Services curved for your needs

Portfolio Management Services (PMS)

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 Portfolio management is the art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance. 

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Mutual Funds

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 A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets. 

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Trading Advisory and Recommendations

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 We provides research work for Equity, stock tips, intraday tips, Multibagger & Commodity markets of India. Our services are chiefly designed for Investors and Traders to provide most appropriate solution. 

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Life Insurance

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Life Insurance is the safest and the most secure way to protect your family or dependents against financial contingencies that may arise post the unfortunate event of your untimely demise. Under a Life Insurance Contract in India, the insurer assures to pay a definite sum to the policyholder’s family on his demise during the policy term.

 

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Health Insurance

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It is a tool to protect your savings against illness expenses.  Health Insurance is an insurance policy that ensures that you get cashless treatment or expense reimbursement, in case you fall ill. A health insurance policy reimburses the insured for medical and surgical expenses arising from an illness or injury that leads to hospitalization.  

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Group Insurance

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 A group health insurance plan is a health insurance plan that provides coverage to members of a group that tends to be employees of a company or members of an organization. Members of the group usually receive insurance at a reduced cost because the insurer's risk is spread across a group of policyholders. 

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Portfolio Management Services

Intro

 It is a customised solution to investments in equity and debt offered by experienced and professional Fund Managers. However the ownership of stocks continues in one’s own Demat account. The benefit of this service is that you may choose to give discretionary powers to Portfolio Managers for, staggered deployment of money to average out entry levels and portfolio actions into research backed stock ideas into mid/large/small cap to enhance return potential. 

BGS Advantage

 

BGS’s business entities address a heterogeneous swathe of population from the super rich, to the nouveau riche, the ubiquitous middle class, the lower classes (the SEC E3 according to the new Social Economic Classification), urban and the rural folks. All of whom either make a living through large business (corporate world), SMEs, professional services, traders, farmers, labour, blue and white collar jobs and the government.

Another key feature of BGS has been its ability to offer leading edge advice based on incisive ideas that are strongly rooted in high quality research on every conceivable aspect of investments be it equities, forex, commodities, bonds, fixed returns, debt instruments or any other investment grade asset class.

The customer has always been at the centre of every BGS initiative.

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BGS Exclusive Money making ideas - mutual funds

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ELSS FUNDS

 

Equity linked savings scheme (ELSS) is a type of equity mutual funds on which investments up to Rs1.5 lakh per financial year are tax deductible under section 80C of Income Tax Act, 1961. Moreover, apart from the tax benefits the ELSS investments also offer other benefits as discussed below.

Wealth creation with tax-saving – Historically, it has been seen that ELSS schemes have given significantly higher returns than other tax saving schemes like PPF, 5 years FD, EPF etc.

Shortest Lock-in period – ELSS has lock-in period of 3 years, which is the shortest lock-in period among all tax-saving instruments.

ELSS is a best way to save tax and create wealth in long term. Below are the recommended five ELSS fund.


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EQUITY FUNDS

 Equity mutual funds are one of the best ways to create wealth in long term in equity market since historically it has been seen that equity based investments have given inflation beating returns over long-term despite short-term volatilities. Besides, equity mutual fund is a right way for investors to invest in equity market who do not understand market. The Indian mutual fund industry is well regulated, transparent and mature. 

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DEBT FUNDS

 

Debt funds invest in fixed income securities like Government bond, Corporate bond and money market securities with different maturities. Debt funds are categorized as Gilt Funds, Income funds, Liquid funds, MIP, etc.

Debt funds are appropriate for investors who are risk aversive and are seeking regular income. Some of the advantages are discussed below:

  • Less volatile than equity market: The returns of debt funds are less volatile than equity funds since debt mutual funds invest in debt securities, where interest income is regular and prices are relatively stable than equity investments.
  • More liquid than fixed deposit: Investors can invest and withdraw, fully or partially, at any time, unlike fixed deposits.
  • More investment flexibility than fixed deposits: Investors can choose to switch to other schemes in the same fund house, like from a debt fund to an equity fund,
  • Taxation Benefits: Debt funds are more tax efficient than other fixed income instruments. After 3 years of investment, investors have to pay 20% tax after indexation on long-term capital gains. Indexation is adjusting investments for inflation for holding period.

TIPS - ARTICLES

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INTRADAY TRADING

 To consistently make profits in intraday trading over a longer period of time, you need to start off with simple things like documentation, setting limits and managing risks. Here are the 10 steps to focus on.

10 steps to intraday trading

  1. Have you created your trading rule book and if not, then start the process right away. The trading rule book basically lays down all the rules and regulations for your intraday trading. This includes questions like - the loss you are willing to take, the capital depletion you can afford, preferred risk-reward ratio etc. It is your trading constitution book which you must adhere to.
  2. Define your maximum loss at various levels. Define how much of your capital you are willing to lose. At that point, you must stop trading and get back to the drawing board. You must also define the maximum you are willing to lose in a day. If that loss occurs in the first one hour, then have the discipline to shut your terminal for the rest of the day.
  3. In any intraday trade, stop loss is the Holy Grail whether on the long side or on the short side. Normally, stop losses are linked to support and resistance levels but can also be set at your affordability level. Stop loss must be a part of your order and not an afterthought. Secondly, when the stop loss is triggered, just close the position and don’t try to average it.
  4. In intraday trading, always work with a reasonable profit target in mind and be flexible about it. These profit targets must also be imputed in the system as part of a bracket order so that once the stop loss or profit target is triggered; the other leg automatically gets cancelled.
  5. Buy on hope and sell on reality. As an intraday trader, you largely deal with expectations. Once the street knows about it, there is hardly any trade left in the stock. If you are trading based on news flows, you will have to initiate the trade based on expectations and then book your profits when the actual announcement is made.
  6. You can’t outsource charting and research as an intraday trader; you need to do it all by yourself. If you are an intraday trader, the basic route to being successful is to be your own chartist. It is not too complicated and a few basic rules are good enough for you to consistently trade intraday.
  7. Ensure that you are in control of your open positions. Don’t have too many positions open at one point of time as they can be hard to track. This is a mistake intraday traders often commit. Your mental bandwidth only allows you to track a limited number of positions in terms of fundamentals, charts and news flows.
  8. A very important rule in intraday trading is “doing nothing” and it is also an intraday strategy. Quite often, when you look back, it is the most profitable strategy. Intraday trading does not mean that you must either be long or short at all points of time. When the market is too confusing or volatile, take a conscious call to sit out of the market.
  9. As an intraday trader, you are most likely to be successful if you stay close to the market trend. The trend is your friend because it always has a story to tell you. When the market shows a trend it is your job to listen to that message and trade accordingly. At the end of the day, the market is collective wisdom and is always smarter than you. Once you develop that humility in intraday trading, you are on the profitable path.
  10. Documenting and recording may look like mundane jobs but they are the core for your successful intraday trading. Start maintaining a trading diary. It is not just a record of your trades and the logic, but also a daily end-of-day evaluation of how it fared. Make notes on where you went wrong and how you could trade better. Over time, your intraday trading skills gets fine-tuned!

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Selecting Stock for Intraday Trading

 

10 rules for selecting stocks for intraday trading

  1. The first rule is to trade intraday only in companies where there is sufficient information available in the public domain. That means companies that follow high standards of disclosure and transparency should have a better chance of being in your list. Transparency is the key and that is your primary rule for intraday selection.
  2. Focus on stocks that are also available in F&O. There are two reasons for the same. Firstly, these are extensively tracked by analysts and there is more information available on such stocks. You also have additional advantages like the availability of hedging possibilities on additional data points like PCR, IVs etc.
  3. Watch out for clear technical patterns. Yes, the moral of the story is that if you want to be an intraday trader, learn to interpret and apply technical charting yourself. You cannot outsource that job. Irrespective of your beliefs in fundamental and technical analysis, as an intraday trader, you will have to rely extensively on charts. Just look for clear trends as there is too much risk in trading ambiguous trends in intraday.
  4. Intraday trading needs strict stop losses and profit targets. You can only do that where there are clear supports and resistance levels that you can identify and back test. You should be able to establish supports and resistances with a reasonable degree of certainty. This is useful to trade reversals as well as break outs.
  5. Intraday trading is all about protecting capital, so that volatile stocks are almost ruled out. Of course, you need stocks that exhibit movement but if the stocks are volatile, stop losses will keep getting triggered.
  6. Focus on stocks with a positive risk-return trade-off. Unless the stock can give an intraday reward ratio of 2:1, there is no point taking that risk of trading intraday. This determines how quickly you can churn your intraday trading capital for ROI.
  7. If you find that any stock is subjected to price rigging, cornering, circular trading, SEBI watch list etc, it is best to avoid such stocks from your list. They run the risk of price and liquidity.
  8. Unless daily volumes are at least 10% of market cap, don’t select them for intraday trading. Don’t get caught on the wrong side of the intraday trade.
  9. An important aspect in intraday trading is the basis risk which is related to the tick spreads of the stock. Normally, stocks that are liquid trade in the lowest possible tick of around 5 paise. We not only require price ticks but volumes to support the price tick.
  10. Finally, there is a delicate balance; you need stable stocks that exhibit some elasticity. Stocks like NTPC, for example, hardly react and may not be suitable for intraday trading. On one hand you do not need a stock that keeps reacting to news wildly. At the same time, it is also not possible to trade intraday in stocks that hardly react on most days.

The big challenge in intraday trading is selecting the right stock universe to trade. A good list is nearly 25% of the job done.

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5 Tips for Investing in Initial Public Offerings (IPO)

 

Between 2015 and 2018, IPOs became a principal source of raising funds and also an interesting avenue for investors to park their funds. IPOs like Alkem, Avenue Supermarts and Shankara Building Products, among others, did extremely well post listing. However, the IPO market also had its share of disappointments. How to separate the good IPOs from the mediocre IPOs, remains the million dollar question. Here are five tips to help you invest in IPO offerings.

Don’t invest in IPOs without checking the background of the promoters

This may look intangible but pedigree of promoters matters a lot. If the promoters have a past record of destroying stock market wealth or of corporate governance issues, such issues are best avoided. Irrespective of the attractiveness of the business, a bad management can do a lot of damage. Look at Satyam versus Infosys in the same industry. Quality of promoters has a direct bearing on the valuations of a company and the performance of an IPO. More often than not, it is the promoters who make the difference between a bad company and a good company.

Valuations matter because you cannot pay too much for IPO hype

When we talk of valuations, it is not just about P/E ratio but more about P/E ratios with reference to the growth of the company. For example, Avenue Supermarts was richly valued even at the time of the IPO. Despite that, the company gave more than 200% returns post listing. Be cautious when promoters and anchor investors try to use the IPO to exit their holdings in the company at rich valuations. You don’t have to play ball in such cases.

Utilization of funds tells you a lot about the quality of the IPO

In the IPO prospectus, the utilization of funds is clearly laid out. It is always good to focus on IPOs that utilize a bigger share of the IPO resources in enhancing their core business. For example, if a manufacturing company is using the IPO funds to expand its scale or to make strategic diversifications then it is a good idea. This will enhance the long term prospects of the company. You must be doubly cautious about investing in IPOs where the bulk of the IPO proceeds are going into meeting working capital needs, investing in real estate properties, investing in group companies etc. Some companies also use IPO proceeds to repay high cost loans. While that is acceptable, investors must remember that equity has a higher cost compared to debt.

Be wary of IPOs where promoter is substantially diluting stake

Quite often you come across IPOs that also have an OFS (offer for sale) component. Here the promoter or the anchor investor looks to monetize part of their stake as part of the IPO. This is true for companies promoted by large institutions as well as entrepreneurs. This is perfectly understandable. However, you must be wary of companies where promoters have been trying to consistently dilute their stake in the company. This is not a good sign at all. Promoter stake in the company post IPO is a signal of their continued commitment to the company and its business. Remember that promoters can also pledge shares and that can also result in forced reduction of promoter holdings. All these are red flags to look out. You invest in the promoters as much as in the business so you need promoters committed to the business in the long term.

Be wary of too much debt or too much equity

In the last 11 years since the financial crisis, the worst performing IPOs are the ones that got into too much debt. Companies with high debt levels will always have a solvency problem and that puts a limit to the wealth that they can create. This is more so in industries that are cyclical in nature as in the case of metals and infrastructure. There is financial risk in debt and that is where most mid-cap and even large cap companies falter. Just as too much debt is bad, too much equity also makes the company languid.

The next time you invest in an IPO, watch out for these five things. It is a good starting point!