Many investors believe that bonus shares are completely tax-free. While it is true that receiving bonus shares is not taxable, tax becomes applicable when you sell those bonus shares. Understanding the tax treatment is important because it can significantly impact your overall tax liability. Let's understand how taxation on bonus shares works with a simple example. What Are…

Small-cap mutual funds have made a strong comeback as the Indian stock market recovered from its March lows. Investors who stayed invested in quality small-cap funds have been rewarded with impressive gains over the last six months. Small-cap funds invest primarily in companies with relatively smaller market capitalisation. These companies have higher growth potential than…

What is an Alternative Investment Fund (AIF)? If you have already invested in stocks, mutual funds, or fixed deposits and are looking to diversify your portfolio, you may have heard about Alternative Investment Funds (AIFs). An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that collects money from eligible investors and invests it according to a…

The index-based market-wide circuit breaker is triggered when either the NIFTY 50 or BSE Sensex moves 10%, 15% or 20%—up or down—from the previous trading day’s closing level. Whichever index reaches the threshold first triggers a coordinated halt across India’s equity and equity-derivative markets. ( nseindia.com ) Index movement Time threshold is reached Trading halt…

Reading Time: 6 Minutes Why Does an ETF Price Keep Changing? Have you ever noticed that an ETF's price changes every second while the stock market is open? Yet, experts often talk about NAV, iNAV, and Fair Value as if they are different from the market price. Understanding these three concepts can help you avoid paying more than an ETF is actually worth and make smarter…

India is one of the world's fastest-growing economies and a major player in global trade. Every year, the country imports billions of dollars' worth of goods such as crude oil, electronics, machinery, gold, and industrial raw materials while exporting products like pharmaceuticals, software services, engineering goods, textiles, and agricultural products. However, when the…

Many new traders make the mistake of buying after a stock has already moved sharply higher or selling after it has already fallen significantly. Professional traders often do the opposite—they wait patiently for pullback, allowing them to enter trades at better prices with lower risk. Pullback trading is one of the most popular strategies used in stock, forex, commodity, and…

Options trading can look confusing at first, but every strategy is simply a way to express your market view while managing risk. Whether you expect the market to rise, fall, remain stable, or make a big move, there is an options strategy designed for that situation. The info graphic above groups - 20 popular option strategies into three categories— Bullish, Bearish, and…

A strong stock does not move upward forever. Its price usually passes through different phases as buyers and sellers change their behaviour. Understanding these phases can help investors identify when a stock may be preparing for an upward move, when the trend is strong, when momentum is weakening and when risk is increasing. This method is often called Stage Analysis. It…

If you've ever wondered "How do traders estimate where a stock's price might go after a breakout?", the answer often lies in a powerful technical analysis tool called Fibonacci Extensions. Unlike Fibonacci retracement, which helps identify possible support and resistance during a pullback, Fibonacci Extensions are used to estimate future price targets once the trend resumes…

If you've ever looked at a stock chart and wondered how experienced traders identify trend reversals, the Head and Shoulders Pattern is one of the first chart patterns you should learn. It is easy to recognize and can help traders identify when an uptrend may be ending. However, this pattern should never be used alone. It works best when combined with volume, support and…

The Relative Strength Index (RSI) is one of the most popular technical indicators used by traders and investors. It helps users understand whether a stock is moving with strong buying momentum, strong selling pressure, or is trading in a neutral zone. RSI does not tell you the exact future price of a stock. Instead, it gives a quick view of the strength and speed of recent…