A Demat Account is an account that enables the user to hold the shares and securities in electronic form. The word “Demat” is actually short for Dematerialization that means converting physical shares to E-form. The Demat account has benefits as it stores the shares in a dematerialized format. Moreover, the Free Demat account service in India is provided by NSDL and CDSL through Depository Participants, Stockbroker, etc. The charges of a Demat account vary highly and it depends on the volume of securities held in the account, type, and terms that are laid by stockbroker and depository.

5 paisa
5 paisa is a discount stock broker that is Mumbai-based. They offer services like trading, advisory, and investment to retail customers. Moreover, 5 paisa provides financial services that are low-cost. It is a flat fee broker which has many advantages. They charge a fixed brokerage of Rs. 20 on every executed order across the segments. The brokerage does not depend on the size of the trade, the customer pays only Rs. 20 as the brokerage. It is relatively very low as compared to traditional brokers.

The process for opening an account with 5 paisa is paperless and online. 5 paisa depository services or we can also call it 5 paisa Demat account provides impressive services. The facility of a 2-in-1 account that is offered by the 5 paisa includes a Demat and a trading account.

5 Paisa Demat Account Schemes
5 Paisa offers two Demat account schemes for its customers. Those are:

Regular Account (Non-BSDA)
BSDA Account: This type of account has AMC free of charge if the value of holding in the Demat account is up to Rs. 50,000. If the holding between 50,000 to 2,00,000 then 5 paisa charges AMC of Rs.100.
Key Features of 5 paisa Demat account
Offline and Online transfer of Share is very easy.
The facility of converting physical share certificates to dematerialized format is beneficial.
There is a feature of auto-update of Bonus issues, stock split, or right shares directly into your Demat account.
You can hold mutual funds in your Demat account.
There is an option to freeze the account when you require that to avoid misuse.
The well-integrated system with the trading application is an amazing feature of the 5 paisa Demat account.
Documents Required for Opening Demat Account with 5paisa
You need to be well prepared with documents that will be needed to open a Demat account with 5paisa. These Documents are important for the KYC process i.e. Know Your Customer. The Documents that are required are:

Proof of Identity: Copies of any of the following documents will work as Proof of Identity.
Driving License
Pan card
Aadhar card
Voter’s ID
Passport
Proof of Address: Copies of any of the following documents will work as Proof of Address.
Electricity Bills
Telephone Bills
Ration card
Voter’s ID
Aadhar card
Property tax receipts
Passport
Bank passbook
Process of Opening Demat account with 5 paisa
In order to open a Demat Account with 5paisa you need to follow these steps mentioned below:

Step 1: Find a Depository Participant: The first step includes looking for a depository participant. Look for a suitable depository participant, it can be a broker, bank, or online investment platform. If you choose 5paisa as your depository participant from the next step onwards are the steps you need to follow.

Step 2: Fill in your Personal Details: You need to fill in the details like Date of Birth, Aadhar Number, and Pan Number. Moreover, other details required are taken from the eKYC database so you need to verify it and it should be true.

Step 3: Fill in the details of the Bank: In this step, you need to enter your Account Number and IFSC.

Step 4: Upload your Documents: The documents that are mentioned in this article like the Aadhar card, Photo, and Cancelled cheque needs to be uploaded in this step.

Step 5: Make payment: Pay the account opening charges. Reach the payment gateway where you can make the payment.

Step 6: E-sign your Form: After you fill in all the details, now you need to review the form and sign it digitally. The application process will be completed and no physical signature is required.

5 Paisa Account Maintenance Charges
Holding Value of the Security on the Last Day of the Month

Basic Pack

Power Investor Pack

Ultra-Pack

Up to Rs. 50,000

Rs. 0

Rs. 0

Rs.0

From Rs. 50,000 to Rs. 2,00,000

Rs. 8

Rs. 8

Rs. 8

Above Rs. 2,00,000

Rs. 25

Rs.25

Rs. 25

5 Paisa Depository Charges
Nature of the Transaction

DP Charges

Transfer of Shares from Demat A/c

Margin Funding Account or Margin Account, Unpaid Securities Account upon the selling of shares

Rs. 12.5 (Flat)

Transfer of Shares from your Demat account to any other Demat account on request as requested

Rs. 12.5 (Flat)

5 Paisa Pledge and Unpledged Charges
Transaction

Charges

Pledge for Margin

Rs. 12.5 per scrip

Pledge for Funding

Rs. 25 per scrip

Unpledge

Rs. 12.5 per scrip

Unpledge and sell

Rs. 12.5 + Rs. 12.5 (Rs. Per scrip)

5 Paisa Demat Account Opening Charges
Service

Charges

Demat Account Opening Fee

Free of Charge

Demat Account Annual Charges (AMC)

Rs. 540 (Charged as Rs. 45 on every traded month)

5 Paisa Demat Account Charges
Services

Charges

Debit Charges

Rs.12.50 per transaction per script

Credit charges

Nil

Pledge Closure

Nil

Pledge Creation

Rs. 50

AMC

Rs.540 (This is charged every trading month-Rs.45)

Demat

Rs. 15 per certificate

Remat

Rs. 15 per certificate or per 100 shares (whichever is high)

Conversion of MF

Rs. 15

Reconversion of MF

Rs. 15

Conclusion
To sum it all up, we discussed what exactly is a Demat account and the features of the 5 paisa Demat account. The benefits of the 5 paisa Demat account are attractive and to open a Demat account with 5 paisa you need to follow the steps provided above in the article. Also, we have mentioned the Documents required to open 5 Paisa Demat account knowledge of which will make the process smoother.

“Risk comes from not knowing what you are doing.”- Warren Buffet.

The essence of successful investing lies in the way an individual manages the risk. Gambling is just a synonym for speculation and when use guessing as pillar of your investment strategy you are bound to lose, incessantly. Making an informed choice based on the measurement of an investment option’s systematic and unsystematic risk is cardinal while investing in stock markets. But before we jump into the discussion of the correlation between risk and return, I feel that understanding the concept of risk in financial terms is fundamental and a topic of paramount importance.

What is risk?

Risk in financial terms is the difference between the investment’s actual return and the expected return by an investor. Risk portrays the probability and the magnitude of loss which comes hand in hand with the chosen investment product and the investment horizon of an investment. In the world of finance, risk is calculated by using standard deviation as a metric which measures the volatility or fluctuation in the price of an asset when it is compared to its historical averages in the given time frame for assessment.

Types of Risk?

There are certain situations in this world which you cannot avoid but there are other situations in which the risk associated with them can be mitigated by excersing the prescribed methodologies and measures. Here is the graphical representation of the two major types of investment risks along with their sub divisions.

Well, well, well!!!!! we will not be getting into the detailed explanation of each and every type of risk for the reason that it would derail us from the agenda of this article but we will definitely discuss the blanket types of risk which is systematic and unsystematic risk.

What is systematic risk?

Systematic risk refers to the undiversifiable/ market risk which has the potential to disrupt the entire global markets. It is a highly unpredictable and unavoidable kind of risk to a humongous extent. Systematic risk includes interest rate changes, inflation, recessions, and wars, among other major economic, geo-political and financial shifts in the world like ‘The Great Recession, 2008’.

What is unsystematic risk?

Unsystematic risk refers to a diversifiable type of investment risk which can be minimized and hopefully mitigated by proper asset selection and allocation in accordance with the prevailing sentiments in the target market. Unsystematic risk includes risks such as entry of a new market participant in a specific industry, launch of a substitute at a marginal shifting cost by a competitor or recall of a sold product from a customer due to safety or other major concerns and then providing them with compensation as done by Samsung after the launch of its smartphone labelled as “Galaxy S7” in 2016.

But Before that you must have a demat account. Do you think opening Online demat account is a herculean task? No, definitely not. Yes, they are complex, but our step by step guides make them easy like anything. Go on and choose a broker.

What are the financial ratios that can used to measure the risk-return trade-offs?

As you already discussed, standard deviation is used to calculate magnitude of risk associated with an investment product but it has some shortcomings like it only shows how annual returns of an investment is spread out which does not validates the consistency in performance in the future. We have two other ratios which can help you understand the risk associated with the investment option that you have chosen.

Sortino – It is a financial ratio which gives a realistic idea of the downside or the negative deviation associated with a company’s stock. It helps you to measure the amount of return that you will be able to generate on a per unit basis for the given magnitude of downside risk which can also be referred as a chance of avoiding large losses. A higher sortino ratio is always desirable.
Sharpe – It is a financial ratio which considers both upside and downside volatility and then arrives at a conclusion of a stock’s performance. Sharpe ratios is a statistical tool which predicts risk adjusted return on an investment. Higher sharpe ratio translates into higher return potential along with higher risk.
Mid-cap stocks have performed ravishingly throughout these years with a considerable amount of risk associated with them. There are various conclusions that can be drawn out from these graphs and tabular data but the one of utmost importance is that high risk gives no guarantee or validation of high returns. Look at standard deviation of small cap stocks, they are the highest in the pack but the return from US Mid-cap stocks and US large-cap stocks is the highest when risk is taken into the consideration.

Why aren’t the gamblers the richest?

There is a vanilla answer to this, ‘THEY ARE JUST SPECULATING’. Gamblers are the hardcore speculators. If you are into stock markets and you are making decisions based on mere assumptions, grapevines, pseudo talks and emotions then there is no power in this world which has the potential to protect from heavy, big, gigantic losses in the future.

Conclusion

Stock market is a blend of speculative risk (risk of potential gain or loss) and pure risk (the possibility of loss or no loss only). To magnify your returns, you need have a blend of risk averse and risk prone investment products in your portfolio. There is no such financial instrument which falls under the category of absolutely risk-free-investment in the world of stocks, even the treasury securities which are government backed carries a low magnitude risk of default.

As an add on from our side, here is the thorough segregation of financial instruments based on the level of risk associated with them.

Having a balanced portfolio is all you need for generating a decent amount of return with minimal risk. Risk profiling is another vital part of risk management and is a cardinal step in maximising returns for a portfolio. An individual needs to select his/her goals and the time in which they want to achieve them. Based on that we can select the asset class which has the potential to exude desired returns while keeping our risk appetite into consideration. For example, a young person can have aggressively invest in stocks and can even have a major part of their portfolio invested in financial instruments which portray the high risk-reward trade-off but a person who is about to retire must not construct their portfolio with small-cap or mid-cap stocks or with any other financial instrument which requires a long time horizon to appreciate in value and carries a risk of wiping out your investment corpus. Taking informed decisions which can further be translated into taking calculated risk is the heart of any investment strategy. Risk forms a negative correlation with return when you make an investment based on your emotions and not the basis of facts and figures which is available to you.

For taxation purposes, we can divide the mutual fund into two categories; Equity and Debt. Tax on Mutual Funds such as fund of funds is treated as a debt fund even if the underlying instrument is investing in equity-related instruments. Tax on Debt Mutual funds withdrawal comes with indexation benefits when held for a duration exceeding three years.

Tax on Equity Mutual Funds

Tax on equity mutual funds depend on the duration of the holding period. Capital gains made are subjected to Short Term Capital Gains Tax and Long Term Capital Gains Tax. Long Term capital gains Tax apply if your gains are more than Rs.1 lakh a year. If you choose to redeem your holding within a year then you will be subjected to STCG which is 15% of the gains made. If you choose to redeem after a year, then the tax on your mutual fund is calculated as LTCG which is 10% of the gains made.

In equity funds, there’s a separate category called ELSS funds. A unique feature concerning ELSS investments is that compared to the other open-ended diversified equity mutual funds, investment in ELSS is subject to a compulsory lock-in period of three years. During this period, you will not be able to redeem your investments before the completion of three years from the date of the investment. After the lock-in, if you decide to redeem the investment on the realized gain, as per the current tax rules, LTCG tax applies.

Tax on Debt Funds

Like other Funds, Debt Funds are also subjected to capital gains tax which is Short Term Capital Gains Tax (STCG) & Long-term Capital Gains Tax (LTCG). If the holding period of Debt funds is less than 3 years then STCG is levied and if more than 3 years then LTCG is levied. Presently, the LTCG levied is 20% with indexation and STCG is taxed as per the investor’s tax slab. If the Income Tax Slab of the investor is 20% then the same will be levied on the Debt Funds gains in the case of STCG.

Indexation Benefits

Indexation is a tool which is applicable on long-term investments. It helps an investor to adjust inflation while gaging the returns of the invested amount.

As inflation is gradually rising, what’s worth Rs. 1000 could be worth Rs. 1100 sooner in near future. Thus, inflation impacts the purchasing power of our money. The same amount makes the investor to buy lesser and lesser goods.

So how does indexation help us? To understand that let us first understand what is capital gains. A capital gain is nothing but the increase in the value of an investment over a specific period. If the NAV (Net Asset Value) of a fund was Rs.10 when you invested and is now Rs.15 while you plan to redeem it, that difference of Rs.5 is called capital gains. So we are yielding a capital gain of Rs.5 per unit when we redeem.

In the case of debt funds, we arrive at capital gains after indexing the purchase price of the investment. Indexation lowers the long-term capital gains tax which brings down your taxable income.

Imagine you invested Rs.1,00,000 in May 2015 in a debt fund of your choice. Today you choose to redeem your money. So you have gained Rs. 1,50,000 on your investment. Since your holding period was beyond 3 years you will not need to be required to pay tax on the entire amount of Rs.1.5 lakhs.

You will need to arrive at the indexed cost by using the formula:

ICoA = Original cost of acquisition * (CII of the year of sale/CII of year of purchase)

So the indexed cost will be 1,00,000 (240/301) = Rs.79,734.

So our Capital Gains will now be 1,50,000-79,734 = Rs.70,266.

In the above imaginary example using indexation, taxable income has been reduced to Rs. 70,266.

The benefit of indexation works best when your holding period is longer. For a holding period of 5 years, on average, the long-term capital gains tax on debt funds can come down efficiently. Thus indexation helps us to save tax on Long-Term Capital Gains and increases our earnings.

Remember, indexation is only subjected to Debt Funds & not applicable to Equity Funds.

High Returns Possible

You do have to put some risk into any investment that your family makes, but you will almost always receive at least some return on any money you put down. Do not take a risk that is larger than what you are comfortable with as you do not want too much of a loss. You can make as much as 15% back on any money that you put into an investment, however, if you play the right risks. However, this is not an exact percentage as the return amount will vary and could be even more than that depending on the investment.

Reach Financial Stability
Due to the return, you can make on your capital and your deposits, you could potentially reach your family’s financial stability. You can save up the money you earn from your investments for a new car or even the down deposit on a house. You can even invest money directly into a retirement account or into a college savings program in which you will end up with more money in the end. You can rest assured that you will be taken care of later in life and that your children will be well taken care of too.

Conquer Inflation
Another reason that your family should consider investing is that you can conquer the inflation of the dollar. You receive a certain percentage more than the capital that you put down in any company or in your savings, meaning you will have more money in the end. This extra money will help to cover the costs that are associated with inflation, and you may even have extra money left over after that. Your dollar amount will continue to rise even if the value of the dollar goes down due to this inflation.

Save on Taxes
If you are an independent contractor, or if you run a business, you know how much you have to pay in taxes. Even as a waged employee, you still see how much in taxes is taken out every week from your paycheck. You can receive a large number of tax benefits and rebates straight from the government if you decide to invest your money, reducing how much you owe in the end. You will not have to use the returns that you have received from your investments to pay off your tax bills at tax time.

Own a Small Part of a Company
A final reason that you and your family should consider investing is that you will literally own a small piece in a company. You are entitled to any profit that the business receives, and you can directly give input on the growth of the business. You are also literally helping someone’s dreams to become a reality that started with the creation of the business in the first place. This will lead to success for you as the investor and success for the business owner, then you can teach your children how helping others benefits everyone. You can invest in a stock in a large company or even in a full-service SPV, which is a subsidiary meant to help a company.

If you have never invested before, there is no reason to wait any longer. It can set you and your family up for success in the future and can help other companies with reaching a certain level of success too for a valuable life lesson. You will be able to always retain the value of the dollar and will have money saved up to live comfortably no matter your situation. Finally, you can even save up for your children’s college funds by investing your money into an education plan.

A super visa allows a parent or grandparent of a Canadian citizen or permanent resident to stay in Canada for more than 6 months at a time. It allows them to stay for up to two years at a time and is valid for 10 years.

A requirements of being approved for a super visa is medical insurance in place from a Canadian insurance company with coverage for at least one year. This is what super visa insurance is.

The insurance must meet these requirements:

From a Canadian insurance company.
Valid for at least 1 year.
Coverage must be at least $100,000
The cost of the insurance can be high. A person in their mid-forties with no pre-existing medical conditions should expect to pay between $800 and $1,800 for super visa insurance. You can get more information on what to expect from the cost for super visa insurance in this guide.

The best way of finding super visa insurance is through a price comparison website – but remember it needs to be from a Canadian insurer.

NBFCs supplement banks in meeting the funding needs of the economy by providing the necessary infrastructure to allocate surplus resources to individuals and companies with the deficit.

Like banks, NBFCs are also key financial intermediaries that offer different financial services to customers but do not have a banking license. They are incorporated under the companies act 2013 or companies act 1956.

The major difference between Banks and NBFCs

NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself. Similarly, NBFCs are also not allowed to issue a demand draft to their customers.
Unlike banks, NBFC is not allowed to accept demand deposits (Savings account and Current Account).
Certain kinds of NBFCs can accept Time Deposit (Fixed deposit), However, the deposit insurance facility by DICGC (which offers insurance to the depositors) is unavailable in the case of NBFC. Another difference between NBFC and bank fixed deposit is NBFC fixed deposits are generally rated by the rating agencies in the country. On the other hand, the fixed deposit of banks is not rated by the rating agencies.
Banks must maintain reserve ratios like CRR or SLR. As opposed to NBFC, which does not require to maintain reserve ratios. So, NBFCs can lend 100% of their deposits and thus have a lean cost structure.

Before understanding the financial parameters of NBFCs, Let’s understand the types of NBFCs. There is various kind of NBFCs, it can be an asset financing company or a specialized NBFCs providing housing loans. Within these broad classifications, there are further differentiations based on the borrower segment of the NBFCs target. So, first of all, you need to understand the categories in order to examine the business model.

Asset-liability mismatch (ALM) is considered to be a complete and dynamical framework for measurement, managing, and monitoring the market risk of the Banks.

The Primary source of funds for the bank’s deposits and most deposits have a short- to medium-term maturities, thus need to be paid back to the investor in 3-5 years. In comparison, the banks usually provide loans for a longer period to borrowers. Out of them, the home loans and Infrastructure projects loans are of the longest maturity. So when a bank provides the long term loans from much shorter maturity funds, the situation is called an asset-liability mismatch.

ALM creates Risk, and it has to be managed by a process named Asset Liability Management.

Sources of fund for bank

Bank loans: –

Bankers are the major source of financers for NBFC’s. NBFC’s can use banks as a lender of the resort where NBFC’s can borrow money from banks for various working capital requirements.

Further banks may formulate suitable loan policy with the approval of their respective Boards within the prudential guidelines and exposure norms prescribed by the RBI to extend various kinds of credit facilities to NBFCs for permitted activities.

NBFCs are Better than Banks: Here’s why?

NBFCs can make an investment or lend; they don’t accept demand deposits. But when it comes to borrowing loan most prefer NBFCs over banks and the reason for this is banks have hard rules and requires more time to approve or sanction a loan. On the other hand, NBFCs ensure the processing is quicker, and the necessary loan amount is disbursed within days. Though the rate of interest is high at NBFCs most of the time as compared to banks, borrowers still prefer to take loans from NBFC considering the ease of getting a loan and less complication.

The main three reasons why NBFCs are preferred over banks for loans are:

Competitive Interest Rates:

Rate of interest is one of the main aspects of all types of loans. Non-Banking Financial Sectors have started to concentrate on this area in recent decades and have brought down the interest rates to either equally to bank lending rates or at times even lower to bank rates., This has also resulted in lower EMI (Equated Monthly Installment) for borrowers. However, borrowers find it a competitive rate when compared to banks.

You can get high returns out of your investments by taking the help of Portfolio Management service providers. One of the prominent & renound PMS providers are Moat Financials.

Quick Processing:

At banks, it is very important that the applicant should fulfill the eligibility criteria, but NBFC is lenient in this aspect. This makes loan approval easier, smoother process, and quicker. Most of the time, people apply for a loan when they are in immediate need of money. NBFCs have taken this as an opportunity to meet the demand by quickly processing the loans at a competitive rate of interest. At times, borrowers are even ready to compromise on the interest rates if the loan amount is huge, and if they could get it approved quickly.

Fewer Rules and Regulations:

As NBFC is under the Companies Act, the rules and regulations for lending are not as stringent as banks. This helps borrowers to get loans easily. And the less complicated loan processing is borrowers are highly satisfied. Of course, the risk of default is high with NBFC, and thus interest rates and other charges will be according priced by the NBFC. Even the loan amount approved will be quite lesser than the collateral value. This is due to the high risk of default.

Some other important factors to be considered in favor of NBFC’s are: -

A bank cannot operate any business other than the banking business, but an NBFC can operate such business.
No maintenance of reserve requirements: No CRR and SLR like banks. So that money can be used for lending at a good interest rate.
Foreign Investments up to 100% is allowed in NBFC. On the other hand, only banks of the private sector are eligible for foreign investment, and that would be no more than 74%.
Capital Market – commercial paper, Non-convertible debenture
Term Deposits
Funds from Foreign investors

What all financial parameters need to be analyzed

GROWTH

AUM
Profit After Tax (PAT)
Total Assets
PROFITABILITY

Interest income / Avg. interest-earning assets (%)
Interest expenses / Avg. borrowed funds (%)
Interest spread (%)
Net Interest margin (%)
Cost to income ratio (%)
Operating Expenses to Average Total Assets (%)
RONW
ROTA
GEARING

Capital adequacy Ratios (%)
Tier I Capital Adequacy (%)
Overall debt-equity (times)
ASSET QUALITY

Gross Non-Performing Assets % (Gross NPA %)
Net NPAs (%)
Net NPAs/Networth (%)
CAPITAL ADEQUACY

Capital Adequacy is a measure of the NBFC’s ability to meet its obligations relative to its exposure to risk and also relates to the degree to which the NBFC’s capital is available to absorb possible losses. A higher proportion of Tier I (core capital) in the overall capital is viewed favorably. The expected growth in the asset base and ability of the NBFC to generate capital through profits or by accessing capital markets is also evaluated.

CAR indicates the % of owners’ capital as a percentage of risk-weighted assets.

Capital Adequacy Ratio (CAR) = (Tier I Capital + Tier II Capital) /Risk-Weighted Assets

CAR is inversely proportional to its leverage on the balance sheet, and beyond a point, the leverage cannot be increased as the RBI prescribes a minimum level of CAR.
CAR also indicates how long the bank can continue to grow without raising further capital
RESOURCE PROFILE & Earnings Ratios:-

The resource base of the NBFC/HFC is analyzed in terms of cost and composition. The proportion of deposits /loans/bonds in the funding mix is examined. Deposit growth rates and their rollover rates are also analyzed. The ability of the NBFC to raise additional resources at competitive rates is also examined.

Return on Total Assets (%) = PAT/Average assets

ROTA is a single, ultimate indicator of the overall profitability of the bank/financial institution. Impact of non- interest income, asset quality, fixed cost like employee cost, etc. are all factored into this ratio.
Interest Spread = (Interest inc./Avg int. earning assets) – (Int. exp/Avg Int bearing liabilities)

A good indicator of the profitability of the financial institution without taking into account any operational cost. It shows the spread between the yield on an entity’s assets (mainly advances + investments) and the cost of funds (deposits). It also takes into account the yield on investments, which affects the profitability of the entity and forms a significant percentage of the assets. It is the spread the entity has to primarily depend on to cover its employee cost, provisions, tax, etc.
Net Interest Margin (NIM) = Net Interest Income/ Average assets

This ratio is very similar to the Interest Spread and would tend to move in similar lines. The focus here is the overall spread earned on the total assets of the entity.

NPM (Net Profit Margin) = Net profit / Sales.

It is a profitability ratio that measures the amount of net income that is earned with each rupee of cash generated.
The higher the NPM, the more effective it is at converting sales into profits.

Cost to Income (%) = Operating expenses / [Total Income – interest paid].

This ratio indicates the adequacy of banks/financial institution’s total income net of interest expenses in covering the operational expenses. Alternatively can be looked at as the cost involved in generating a unit of revenue.
ASSET QUALITY

Asset quality plays an important role in indicating the future financial performance of an NBFC. Asset quality holds the potential to affect earnings (higher NPAs could dilute the yields and necessitate higher credit provisions) and capital (lower earnings could slow down the internal capital generation or in extreme situations (loss) could weaken the capital). Further, the asset quality of a bank/NBFC is also impacted by the state of the economy as a whole.

Gross NPA % = Gross NPA/Gross Advances (as per RBI Classification)

Gross NPA % denotes the percentage of advances that have turned into NPA as against the total outstanding loan book.
Net NPA% = Net NPA/Net Advances (as per RBI Classification)

Net NPA% denotes the proportion of advances which turned into NPA after adjusting for the provisions already made by the bank/financial institution

Provision Coverage Ratio = Provision for NPA / Gross NPA

It indicates the extent of provisioning already done on the existing NPAs, thereby indicating the future provisioning requirement in the event of no recovery from the stock of NPAs.
Price to Book (P/B) = Market capital / Shareholder’s Equity.

Simply put, it is the ratio of market cap to its book value (shareholder’s equity). A low P/B bank is not always a better option than the one which trades at higher P/B.
Some reasons for a bank to trade at lower P/B:

It generates a low ROE even after using a lot of leverage.
There is not enough predictability of growth because of its history
The market expects some deterioration in the asset book of the bank.

OPEX & Growth in AUM:

Assets under management (AUM) refers to the total market value of investments managed by a mutual fund, money management firm, hedge fund, portfolio manager, or other financial services company.

Operating Expenses (OPEX) as a % of AUM tells you how well managed & efficient NBFC’s operations are. Every business needs to grow for its value to appreciate. This growth rate can be compared with other companies.

most of them have very stringent requirements that make it impossible for many prospective home buyers to get a loan. Even if a potential borrower meets the eligibility requirements, the process can be tedious and time-consuming. If you’ve tried getting a home loan before, you know how extremely frustrating and stressful the process can be. The good news is, there is an easier way to get USDA Home Loans Florida near me.

The USDA home loan process is surprisingly simple. It is designed to make it easy for people with tight budgets to be able to get the money they need to buy their own home.

A look at the USDA home loan process

Here’s a look at the USDA home loan process:

First you will need to get a pre-approval letter. This will be issued from a USDA loan specialist. Once you’ve obtained this pre-approval letter, you will need to get a Sales Contract on the home that you’ve chosen. It is important that the home is located in a USDA-eligible area and that the property complies with the requirements set by the USDA.

After you’ve got these documents, you will need to fill in and sign the loan application documents and sent them along with all the required supporting documentation to the loan representative. Your income documents must be submitted along with this application.

The next step involves the appraisal and inspection of your application and documents by the underwriter. After going through all the paperwork and the application, the underwriter will advise you if you need to submit any other documentation in order to get the final approval for the loan. If you receive any such notification from the loan company, make sure to submit the required documentation as soon as possible in order to speed up the process. Once the underwriter has received all the documentation, they will sent the file to central USDA for the final seal of approval and commitment.

When this final process is completed and your loan approval is finalized, the underwriter will get in touch with you and ask you to come to the office to sign the papers. There is no down payment required, which is a huge advantage over other lenders who require you to make a down payment before signing the documents.

With USA Home Loans all you need to take along are your state issued photo ID card to the title company and a pen to sign the documents. That’s it! Once you’ve signed the documents, you will get the keys to your very own home.

How to find USDA home loans Florida near me

The state of Florida has a lot of good things going for it, from fantastic weather all year round and friendly people to a great education system and good job opportunities. It’s no wonder that more and more people are looking to buy a home in this state. What’s more, you can find USDA Home Loans Florida near me without actually traveling to the state. You can find several lenders that offer home loan financing for anyone wanting to buy a home in Florida. The key is to do your homework and find a lender that offers hassle-free loans.

When someone says that they are buying shares, selling them or holding them, they are talking about stock trading or in particular, themselves as they are the stock traders. Stock traders are divided on the basis of the trading volume that they undergo.

Traders are generally traders or investors. The investors invest their money in some firm and then they tend to practically forget about any such investment. The idea is to make long term gains, avoiding every day fluctuation that the market has always been a witness to.

Traders on the other hand trade their stocks with one and one aim only. Make profits. Buy low and sell high has always been the mantra of day traders who begin their trading when the market opens and are done with it when the market closes. It has to be kept in mind that stock trading is never as easy as it seems and should always be done with ease and care.

Since stock trading has become vast to the levels that are unprecedented, people come up with a lot of different strategies and ways to make money. It is hard to define stock trading sometimes.

Still, let us answer some of the most basic questions about stock trading.

What is stock trading? :

To make the money off of the price movements that a stock may undergo in one single day, day traders will always be in a loop of selling and buying the shares. There are traders who are more into penny stocksthat have a relatively lower price movement and there are traders who are more into the blue chip stocks that are kept in the game for the long term.

Stock trending is broadly classified into two categories.

Active trading and day trading.

Active trading:

Active trading is when the person is actively involved in trading but is not trading on the daily. Maybe more than 10 times a month but not more than that. These types of traders follow a specific strategy that they have set to make them short term profits at a particular moment in that particular tenure.

Day trading:

Here, the traders play on the daily. They are actively involved in trading and trade every day. Day traders are active as soon as the market opens and the good ones have already set their targets a few hours ago and are just waiting to execute those ideas. Their business ends as the trading day does.

Day traders buy and sell stocks multiple times a day with an aim of making money with the help of minimum risk ratio.

How can you trade stocks online?

To be a good trader, the key is to be in the game for a long time and that is the only way to make profits and money in the market. The game is to stick to the strategy that is once made and then making money with that and that only.

The step by step process to become an online stock trader can be found anywhere on the internet.

They Have artiles where they tell you to become a trader with a broker first and then open your account with the broker. Everyone knows that. The key to becoming a successful online stock broker is to be consistent and that is it.

There are brokers who put in therotten ideas of trading on either leverage or CFDs into the heads of novice traders.

The traders being new to the market always pay unwanted heed to such things and end up losing their money rapidly.

There are specific characteristics a good trading strategy has always had. The survival of the trader and the success rate of the trade both are dependent on how verified the strategy is. The strategies that the novices device are not verified by anyone and hence are responsible for bringing loss to the trader. Sometimes the loss is so big that the trader quits trading altogether. The improv schemes the traders go through while trading are the reasons why trades fail.

Are you looking for a broker that can help you in trading stocks online?

Look no further

HFTrading was established as a broker in 2019 and ever since, the broker has made a lot of noise in the market.

The fact that it is regulated with no one but two brokers makes it more than legitimate. With more than 300 tradable assets to trade with, the broker has made three thief trading accounts on which the trader can choose to trade from. The leverage that the broker provides, the preads that the broker asks, are all different for each trading account and respond to different assets differently.

Bottom Line:

Trading in stocks is a hard thing to do and should never be taken lightly. It has to be kept in mind that emotions never bought the food, math did.

There are many different types of Certified Financial Advisors, including those that work solely in or for Washington D.C. and others that work throughout the entire United States. In Washington D.C., there is a limit on the amount of hours a consultant can work. If you are looking for a Certified Financial Advisor in Melbourne, you will need to search for a Broker as well.

Many Certified Financial Advisors is self-employed, so it’s important to know the difference between working for your advisor and your planner. Typically, Certified Financial Advisors makes their money either by charging a flat fee or a percentage of assets under management. If they are working as an independent contractor for a company, they are not allowed to charge an hourly rate. However, these financial planning professionals can not be considered the most unbiased resource for advice when they benefit from steering you towards specific products from a certain firm.

When choosing a Certified Financial Advisor in Melbourne, you want to consider the experience and education of the individual. How long has the Certified Financial Advisor been in the field of finance? How many different companies does he or she work with? It is extremely important that you find a financial advisor with a strong track record, solid education and who holds the proper licensing to serve your needs. You can search online for information about the education and continuing education required for financial advisors in your area.

Another question to ask when searching for certified financial advisors in your area is what type of services can they provide to ensure your financial situation is taken care of? Many financial planners offer financial situation services such as investment advice and estate planning. Ask about whether they can work with your insurance or retirement planning needs or if they have any special ties to other companies.

There are several regulatory groups in the United States which require Certified Financial Advisors to obtain an annual certification. The CFPA or Certified Financial Planning Association offers this certification, along with the CFP or Certified Financial Planner Board. If the financial planner passes an examination created by either the CFPA or the CFPB, they will be considered to be a CFP or certified financial planner.

As with all business relationships, it is important to choose your advisors wisely. When seeking out financial planners, ask them about continuing education requirements, their professional background and what type of licensing or certifications they hold. By doing your research ahead of time, you can make the most informed decision for your financial needs.