Knowledge Center

Equity mutual funds, What is equity mutual fund? Equity mutual funds invest primarily in shares of listed companies. Equity funds may invest in companies belonging to different sectors and maybe diversified across different market capitalization segments like large-cap, mid-cap, and small-cap. Large-cap, mid-cap, and small-cap funds can be found in AMC based on their investing in distinct market capitalization sectors.

What does ETF stand for? An ETF stands for Exchange Traded Fund, which unlike regular Mutual Funds trades like a common stock on a stock exchange. The units of an ETF are usually bought and sold through a registered broker of recognized stock exchanges. The units of an ETF are listed in stock exchanges and the NAV varies as per market movements.

In our life, we always want different options. If we want to go for outstation then different options may be local or global and so on. Same way when we go for investing it also comes with different options as well choices. As an investor, you have different asset allocations like Debt, Equity, Mutual fund, currency, commodity, etc.

We are discussing investment in the mutual fund segment and how can you invest. The options of investment if different assets like debt mutual fund, equity mutual fund, or others are available options to investors which category or scheme investor want to invest. Along with the option, one can also choose how to invest in mutual funds. So, let's discuss what is systematic investment plan and lumpsum investment are and the key differences in both.

Tata Motors is coming up with another tranche of perpetual bonds after the first good tranche

Hello readers, I hope you have read our last blog on margin trading facilities. But, today we are going to talk about various types of margin in the stock market. The customer must deposit a certain amount of money with the broker in order to buy or sell stocks on the exchange. The margin is the name given to this amount of money. The degree of margin required by traders is determined by the exchange, as is the case with many other regulations, depending on the amount of volatility and volume. so let's take a deep dive into the types of margin in the stock market.

Just as we are faced with day-to-day uncertainties about the weather, health, traffic, etc, and take steps to minimize the uncertainties, so also in the stock markets, there is uncertainty in the movement of share prices. This uncertainty leading to risk is sought to be addressed by margining systems by stock markets.

With reference to the SEBI circular dated 20th July 2020, Peak Margin has been introduced in the Equity, Commodity & Currency segment from 1st December 2020.

W.e.f 1st June 2021, there will be an increase in PEAK margin from the existing 50% to 75% of the total margin. Accordingly, intraday leverage provided for Equity Cash and F&O Intraday will be changed.

This is an important update regarding Peak Margin which is going to be increased w.e.f. 01.06.2021 across the segments. The 3rd phase of peak margin (75% of (Peak margin obligation of the client across the snapshots) shall be compared with the respective client peak margin available with the TM/CM during the day. But before all that let's know What is Peak margin? 

This blog gives you an insight into the Stock Markets and their functionality. It helps you understand the different types of brokers in India and how they function. If you are GEPL Capital client, click here to invest. To start your investment journey with us click here.