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Choice of a Discount Brokerage Firm

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Discount Brokerage Firm

If you are familiar with the modus operandi of the financial market, and are able to carry out your financial decisions at an independent level, opt for a discount brokerage firms to carry out all activities on your behalf. This type of brokerage firm is different from a full service firm. They roll out limited services and it is cost effective at the same time. But there are not going to simply carry out transactions on behalf of the client. Limited amount of services are offered at price. To sum it up discount brokerage is someone who can make their own decisions on what stock to buy and sell without the help of a broker.

Do explore the vast array of discount brokers that are available in the market. It could be difficult to come across one that matches your requirements. The choice of the right one assumes a lot of importance as a small difference could make a lot of difference in terms of commission, fees etc.  Do explore the following major pointers before you go on to make a decision

  • The decision has to be based solely in the manner by which you intend to trade. Say for example if you are a day trader you need to ensure that the brokerage firm provides you with maximum intraday speed. There is access to day time trading software so as to analyse the trends, figures and then arrive at a decision. If you happen to be a swing trader you need to have relevant tools for technical analysis. This would help you come across stocks that is going to provide you with short term momentum
  • Once you are a trader it does not make sense to limit your activities to a single discount brokerage firm. The reason being one single trader would not be able to provide services on all aspects of trading. There are some firms who provide option trading, but do not have the facility of option 2 quotes. The successful traders are the ones who go on to hire a couple of discount brokerage firms.
  • The main advantage of choosing a discount broker or a full time broker is that you can save considerably on the amount of commission as well as fees. As saving does appear to be part of the investment portfolio, customers would need to figure out the charges of the brokerage firms and what are the rates a discount brokerage firm is charging. A comparative study would provide more inputs on the same. Do observe whether the firm does not have any hidden fees as these extra charges can push up the charges considerably and dent your profits.
  • Do check out whether the firm has relevant experience and it is properly licensed with certifications along with the relevant training
  • Check of the stock forums on the internet. Discuss with your friends or relatives about the firms they have gone on to conduct trading it is better to stick to firms where you get referrals.

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How to Check Central KYC Status Online in India?

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Central KYC Status Online

Central KYC or CKYC is an initiative by the government to implement the KYC process of all financial sector companies under a single window. CKYC is managed by Central Registry for Securitization Asset Reconstruction and Security Interest of India (CERSAI).

All individual investors of mutual funds are now required to fulfill KYC requirements as per KYC norms.

The central KYC or CKYC has replaced the old KYC process. It is a centralized process that prevents you from submitting multiple KYCs from opening savings bank accounts, buying life insurance, or investing in mutual fund goods once in a centralized process. Where and how to check central KYC status online in India?

A modern Central KYC or CKYC has replaced the old KYC process. This reduced several KYC submissions at various financial transaction stages.

It is a single, integrated KYC process for all financial transactions carried out by you. In the old KYC format, PAN was the sole identifier of an investor. However, the list transcends Aadhaar and PAN in the new central KYC registry system. It removes your financial transactions for KYC at various levels or in different financial institutions.

It is also a form of creating new KYC or modifying existing KYC. Three types of accounts are specified.

  1. One is the general account
  2. The other is for simplified or low-risk account
  3. And the third is for small account investors

You have to make a selection that applies to you.

If the aggregation of all credits in a financial year does not exceed one lakh rupees, the aggregate of all withdrawals and transfers in a month does not exceed ten thousand rupees, or the balance in any period exceeds fifty thousand rupees. If it does not occur, then you will be treated as an investor in a SMALL account.

Customers who are simple or low risk, customers who are unable to submit any of the six specified documents. They are passport, driving license, PAN card, and Voter ID, NREGA, or Aadhaar card.

The FATCA declaration also includes the CKYC or Central KYC. Therefore, it prevents you from declaring the same at different rates of your investment.

How to check central KYC status online in India?              

Until now, online checking for CKYC or Central KYC status was not linked. As a result, many found it difficult to check the status online. Recently, Karvy launched an online testing facility for CKYC or Central KYC status.

I think it is a great relief. I know that even if you have submitted the CKYC or Central KYC application, in some cases, the status may not show this. I think they are still on data compilation mode. But still, I think it is a significant relief for many.

Note: Currently, CKYC applies only to individual investors (resident and NRI).

Existing investors who have already completed KYC under the process do not have to go through any additional KYC requirements under CKYC

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Why You Need to Know Your Mediators During a Mediation

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Need to Know Your Mediators During a Mediation

In any case, you want to ensure that you get the right mediation when you need to, but what’s also extremely important is that you know who your mediators are during the mediation process. There are many reasons for this, and we’re going to tell you why in this exceptional guide. Mediation can be a great tool in any different settings, and is actually a great thing to consider when in a divorce case, among others.

What is Mediation in Detail?

We already mentioned that mediation is a form of negotiation. However, it’s also important to know that it depends on the situation on what kind of mediation you’re going to need. Other forms of mediation may be things like contract agreements, money owed, and more. Usually if two parties can come to a negotiable term, then both people can walk away in a win – win situation. This is what the mediators are for – to simply help the two parties come to a conclusion of settlement. A lot of people go into it blindly though, and this isn’t the right thing to do.

How Well Do You Need to Know Your Mediator?

We’re not saying to be best friends with them, as this can often cause problems, especially in the law to client industry. When you want to hire a mediator, you want to know details about their credentials, and their academic side of things, as well as their counseling skill to ensure that they’re going to help both people reach an agreement, and then not make it a one-sided ordeal. Mediators are masters in their field. They’ve often been on both sides of the fence when it comes to having the experiences of both parties, and they also have legal knowledge on both sides of an argument to help reach a resolution.

You Want to Make Sure They’re Licensed

Don’t just believe a law office because they say they’re mediators. You want to ensure that they have the licenses to practice either of those sides. Often times, lawyers who have helped mediate both offensive cases and defensive ones have the best turnaround for success. If you hire the right mediator for your needs, you can guarantee that they have a solid reputation with numerous clients in order to get the job done the right way the first time, every time.

Conclusion

The first thing to realize is that you both need to be familiar on who the mediator is. Their ultimate goal is to reach a settlement between the two of you. They often don’t get paid until that is done. At the same time, you want to have numerous pre-mediation conferences in order to get the right legal counsel, but don’t just do it yourself – have the other person go and have counsel with them as well. This way, both parties can work together to have the mediator come out on top with a solid resolution that will leave the both of you walking away happy and signing papers. These are excellent in cases where you’re trying to get an annulment, or even just file for a dissolution of marriage, but want to remain civil to one another.

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The Best Type Of Equity Mutual Fund To Invest In Now For The Medium Term

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equity mutual funds

The medium-term varies from person to person, so the choice of fund type varies. As far as this issue is concerned, I think the medium term is 4-6 years. At this time, one can quickly get benefits from the ELSS scheme, or no hybrid fund will do well. Now investing is a personal choice. Those who know the medical industry would prefer to invest in the pharmaceutical sector, while those who want to take the risk can choose a fund that invests in small and medium-sized companies, and a person seeking a fixed income can go for a debt fund. Therefore, choose a mutual fund as per your choice.

As the risk exposure is high, equity mutual funds are not suitable for the medium term.

  • Some of the equity funds last year, when the Sensex crossed 23000, have received negative returns of over 10 percent.
  • If you want to invest for a period of fewer than 12-15 months, then it is better to invest in mutual bond funds, which can contribute to 8-10%.
  • If you have a period of more than 15-24 months, invest in a balanced mutual fund with exposure to equity of 60 percent.

If you invest in equity mutual funds, you need a much more extended period. By investing in mutual funds, the rate of inflation falls and your money increases on a long-term basis. You can also choose the best 2-3 funds and create a SIP portfolio. More diversification is also not good for the portfolio.

Equity mutual funds to achieve your long-term goals. While a ‘best’ fund is arbitrary and complicated, a good list of your portfolio can be narrow. Has a laundry list of equity funds with a good track record; Here are some essential considerations that you need to keep in mind before choosing for yourself:

  • Select a fund house that has a strong global or domestic track record in asset management.
  • Choose a plan that has appropriate funds.
  • Watch for schemes that have a consistent long-term track record.

If you want to save taxes under Section 80C, then choose these ELSS schemes

  • Birla Sun Life Tax Relief 96 Fund
  • DSP Blackrock Tax Saver Fund
  • Franklin India Tax Shield Fund
  • Axis Long Term Equity Fund
  • ICICI Prudential Long Term Equity Fund 

In the Large-cap

  • SBI Blue Chip fund
  • Kotak Select Focus fund
  • Franklin India Oppor.
  • BNP Paribas Equity fund
  • Reliance Focused Large Cap Fund
  • Birla Sunlife Frontline Equity Fund 

In the Multi-Cap 

  • ICICI Prudential Value Discovery Fund
  • Reliance Equity Opportunities
  • DSP Blackrock Opportunities 

And these funds have done well in small/mid-cap

  • Birla Sun Life Midcap
  • Franklin India Smaller Companies 

For medium investors

  • SBI Magnum Multi-Cap
  • Kotak Select Focus Fund- Regular Plan

All of these are superb funds with a long track record and growing corpus. While aggregate returns in the equity world can be unpredictable, given enough time, they will undoubtedly beat inflation by a significant margin.

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