Want to start with IPOs/NCDs?
An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time, transitioning to a publicly traded entity. This allows the company to raise capital from a broad base of investors, which can be used for expansion, debt repayment, or other corporate purposes.
Upcoming launched IPOs
| Issuer Company | Open Date | Close Date | Listing Date | Issue Price (Rs) | Issue Size (Rs Cr.) |
|---|---|---|---|---|---|
|
Survival Technologies Ltd IPO |
TBA |
TBA |
TBA |
TBA |
TBA |
|
Arkade Developer Ltd |
16 Sep – 19 Sep |
TBA |
TBA |
zero |
410 – 410 Cr |
|
Wester Carriers (India) Ltd |
13 Sep – 18 Sep |
TBA |
TBA |
163 |
467.09 -492.88 Cr |
Know about NCDs
A Non-Convertible Debenture (NCD) is a type of debt instrument issued by companies to raise long-term capital. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company. They offer regular interest payments and are considered a safer investment compared to stocks, as they provide fixed returns
Recent launched NCDs
| Pension Fund | NAV | Returns 1 Year | Returns 3 Years | Returns 5 Years | Returns 7 Years | Returns 10 Years | Returns Inception |
|---|---|---|---|---|---|---|---|
|
Aditya Birla Sun Life Pension Management Ltd |
28.7176 |
33.38% |
19.51% |
19.71% |
15.37% |
NA |
15.71% |
|
HDFC Pension Management Co. Ltd. |
53.5163 |
34.22% |
19.25% |
20.22% |
15.69% |
14.29% |
16.47% |
|
LIC Pension Fund Ltd. |
45.2454 |
33.33% |
19.71% |
19.91% |
14.77% |
13.13% |
14.67% |
National Pension Scheme
The National Pension System (NPS) is a government-sponsored retirement savings scheme in India that provides a structured and regulated way for individuals to save for their retirement. It allows investors to contribute regularly to a pension account during their working years, with the corpus accumulated being invested in a mix of equity, government securities, and corporate bonds. At retirement, NPS offers a lump sum withdrawal option along with a pension annuity, providing a steady income post-retirement.
Exchange Traded Fund
An Exchange-Traded Fund (ETF) is a type of investment fund that trades on stock exchanges, much like individual stocks. ETFs hold a diversified portfolio of assets, such as stocks, bonds, or commodities, and aim to track the performance of a specific index or sector. ETFs can be bought and sold throughout the trading day at market prices, providing flexibility and ease of access.
BONDS
Bonds are debt securities issued by governments, municipalities, or corporations to raise capital. When an investor buys a bond, they are essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity. Bonds are considered lower-risk investments compared to stocks, offering a predictable income stream. They come in various types, including government bonds, corporate bonds, and municipal bonds, each with different risk and return profiles.
Heard about PMS?
Portfolio Management Services (PMS) are personalized investment solutions offered by our professional managers to individual investors. PMS involves creating and managing a customized investment portfolio based on the client’s financial goals, risk tolerance, and investment preferences. Unlike mutual funds, PMS offers more tailored strategies and direct ownership of securities.
What are the types of portfolio management services?
There are four popular types of PMS
- Active Portfolio Management: The portfolio manager's primary goal is to maximise returns. In the Active Portfolio Management method, the portfolio manager attempts to reduce the risk of your investments by diversifying them across asset classes, industries, and businesses. When compared to the passive style, this results in a higher turnover.
- Passive Portfolio Management: This method focuses on fixed profiles that are in line with the current market trend. In this case, portfolio managers prefer to invest in index funds which grow passively over time with minimal intervention. They have a low turnover but offer reasonably good long-term returns.
- Discretionary Portfolio Management: The portfolio manager is entrusted with managing a specific portfolio in this method. Based on your objectives, risk tolerance, and investment duration, the manager selects an appropriate strategy that they believe is best suited to your portfolio. For example, portfolio managers may recommend equity-oriented funds to a risk-taking investor and debt-oriented funds to a risk-averse investor.
- Non-Discretionary Portfolio Management: In this method, the portfolio managers advise you on investing, but the final decision is yours. Once you give the go-ahead, the portfolio managers take the appropriate action on your behalf.
FAQ
You have questions, we have answers.
Non-Convertible Debentures (NCDs) can be a relatively safe investment, but their safety depends on the credit rating of the issuer. High-rated NCDs from reputable companies offer lower risk, while those with lower ratings may carry higher risk but offer better returns. It’s important to assess the creditworthiness of the issuer and the interest rate offered before investing.
Bond pricing is determined by the present value of its future cash flows, which include periodic coupon payments and the bond’s face value at maturity. The bond’s price fluctuates based on interest rates: when market interest rates rise, bond prices fall, and vice versa. This is because the fixed interest payments from the bond become more or less attractive compared to new bonds issued at current rates. Factors like the bond’s coupon rate, time to maturity, and the issuer’s credit risk also impact its pricing.
Investing in Initial Public Offerings (IPOs) carries several risks:
- Volatility: IPO stocks can experience significant price swings due to market hype or uncertainty.
- Limited Information: New companies may provide less historical data, making it harder to assess their financial health.
- Lock-Up Periods: Insiders may be restricted from selling shares initially, leading to potential price drops when restrictions lift.
- Overvaluation: IPOs can be overpriced due to high demand, leading to losses if the stock underperforms after listing.
- Business Risk: New public companies may struggle to maintain profitability or growth.