Varsity


 

Returns under Momentum

Momentum investing has been around for decades. It was first formalized by Jegadeesh and Titman in their ground-breaking work on momentum: Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency (pdf) in 1993. Since then, there have been hundreds of variants of the same underlying strategy that strike a slightly different balance […]

Founder, StockViz
0
19 Mar 2024
 

Cash is King but the Future is Basis

When you hear about markets making new highs or the “nifty” went up 100 points, it typically refers to the NIFTY 50 index. An index is an aggregate measure – a shorthand to convey information. For example, the NIFTY 50 reflects the price returns of 50 of the largest stocks (+ their DVRs). So, instead […]

Founder, StockViz
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15 Mar 2024
 

What is the due diligence (DD) process for VCs

We spoke about DD a few times earlier in the previous blogs. But what does DD really mean in the context of venture capital? This is quite important to understand given that, in most cases, there isn’t much data on financials and other metrics available in early-stage companies compared to mature companies. So, what do […]

VC/PE enthusiast. Handling investments @ Rainmatter.
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12 Mar 2024
 

Can I claim Sec 54F tax benefit on selling foreign shares or ETFs?

Yes. Indian taxpayers can avail of the tax exemption under section 54F of the Income-tax Act against gains earned from selling foreign shares or ETFs if the money is utilised to buy or build a new residential house, provided the house is located in India. This means they won’t have to pay capital gain tax […]

Partner, Nangia Andersen India
1
09 Mar 2024
 

What is the best SIP frequency for investing in mutual funds?

Unless you live under a rock, you would have probably heard the term – SIP (systematic investment plan) – in mutual funds. Using SIPs, one can conveniently invest a fixed amount in mutual funds periodically, usually monthly. Unlike lump-sum investments, where a large amount of money is invested at once, SIPs involve spreading the investment […]

Personal Finance, Varsity
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09 Mar 2024
 

What if I invest at a market all-time high (2024)?

In February 2024, Japan’s benchmark index reached an all-time high, marking a significant milestone after a prolonged interval of 34 years. The stock market in the Land of Rising Sun is in stark contrast to India’s in terms of reaching all-time highs (ATHs) – we witnessed multiple ATHs within a single year. Many investors worry […]

Personal Finance, Varsity
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02 Mar 2024
 

Perils of using the Last Traded Price (LTP)

You have created an excellent option strategy, and backtesting shows that it can be profitable. However, the strategy didn’t hold when you applied it in the real market. What could have gone wrong? Did you use the Last Traded Prices (LTP) in your backtest? Most option backtesting tools design trading strategies using the last traded […]

Founder, StockViz
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01 Mar 2024
 

What powers does a nominee of an incapacitated person have?

Imagine finding yourself in a situation where you cannot manage your investments due to illness or accident. Suddenly, the need for cash arises, but you’re incapacitated, unable to initiate transactions. Even worse, your nominee, typically designated to handle such matters in your absence, finds themselves powerless. Thankfully, the Securities and Exchange Board of India (SEBI) […]

Co-founder, Share Samadhan
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23 Feb 2024
 

What is a credit score, and why is it important for you?

As soon as you get your first credit card or open a bank account, you start hearing people preach about credit scores. And, if you have chosen to be blissfully unaware, here’s a simple explanation.  A credit score is a three-digit number between 300 and 900 that defines your creditworthiness; the lower levels reflect low, […]

Business Analyst at Zerodha
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20 Feb 2024
 

Why Contribution Profit is a Big Deal?

Let’s say you want to put up a lemonade stand at a college fest. The rent for this stand is 10,000. The cost of making a lemonade with lemon, syrup, soda, and ice is 25. You plan to sell it for 50 per glass. How many lemonades should you sell to make profits or break […]

Content, Zerodha Varsity
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16 Feb 2024
 

NRI rules that apply to buying and selling equities and immovable property

The query has been answered by Anjali Malhotra, Partner- Regulatory, Nangia Andersen India. Individuals residing outside India, such as Non-Resident Indians (NRIs), Persons of Indian Origin (PIO), or Foreign Nationals, have to take into consideration the requirements & conditions laid down by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA) […]

Nangia Andersen India
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13 Feb 2024
 

Know your fund manager: Rajeev Thakkar of PPFAS Mutual Fund

How well do you know the fund managers you invest with? Beyond the statistics and performance charts lies a deeper understanding that can help you make informed decisions: their core investment philosophies and personal beliefs. This is the heart of our Know Your Fund Manager series, where we delve into the minds of the individuals […]

Personal Finance, Varsity
9
12 Feb 2024
 

Cashless claim facility at any hospital, with no network limitations

You would have likely heard about it from someone or experienced it yourself: a medical emergency strikes, and you rush to the nearest hospital, only to discover your insurer’s network does not cover it. Dealing with upfront payments and waiting for reimbursements can be stressful. To ease the financial burden and speed up the claims […]

Personal Finance, Varsity
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08 Feb 2024
 

Can I stop paying for insurance if I have saved enough?

Can I stop paying insurance premiums if my savings match the coverage of my life and health policies? The purpose of life insurance is to make good the financial loss that a person would suffer if the earning member of the family passes away. We could bucket this financial loss into three major categories. Any […]

0
03 Feb 2024
 

Writing a Will Vs Nomination

Wills and Nominations, both vital legal instruments, play distinct roles in shaping the allocation of an individual’s assets after their demise. These tools, though aligned in their ultimate goal of asset distribution, comprise unique characteristics within the realm of estate planning and so are often used interchangeably. But, the law identifies their purpose, object, and consequence, and hence, it is important to know the distinction.

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31 Jan 2024
 

Know the incentives of those selling you a financial product

“There is no such thing as a free lunch.” You may have heard this famous quote emphasizing the idea that you cannot get something for nothing. This is particularly true when it comes to selling financial products. People could have an agenda and/or an incentive to sell or not to sell a particular financial product to you.

Personal Finance, Varsity
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26 Jan 2024
 

Zerodha Varsity in 2023

2023 has been a phenomenal year for Varsity. We kickstarted many new initiatives with a long-term vision of simplifying markets. Here’s an update on Varsity in 2023.

Head of educational initiatives at Zerodha.
175
23 Jan 2024
 

Nestle India split its shares. Will MRF ever split?

Nestle India split its stock in a ratio of 1:10 on Jan 05. Each share of a whopping ₹27,000 converted into ten shares of ₹2,700 each. At ₹2,700, the shares became a lot more attractive to a larger set of investors, especially retail investors. The move will perhaps improve the stock’s liquidity. That begs a question – why can’t MRF consider a split?

Content, Zerodha Varsity
0
05 Jan 2024
 

How equity analysts rate a stock?

Millions of shares trigger the market moves over an undefined period, just based on the solid reasoning of an analyst put behind this word. This article explains the role of equity analysts and the process of initiating coverage reports for new stocks or sectors.

Equity Research Analyst at Nomura
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04 Jan 2024
 

Trading stocks with the new amount block framework

SEBI has introduced the amount block framework for investing in the secondary markets starting January 1, 2024. This system functions similarly to blocking funds for an IPO application, where your funds are deducted only if you are bound to receive the shares.

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03 Jan 2024
 

Old vs New tax regime: Which one is better for you?

In the year 2020, the government introduced a new tax regime under which taxpayers can choose to pay tax at lower rates. In this article, we compare old and new tax regimes, and help you understand which one could be more beneficial for you by discussing the differences in tax rates, deductions, and exemptions.

Personal Finance, Varsity
0
27 Dec 2023
 

What is an Investment Committee?

Here is a quick explainer of what an Invest Commitee is and how it is constituted. An Invest Commitee in a Venture Capital fund is a group of individuals, usually partners in the Venture Capital fund, responsible for signing off on an investment opportunity. Invest Commitee is typically composed of experienced professionals with diverse skills and backgrounds.

VC/PE enthusiast. Handling investments @ Rainmatter.
0
15 Dec 2023
 

What is a Term Sheet?

When a startup receives confirmation from investors on its intention to invest, the confirmation is communicated using a document detailing the terms of the investment along with quantum and valuation; this is called a term sheet.

VC/PE enthusiast. Handling investments @ Rainmatter.
0
02 Dec 2023