pressure to pass them on the first attempt, and this pressure is fair given the amount of time and money invested in it. After all, the exam is pretty expensive compared to other similar exams in India. And after spending lakhs of rupees on this program, the stress is bound to happen.To know more about the fees structure and requirements for pursuing the CFA course, read this.What’s even more annoying about the exams is that the honorable CFA institute doesn’t even release any exam materials for this. Of course, the curriculum is also massive.And the cherry on the top is the 6-hour examination that is to be completed in a single day.Such catastrophic exams should always be handled with care. Especially the CFA level 1 exam.Here’s how.CFA level 1 challenges faced by studentsFirst of all, it’s perfectly normal to feel irritated with the exam preparations. Especially since the course always seems to be vast and endless.However, the bright news is that the success percentage of the CFA level 1 exam is 40%.This means that 2 out of 5 people pass the exam. (certainly better than the 1% ratio of JEE)So, here are some tips on how you can get through this daunting paper.1. START ASAP: You need an average of 6 months at least to prepare for the CFA level 1 exam. The syllabus is far and wide, and you need enough time to rest, cry, sleep, and cry again before studying. So, if you want to take the exam in let’s say, June, start preparing before the end of November. 2. MAKE A MONTHLY Study Schedule: You can’t wing it! If you don’t have a proper schedule, the exam may just knock you out. Set aside enough time for understanding the subjects, and for the revision time period. You also need time for solving papers, so start scheduling.3. SET WEEKLY OBJECTIVES: Once the monthly goals are set, you will need to go even more specific. Set weekly objectives, and stick to them. If you got to prepare a tough topic, disperse the study time across the week to ease up the load.4. UNDERSTAND THE CONCEPTS:These examinations are there to test your concepts and that’s what 90% of the questions are going to be about. To grasp the concepts and hold on to them tight. If you grasp the theory behind Time Value of Money, for example, answering questions about "Annuity Due" will be simple. The CFA level 1 exam consists only of MCQs and so the path to clearing this exam is fairly objective.5. Solve a large no. of questions:With such a vast syllabus, you can’t keep up until you solve a gazillion questions.Keep practicing questions as much as you can. Make a target, let’s say 25 questions per day.And stick to it.The fact is no prep classes can exactly pinpoint the exam materials to you. So you will always need to keep your brain ready for all kinds of questions.Focus more on practicing different types of questions for your CFA level 1 exam than on mock papers6. REVISE THE SUBJECTS YOU COMPLETED WITH QUESTIONS:When you've finished one subject and are ready to move on to the next, revise the previous one with questions. This will make the concepts much more clear and will imprint them upon your mind.Let's imagine you've completed FRA and want to start with equity. Before doing so, you should practice at least 10 questions of FRA. And then when you finish with equity, you should 20 questions combined of FRA AND equity.Moving this way, you can cover a lot of questions in a relatively small amount of time.7. SOLVE AT LEAST 10 FULL-LENGTH PAPERS IN EXAM CONDITIONYou must have the feel for it.Only by solving a full-fledged paper in similar conditions to the exam hall, can you be exactly sure if you can nail your paper or not.8. Don’t spend too much time on one questionThe exam has no negative marking. So you have to answer them all.But that also means that you mustn’t spend needless time solving one question that you can’t answer.It’s all about delegating time to maximize the number of questions solved.Give all the answers equal attention and come back to the ones that seem tricky.That is the basic gist of the CFA level 1 exam.One of the more important factors contributing to your potential victory in this exam is Consistency!If you are consistent with your discipline and studies, you are good to go. This information piece is brought to you by jobaaj.com
More detailsPublished - Fri, 21 Jan 2022
Created by - Jobaaj Blogs
Want to clear CFA level 2 exam on the first attempt, here’s how!
CFA exam level 2 is not an easy ship to row!First of all, it's considered one of the toughest levels out of the 3 required to complete the CFA program. Secondly, this is the level at which you start getting some serious competition.Let me congratulate you first for powering through the level 1 exam of the CFA program. If you have accomplished this, you are probably in the top 40% of people that applied for the CFA program.To know more about what's waiting for you in the 3rd level, click here.However, the going only gets tough from here on out.Level 1 of the CFA exams is where most students end their CFA journey, so when you are studying for level-2, just know that you are competing with the most dedicated of the lot.The knowledge that you gained in the 1st level will also be crucial in the second level, as this time, you will be able to apply that knowledge in questions that comprise case studies and vignettes.This exam judges you on your practical knowledge and your ability to apply the information that you have learned in real case studies.Everything about the CFA level 2 exam in 2022For those of you who will be giving the CFA level 2 exam in 2022, this information is important.After the incessant (and free) rescheduling of the CFA exams that happened in 2020 and 2021, this time, the exams are expected to happen on their scheduled dates.This year, the CFA level 2 exam is scheduled on the following time windows in 2022:Feb 22-26, August 30- September 03November (exact dates not yet released)The registration for exams in each of these time windows must be done either 3 months earlier for standard registration, or 6 months earlier for Early Registration.For the year 2022, the early registration fee for the exam is $700, while for the standard registration, the fee is $1000.For more in-depth information on the time schedules and fees constraints for the CFA level 2 exams, consult the chart given below.Paper pattern and preparation strategies for CFA level 2 examWhile the CFA level 1 exam comprised only of MCQs, the level 2 exam consists of vignettes accompanied with MCQs.The exam is held in two sessions each of 132 minutes.There will be a total of 88 questions randomly assigned in each of the two paper sessions.The major topics covered in the CFA level-2 are similar to the level 1:Ethical & Professional Standards Quantitative Methods Economics Financial Statement Analysis Corporate IssuersEquity Investments Fixed income Derivatives Alternative investmentsportfolio management & Wealth PlanningHowever, unlike your CFA level 1 exam, you will be treated to a surprise in each session since the above topics will be randomly assigned to each of the sessions.The exams will greatly test your practical knowledge, and whether you can apply investment tools and concepts in contextual situations.As a general rule, the candidates must focus on practicing questions and should devote more time to the practice than on learning the concerts.A well-practiced and steady hand can do you wonders in exam sessions.According to the CFA Institute, on average, candidates devoted 325 hours of study for the level-2 examination.Thus you should aim to at least reserve 300 hours of study for your exam prep.You could do so by dedicating a fixed number of study sessions of small-time durations to manage your time resources.Generally, it is seen that small study sessions lead to higher productivity and retention of concepts.Thus, it’s a viable idea to fix 90-100 study sessions of 3 hours each.That should be sufficient for you to breeze through your CFA level 2 prep.Concluding noteRemember! Practice is the key to this examination.You will be judged on application-based vignettes and questions, so you need to make sure that you are familiar with the different contexts in which the concepts can be applied.Around 50% of your total CFA level 2 exam preparation should be dedicated to practicing the questions.Considering 132 minutes for 44 questions, you have got about 3 minutes for each question. Aim to solve those questions in half of that time to reserve time for the review process. This information piece is brought to you in association with jobaaj.com
More detailsPublished - Fri, 21 Jan 2022
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Best Ways To Prepare Yourself For The CFA level 3 Exam
Finally, you are here! CFA level 3 is the last hoop to jump before you can apply for the coveted CFA charter.While some might say that the toughest is behind you now, that might not be the case.Level 2 of the CFA examination is said to be the toughest of them all because of the sheer syllabus one has to go through for that.In the case of the CFA level 3 exam, although the syllabus won’t be as hectic, the paper pattern, its structure, and the question types might puzzle you a bit.Level 3 of the CFA examination will demand a precise presence of mind, and the knowledge you gained in the previous levels too.Up till level 2, you had to only face quantitative questions but level 3 brings with it, qualitative questions and answers. You will have to answer both MCQ and essay-type questions in the CFA level-3 examination.Moreover, the questions will be much more conceptual and application-based.Everything about the CFA level 3 exam in 2022.For those of you giving the last level of their CFA examinations this year, the following information might be redundant. (Considering that you most probably already know it)In case the CFA exams are not delayed on postponed because of the pandemic, the exams shall occur in 2 windows in the year 2022.Note that, unlike the other two levels which occur 3 times in the year, the CFA level 3 only occurs two times in a year.For the year 2022, the scheduled dates for the CFA level 3 exams are:February 22-26, 2022August 30 - Sept 6, 2022Just like the rest of the levels, The registration for the exams must be done either 3 months before the exam window for Standard Registration, or 6 months before for early Registration.Furthermore, in case you need to reschedule any exams because of any obligations, you can do so by paying a rescheduling fee of $250.For more in-depth information on the CFA level 3 exams and their time schedules, refer to the following table:Preparation strategies and paper pattern for CFA level 3 examinationThe CFA level 3 examination much like the level 2 examination comprises 2 exam sessions of 132 minutes each.The first session of the exam will consist of vignettes having both MCQ-type and Essay-type questions. The second session will only have 44 Multiple choice questions.Here are the fundamental topics on the basis of which questions will appear in your CFA level 3 examinations:Ethical and Professional Standards Economics Equity Investments Fixed Income Derivatives Alternative Investments Portfolio Management.Again, just like level-2, questions from these topics will be randomly assigned to each session.Unlike the previous level, the CFA level 3 exam will greatly test your grasp of concepts and their applications.With Essay type questions, you will need to have a firm knowledge of the core concepts and the context given in the vignette to be able to answer the questions.Thus, it would be beneficial for candidates to rely heavily on practicing questions and going through case studies to get the hang of the conceptual and application-based problems.Furthermore, the questions in level 3 may sometimes be interlinked. As in after a vignette, you might be asked a multiple choice question and then a follow-up essay-type question to justify the response marked in the first question.The CFA institute calls this the constructed response format. It is described as “varying structures and point values that typically have several parts related to a case study that describes an investment challenge.” In this case, the candidates’ responses require a higher degree of specificity.Last bits of advicesThe qualitative factor makes Level-3 much more daunting than the previous level.Not to mention the fact, that the competition is fierce and you are competing with the best of the best.Time management is crucial while preparing for this particular exam.On average, candidates required 335 hours of study to prepare for the CFA level 3 exam.If you are to dedicate such time for your exam prep, then make sure to segment it into study sessions.For a time frame of 6-9 months, 90-100 study sessions of 3-4 hours each are considered apt for the preparation.You will also need to delegate a huge chunk of your time for practicing the questions.All the best!Wanna know more about the job opportunities you can get after your CFA? Read here. This informational piece is brought to you in association with jobaaj.com
More detailsPublished - Fri, 21 Jan 2022
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10 Types Of Investors In The Indian Stock Market!
To be a successful investor in the stock market, you need to have a solid strategy of how you would go about it. Also, take into consideration your risk appetite. Basically, the risk appetite is your risk-taking ability to bear losses if any. Based on that, there are 9 types of investors in Indian Stock Market.They have their risk appetite in the wide range of low, medium, or high. Once you start investing, you must be well aware of how much of a risk-taker you are. This in turn will define your investment profile and type, hence letting you achieve your financial goals. Various Types of Investors in Indian Stock Market1. Individual InvestorsIndividuals like us form a crucial and major part of the securities market in India. It is because we are huge in numbers. Further, the investors in India are divided into 2 more categories namely;· Retail InvestorsThese are the ones who are eligible to apply for shares for an amount less than Rs.1 Lakh.· High Networth Individuals [HNI]As the name suggests, these individuals are of high net worth value. Hence, they are eligible to apply for shares for an amount exceeding Rs.1 Lakh.2. Partnership or Joint Hindu FamilyThis is an association of people or groups of them who come into partnership or from a joint Hindu family. In the latter case, they are the ones who have a Hindu Undivided Family [HUF] Business and are looking to invest their surplus into the stock market. Thereby, hoping to earn good returns on their investment.This is one of the types of investors in Indian stock market. Let’s move on and know the other ones.3. Companies – One of the types of investors in Indian Stock MarketThe other term for this is corporate investors. Companies are also known to operate as individual investors. But for this to happen the Board should be authorized by “Memorandum of Articles”. This is one of the famous types of investors in Indian stock market.4. Societies & TrustsBy the name itself, it is self-explanatory that they are an association or group of people too. But they are powerful. They follow the by-laws to invest securely in the Indian stock market. So, whatever returns their investment earns would be solely be invested for the objectives for which the society or trust was formed in the first place.5. Mutual FundsThis is a very popular terms nowadays. Remember hearing in many advertisements that “mutual funds are subjected to market risks?”Yes, they are! But what is a mutual fund? It is a form of collective investment by the investors. Basically, a fund manager is in charge of collecting money from different investors. Then use all these funds into the stock market very wisely knowing the risk appetite of each individual.The income then received is in the form of capital gains, interests, dividends on the securities. People investing in mutual funds form one of the types of investors in Indian stock market.6. The Financial Institutions This types of investors in Indian stock market are both high in volume and value. The securities market is heavily comprised of Financial Institutions in both the primary and secondary markets.Examples for Financial Institutions are banks, pension funds, insurance companies, and venture capital companies as well.Now, let us talk about the last types of investors in Indian stock market.7. Foreign Institutional Investors [FII’s]This is an entity that came into existence outside India with the single purpose to invest in India. The entities which comprise the FIIs have to mandatorily register with the Security Exchange Board of India [SEBI].Now, let us talk about the characteristics of types of investors in Indian stock market.What type of investor are you in the Indian Stock Market?Here are the 3 major characteristics of investor types; The Conservative InvestorThe ultimate concern for this type of investor in Indian stock market is the protection of his or her capital. They cannot afford to risk their income, hence their risk appetite is small. Being a low-risk investor, they are prone to get sleepless nights during stock market volatility or crash!What does Conservative Investor prefer?They are comfortable in investing their capital in debt instruments. As their characteristic or nature is non-aggressive, so their expectations are not high either. They are okay with moderate capital growth but with a steady flow of returns on their investments.2. Balanced InvestorThese are those types of investors in Indian stock market who are willing to take risks but not big ones. They do so only to enhance their stock portfolio. They have the notion that this would make them tolerable to the volatility of the stock market while they do not have to worry about investing in high-risk instruments for getting bigger gains in returns.What does Balanced Investor prefer?These are well-known as medium-risk investors. They love to have a balance between stability and returns or growth. So, you would see their portfolio to be a good mix of debt and equity-oriented instruments. Debt to obtain stability in the portfolio while the latter is to invest in stable companies.Last but not the least, comes the most agile types of investors in the Indian stock market!3 3. Agrressive InvestorTrue to their name, this investor is always up for the risk. They are the ones who can take the stock market’s short-term volatility in their favour which is quite amusing!They do not fear exposing their portfolio to some high-risk instruments in return for gain and growth. To talk about an essential difference between aggressive and other low & medium-risk investors, it is that the aggressive one is ready to stake it at the greater risk!What does Aggressive Investor prefer?As said, they do not mind exposing their stock market portfolio to high-risk instruments. They try securities markets, equity markets and might also invest their funds in unknown companies. Only in pursuit of further enhancing their stock portfolio.This types of investors in Indian stock market is highly competitive and can opt for leveraged products like the derivatives of equities, other assets, etc.Final ThoughtsTo know your type of investor in Indian stock market, it is advised to first understand your risk appetite. Remember, wealth creation is truly a time-taking process. So, stay invested to bear the fruit of your patience, timely strategies, and financial wisdom.
More detailsPublished - Fri, 18 Feb 2022
Created by - Jobaaj Blogs
Know What is Stock Exchange & Its Functions!
The Bombay Stock Exchange (BSE) is a stock exchange in Mumbai, India. Were you aware of it? Or maybe about the NSE? Do you keep a close eye on the Sensex? But how much do we really know about the stock exchange and how it works? Let's take a deeper look at what is Stock Exchange & its functions along with its real purpose.What is Stock Exchange?The stock market, often known as the stock exchange, is the second layer of the capital market. The stock exchange is a virtual market where buyers and sellers of current securities trade. It is a market sponsored by an institute or other governmental entity where shares, stocks, debentures, bonds, futures, options, and other financial instruments are exchanged.A stock exchange is a venue where buyers and sellers may meet. Brokers, agents, and people might all fall within this category.The price of a product is determined by the laws of supply and demand. The Bombay StockExchange is India's most renowned stock exchange. India has a total of twenty-one stock exchanges.National Stock Exchange of India Limited (NSE) DefinitionA stock exchange is a vital component of the capital market. It is a safe environment where trading is done in a methodical manner. Securities are purchased and sold in accordance with well-defined norms and regulations. Before knowing what is stock exchange & its functions in detail, know the following!What is security? Securities referred to here include debentures and shares issued by a publicly traded corporation that is properly listed on the stock market, as well as debentures and bonds issued by the government, municipal, and public entities.Bonds are mostly traded over-the-counter (OTC), however, a few corporate bonds are exchanged on a stock market. It has the authority to impose rules and regulations on brokers and businesses that are enrolled with them.In other terms, a stock exchange is a marketplace where securities such as bonds and stocks may be bought and sold. This may be both an online and offline trade platform (physical location).How India's National Stock Exchange Fosters a Culture of Investment - Knowledge@WhartonStock Market Functions1. Liquidity and MarketabilityOne of the most appealing aspects of the stock exchange is its ability to provide high liquidity. The securities can be sold and converted to cash at any time. It is a continuous market, and investors may easily divest and reinvest as they see fit.2. Price DeterminationThe only way to determine the price of securities in a secondary market is through supply and demand laws. A stock market facilitates this process by maintaining a stable value of all securities. The Sensex index, which tracks the values of various firms' shares, may be used to track such pricing.3. SecurityThe stock exchanges are rigorously governed and regulated by the government. The Securities Board of India is the governing body of the BSE. All transactions take place inside a legal framework. This gives the investor guarantees and a secure environment in which to engage in securities. This is one of the crucial points of what is stock exchange & its functions.National Stock Exchange: leading in India - iPleaders4. Contribution to the EconomyAs we all know, the stock market trades in securities that have previously been issued. However, these securities are constantly traded and resold. This permits monies to be mobilized and channeled rather than remaining dormant. This helps the economy.5. Spreading of EquityThe stock exchange guarantees that securities are owned by a broader range of people. It truly teaches the general population about the security and rewards of investing in the stock market.It ensures higher transaction quality and easy operation. The goal is to attract more public investors and disseminate ownership of assets for the benefit of everybody.6. SpeculationIt is common knowledge that the stock exchange is a speculative market. While this is correct, the conjecture is limited by the legal framework.A fair dosage of speculative trading is required for the stakes of liquidity and price setting, and the stock market offers us such a platform.Difference Between Indian Stock Market and US Stock Market | Scripbox7. The Stock Exchange Acts as an Economic BarometerThe stock exchange acts as an economic barometer, indicating the status of the economy. It tracks all significant and little changes in share prices. That’s what is stock exchange & its functions are.8. Securities ValuationThe stock market aids in the pricing of securities based on supply and demand. Securities issued by firms that are profitable and growing tend to be more valuable. Securities valuation assists creditors, investors, and the government in carrying out their respective tasks.9. Better Cash AllocationProfitable firms will have their shares actively traded, allowing them to raise new capital from the equity market. The stock market assists investors in effectively allocating capital so that they can benefit the most.10. Encourages saving and investingThe stock market is a major source of investment in numerous assets that provide higher returns. Investing in the stock market is a better long-term investment than gold and silver.Hence, with this, you have known what is stock exchange & its functions!
More detailsPublished - Fri, 18 Feb 2022
Created by - Jobaaj Blogs
Know The Difference Between Investing And Trading In Stock Market!
Stock trading is the practice of purchasing and selling stocks for a short-term profit, with an emphasis on share prices. Investing entails purchasing stocks in order to profit in the long run.Trading and investing require you to pursue profit in the stock market, although you can do it in so many various ways.There are many traders who either enter or exit their equities in order to make or further maximize their profits. So, it is evident that they concentrate more on the stock and its characteristics than the company they are investing in and its long-term potential!As traders always look for the direction in which the stock would go or grow next and how would they profit or gain from that particular move.Whereas the investors always think for the future. They are quite visionary. Having a long-term perspective regards to stock market can be quite challenging but investors do it all. They always think in years and how their equities would behave with markets ups and downs.When it comes to creating money in the equities market, the two genres of the sector are investment and trading. Investing and trading are two different ways of amassing wealth and profits for yourself techniques to create wealth or profit in the financial market.Let's look at 5 important differences between investing and trading to understand the same in financial markets.Know These 5 Differences Between Investing and Trading?Time PeriodTrading is a way of keeping stocks for a limited time. It may be for a week or even every day! Traders retain equities until they achieve short-term high performance, whereas investing is a buy-and-hold strategy. Investors put their money to work for years, decades, or even centuries. Short-term market changes are irrelevant in a long-term investing strategy.Capital GainsTraders monitor the market's stock price fluctuation. If the price rises, traders may sell their holdings. That is trading is the ability to understand the timing in the market while investing is the art of amassing wealth over time by compounding interest and dividends. This could happen by carrying out an excellent analysis of the financial market.Risks InvolvedWithout a question, both trading and investing include capital risk. Trading, on the other hand, involves a much larger risk but also comes with a big potential reward in form of capital gains. It should be remembered that investing is a form of art, and like any art, it demands time to be mastered. It has reduced risk and lower returns in the near run, but if kept over a longer length of time, it may produce better returns through compounding interest and dividends.Skill vs. ArtLet's put it this way: trading is like a one-day cricket match, but investing is like a test match. In a one-day competition, you would watch skilled players in the team who are expected to hit fours and sixes to increase their score. The art of the game, on the other hand, maybe viewed in the test match! Similarly, traders are experienced, technical individuals who pace the market and understand market patterns in order to maximize earnings in a short period of time. This deals with the psychology of the market.Investors are more likely to conduct in-depth research about the equities in which they wish to invest. Investing also entails knowing business basics and making a long-term commitment to stay committed. It is always attributed to how the company thinks and what its ideology is.Action takers Traders invest money in a stock for a limited period of time. They purchase and sell quickly in order to capitalize on the market's increased gains. Missing the correct timing might result in a loss. They examine the current performance of the firms in order to reach higher prices and book gains in the near term. Investors avoid trends in favour of investing on value. They invest over a longer length of time while maintaining a close watch on the stocks they own.
More detailsPublished - Fri, 18 Feb 2022
Created by - Jobaaj Blogs
What Is Demat Account? Meaning, Benefits & More!
We have all heard of bank savings accounts. It provides simple access to our cash while protecting them from theft and mismanagement. A Demat account serves the same purpose for investors. Nowadays, a Demat account is required for stock investing.A Demat Account is basically a form of account that is widely used to store shares and assets in an electronic form. A Demat account is actually an abbreviation for a dematerialized account. The sole purpose of creating a Demat account is to keep your shares that have been purchased or dematerialized to be easily tradable online. Dematerialized means converting it from physical to electronic shares.Depositories in India, namely the NSDL and CDSL have been offering free Demat account services. These services are taken forward by various intermediaries, other depository participants, or even stockbrokers.Demat account prices vary depending on the amount that is maintained in one’s account, what kind of subscription they take, the legal terms and conditions with respect to their account, and between the stockbroker and the depositor.So, what is meant by a Demat account?A Demat Account, as said above, is also known as Dematerialised Account, which allows you to keep your shares and assets in a secured electronic format. The shares which are bought and kept in Demat account while trading online makes it very easy for consumers when trading. It also consolidates an individual's interests in different stocks, bonds, securities, even the exchange-traded funds [ETFs] apart from the mutual funds. Demat facilitated the digitalization of the Indian stock trading industry and compelled SEBI to improve oversight.Furthermore, by holding stocks in electronic format, the Demat account minimised the hazards of storage, theft, damage, and malpractices. NSE originally presented it in 1996. Initially, the account opening procedure was manual, and investors had to wait several days for it to be authorised. In this age and time, it takes lesser than 5 minutes to open your Demat account online. The end-to-end digital method has aided in the spread of Demat, which has soared since the outbreak.What exactly is dematerialization?Dematerialization can be described as the process of transforming physical share certificates into electronic form. Guess what? It is actually easier to maintain it this way and then access it from anywhere on the globe. If you are an investor who wants to trade online. Then you need to first create your Demat account with a Depository Participant (DP). The ultimate purpose of dematerialization is to ease the burden of having the requirement for investors to possess physical share certificates. It also allows very seamless tracking and monitoring of your holdings.Previously, the process of issuing share certificates was time-consuming and complicated, which Demat has helped to revolutionise by speeding up the entire process and maintaining security certificates in digital format.And once your Demat account is activated, you can convert all your paper certificates into a digital format. Make it happen by submitting all your physical securities with a Dematerialisation Request Form (DRF). Also, remember to deface each physical certificate with the words "Surrendered for Dematerialisation." When you return your share certificates, you will be sent an acknowledgment slip.The Value of a Demat AccountA Demat account is a handy and technologically secure way to keep shares and assets. It does not allow any physical certificate theft, forgery, loss, and damage. You must know that you can transfer securities instantaneously by using a Demat account. Your shares are digitally transferred to your account after the deal is authorized. Furthermore, in cases of events such as stock bonuses, mergers, etc, the shares are credited to your account automatically.By login into the website, you may see your Demat account information regarding these actions. You may trade on the go using your smartphone or desktop computer. Thereby, you do not need to go to the stock exchange to deal. You also save money on transaction fees because there is no stamp duty involved in the transfer of shares. These advantages and benefits of a Demat account encourage investors to trade more frequently, boosting the possibility for significant profits.Having a Demat account has made it comparatively very easy to manage equities. The Indian exchanges currently adhere to the T+2 day settlement cycle made possible by the Demat account.The Advantages of a Demat Account· Transferring shares is simple and quick.· It allows for digitally secured storage of securities, which eliminates the risk of theft, forgery, loss, and damage to security certificates.· Trading actions may be easily tracked.· Allows for the addition of beneficiaries at any moment.· Bonus stock crediting, rights issues and split shares are all examples of automatic crediting. If you're new to the world of stocks trading, you might not have heard of the pre-demat account period, when shares and securities were kept 'physically' in the form of certificates and sheets of paper. Consider this: millions of reams of paper are dispersed over hundreds of thousands of investors who are still holding on to their equities.
More detailsPublished - Mon, 21 Feb 2022
Created by - Jobaaj Blogs
How To Close Your Demat Account Online?
When we finally decide to invest and trade, we often lookout for ways to execute the necessary process. One such is creating a Demat account. But with today’s fast-paced worldly affairs, we tend to forget and become lazy and keep postponing things till the last hour. And this might turn out to be an expensive error, especially in the world of the stock market!Fees and maintenance costs apply to Demat accounts. As a result, it is advised to cancel any of your inactive or zero balance Demat accounts immediately. Otherwise, we will lose money. As a result, knowing how to terminate a Demat account is critical.Demat or dematerialized accounts are an excellent option for most people to supplement their income. An online account is required for investors who trade in the financial markets.According to SEBI, the country has around 44.46 million Demat accounts. Basically, a Demat account is an electronic account where your shares and securities are stored. With the economy improving, more individuals are hoping to jump on the stock exchange bandwagon.Regardless matter how large the statistics are, SEBI has revealed that over 75% of accounts remain dormant. An idle Demat account is a financial drain that incurs yearly fees and maintenance expenses. As a result, it's a good idea to prevent any excessive expenses and terminate your Demat account.Know These Before Closing Your Demat AccountNote that, your Demat account cannot be simply canceled by submitting an online request for its closure. Be it through email or customer care.You are ought to submit an application in person that includes the hard copies of all the mandatory papers. But there is also a way out. If you are facing a time crunch, then pace up the entire process by downloading the closure form online.Follow these basic steps to know how to close Demat account online:· Make sure that there are no shares in your account.· Also check whether the account has a negative balance. · Check your account details by checking in to your account or by contacting your registered branch. Make a note of those details.· Get your Account Closure form, fill in those required details, and submit it in person.Two Types of Demat Account Closure!Account closure: If there are no payments pending or being on hold in your account [you being the investor], then your request to close the Demat account online would be sent.It would be sent off to the relevant depository partner [also referred to as DP].Transfer and account closure: This method is a bit different. Suppose, you still have some securities pending and need to be transferred to another Demat account, then go for this method before actually shutting off your original Demat account. Close Your Demat Account OnlineFill up all the details in the Account Closure Form. If the Demat account is shared by more than one person, it is mandatory for all holders to sign it in the presence of a Depository Participant (DP) official. A brokerage business or a bank can serve as the DP.Make sure when completing the closure form, you do not forget to include the following information:· Your ID and the DP ID KYC data, such as name and address, are in sync with your records.· You also need to explain the reason why you want to close your Demat Account online.· Finally, don’t forget to attach a self-attested identification proof copy which is verified by a bank employee.When moving pending holdings or shares from one Demat account to another, the following steps must be taken to cancel or delete a Demat account:· There are two major national depositories in India, namely, NSDL and CDSL. If you are doing intra-depository transfers then an Intra DIS slip will be required, along with the 'Off-Market transfer option.· Next, get an original Client Master List [CML] with proper logo, stamp, and signatures.· After this, fill in the form with all the required data with the names of the shares that have to be transferred.· Do not ever forget to mention their respective ISINs.· The target client's ID, a 16-character code, should be specified too.· Finally, submit your paperwork at the DP's office or simply mail it to their headquarters.· For closure, a bank official must additionally check the self-attested Demat closure form. Final Thoughts Though Demat accounts cannot be entirely closed online, their process can be simplified by completing all the essential paperwork online. It is critical to ensure that there are no outstanding charges, fines, or shares in the account and that all of the information is correct. To avoid errors or lapses, the individual's details must be reviewed before transferring any shares or accounts.
More detailsPublished - Mon, 21 Feb 2022
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