The aim of this module is to provide beginners as well as the dealers with both theoretical and applied knowledge pertaining to commodities trading. The module is beneficial for those who wish to pursue careers in brokerage firms dealing in commodity derivatives. This module has been developed jointly by NSE and NCDEX.
Why should one take this course?
•To understand the difference between commodity and financial derivatives.
•To know the usage of commodity futures.
•To understand the pricing mechanism of commodity futures.
•To learn about the NCDEX trading platform, clearing and settlement operations.
•To know the regulatory framework and taxation aspects of the commodities market.
Who will benefit from this course?
•Students
•Teachers
•Commodity Market Dealers
•Researchers
•Employees of BPO/IT Companies
•Anybody having interest in the Commodities Market
Test details
Duration: 120 minutes
No. of questions: 60
Maximum marks: 100, Passing marks: 50 (50%); There is negative marking for incorrect answers.
Certificate validity: For successful candidates, certificates are valid for 3 years from the test date.
Fees
1,800/- (Rupees One Thousand Eight Hundred Only)."
Course outline
•Introduction to Derivatives
Introduction to Derivatives; types, Products, participants and functions; Exchange–traded versus OTC derivatives.
•Application of Futures & Options
Types of instruments (future, options)-Basics and Payoffs; Pricing commodity derivatives; Hedging, Speculation and Arbitrage
•Commodity Derivatives
Difference between commodity and financial derivatives; Global and Indian commodities exchanges; Evolution of commodity market in India.
•NCDEX Platform
Structure of NCDEX; Exchange membership; Capital requirements; Commodities traded on NCDEX platform; Instruments available for trading; Pricing of commodity futures; Trading; Clearing, Settlement and Risk Management;Use of commodity futures in hedging, speculation and arbitrage.
•Regulatory Framework & Taxation aspect
Rules governing commodity derivatives exchanges; Intermediaries, Investor grievances and arbitration, Implications of sales tax.
Showing posts with label Mutual Funds. Show all posts
Showing posts with label Mutual Funds. Show all posts
Monday, 19 September 2011
Mutual Fund Products and Features
Mutual funds have become a much sought after investment product in recent years. This course demystifies the concept of mutual funds and helps create awareness and knowledge about the industry and its functioning.
Why should one take this course?
•To understand the concept of mutual funds.
•To know about the roles of different players viz., custodians, asset management companies, sponsor etc. in the mutual fund industry.
•To learn about the tax and regulatory issues related to mutual funds.
•To understand the fundamentals of net asset value (NAV) computation and various investment plans.
Who will benefit from this course?
•Students
•Investors
•Financial planners
•Analysts
•Equity researchers
•Anybody having interest in the Indian mutual fund industry
Test details
Duration: 120 minutes
No. of questions: 60
Maximum marks: 100, Passing marks: 50 (50%); There is no negative marking in this module.
Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.
Fees
1,500/- (Rupees One Thousand Five Hundred Only).
Course outline
•Mutual Funds
Concept and structure of mutual funds in India; Role of custodian; Registrar and transfer agent; AMC; New fund offer's & procedure for investing in NFO; Investors rights and obligations.
•Mutual Fund Products and Features
Concept of open ended and close ended fund; Types of funds - equity, index, diversified large cap funds, midcap fund, sector fund and other equity schemes; Concept of entry and exit load; Expense ratio; Portfolio turnover; AUM; Analysis of cash level in portfolio.
•Gold ETFs
Introduction to exchange traded funds; Market making by authorized participants; creation units; Portfolio deposit and cash component
•Debt Funds
Salient features of debt fund; Concept of interest rate and credit risk; Pricing of debt instrument.
•Liquid Funds
Salient features of liquid funds; Floating rate scheme and portfolio churning in liquid funds.
•Taxation
Taxation of capital gains; Indexation benefit and FMP.
•Regulations
Role and objectives of AMFI; Different types of plans; Systematic Investment Plan (SIP); Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP); Dividend payout.
Why should one take this course?
•To understand the concept of mutual funds.
•To know about the roles of different players viz., custodians, asset management companies, sponsor etc. in the mutual fund industry.
•To learn about the tax and regulatory issues related to mutual funds.
•To understand the fundamentals of net asset value (NAV) computation and various investment plans.
Who will benefit from this course?
•Students
•Investors
•Financial planners
•Analysts
•Equity researchers
•Anybody having interest in the Indian mutual fund industry
Test details
Duration: 120 minutes
No. of questions: 60
Maximum marks: 100, Passing marks: 50 (50%); There is no negative marking in this module.
Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.
Fees
1,500/- (Rupees One Thousand Five Hundred Only).
Course outline
•Mutual Funds
Concept and structure of mutual funds in India; Role of custodian; Registrar and transfer agent; AMC; New fund offer's & procedure for investing in NFO; Investors rights and obligations.
•Mutual Fund Products and Features
Concept of open ended and close ended fund; Types of funds - equity, index, diversified large cap funds, midcap fund, sector fund and other equity schemes; Concept of entry and exit load; Expense ratio; Portfolio turnover; AUM; Analysis of cash level in portfolio.
•Gold ETFs
Introduction to exchange traded funds; Market making by authorized participants; creation units; Portfolio deposit and cash component
•Debt Funds
Salient features of debt fund; Concept of interest rate and credit risk; Pricing of debt instrument.
•Liquid Funds
Salient features of liquid funds; Floating rate scheme and portfolio churning in liquid funds.
•Taxation
Taxation of capital gains; Indexation benefit and FMP.
•Regulations
Role and objectives of AMFI; Different types of plans; Systematic Investment Plan (SIP); Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP); Dividend payout.
Monday, 21 March 2011
What is the Mutual Funds
When I was young, my grandmother was a great influencer of my life. Of course still she is! Whenever we plan for a travel she will take the cash and keep some in her wallet some in bag and some in my pocket and some in my mother’s wallet. I asked my grandma why so?
She will say “If you lose one amount by mistake or someone poaches it, the other will help you. Instead, if you keep all in one purse and if you lose the purse you lost the way.”
It was this concept in operations called as buffer, in engineering called as “Safety Factor” and in finance “The Balanced Portfolio“.
Let me try to explain this with two simple stocks for example. Let us consider one stock whose share value increases when index (assume sensex) increases and another stock whose share value decreases as sensex increases. The first one is called as “Positive Correlation” and the second one is called as “Negative Correlation“. The value which we use to measure how much the stock price increases with respect to sensex is called as “Beta“. It is nothing but the slope of the curve drawn in a graph where we take “sensex” (index) value in x-axis over a period of time and stock price in y-axis. So the first stock will have a positive beta value and the second one a negative beta value.
Now assume if you invest in only first stock assuming that sensex will move up and if it goes down you are going to lose a lot. Similarly if you invest in second stock thinking that sensex will go down and if it increases you will once again lose. Incase, if you invest in both the stocks (in proportion to how much their price vary according to the sensex index) you may not get maximum return but whatever be the sensex(index) movement bullish(upward) or bearish(downward) you will get optimum return. This is how mutual funds choose their stocks in their portfolio and maximize their returns and minimizes their risk.
But choosing stocks is not that easy as we mentioned. Many things in life are written but done with sweat. This is not an exemption for that. Based on this principle, some funds choose stock pertaining to only one sector called “sector funds“. Some in proportionate amount listed in all sectors in an index called “index funds” and so on.
This is simple thing we can also do as an investor by tracking the stock price. Instead of investing one stock, pick two or three by logics (or use tools if you can) and we can minimize risk.
And hope a few who benefit out of this will always be thankful to my great investment guru “my grandmother”.
She will say “If you lose one amount by mistake or someone poaches it, the other will help you. Instead, if you keep all in one purse and if you lose the purse you lost the way.”
It was this concept in operations called as buffer, in engineering called as “Safety Factor” and in finance “The Balanced Portfolio“.
Let me try to explain this with two simple stocks for example. Let us consider one stock whose share value increases when index (assume sensex) increases and another stock whose share value decreases as sensex increases. The first one is called as “Positive Correlation” and the second one is called as “Negative Correlation“. The value which we use to measure how much the stock price increases with respect to sensex is called as “Beta“. It is nothing but the slope of the curve drawn in a graph where we take “sensex” (index) value in x-axis over a period of time and stock price in y-axis. So the first stock will have a positive beta value and the second one a negative beta value.
Now assume if you invest in only first stock assuming that sensex will move up and if it goes down you are going to lose a lot. Similarly if you invest in second stock thinking that sensex will go down and if it increases you will once again lose. Incase, if you invest in both the stocks (in proportion to how much their price vary according to the sensex index) you may not get maximum return but whatever be the sensex(index) movement bullish(upward) or bearish(downward) you will get optimum return. This is how mutual funds choose their stocks in their portfolio and maximize their returns and minimizes their risk.
But choosing stocks is not that easy as we mentioned. Many things in life are written but done with sweat. This is not an exemption for that. Based on this principle, some funds choose stock pertaining to only one sector called “sector funds“. Some in proportionate amount listed in all sectors in an index called “index funds” and so on.
This is simple thing we can also do as an investor by tracking the stock price. Instead of investing one stock, pick two or three by logics (or use tools if you can) and we can minimize risk.
And hope a few who benefit out of this will always be thankful to my great investment guru “my grandmother”.
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