Varsity


 

Receiving money from your NRI relative? How to use it and its taxation

India is one of the top countries with the largest diaspora residing in nations like the UAE, the US, and Saudi Arabia. We all have that one friend or a relative living abroad who regularly sends money back to India for family maintenance, investments, medical care, education, and more. Such inward remittance is governed by […]

Managing Partner, Victoriam Legalis
0
14 Jun 2024
 

Same-Weekday Momentum

The paper Da, Zhi and Zhang, Xiao, Same-Weekday Momentum (SSRN) first came out on March 14, 2024 and has raked up quite a bit of interest since then. The authors present an effect where if you formed momentum portfolios by weekday, you end up with better returns than traditional momentum.  For example, to build Monday’s […]

Founder, StockViz
0
14 Jun 2024
 

Can India Learn From Japan’s Population De-Growth?

An abandoned village is one where no one lives. Throughout history, people have abandoned their villages for various reasons—the threat of wild animals, flooding, dam-building, forest fires, wars, etc. Today, Japan probably has the highest number of abandoned villages.  The most frequently cited reason I found on the internet is Japan’s declining population. As older […]

Content, Zerodha Varsity
0
12 Jun 2024
 

Do more mutual fund units translate to higher returns? 

Recently, a Zerodha Varsity reader came up with an interesting question about direct vs. regular mutual funds. He understands that the return on a direct fund is higher, so buying a direct fund makes sense. But he also feels that one can accumulate more mutual fund units in a regular fund, given that the NAV […]

Personal Finance, Varsity
0
11 Jun 2024
 

I trade from my mother’s demat account. Should I pay taxes?

I have a salary income. I incurred capital gains because I sold some mutual fund units in FY 23-24. I trade once in a while (not a regular trader). I have neither gains nor losses from my trading activity. What ITR form should I use? Individuals with salary and capital gains income are required to […]

Content, Quicko
0
07 Jun 2024
 

How Dopamine Affects Your Trading Results

Did you know that a hormone in the human body dictates almost every decision we make in our lives, especially our investing and trading decisions? It’s called dopamine.  Dopamine influences financial decisions by enhancing the perceived value of potential rewards, motivating individuals to take risks for higher gains. It also reinforces past successful financial behaviors, […]

Associate Vice President, PhillipCapital India
0
04 Jun 2024
 

Know Your Fund Manager: Sankaran Naren of ICICI Pru MF

Imagine you are on a flight, and suddenly, the plane hits turbulence. If you’re not familiar with flying and don’t understand why turbulence occurs, you might panic, thinking the plane is in serious trouble. But if you know that turbulence is common and that airplanes are designed to withstand it, you’re more likely to stay […]

Personal Finance, Varsity
0
01 Jun 2024
 

Introducing Varsity Live

I vividly remember, in early 2014, Nithin and I discussed how difficult it was for an investor to learn about the capital markets in India. At that point, there was hardly any learning material available online. Content was fragmented, scattered across several sources, and there was nothing specific to the Indian markets. To learn a […]

Head of educational initiatives at Zerodha.
16
27 May 2024
 

What’s the PRC Matrix of Debt Funds?

Debt funds are usually considered to carry lesser risk than equity funds. In fact, many believe that funds cannot give negative returns simply because they invest in debt instruments. However, interest rate risk, liquidity risk, and credit risk are all real risks carried by debt funds. The presence of risk indicates the possibility of a […]

Content, Zerodha Varsity
0
18 May 2024
 

Five questions to ask your mutual fund distributor

Mutual fund distributors are intermediaries between investors and mutual fund (MF) houses. They earn a commission from the fund house for selling MF schemes to retail investors.  Mutual fund distributors must understand investors’ financial requirements to suggest the most suitable schemes. Investors must also ask the right questions to determine whether the distributor has higher […]

co-founder and CEO of AssetPlus
2
16 May 2024
 

Bond Investing Just Got More Accessible For Retail Investors

The Indian bond market has traditionally been dominated by institutional investors, with high minimum investment requirements acting as a barrier to retail participation. However, recent regulatory changes by SEBI (Securities and Exchange Board of India) have made bond investing more inclusive and accessible to individual investors. In line with SEBI Chairperson’s vision of “sachetizing” financial […]

Co-Founder, Wint Wealth
2
07 May 2024
 

How does IPO allotment work?

The IPO allotment process is often seen as mysterious. True, the aspects are similar to a lottery, but the allotment approach can vary depending on the type of investor you are.  Let us then jump right into decoding IPO allotments.  The allotment depends primarily on the category you apply in. There are usually 3 investor […]

VP - Primary Markets & Payments, Zerodha
3
06 May 2024
 

Is the family office only for the rich? Five questions on family office answered.

Family Offices are, in simple terms, entities that have been set up to cater to some financial & some non-financial needs of ultra-high-net-worth individuals. These individuals can be family business owners, entrepreneurs, or even some very high-paid professionals.  These offices provide services in the areas of investment management, expense management, tax planning, and other non-financial […]

Founder and CEO of Cervin Family Office
0
03 May 2024
 

Do elections impact the stock market? Here are our five observations

One of the initial lessons we learn about stock markets is their inherent uncertainty. When higher uncertainty creeps into the underlying companies or the broader economy, you see higher volatility in the stock market. Elections in a country are highly unpredictable and ambiguous. Investors usually get jittery about the stability of existing policies and what […]

Personal Finance, Varsity
0
27 Apr 2024
 

Can a Central Bank Devalue its Currency on Purpose?

My politically opinionated father asked me worriedly, “Why has the INR depreciated since the current government took over?” I first said, “Go back a little farther, and you will see that the INR has been depreciating, irrespective of who was running the government.” But is that a bad thing? The words “depreciating” or “falling” INR […]

Content, Zerodha Varsity
1
24 Apr 2024
 

HUF: Can it save you taxes? Here are the pros and cons of setting one up

You may have heard that setting up a Hindu Undivided Family (HUF) could help save taxes. In this blog, we discuss this in detail. There are fairly low barriers to setting up an HUF—any Hindu (including Jain, Buddhist, and Sikhs) can do so. Only the state of Kerala has abolished the concept of the joint […]

Founder's Office, Zerodha
0
20 Apr 2024
 

Discover Unclaimed Wealth: Shares and Dividends Owned By Your Ancestors

Humour me. Do this exercise. List the names of five people who participated in the share market in the 1980s or 1990s. Then go to the iepf.gov.in website and click on this link Search those five names in the search box provided. (Note: Provide at least the first and last name. Do not get put […]

Head, Fee Only Investment Advisers, a SEBI registered Investment Advisor
0
13 Apr 2024
 

Give me some sunshine; give me some capital

My 20-year-old cousin took a fancy to the stock market recently. I would like to take credit for his excitement, given my employment at Zerodha, but I am aware he is just joining the trading wagon with his friends and social media connections. I am glad that he is curious about concepts. He asks me […]

Content, Zerodha Varsity
0
09 Apr 2024
 

Underlining the Underlying Exposure

The RBI requires anyone trading in currency derivatives to have an underlying exposure to forex. It seems many market participants were not aware of this. So, the RBI recently reinforced this requirement through a recent circular. The deadline to ensure that users participating in currency derivatives have an underlying exposure was set at 05 April […]

Content, Zerodha Varsity
4
05 Apr 2024
 

Small and Medium REITs Explained: A New Investment Option for Indian Investors

SEBI’s recent regulations on small and medium REITs (SM REITs) have sparked interest among investors who are eager to explore new avenues for real estate investment. After all, real estate is one of the favourite asset classes for Indians. SM REIT (real estate investment trusts) is simply a younger version of the traditional REIT we […]

Personal Finance, Varsity
1
03 Apr 2024
 

RBI: Putting the Ex in Forex

Through a recent circular, the RBI pulled the plug on speculative forex derivative trades in India. Until now, any speculator could trade currency derivatives on a stock exchange. This is because disclosing an underlying exposure was not required up to a certain limit. Therefore, currency derivative volumes on the NSE were booming. The prices and […]

Founder, StockViz
0
03 Apr 2024
 

Investing in GIFT City: 5 Key Questions Answered

GIFT City is short for Gujarat International Finance Tec-City. Situated close to Ahmedabad, GIFT City facilitates all financial transactions in India using foreign currency (not Indian rupees). Though it is located within India, it is considered a jurisdiction separate from the rest of India. You might wonder what the use of GIFT City is. Countries […]

Partner, Cyril Amarchand Mangaldas
1
01 Apr 2024
 

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