What are Corporate Actions?

What are Corporate Actions?

Corporate actions help investors get an idea of how the management plans to maintain the company’s future path. These periodic events affect investors and the company’s financial structure in various ways. Understanding their implications can help you make investment decisions & understand the company’s financial prospects. This article discusses the five common corporate actions – Dividends, bonuses, Splits, Rights, and Buybacks. DIVIDEND Dividends are a medium through which the company distributes its profits to the shareholders. Companies are not obligated to pay dividends to the shareholders. Some companies choose instead to use the reserves for expansion and future growth. Dividend payments have a specific timeline to shortlist all the eligible beneficiaries. Some of the …

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THE WHY AND HOW OF MUTUAL FUND DEMATERIALISATION

THE WHY AND HOW OF MUTUAL FUND DEMATERIALISATION

Are you still holding your mutual fund units in Physical form? Do you know you can hold the units in your Demat account? Demat account can offer many advantages like getting a consolidated view of your investments in one place. Since you may hold your mutual fund investments with various mutual fund houses, availing services from various RTAs, tracking and investing among AMCs can become cumbersome over time. De-materialization: converting physical shares and mutual funds into electronic form that can be held in your Demat Account without the fear of misplacing or damage of the physical certificates. However this is not the case with mutual fund units …

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Beneficial ways of investing In REITs : Types, Advantages & Limitations of REITs

Beneficial ways of investing In REITs : Types, Advantages & Limitations of REITs

A Real Estate Investment Trust (REIT) is a company that owns, operates or finances income producing Real Estate properties which may comprise of apartment buildings, cell towers, data centres, hotels, healthcare units, offices, warehouses etc. Most REITs focus on a particular property type, but some hold multiples types of properties in their portfolios. How does a company qualify as an REIT? REITs lease out their properties, collect rentals and distribute dividends to their shareholders. Mortgage REITs do not directly own real estate, but finance real estate instead and earn income from the interest on these investments. To qualify as a REIT, a company …

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Initial Public Offering (IPO)

What and How to Invest in IPO : A step-by-step Guide!

An Initial Public Offering (IPO) refers to the process of offering shares of a private company to the public in a new stock issuance. It allows a company to raise funds from the market. Businesses require funds for many reasons. These funding requirements can be met through an IPO. Once a company decides to go public, it launches an Initial Public Offering or IPO. Technically, IPO allows the company to list and trade its securities on the different stock exchanges and raise a large amount of capital. The Securities and Exchanges Board of India (SEBI) regulates the launch and after all …

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e-KYC – A new way of Digital Account opening

e-KYC facilitates the completion of KYC process online eliminating the need for filling up physical forms and submission of physical documents. The main objective of e-KYC is to register the customer with least amount of paperwork and in the shortest possible time. The customers need to submit their details, such as – Aadhaar number, PAN, Aadhaar registered mobile number and bank details. Difference between KYC and e-KYC ‘Know Your Client’ or KYC is a process by which a service provider, either government or private, verifies your identity and other particulars linked to you using documentation such as your Aadhaar Card. …

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Sovereign Gold Bonds (SGB) – Tax free way to invest in Gold

Sovereign Gold Bonds (SGB) – Tax free way to invest in Gold

Sovereign Gold Bonds are kind of Government bonds that are issued (by the RBI on behalf of the Government) on payment of rupees but denominated in grams of gold. It allows an individual to invest in gold without the strain of safekeeping their physical asset. The value of these bonds depends on the value of gold. Sovereign Gold Bonds act as a secure investment tool among individuals, as gold prices are less susceptible to market fluctuations. Key Features of Sovereign Gold Bond Eligibility All resident individuals, HUFs, registered entities like a trust, universities, charitable institutions, societies and clubs, partnership firms and private …

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Achieve Life Goals through Financial Planning : A Step-by-Step Guide

Achieve Life Goals through Financial Planning : A Step-by-Step Guide

Our Future is very unpredictable. If you are planning your life under the assumption that everything will remain as it is, you are putting yourself and your finance in great danger. No matter how hard we try one cannot really predict what is in store for you in the times to come. We all have our own goals, desires and objectives that we dream to fulfil at some point of time, but these objectives cannot be achieved without a solid financial planning. Financial Planning is a strategy to achieve your life’s objectives through meticulous management of your finances. It helps to determine your …

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NSDL Payments Bank Key Features And Benefits : Digital Banking Services

NSDL Payments Bank Key Features And Benefits : Digital Banking Services

To provide simplified banking services to every Indian, NSDL the first and largest depository in India, step ahead and commenced NSDL Payments Bank operation, the wholly-owned subsidiary of National Securities Depository Ltd (NSDL) – a new way of DIGITAL BANKING. NSDL Payments Bank offers different types of Savings Accounts with up trending features and benefits. Jiffy Savings Accounts are tailored to meet the need of managing money more conveniently. NSDL Jiffy is the face of NSDL Payments Bank. It enables us to perform quick, smooth and secure transactions. This is accessible to everyone, from anywhere. NSDL JIFFY goes through multi …

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Gold ETF : The best way to buy gold without any tension

How can one invest in gold in a tension free manner?

We Indians just love gold! It is in our DNA. For us, it has not only emotional and sentimental value, it is a form of saving for the worst situation we may face in our lives. And yes, Indian households at present have a staggering 22,000tonnes of gold. But buying physical gold has its own problems. The risk of theft, where to store it and the cost of storage. We wear the gold we own on special occasions and the rest of the time it is perhaps kept at home in our cupboards or in a bank locker. How can one …

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Equity Linked Savings Scheme (ELSS) : Why is the best Tax Saving Investment

How ELSS is helpful to save tax

Equity Linked Savings Scheme, or ELSS, are equity funds which invest a major portion of their corpus into equity or equity-related instruments.  ELSS funds are also called tax saving schemes since they offer tax exemption of up to Rs. 150,000 from your annual taxable income under Section 80C of the Income Tax Act.  An investor can opt for Dividend Payout or Growth option. Many reputed fund houses such as HDFC Mutual Fund have paid out between Rs.5 to Rs.7 per unit in their HDFC Tax Saver Dividend Option scheme, giving investors a return of around 10%. However, investors are advised that with effect from 1st April …

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