tejimandiblog22

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Stages of Life and Investments: A Simple Guide

At every stage of life, there are different goals and needs. Investments also evolve accordingly. Let’s see what aspects to consider at different stages of life.

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Decoding ESG: Empowering Investors to Drive Positive Change

ESG investing is rapidly gaining popularity worldwide, offering not just profit potential but also a chance to contribute to a better tomorrow.

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Investing in a Ready-Made Portfolio: A Complete Guide

Investing in a ready-made portfolio offers a convenient and hassle-free way to start or diversify your investment journey. This infographic will guide you through the benefits and considerations of opting for a ready-made portfolio.

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Smart Ways to Save Income Tax under Section 80C

Key Points to Note

This deduction is available only to individual taxpayers and Hindu Undivided Families (HUFs). Companies and partnership firms do not benefit from this deduction.

The amount of deduction available may change every year, so stay updated with the latest rules.

While investing, always keep your financial goals in mind. Return on investment is equally important along with tax savings.

Remember that you can claim tax deduction under Section 80C for a maximum of Rs. 1.5 lakh.

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How to determine portfolio risk?

Whenever you invest in any asset, you should keep in mind the fluctuations associated with the market.

Every financial investor will encounter a trade-off between returns and risks. The reward for greater risk is greater returns. However, it would be best to consider your risk appetite before making any investment.

Each investment has a different level of risk. The more you diversify your investments in your portfolio, the lower your overall risk will be. Let us understand what affects the performance of assets and how you can quantify the amount of risk you may face.

What is portfolio risk?

Portfolio Risk is the total risk determined by the individual risk associated with each asset you hold in your portfolio. The assets you own may fail to perform financially as expected. As a result, it leads to a substantial amount of loss. There are multiple causes for it and different ways to mitigate each category of risk. Let us see what the various types of risks are.

Types of portfolio risks

Risks involved with individual securities

To understand the overall risks involved in portfolios, let us first see the risks involved with individual securities.

Liquidity risk

It is the risk of not fulfilling short-term obligations on time. Short-term obligations are those that are due within a year.

Political and regulatory risk

It is when an investor suffers financially due to any sort of political flux in the country.

Default risk

It is a type of risk where a borrower cannot pay off his debts to the lender on time. Once a specific time has passed without any repayment, the loan converts to bad debt.

Style risk

It is a type of risk that is associated with your style of investing.

Duration risk

It is the risk associated with the time horizon of your investment. Over a period of time, you can find differences in interest rates. Eventually, the market value will either increase or decrease according to these fluctuations.

As you know, a portfolio is a combination of individual securities. However, certain kinds of risks are exclusively associated with the overall portfolio. Let us have a look at those.

Read more about the portfolio risk formula

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Smallcase vs Mutual Funds: Key Differences

Mutual funds and Smallcases are the two asset structures in contention, and we’ll compare them over the course of this article to understand the fundamental difference between Smallcase and mutual funds.

As investors, most of us spend a considerable amount of time window-shopping for the right investment avenues. “Should I invest in the safety of debt instruments or should I stay equity-focused? Should I pick evergreen stocks or can I benefit more from trading the seasonal ones? What about adding some cryptocurrencies to my portfolio? How long should I stay invested?” Questions, so many questions.

The truth is that unless you’re an exceptionally nuanced investor with well-rounded insights about multiple sectors, a diversified portfolio can hold the answer to most ‘what and why questions as far as investments are concerned. Two financial avenues facilitate this diversification optimally; the first is a household name and the second has emerged as a buzzword in the last year or two. Mutual funds and Smallcases are the two asset structures in contention, and we’ll compare them over the course of this article to understand the fundamental difference between Smallcase and mutual funds.

What are mutual funds?

A mutual fund is a pool of money collected from many investors to invest in securities like stocks, bonds and other assets. Professional fund managers, vetted and hired by mutual fund houses or Asset Management Companies (AMCs) are responsible for picking the constituents of the fund and allocating capital; they can attempt capital gains or income production based on the investment objectives of the fund as per the prospectus set out at the time of the fund launch (called NFO).

What is a Smallcase?

A Smallcase, on the other hand, represents a capital allocation structure similar to portfolio management services (PMS) that were previously reserved for wealthy individuals (Read: HNIs and UHNIs). As a product, this is an idea that has caught the fancy of many well-heeled millennials as well as on-the-brink wealthy, ever since SEBI hiked the minimum investment amount for portfolio management services (PMS) from ₹25 lakh to ₹50 lakh in November 2019. In some sense, Smallcase may be called affordable PMS – with a starting price as low as Rs199/month. Basically, a Smallcase is a basket of stocks or ETFs, decisively created by the top qualified and Registered Investment Advisors (RIAs) in India, based upon a theme, strategy, or objective.

David vs Goliath: A legacy product vs a promising challenger

If we have to compare the sheer size of the market with respect to Assets Under Management (AUM), mutual funds represent ₹36.74 trillion as of September 30, 2021. In comparison, Smallcases are a disruptive product that has been around for approximately 6 years now. Quoting the founder and CEO Vasanth Kamath “Our users multiplied three times from 9 lakh in March 2020 to 28 lakh in March 2021.” In FY21, the firm saw Rs 8,000 crore invested through its platform. A drop in the ocean, as far as the larger financial products industry is concerned.

Smallcase vs Mutual Funds: Points of Comparison

1. Exercise Control

Investing In Smallcases potentially offers investors better control over securities as the shares are credited directly in the Demat account. Having the portfolio right at your fingertips allows you to time your exit and know where each investment goes, which isn’t possible with mutual funds; you can cherry-pick which mutual fund you want to invest in, but the customization ends there.

2. Risk Mitigation Mechanisms

Smallcases are thematic investments; they invest in companies and securities that follow an underlying strategy or idea. For example, there can be a Smallcase that focuses on Clean Energy companies or fast-growing tech companies that focus on enterprise software integrations. Since these ideas are highly specific, diversification is restricted. For those intent on diversification, mutual funds offer a basket of good companies that are related by larger themes such as industry type and revenue benchmarks that may be a better hedge against volatility over several business cycles.

3. Cost of Leaving

In many mutual funds, there is an in-built penalty for liquidating your assets before the minimum stipulated time (generally just about a year)- this expense is called the exit load which ranges from 1-2% of the total investment. Typically, all mutual fund houses adjust this amount against the net asset value (NAV) of the fund. Smallcases, by design, allow investors to buy individual units of securities that are directly credited in the demat account like common shares. Since there is no exit load on selling shares, there is no exit load on selling smallcases.

4. Management Fee

Any asset allocation structure is only as good as the people managing it, i.e., the fund manager- who in these cases is typically someone who holds high repute in the financial markets. Understandably, this expertise attracts a certain cost, apart from the cost of monitoring and managing the fund. In the case of mutual funds, this cost, called the expense ratio, is a percentage of the total fund value, capped at 2.5% by SEBI. Smallcases have no fixed range – the cost differs from case to case and RIA to RIA, depending on the nature and theme of the basket of investments. For example, TejiMandi charges just Rs 199/month for its smallcases!

5. Access to Returns

Smallcases give investors direct access to their holdings since the shares are directly credited to their demat account. Hence, all corporate actions such as dividend distribution as well as the issue of bonus shares take place directly with the investors. In the case of mutual funds, the returns are collected in real-time but distributed quarterly.

6. Volatility

Due to the nature of the theme-wide concentration of Smallcases, they are typically more volatile than the stock market in general since the risk is concentrated in a specific strategy or idea. However, as one of the fundamental principles of finance states – the higher the risk, the higher is your potential for gains. Mutual funds, on the other hand, spread the risk across companies working in different areas even if the fund is concentrated in a specific industry. Hence, the latter is more resilient during market ups and downs. Read more about smallcase vs mutual funds

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Flagship-Concentrated portfolio of 15-20 stocks

A Multi-Cap portfolio of 15-20 stocks that consists of tactical bets and long-term winners.

This ensures that investors get the advantage of stocks that would compound over a 12-18 month period and can take advantage of the special company/sector situations from a 3-6 month perspective

Certain tenets of the Flagship portfolio:

This all-weather multi-cap portfolio contains 15-20 stocks from the Nifty 500 universe, providing optimum liquidity.

The portfolio is usually rebalanced every month, but it is all subject to market conditions.

The portfolio is suitable for investors with a low to medium-risk appetite looking to earn above-market returns in a calibrated manner.

We follow a disciplined selling approach wherein we exit stocks in 3 conditions:

Change in the company/ industry fundamentals.

Negativity around the company/ sector.

An extreme macroeconomic/market situation.

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Invest in Actively Managed Stock Portfolios

Teji Mandi came to life to help guide retail investors in their investment journey. We still do the same by also providing you with an actively managed portfolio with pocket-friendly and flat pricing.

Teji Mandi, a SEBI-registered research analyst subsidiary of Motilal Oswal Financial Services, is an enterprise built upon the amalgamation of finance and technology. We aim to simplify stock market investing for retail investors by supporting them via investing services through an app. We offer stock portfolios and share timely rebalance updates about when to buy or sell specific stocks.

Stock Portfolios Actively Managed for You!

Teji Mandi Multiplier- Concentrated portfolio of fundamentally strong small & midcap stocks that are likely to show potential growth.

Teji Mandi Flagship- A Multi-Cap portfolio of 15-20 stocks that consists of tactical bets and long-term winners.

How Teji Mandi Works?

1- Invest in a tailor-made portfolio:- The Teji Mandi experts will create a portfolio just for you based on your risk level.

2- Execute regular rebalance:- Get rebalance updates on teji mandi app and approve and execute the actions.

3- Invest regularly with SIP or Lumpsum:- Keep Investing and watch your wealth grow. Its that easy. Read More about Teji Mandi

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Teji Mandi: Your Stock Market Companion

In the world of finance, having access to the right tools is essential for making well-informed investment decisions in the stock market. Whether you're a newcomer to the world of investing or an experienced hand, the Teji Mandi app is your dependable stock market app, offering the insights and tools you need for success. In this article, we'll explore how the Teji Mandi stock market app empowers investors with real-time updates, user-friendly features, personalized watchlists, and top-notch security.

Navigating the complexities of the stock market can be daunting, but the Teji Mandi stock market app offers a user-friendly interface that simplifies the experience for both beginners and experienced investors. You can access your portfolio, execute trades, and access insights with ease.

Protecting your financial data is a top priority. The Teji Mandi stock market app employs advanced security measures to safeguard your investments and personal information, ensuring that you can invest with confidence.

Conclusion

In the dynamic world of the stock market, staying informed is your greatest asset. The Teji Mandi app is your reliable companion, offering real-time updates, user-friendly features, personalized watchlists, and a secure platform for managing your portfolio. It is the trusted stock market app you need to make informed, strategic investment decisions. Download the Teji Mandi stock market app today and embark on your journey to become a successful and well-informed investor.

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Unlock Smart Investing with Smallcase on Teji Mandi App

In today's fast-paced financial landscape, smart investing has become the cornerstone of wealth creation. As investors seek efficient and user-friendly platforms, the integration of Smallcase with the Teji Mandi app emerges as a game-changer. This dynamic collaboration empowers investors to make informed decisions, manage risk, and build a diversified portfolio seamlessly. In this article, we delve into the synergy between Smallcase and Teji Mandi, highlighting how this partnership is revolutionizing the way investors engage with the stock market.

Understanding Smallcase: Your Path to Modern Investing

Smallcase, a pioneering investment platform, is redefining the investment landscape by enabling users to invest in intelligently-weighted portfolios of stocks or Exchange Traded Funds (ETFs). These portfolios, referred to as "smallcases," are meticulously designed around specific themes, strategies, or sectors. They encapsulate the wisdom of experienced market experts, offering investors an opportunity to access professionally curated portfolios without the complexities of traditional stock picking.

Teji Mandi App: Where Insights and Execution Converge

Teji Mandi, a prominent name in the financial app space, stands out as a reliable source of insightful market analysis and research. By integrating with Smallcase, Teji Mandi app users can seamlessly translate these insights into actionable investments. The collaboration empowers investors to implement the research-backed strategies and thematic ideas directly into their portfolios, enhancing their ability to make informed decisions that align with their financial goals.

A Glimpse of Benefits:

Diversification Simplified: Smallcase's thematic approach to investing, coupled with Teji Mandi's research, allows investors to diversify across sectors, industries, and asset classes effectively.

Informed Investing: Investors can align their strategies with well-researched market trends, leveraging insights from Teji Mandi's analyses to construct their portfolios.

Expertise at Your Fingertips: Benefit from the knowledge of market experts without the need for in-depth market understanding.

Conclusion

In the era of modern investing, where information and agility reign supreme, the collaboration between Smallcase and Teji Mandi app emerges as a beacon of intelligent investing. This partnership amalgamates strategic insights with user-friendly execution, empowering investors to craft well-informed, diversified portfolios aligned with their financial aspirations. As the financial landscape continues to evolve, embracing such innovative platforms becomes more than a choice—it becomes a smart investment strategy. Unlock the power of smart investing today with Smallcase on the Teji Mandi app and pave your way towards financial success.

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Unlocking Smallcase

What Is Smallcase and How Does It Work?

India’s investment landscape has changed dramatically in recent years, with the introduction of digital platforms and the rise of mutual funds as popular investment vehicles.

Smallcase is a new investment platform in India that offers a unique way of investing in the stock market through theme-based portfolios. A Smallcase is a basket of stocks designed around a particular theme or sector managed by SEBI-approved fund managers. This innovative investment approach brings an element of diversification to investing in the stock market.

With low minimum investment amounts and well-rounded theme-based asset classes, Smallcases are an affordable investment option that won’t break the bank account.

Smallcases provide the services of a qualified RIA for the price of a mutual fund investment and offer the easy purchase of thematic investments. Instead of buying each company’s share one piece at a time, you can buy a theme or idea as a bundle, like investing in global tech leaders or companies benefiting from rising rural consumption. Smallcases are subject to the same clearing and settlement rules as direct stocks.

Features and Benefits of a Smallcase

Investing in the stock market has long been seen as a complex and risky endeavour that requires significant research, time, and expertise. However, a Smallcase is changing the game, providing a simple, flexible, and low-cost way for anyone to invest in the Indian stock market.

Smallcase offers a unique approach to investing, providing pre-made portfolios, known as ‘smallcases’, that cater to different investment goals and risk profiles. These portfolios are curated and analysed by experts in the field, providing investors with a diversified mix of stocks and other securities that can lead to stable and consistent returns over time.

One of the critical benefits of Smallcase is risk diversification. By investing in a mix of large, mid, and small-cap stocks, investors can protect themselves from the downside of any particular stock while enjoying the upside of multiple stocks.

Smallcase is a game-changer for the Indian stock market, providing a simple, flexible, and low-cost way for investors to build a diversified portfolio and generate consistent returns over time. Whether you are a seasoned investor or a novice investor, Smallcase has something to offer.

Types of Smallcases

Founded by three graduates from IIT Kharagpur in 2015, Smallcase provides a unique way to build a long-term stock portfolio based on various themes or concepts.

The beauty of Smallcases lies in their diversity. With various themes, investors can tailor their portfolios to match their investment profile. For instance, the trend-themed Smallcases are perfect for those who want to capitalise on different trends in the market. While Beta-themed smallcases use a quantitative approach to extract a favourable rate of return on investments. Industry-themed smallcases allow investors to focus on specific industries they want to remain invested.

Smallcases are designed to offer flexibility and convenience to investors. Unlike traditional mutual funds, smallcases are stock portfolios that can be bought and sold anytime during market hours, with no lock-in period. Smallcase is revolutionising the investment industry, making it accessible to all, regardless of financial background. With its unique approach to building a portfolio, it’s no wonder that Smallcase is gaining popularity among investors.

How to Select a Smallcase?/Investing in a Smallcase?

Investors are always on the lookout for new ways to grow their money. Smallcase offers curated investment baskets of stocks and ETFs based on different sectoral themes and risk appetites.

The first step in selecting the right smallcase is to identify your investment goal. Once you have identified your investment goal, you must also decide on an investment corpus. This decision must consider your risk profile, entry barriers for certain smallcases and expert fund management costs.

It is essential to read the investment methodology and the fact sheet and evaluate the risk factors involved in the smallcase.

Investing in smallcases has several benefits. Smallcase managers offer professional investment portfolio management, so you do not have to track individual stocks or keep up with market trends. In addition, investing in smallcases provides flexibility in the investment amount, making it accessible to all investors.

Which Smallcase is Best?

Smallcase offers a basket of stocks and ETFs that are thematically grouped based on a specific investment goal. For those seeking reliable capital growth or with a high-risk tolerance, investing in equities through Smallcase is an excellent option.

Once investors have determined that Smallcase investing suits them, they must consider their investment goals, expected returns, investment style, risk tolerance, and time horizon. It will help them choose the right type of smallcase investment for their portfolio. Different investment types include large-cap, small-cap, mid-cap, dividend-yielding, tech stocks, and high-growth. Each type of investment comes with its own set of risks and rewards.

Investors should ensure that the portfolio of stocks and ETFs included in the smallcase is relevant to their needs. Investors must also consider their risk profile, investment capital, and time horizon to find the right mix of investments.

In conclusion, choosing the best smallcase investment requires careful consideration of several factors. Still, investors who take the time to do their research can enjoy risk-adjusted gains while maintaining a balanced and diversified portfolio.

Smallcase Vs Direct Stock Investments

Investing in the stock market comes with a number of options. Two of the most popular options are investing in smallcases and investing directly in stocks. But what exactly are smallcases, and how do they differ from investing in stocks directly?

Smallcases are professionally managed investment products created by bundling a selection of stocks and ETFs. They are designed to provide investors a more diversified and cost-effective way to invest in the equity markets.

On the other hand, investing directly in stocks is suited for investors who prefer a more hands-on approach. They must understand what and why they buy and how the stock performs in the market and with its peers. They may also need to try and time the investment – the entry and the exit – to capitalise on the investment to the maximum possible extent.

If you are a beginner or an experienced stock-picker who wants to buy a niche idea, smallcases can work for you. However, direct investments may be the right choice if you are comfortable understanding risk profiles and willing to take on more volatile investment climates.

Smallcase vs Mutual Fund

When it comes to investing, plenty of options are available. Two popular options for diversifying your portfolio and achieving your financial goals are mutual funds and Smallcases. But which one is the best investment option for you?

Mutual funds are a pool of money collected from multiple investors, then invested in a mix of securities. Professional fund managers choose the fund’s constituents, and investors can choose from various schemes based on their investment objectives.

On the other hand, Smallcases are portfolios of stocks or ETFs created by top-qualified and registered investment advisors in India based on a specific theme, strategy, or objective.

The investment option that is best for you will depend on your financial goals and risk appetite. If you want high control, customisation, and low cost, Smallcases could be the better option. However, mutual funds may be the better choice if you are looking for diversification and risk mitigation.

Does Many Smallcases = More Profit?

In recent years, smallcases have emerged as a popular way for retail investors in India to invest in the equity markets. These thematic investments cater to investors’ diverse investing goals and risk appetite. However, with the growing popularity of smallcases, investors need to be cautious about their investment decisions.

While smallcases offer a convenient way to diversify one’s portfolio and mitigate market volatility, over-diversification can lead to concentration risk and expensive access. Additionally, too many smallcases can make monitoring the portfolio’s performance challenging, leading to confusion and difficulty in understanding the exact details of the investments.

Choosing the right smallcases that offer a well-diversified portfolio and provide reasonable returns is crucial. Investing in a few selected smallcases that align with one’s investment goals and risk profile is a better strategy than investing in multiple smallcases.

How to use your existing Demat account to invest in Smallcase?

For novices, investing in the stock market can be a challenging and intimidating experience. With so many stocks and funds, figuring out where to start can take time. Enter Smallcases, a new and innovative way of investing that makes diversifying your portfolio a breeze.

Smallcases are baskets of equities and ETFs carefully selected by investment experts to align with specific market themes, investment strategies, or trending ideas. To invest in Smallcases, investors need a Demat account, a trading account, and a bank account, just like conventional stock trading. The trades are executed through trading accounts with a broking firm, and the stocks purchased in the basket are held in the investor’s Demat account.

How do SIPs work in a Smallcase?

Smallcases are a unique investment avenue that allows investors to invest in a basket of stocks and ETFs that follow a specific theme or investment idea. One of the significant advantages of investing in Smallcases is the ability to establish a SIP, which is a systematic investment plan.

SIPs allow investors to invest small amounts regularly, an affordable way to invest in the stock market. However, it’s important to note that Smallcases work differently than mutual funds, and investors need to purchase total units of the stocks. In most smallcases, the first investment needs to be a lump sum investment that adheres to the minimum investment requirement.

Setting a SIP in Smallcases is a great way to build a disciplined investment habit and earn better risk-adjusted returns. It’s also a great way to stay relevant in all market conditions, as SIPs do not require investors to time the market.

How to set the proper Risk Appetite in Smallcase – Explained

Investing is often a game of balancing risks and returns. And while returns may seem like the most crucial factor in selecting an investment, experienced investors know that risk is equally critical.

Smallcases offer investors a unique investment avenue that allows them to access a carefully curated portfolio of stocks and ETFs managed by professional fund managers.

However, before investing in Smallcases, investors must understand their risk appetite and tolerance. Risk appetite is an investor’s willingness to take risks, while risk tolerance is an investor’s ability to take risks. Investors must examine these two factors before making any investment decisions. Once investors have determined their risk appetite and tolerance, they can choose the Smallcases that align with their objectives.

Finally, investors should regularly examine their portfolio’s alignment with their goals and rebalance it as necessary. It can help their asset portfolio stay on track.

Know More About Smallcase

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SEBI Registered Investment Advisor: Key to Secure Investments

Who is an investment advisor?

The SEBI (Investment Advisers) Regulations, 2013 defines an investment advisor as an individual offering investment advice to clients, other individuals, or groups of individuals for a fee. It is important to note that investment advisors are distinct from financial advisors. While financial advisors may provide investment advice, they may also offer other services such as tax planning, retirement planning, and insurance planning. In contrast, investment advisors specifically provide advice and recommendations related to securities and investment products.

Scope of SEBI-Registered Investment Advisor in India

Here are the key points highlighting the scope of investment advisor’s role in India:

Providing Investment Advice: As a SEBI-registered investment advisor, you can provide professional investment advice to your clients. Your expertise and knowledge in the field allow you to offer guidance on investment opportunities, portfolio management, risk assessment, and financial planning

Risk Profiling: One of the crucial responsibilities of SEBI-registered investment advisors is to assess investors’ risk profiles. They evaluate whether an investor is comfortable with high-risk, medium-risk, or low-risk investments

Investor Protection: The compliance procedures and eligibility requirements ensure that only competent professionals are eligible to provide optimal investment advice to clients.

Regulatory Compliance: SEBI-registered investment advisors must comply with the regulations set forth by SEBI. Advisors must also stay updated with the latest regulatory changes and adhere to the guidelines provided by SEBI.

Continuous Monitoring and Evaluation: SEBI-registered investment advisors continuously monitor and evaluate their clients’ portfolios. They review the performance of investments, assess market conditions, and make necessary adjustments to align the portfolios with the client’s goals and risk preferences.

Who is a registered investment advisor?

A SEBI-registered investment advisor is an individual or entity that has obtained registration from the Securities and Exchange Board of India (SEBI) to provide investment advice and related services to clients in India. Introducing the SEBI investment advisor regulations ensured that investors are not duped by unscrupulous individuals or entities that claim to be investment advisors but lack the necessary qualifications, expertise and experience.

SEBI has issued guidelines for investment advisors, which provide detailed requirements for registration, ongoing compliance, and business conduct for registered investment advisors. Read them below.

How to become SEBI registered investment advisor?

SEBI has laid out specific eligibility criteria that must be met to become a registered investment advisor. These criteria help ensure that only qualified and experienced individuals can provide investment advice and related services in the securities market.

Firstly, the individual or entity must hold a professional degree in finance, accounting, business management, economics, or a related field and possess a postgraduate degree or diploma in finance or a related field. In addition, the individual must pass the NISM Series-X-A: Investment Adviser (Level 1) Examination or any other examination approved by SEBI, as well as the NISM-Series-X-B: Investment Adviser (Level 2) certification.

The individual or entity must have at least five years of experience in activities related to the securities market, such as fund management, advisory services and more.

Finally, minimum net worth requirements must be met by individuals, partnership firms, and companies to register as investment advisors. The net worth of individuals must be at least Rs. 5,00,000, while the net worth of partnership firms and companies should be a minimum of Rs. 50,00,000.

Besides the above-mentioned criteria, to apply for registration as an Investment Adviser, the applicant must submit Form A along with all required supporting documents to SEBI, as specified in the SEBI investment advisor regulations.

The applicant can expect to hear back from SEBI within a month after submitting their application. Nevertheless, the duration of the registration process is subject to the applicant’s adherence to all registration criteria and the provision of comprehensive and accurate information.

Read more about the Fee structure for the applicant with SEBI

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Financial Advisor: A Guide for Your Financial Goals

Who is a financial advisor?

A financial advisor is a professional who provides advice and guidance to individuals, families, and businesses on various financial matters, such as investment planning, retirement planning, tax planning, estate planning, risk management and more.

Such advisors typically have a deep understanding of financial markets and investment products and can help clients make informed decisions based on their risk tolerance and investment objectives. In addition to providing advice, a financial advisor may also manage their clients’ investments, monitor progress, and make adjustments as necessary to keep them on track.

What does a financial advisor do?

A financial advisor can play a crucial role in helping individuals manage their finances and achieve their financial goals. Let’s explore the role of a financial advisor.

1. Long-term financial planning

Long-term financial planning is another significant area where financial advisors provide invaluable guidance to their clients. They can help clients create a comprehensive plan that takes into account their financial goals, risk tolerance, and time horizon. For example, a young professional looking to save for a down payment on a house may need a different investment strategy compared to someone nearing retirement.

2. Tax planning

Tax planning is also a crucial aspect of a financial advisor’s role. Advisors can help minimise tax liabilities, make the most of available tax deductions and credits, and create tax-efficient investment strategies.

3. Investment advice

Financial advisors can help create an investment portfolio aligned with their client’s financial goals, risk tolerance, and time horizon. They can also help clients monitor and adjust their portfolios over time to ensure they stay on track toward achieving their objectives. For example, a financial advisor can recommend a diversified investment portfolio that balances risk and reward and adjusts the portfolio to reflect changes in market conditions.

4. Debt management

A financial advisor can help clients develop a strategy to manage debt, which can include consolidating debts, negotiating with creditors to lower interest rates and more.

5. Retirement planning

Retirement planning is a critical aspect of a financial advisor’s role. They can help clients estimate their retirement expenses, create a savings plan, and choose the right retirement accounts and investments to maximise their savings.

6. Estate planning

A financial advisor can help clients create an estate plan that includes a will, trust, and other documents to ensure their assets are distributed according to their wishes. Financial advisors can also help clients minimise estate taxes, avoid probate, and plan for incapacity and disability.

How to become a financial advisor in India?

To become a financial advisor in India, certain educational and skill requirements must be met. As a minimum, a bachelor’s degree in finance, business, accounting, or economics is necessary. However, to enhance your knowledge and marketability, pursuing a master’s level degree is recommended. For instance, an MBA with a specialisation in finance can provide a strong foundation for a career as a financial advisor.

Apart from the educational qualifications, it is important to have certain skills to become a successful financial advisor. Some of the key skills that a financial advisor must possess are listed below:

Interpersonal skills

Good communication skills

Research and critical thinking

Analytical skills

Problem-solving skills

Business development skills

Wealth management

The ability to work under pressure

To gain practical knowledge and experience, one can look for internships or apprenticeships with financial advisory firms. Additionally, with one of the following certifications, you can become a certified financial advisor and enhance your credibility as a financial advisor.

Chartered Alternative

Investment Analyst (CAIA)

Certified Financial Planner (CFP)

Chartered Financial Analyst (CFA)

Financial Risk Manager (FRMN)

Chartered Mutual Fund Counselor (CMFC)

Insurance Regulatory Department Authority of India (IRDA)

Ready to invest like a pro? Join Teji Mandi and let our SEBI-registered research analysts guide you to success. Read more about How to become a financial advisor in India

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The Ultimate Guide to Understanding the Role of a Research Analyst

In the ever-evolving world of finance and investments, a research analyst plays a crucial role in providing valuable insights and analysis to investors. In this article, we will explore the responsibilities of a research analyst, their significance in managing portfolios, the process of becoming a research analyst, and the required documents for SEBI registration.

Understanding the Role of a Research Analyst

A research analyst is a financial professional who conducts in-depth research and analysis on various financial instruments, such as stocks, bonds, and other securities. They evaluate market trends, company financials, industry dynamics, and macroeconomic factors to provide informed recommendations and insights to investors.

Importance of Research Analysts in Portfolio Management

Research analysts play a vital role in portfolio management. They help investors make informed investment decisions by providing detailed reports, investment recommendations, and market insights. Their analysis helps investors identify potential investment opportunities, assess risks, and optimize their portfolios to achieve their financial goals.

How Can a Research Analyst Help You Manage Your Portfolio?

A research analyst can assist in portfolio management in the following ways:

a. In-depth Research and Analysis

Research analysts conduct thorough research on various investment options. They analyze financial statements, industry trends, and market conditions to provide investors with detailed reports and recommendations. This information helps investors make well-informed decisions.

b. Investment Recommendations

Based on their research, research analysts offer investment recommendations tailored to individual investors' goals and risk appetite. They suggest suitable investment options, asset allocation strategies, and potential entry and exit points.

c. Market Insights

Research analysts stay updated with the latest market developments and trends. They provide investors with valuable insights, including market outlook, sector analysis, and emerging opportunities. This information helps investors stay ahead and adjust their portfolios accordingly.

Qualifications and Skills Required to Become a Research Analyst

Becoming a research analyst requires a combination of education, skills, and experience. Some of the key qualifications and skills include:

a. Educational Background

A strong educational background in finance, economics, or a related field is essential. A bachelor's degree in a relevant discipline is typically required, while a master's degree can provide a competitive edge.

b. Analytical Skills

Research analysts need strong analytical skills to interpret financial data, perform quantitative analysis, and draw meaningful conclusions. They should be proficient in using analytical tools and software.

c. Financial Knowledge

A deep understanding of financial markets, investment principles, and financial instruments is crucial. Research analysts should have knowledge of valuation techniques, financial modeling, and risk analysis.

d. Communication Skills

Effective communication is vital for research analysts to present their findings, recommendations, and reports to clients and stakeholders. Strong written and verbal communication skills are necessary to convey complex information in a clear and concise manner.

Steps to Become a Research Analyst

To become a research analyst, aspiring professionals can follow these steps:

a. Gain Relevant Education

Acquire a bachelor's or master's degree in finance, economics, or a related field. This education provides a solid foundation in financial concepts and analytical skills.

b. Gain Practical Experience

Internships and entry-level positions in financial firms or research departments can provide practical experience and exposure to the research process. This hands-on experience helps develop essential skills and industry knowledge.

c. Build Analytical Skills

Continuously improve analytical skills by staying updated with industry trends, practicing financial analysis techniques, and leveraging technological tools for data analysis.

d. Obtain Certifications

Pursue relevant certifications like Chartered Financial Analyst (CFA) or Financial Risk Manager (FRM) to enhance credibility and demonstrate expertise in the field.

e. Networking and Professional Development

Network with professionals in the finance industry, join industry associations and attend conferences or seminars to expand professional connections and stay informed about the latest developments.

SEBI Registration and Regulatory Requirements

In India, research analysts are required to register with the Securities and Exchange Board of India (SEBI) to provide research services. SEBI is the regulatory authority that oversees the functioning of capital markets and protects investors' interests.

Documents Required for SEBI Registration as a Research Analyst

To apply for SEBI registration as a research analyst, the following documents are typically required:

a. Application Form

Complete the application form provided by SEBI, furnishing accurate details and information.

b. Identity Proof

Submit identity proof documents such as PAN card, Aadhaar card, or passport.

c. Address Proof

Provide address proof documents, which may include a utility bill, bank statement, or rent agreement.

d. Educational Qualifications

Submit copies of educational certificates and degrees to establish the applicant's educational qualifications.

e. Experience Certificates

If applicable, provide experience certificates from previous employers to demonstrate relevant work experience.

f. Undertaking

Submit an undertaking stating compliance with SEBI regulations and code of conduct.

Conclusion

Research analysts play a pivotal role in the financial ecosystem by providing valuable insights, investment recommendations, and market analysis. They assist investors in managing their portfolios effectively, optimizing returns, and minimizing risks. By following the necessary steps and fulfilling SEBI's regulatory requirements, aspiring research analysts can contribute to the finance industry and help investors achieve their financial objectives.

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Stock Market Experts: SEBI Requirements and Benefits of Engaging a SEBI-Registered Expert

In the complex and dynamic world of stock markets, having guidance from knowledgeable professionals is invaluable. Stock market experts possess the expertise and experience necessary to navigate the intricacies of investing and provide valuable insights to investors. In this article, we will explore who stock market experts are, the requirements set by SEBI for them, and the benefits of engaging a SEBI-registered expert.

Defining Stock Market Experts

Stock market experts are professionals who have extensive knowledge and experience in the field of financial markets. They analyze market trends, economic indicators, company performance, and various other factors to provide informed advice and guidance to investors. These experts have a deep understanding of the intricacies of stock markets and play a vital role in helping investors make well-informed investment decisions.

Role and Importance of Stock Market Experts

Stock market experts play multiple roles in the investment landscape. They serve as advisors, analysts, and strategists, helping investors identify potential opportunities, manage risks, and optimize their investment portfolios. Their expertise and insights help investors navigate the complexities of the stock market and achieve their financial goals.

SEBI Requirements for Stock Market Experts

SEBI, the Securities and Exchange Board of India, has established requirements and guidelines for individuals or entities offering stock market expertise. These requirements aim to ensure investor protection, market integrity, and ethical conduct in the financial industry.

Qualifications and Experience Criteria

SEBI mandates specific qualifications and experience criteria for individuals seeking to provide stock market expertise. These criteria include educational qualifications, relevant work experience, and professional certifications. By setting these requirements, SEBI ensures that stock market experts have the necessary knowledge and skills to assist investors effectively.

Benefits of Engaging a SEBI-Registered Stock Market Expert

Engaging a SEBI-registered stock market expert offers several benefits for investors. Let's explore some of the key advantages:

Expertise and Knowledge

Stock market experts possess in-depth knowledge of financial markets. They stay updated with market trends, economic indicators, industry analysis, and company-specific information. Their expertise enables them to provide valuable insights and recommendations to investors.

Personalized Investment Advice

SEBI-registered experts assess investors' financial goals, risk tolerance, and investment preferences to offer personalized investment advice. They consider various factors, such as age, income, and investment horizon, to create tailored investment strategies aligned with individual objectives.

Risk Management and Diversification

Stock market experts analyze market conditions, identify potential risks, and suggest strategies to manage risk effectively. They emphasize the importance of portfolio diversification, spreading investments across different asset classes and sectors, to reduce exposure to specific risks and enhance overall portfolio resilience.

Compliance with Regulatory Standards

SEBI-registered experts operate within the regulatory framework established by SEBI. They adhere to ethical practices, maintain transparency in their dealings, and ensure client confidentiality. By engaging a SEBI-registered expert, investors can have confidence in their services, knowing that they comply with regulatory standards.

Conclusion

Stock market experts, guided by SEBI requirements, play a crucial role in assisting investors in their investment journey. Their knowledge, personalized advice, risk management strategies, and adherence to regulatory standards contribute to a more informed and secure investment experience.

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Constructing an Effective and Varied Stock Portfolio: A Complete Guide

Introduction: Understanding the concept of a stock portfolio

When it comes to investing in the stock market, having a well-structured and diversified stock portfolio is essential. A stock portfolio refers to a collection of investments, primarily consisting of stocks, that an individual or an entity holds. It serves as a strategic approach to managing investments, aiming to maximize returns while minimizing risk.

Definition of a stock portfolio

A stock portfolio is a compilation of stocks and other securities owned by an investor. It is designed to achieve specific investment objectives, such as capital appreciation, income generation, or a combination of both. A stock portfolio can include stocks from different sectors, industries, and geographical regions to ensure diversification.

Importance of diversification in a stock portfolio

Diversification is a crucial element in creating a stock portfolio. It involves spreading investments across different stocks and asset classes to reduce risk. By diversifying your portfolio, you decrease the impact of any single stock's performance on your overall investment. It allows you to benefit from potential gains in various sectors while mitigating the impact of potential losses.

A step-by-step guide to creating a stock portfolio

1. Assess your financial goals and risk tolerance

Before building a stock portfolio, it is important to identify your financial goals and assess your risk tolerance. Determine the time horizon of your investments and whether you are investing for short-term gains or long-term growth. Understanding your risk tolerance will help you choose the appropriate investment strategy and asset allocation.

2. Research and analyze different stocks

Thorough research and analysis are vital in selecting suitable stocks for your portfolio. Consider factors such as a company's financial health, growth prospects, competitive advantage, and industry trends. Utilize fundamental analysis, which involves evaluating a company's financial statements and performance metrics. Additionally, stay informed about market news and trends that may impact your investment decisions.

3. Determine asset allocation and diversification

Asset allocation refers to the distribution of your investments among different asset classes, such as stocks, bonds, and cash equivalents. Determine the appropriate asset allocation based on your financial goals and risk tolerance. Allocate your funds across various stocks, sectors, and possibly other investment instruments to achieve diversification. This helps reduce the impact of any individual stock's performance on your portfolio.

4. Monitor and review your portfolio regularly

Once your stock portfolio is established, it is essential to monitor and review its performance regularly. Keep track of your investments and stay updated on company news, economic indicators, and market trends. Periodically reassess your portfolio's asset allocation and make adjustments if necessary. Rebalancing your portfolio ensures that it remains in line with your investment goals and risk tolerance.

Tips for managing a stock portfolio effectively

Stay informed: Continuously educate yourself about the stock market, investment strategies, and financial news.

Regularly review your portfolio: Assess your portfolio's performance, make necessary adjustments, and rebalance when needed.

Avoid emotional decision-making: Base your investment decisions on thorough analysis rather than reacting to short-term market fluctuations.

Diversify across sectors and industries: Spread your investments across different sectors to reduce the impact of any sector-specific risks.

Consider professional advice: If needed, consult with a financial advisor who can provide guidance based on your specific financial situation.

Conclusion

Creating a stock portfolio is a strategic process that requires careful planning, research, and regular monitoring. By diversifying your investments, assessing your financial goals and risk tolerance, and staying informed about market trends, you can build a robust and well-performing stock portfolio. Remember to review and adjust your portfolio periodically to ensure it aligns with your investment objectives.

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Invest in smallcase with sebi registered professionals- Teji Mandi

What is Smallcase?

Smallcases incorporate a portfolio-driven approach to investing. After you make a purchase, individual stock units are deposited to your Demat account. Contrary to a mutual fund, you only have access to the aggregated fund, not the underlying companies.

This also implies that when you invest in a smallcase, you automatically own a portion of each stock in the chosen smallcase and are entitled to dividends and other shareholder rights.

According to the RIA (Registered Investment Advisor) managing the portfolio, different smallcases have varied fee rates, and investing in them may cost about the same as investing in mutual funds. Exit loads aren’t imposed on smallcase redemptions, though. The same fees that apply to stock trading also apply to smallcases.

Smallcases have no concept of lock-in periods, making them similar to liquid stock. They are a type of investing that provides more flexibility and variety while remaining liquid. Investors can withdraw at any moment without losing their entire investment if things don’t turn out as expected because there are no lock-in periods. Getting the services of a qualified RIA for the fees of a mutual fund investment is another significant benefit of smallcases.

Smallcases make it simple to purchase thematic investments; rather than buying each company’s share individually, you may invest in a topic or idea as a package, such as investing in IT, pharmacy or businesses gaining from expanding rural consumerism.

For those who wish to diversify their finances without taking on too much risk, smallcases are the ideal choice. They offer reasonable investment solutions that won’t burn a hole in your pocket, with minimum investment amounts and broad theme-based asset classes!

Why Invest with Teji Mandi

Invest in Expert Managed Portfolios

Regular Review of the Portfolio

Regular Portfolio Rebalance Update

Affordable Advisory Fees Start From 99/- Month

How to Invest with Teji Mandi

Invest in tailor-made portfolio​

Teji Mandi experts will create a portfolio just for you based on your risk level​

Execute regular rebalance​

Get rebalance update on teji mandi app and approve and execute the actions

Invest regularly with SIP or LumpSum

Keep investing and watch your wealth grow. Its that easy.

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