In today’s world, investment has carved out its place in the list of our basic needs. With an endless gamut of investment options, time and again, equity has always outperformed all the other asset classes in India, with the returns from Sensex over the years being more than 18% (CAGR – Compounded Annual Growth Rate).
Investing in stock can earn you returns in two ways, capital gains and dividends.
Capital gains are the profits you earn while selling the stock. Example, if you buy a share at Rs. 250 and sell it at Rs. 1000, your capital gain will be of Rs. 750. Whereas, dividends are cash payments that you receive from the company at regular intervals, usually annually or quarterly. A good number of listed companies pay dividends regularly.
Derivatives are vital for the financial system as they help to hedge against the risk and also provide you with an opportunity to profit from the anomalies in the market. Various derivative contracts constitute a significant share of all the capital market transactions in the domestic as well as global markets. In India, derivative contracts are traded on National Stock Exchange (NSE) on a huge scale and their trade is becoming increasingly prevalent even on Bombay Stock Exchange (BSE)
Impiya Advisory membership of the Derivative Segment on both the above mentioned exchanges, provides you with an opportunity to avail of numerous benefits of trading in derivatives. This includes, researched trading ideas, hedging and arbitrage strategies, strong risk management of leveraged positions and countless others.