Cameron P. Walker

By utilising a discount broker, it has turned out to be the highly-reputed mode of putting in investment within the financial markets at the present times. While you appoint a discount broker, you will with certainty enjoy several plus sides, but concurrently you shall as well discover several downsides in addition. Below are listed several pitfalls and plus points of the discount brokerage houses or the discount brokers:

Perks of the discount brokers

The bulky perk that you will be drawing by engaging with this kind of broker can be that the rate of commissions will be very low. Whenever you on a frequent basis procure stocks or various other forms of securities, you will not desire to fork out anything extra than you need to pay.  As you choose to employ a full-service broker, they usually impose hefty commissions on you that you need to tackle. This fee/commission may be realised in the shape of a percentage pertaining to the total deal volume. Hefty commissions shall acutely break apart a big chunk of your wealth you generate within the stock market. In case you turn out to be the kind of individual who aspires to put in resources very frequently at definite intervals, you would wish to accomplish it on the very inexpensive fee structure.

Another positive aspect that youmay obtain by hiring the best discount broker in India 2019 forms the facet of safety. In general, in case a broker is in the capacity to cut down commissions, it suggests that they do compensate for it by way of trading in bulk. Generally, well-reputed discount brokers with time turn into big brokers. It indicates that your money will be in safe hands as opposed to a small brokerage which is pretty unfamiliar.

Pitfalls of the discount brokers

Even though you are in the capacity to spare some sum of wealth by utilising a discount broker, you will discover some acute glitches too. Such as with a multitude of the discount brokers, they happen to place the responsibility of making investment decisions on the investor. They barely care for what you vend or purchase until you continue the process of trading. In case you need assistance badly, you shall not obtain too much personal attention as it is likely to get from the traditional broker. In a lot of instances, they simply provide you with an online trading portal to carry out trade and some very common expert information is posted over their websites for all to go through. In case you give them a call, maybe they are not present there to lend you the assistance when you require it.

By utilising a discount broker, you may run the risk of surrendering several features and facilities that you shall be enjoying by hiring a full-service broker. You may be not in a position to invest in loads of other forms of securities by picking a discount broker. A lot of them will be concentrating on highly-famous kinds of investment options.

For those who love to make money from the stock market, there are ample options that offer various supporting services in terms of research and related topics. Common stock is a stock that is being issued by an entity or that of a corporation whereas the shareholders are referred to as the people who are the buyers of the stocks. These are the fractional shares or the percentage of the ownership of equity. These shares are those that remark the stake of the company as well as net worth, income as well as the flow of cash. When there is a requirement of the company to grow the business, then they indebt the required amount from the investors and sell them off the shares of the companies. Following are some of the advantages of the company when the investors put their sum in common stock:

• Debt reduction:

The funds that the company receives after a sale of the common share earnings stock is not required to be repaid, and in addition to that, there is no requirement further requirement of repayment a swell as there is no interest associated with this. This is the reason why it is always preferable for the company having a load to clear the debts can issue some of the common stocks and then make the use of the proceeds so that the self-indebted amount of the company gets paid.

• Flexibilities:

If the company requires more of the cash to make the near future brighter than one can issue common share earnings stocks. This can let you out of the issues when the cash flow gets constrained.

Some of the advantages of people investing in the common stocks are as follows:

• Acquisitions:

Issuing the common stocks are the best value for the cash. This can be an object worth owning and is quite beneficial for public companies mostly.

• Float:

The investors get more attracted by the public companies. By issuing more of the common stocks and having those stocks registered with that of the SEC, there is an increase in a float. But one must take care of the fact that this is not the case if the shares are not registered.

• Credit ratings:

A company can avail better credit rating by investing in the common stocks.

Apart of all these benefits there are things like per share earnings is quite depressed and that was a benchmark being observed by the community of the investors. Thus, the companies must be aware of the risk factor involved in the shares before [putting them for the purchase despite the benefits enlisted above.

Common stocks can be traded for more or less than that of the intrinsic value. This is the reason why one has to understand the value of the stock to be invested while making the purchase. One must also take care of the fact that the sums are invested for the common share stock for a longer period to ensure better returns.

The penetration of mutual funds in the Indian market has increased many fold in the last decade. As a matter of fact, a massive Rs.5,000 crore was invested in the mutual funds in India in the year 2017. Indian mutual fund market has witnessed a growth of over 9% annually during the last decade. By the end of 2018, the AUM (assets under management) is expected to double. Back in 1993, during the initial days of mutual funds in India, there were only 10 mutual funds. Now,this number has risen over 450 and presents the investors with a wide range of mutual fund schemes to choose from. This growth is a result of many factors:

1. GROWING STOCK MARKET:The major reason why the mutual fund industry is at such a high is because of that bullish stock market during the last 5 years. The stock market grew 20% in 2017 and just over 85% in the last 5 years. This buoyancy in the stock market is the key reason for the growth of mutual funds in India.
2. NEW PRODUCTS FROM THE FUND HOUSES: Hybrid funds, commodity-based funds, fixed maturity plans, exchange-traded funds, children funds, and so on have been launched by fund houses. These schemes have been pretty successful in attracting investors from specific sectors. In other words, mutual fund houses launch schemes tailored for a specific section of investors.
3. NEW PLAYERS IN THE MUTUAL FUND INDUSTRY: A healthy level of competition in the market is always appreciated. After all, it’s the investor who’s getting benefitted here. Major foreign players have entered the Indian mutual fund industry intensifying the competition. Some of these foreign players have assets which are way more than combined assets of some local fund houses. This has forced the local fund houses to up their game. Ultimately, this has worked in the favor of growth of the Indian mutual fund industry.
4. EVOLVING TECHNOLOGY: Everything is evolving with the evolving technology. Technology has altered the way industries operate. With the help of technology, the mutual fund industry in India has taken some major leaps in terms of cutting cost through online transactions, customized plans for customers, reaching every corner of the country etc.
5. PENETRATION IN B AND C CLASS CITIES: A large majority of the Indian population’s savings are tied to the banking and insurance sector. Though this is not the case with class A Indian cities. They are open to trying various investment avenues. Attempts are going on to promote mutual funds in class B and C Indian cities.
6. TAX BENEFITS: There are major tax benefits when you invest in certain mutual funds. If you go for the dividend option of mutual funds, the dividend is tax-free in your hands.

Over the last 5 years, the mutual fund industry has taken some major leaps in India. But India is still pretty far behind the US. There are more than 800 mutual funds in the US.

Savings and spending of people in India have increased in the last decade but still, the mutual fund industry gets a very low amount of this. It won’t take much longer for India to stand at par with developed nations like the US, Canada, Dubai etc. if the savings of the people are channelized towards mutual funds. This dream looks pretty far-fetched because the focus of the mutual fund companies is on class A cities in India. Attempts are being made to increase the penetration in class B and C Indian cities and villages but it could be a while before we see any major contributions from these sections.

GST is abbreviated from Goods and Services Tax which came into existence on 1st July 2018. This tax is an indirect tax levied on the goods and services. GST has replaced several taxes such as VAT(Value Added Tax), Service tax, excise duty, luxury tax etc.
GST registration is necessary for every business person whose annual income exceeds 20 lakh rupees (10 lakh for the North Eastern States). As well as the taxable person who has already registered themselves under previous tax such.

Online GST registration
GST registration can be done by visiting the Online GST registration portal. Here we will understand every detail and things which should be taken care of while registering GST online.
As per the eligibility for GST registration, it is necessary for every taxpayer to register themselves under GST.
The taxpayer already registered under the Pre – GST law have to register themselves under GST when the business annual turnover is exceeding 20 lakhs and it is necessary for a Casual taxable person, Business on E-commerce. Online GST registration process for hilly regions is mandatory and they are eligible only when the annual turnover exceeds 10 lakh rupees.

Benefits of Online GST registration

Removed cascading effects of tax
GST has helped to remove a number of earlier taxes such as VAT (Value Added Tax), Service tax etc. Now onwards, consumers are not confused within various different types of taxes and its compliances and have to focus on one uniform tax.

Introduced Composition Scheme
The government has also introduced a composition scheme for a small business whose annual turnover falls between 20 lakhs to 75 lakhs and this scheme has helped to reduce the burden of GST filing procedure.

Threshold limits increased
Earlier the threshold limit was too high, the business with annual turnover of 5 lakh rupees have to register themselves under VAT(Value Added Tax) and the business with an annual turnover above 10 lakh have to register for Service tax, but now the threshold value exceeded and the limit extended to 20 lakh rupees and 10 lakh for hilly regions(North-Eastern States).

Easy steps to complete GST registration

• Visit the Online GST registration portal.
• You have to click on Register for the taxpayers.
• If its a new registration click on “new registration” available in the drop-down.
• Fill every required detail such as State and District, Name of the business, PAN card number, registered E-mail id, and Contact details, as soon as you fill every detail click on proceed.
• After this you will receive an OTP on the provided contact number, mention the received OTP to continue the GST registration procedure.
• This will help you to receive a TRN, TRN (Temporary reference number) will be provided on the website.
• TRN will be sent on your provided E-mail ID and Contact number as well. Make sure you note down this number as it will be required to complete the further procedure..
• Visit GST portal and click on Register now.
• Enter your TRN (Temporary reference number).
• Enter the CAPTCHA process and Proceed further.
• After entering the TRN, you will receive an OTP on registered Contact number/E-mail ID, enter the same and proceed further.
• The application will be shown in Draft, you can edit it.
• Mention the Business details, documents list such as Passport photographs, Business proof, Bank details, Incorporation form.
• Submit and visit verification page, and submit required documents such as DSC(Digital Signature Certificate).
• The link will submit an OTP on contact number linked on Aadhar Card and with EVC on the reference of provided DSC, the OTP will be sent on the contact number provided on the portal.
• You will be provided with the ARN (Application Reference Number) which will be again sent to your registered Contact number and E-mail ID.

With the help of this ARN number, it will be easy for you to track your GST registration.

The registration process can be completed easily by visiting Online GST Registration Portal. It will provide the hassle free service as well as you can get detailed information for Online GST registration.

The most import aspect of your trading strategy is your risk management methodology. Before you begin to risk capital, you need to solidify the risk you will take relative to the reward you are looking to capture. There are different risk management strategies you can consider employing depending on how you plan to invest in the market. If you plan on day trading, you need to have specific risk parameters compared to long term investing.  You also need a risk strategy for your entire portfolio.

What is Risk?

Risk is defined as the capital that you are willing to lose when you place a trade. Before you place any trade, you need to determine the amount you will risk, relative to the amount you plan to gain.  The ratio between the amount you will gain relative to the amount you lose is referred to as the reward to risk ratio. The risk that you take should be predicted on the type of trading strategy you plan to employ.

If you do not have a sound risk management plan in place, you are skating on thin ice. Most novice traders initially think about the gains they plan to generate when they trade and fail to determine the risk they will take when they begin to invest.

How to Define a Risk Management Plan

Your risk management plan should be embedded into your investment strategy.  You can start by determining your financial goals and back into you risk management.  If your strategy is a trend following strategy, you are likely going to lose more than you win and therefore need to make more on each trade than you lose.  Here is the math. If you lose 2 out of 3 trades, then you need to make twice the amount on your winning trade than you lose on your unsuccessful trades. If you lose $100 on each losing trade and make $200 on your winning trade, you will break even.

If your strategy allows you to win more than you lose, then you can afford to have a risk management plan where you lose more on each trade than you win. If you are planning to undertake short-term trading, your strategy should be designed around how much you are willing to lose on each trade.  You can then back into the financial goals you have for each trade.

Each transaction you place should have a stop loss and a take profit level defined prior to executing the trade. Some strategies can have a moving target where you move your stop loss to reduce your risk as the market moves in your favor. This is called a trailing stop loss.

You also need to separate the difference between your risk management on individual trades relative to the risk management on your overall investment strategy. Not only do you want to have a stop loss for each individual trade, but its also prudent to have a stop loss on your overall investment strategy.  

Scrum is something which is implemented by the scrum master and a scrum marker is someone who is the expert or professional of the scrum for the better project development. Have you ever seen the tripod and the legs of the tripod? Let us just consider the tip of as a business where one leg is the development team and the second leg is the product owner, the third leg is the scrum team. A business representative and the product owner can balance their relationship with the relationship of the development team and team of scrum master.

Roles of an effective scrub master:

Though, a scrum master have several to play in the whole business but an effective and efficient from master have three major roles to perform. If a scrum master does not play these roles efficiently then the scrum master is not worth. The major three roles of scrum master are mentioned below:

To ensure whether the scrum technology is being followed. It means that is a scrum technology is not being followed by the team then the scrum master can ask for the reason or problem and then solve it on his own end. A scrum master truly understand the importance of the scrum practice for the business’s growth.

To remove the obstacles of the team: Scrum is a tricky task to perform by everyone. Though, it can easily be performed by the scrum master but efficiently performance cannot be expected by every member of the team. The team might face the problem during the practice. So, being a professional, a scrum master can easily tackle and wipe off the problems during the practice and can ensure the smooth working of the team.

Support the team for being self-organized: Self-organization is an important thing which everybody wants. Though, if the team believe in the teamwork then the team can ensure the self-organization but if the team does not believe in it then the scrum master can support the team for the better self-organization.

Apart from this, a better scrum master should know the basic fundamental of the task. If a scrub master does not have the clear idea about the facts then it is not possible to perform the task efficiently. In layman’s language, a scrum master should know about the basic principles of the scrum. A scrum master should understand that what scrum can achieve and what cannot achieve.

A scrum marker should ensure that the scrum principles are followed by everyone or not. If not then why not. A scrum master is accountable for handling all the problems independent. A scrum master should keep the meetings of the team from time to time in which he can discuss about the new technologies, methodology and techniques. A scrum master should be aware of the agile methodologies, project development, software development in an easy and effective way. A good scrum master should get the agile and scrum training course because it is not worth to be a scrum master without the agile and scrum training.