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  • What Happens If a Stockbroker Shuts Down?

    What Happens If a Stockbroker Shuts Down?

    Imagine if one morning you come to know that your stockbroker has shut down, then the first thought that comes to mind is: What will happen to money and shares? Will all of them be lost? Something similar happened in the Karvy Stock Broking case in 2019, where shares of thousands of investors were wrongly pledged. In such a situation, fear is bound to arise in the minds of every investor. Is our money really safe?

    In this blog, we will know what happens when a stockbroker shuts down, how safe is your money and shares and what you should do. 

    Why Stockbrokers Might Shut Down?

    Stockbrokers in India are fully regulated by SEBI (Securities and Exchange Board of India). Despite this, the past years have seen many brokerage firms shut down, usually due to the following reasons:

    • Regulatory violations (SEBI Rules Violation) : If a broker violates the rules set by SEBI such as client fund segregation, reporting or audit rules, etc. then it can be banned or restricted.
    • Financial insolvency : Sometimes brokers misuse clients’ funds or securities to cover their own losses. When the dues mount and they fail to settle, the exchanges and SEBI take action.
    • Fraud/Misappropriation : For example, in 2019, Karvy Stock Broking pledged the shares of clients without their permission, leading to a scam worth crores.

    Key examples (as per SEBI Action) :

    Brokerage FirmReason for closureSEBI / Exchange ActionYear
    Karvy Stock BrokingMisuse of client securitiesBanned by NSE & BSE, SEBI action2019
    BMA Wealth CreatorsNon-compliance with the regulatory provisionsSuspended2020
    Anugrah Stock BrokingShortfall of client funds and securities, improper records, etc.Suspended2020

    In these cases, it has been observed that brokers misuse the shares or cash present in the accounts of investors for their own benefit. When SEBI comes to know of such irregularities, it takes immediate action and tries to protect the investors.

    So always trade with a registered and trusted broker and keep an eye on your account.

    What Happens When a Broker Shuts Down?

    When a stockbroker suddenly shuts down or faces legal proceedings by SEBI and the exchange, the entire process is as per the rules and in a phased manner. It does impact investors, but there are various investor protection rules in place. The process is mentioned below:

    • Trading gets suspended : First of all, NSE or BSE shuts down the trading facilities of that broker so that no further transactions can take place.
    • SEBI and the exchange freeze the operations : All transactions, fund transfers and back-office work are stopped. The purpose of this is to prevent any more misappropriation.
    • Client funds may be temporarily blocked : Your money with the broker may be stuck for some time until the situation becomes clear.
    • Demat holdings are safe : If your shares are held in demat form with CDSL or NSDL, they are held in your name and are not impacted by the closure of the broker (we will discuss this in detail in the next section).

    Read Also: How to Become a Sub Broker in India

    Are Your Shares & Mutual Funds Safe?

    When a stockbroker suddenly shuts down, the first question that comes to mind is “What will happen to my shares and funds?”

    The truth is that if you have regularly cross-verified your transactions with the email received from the depository stating transactions in your demat account, then your shares are safe with CDSL or NSDL and there is no need to panic. These shares are registered with the depository in your name, not the broker’s. The broker just facilitates transactions and doesn’t keep custody of your shares meaning, even if any prominent broker shuts down, your shares are still safe.

    Mutual funds are also safe : The record of mutual funds units held by you is available to both the AMC i.e. Asset Management Company and their RTA like CAMS or KFintech. The broker just offers you the facility of buying and selling assets. So even if the broker shuts down, there is no effect on your mutual funds units.

    How to track?

    • CDSL’s ‘Easi’ and ‘eDIS’ portals give you complete information about your shares, which shares you have, how many you have, and transaction history.
    • NSDL’s IDeAS platform also gives you the same data if you have a demat account under NSDL.

    Keeping yourself updated about your Demat account holdings is the easiest way to track and keep your investments safe. SEBI has created a system that puts investor safety at the forefront. Even if the broker fails, your investments will not be affected.

    Investor Protection Fund (IPF): Your Safety Net

    If, for some reason, your stockbroker closes down and you have some funds in the trading account or your shareholdings are stuck, then you have another option – Investor Protection Fund (IPF).

    This fund has been created by NSE and BSE to protect investors. If an investor suffers financial loss due to the broker and the broker is unable to compensate for that loss, then IPF compensates your loss to some extent.

    How much can I claim?

    ExchangeIPF Limit / Investor / BrokerClaim Time Limit
    NSEUp to ₹35 lakhWithin 3 years from the date of occurrence of default
    BSEUp to ₹15 lakhWithin 3 years from the date of occurrence of default

    How to claim IPF?

    • File a complaint : On SEBI’s SCORES portal or directly on the NSE/BSE website.
    • Investigation process begins : The exchange or SEBI checks whether the defaulting broker has caused a loss and other details.
    • Claim processing : If found correct, you are awarded compensation under IPF up to ₹35 lakh in NSE and ₹15 lakh in BSE.
    • Documentation is important : Documents like contract notes, demat account statements and proof of loss must be with you.
    • Time limit to keep in mind : Claim deadline is within 3 years of the default event.

    Why is it important for you 

    • NSE’s IPF is backed by a massive corpus of ₹2,534 crore as of May 2025, which shows its commitment to protect investors.
    • This fund is exclusively for retail investors, so even if the broker commits fraud, you do not have to suffer huge losses.
    • The audit and utilization of IPF is done in a transparent manner as per SEBI and exchange regulations.

    Read Also: How to Close Your Demat Account Online?

    Tips to Stay Protected as an Investor

    As an investor, it is important to keep the following points in mind:

    • Always choose SEBI registered brokers : Before opening an account with any broker, check if it is SEBI-registered or not.
    • Prefer well-known or regulated brokers : Reputed brokers like Pocketful , Zerodha,  Angel One, etc. are trustworthy.
    • Do not leave large amounts of money in the trading account : Keeping a large amount of funds idle in your trading account increases risk. If not needed, transfer funds back to your bank account.
    • Check Demat account holdings regularly : Check shareholdings and transaction reports from your depository login once a month.
    • TPIN based transactions: The transactions are authorized by TPIN (like CDSL TPIN), which further increases security, so that no one can transfer your shares without your permission.

    Conclusion

    If your stockbroker suddenly shuts down, there is no need to panic but rather act sensibly. In India, institutions like SEBI, NSE and BSE have come up with stringent regulations and provisions like Investor Protection Fund to protect investors. Your shares and other assets are safe with the depository (CDSL/NSDL) and there is no need to panic. It is just important that you take the right steps at the right time and be cautious about your investments.

    Frequently Asked Questions (FAQS)

    1. What happens to my shares if my broker shuts down?

      Your investments remain safe even if the broker shuts down as your shares are held by depositories such as CDSL or NSDL

    2. Can I transfer my shares to another broker?

      Yes, you can easily transfer shares to a demat account opened with a new broker.

    3. What is an Investor Protection Fund (IPF)?

      This is a protection fund which compensates for the losses incurred by investors due to the defaulting of the broker.

    4. How much compensation can I get from IPF?

      Compensation up to ₹35 lakh can be received in NSE and up to ₹15 lakh in BSE.

    5. Where can I file a complaint against the broker?

      You can lodge an official complaint online on SEBI’s SCORES portal.

  • How to Change/Update your Mobile Number in Aadhaar Card?

    How to Change/Update your Mobile Number in Aadhaar Card?

    Nowadays, it is very important to have the correct mobile number linked to the Aadhaar card as it may be required for every other important task. Banking, government services, PAN card or OTP related facilities; everything requires your mobile number linked with your Aadhaar card. However, if your old mobile number has not been in use and you have switched to a new mobile number, then it becomes necessary to update it in the Aadhaar card database. 

    This blog explains in simple language how to change the mobile number linked to your Aadhaar card.

    How to Change Mobile Number in Aadhaar Card Online?

    In case you have a mobile number already registered with Aadhaar card and want to update it, you can follow the below steps:

    1. Visit the SSUP portal.
    2. Enter your Aadhaar number and the OTP sent to your registered mobile number.
    3. Select ‘Mobile Number’ for update.
    4. Enter the new mobile number and submit the request.
    5. An Update Request Number (URN) will be generated for tracking the status.

    Note: This online service is available only if your current mobile number is registered with Aadhaar.

    If your mobile number is not linked with your Aadhaar, you must visit an Aadhaar Seva Kendra (Service Center) for the update. Online updates are not available for first-time linking. But an appointment can be taken in advance by visiting the UIDAI website, which can help you save time at the service center.

    If you want to link a new mobile number to Aadhaar, then first you can follow these steps to book an appointment:

    • Step 1: Open the official website of UIDAI .
    • Step 2: Click on “My Aadhaar ” in the menu, then select the “Book an Appointment” option
    • Step 3: Enter the city or location and click on “Proceed”
    • Step 4: Enter the mobile number and captcha, then generate OTP
    • Step 5: After entering the OTP, click “Verify”
    • Step 6: Fill in the requested details – like name, Aadhaar number, date of birth, city and service center
    • Step 7: Select the option “Mobile Number Update”
    • Step 8: Choose the date and time as per your convenience and finalize the appointment

    On the day of the appointment, you have to reach the service center at the scheduled time, where the mobile number will be updated after biometric verification. A fee of ₹50 is charged for this and a receipt is received in which the URN number is written. With the help of this URN, the status of the update can be tracked later on the UIDAI website.

    Important thing: It is not necessary to get an OTP on the old number to update the mobile number. That is, even if the old number is not in access, the new number can still be updated.

    How to Change Mobile Number in Aadhaar Card Offline?

    If you want to update your mobile number and do not want to take an online appointment, then you can also change your number offline by going directly to the nearest Aadhaar Seva Kendra. The offline update process involves biometric verification, ensuring the identity of the person requesting the update.

    Here, understand step-by-step how to update mobile number in offline Aadhaar :

    1. Visit the nearest Aadhaar Seva Kendra : The address of the nearest center can be easily obtained from the UIDAI website.

    2. Keep the original copy of the Aadhaar card with you : No other document is required, only Aadhaar is sufficient.

    3. Fill the Aadhaar Update/Correction Form : Enter the new mobile number correctly in the form.

    4. Complete biometric verification : After the fingerprint scan, the data is submitted to the UIDAI server.

    5. Deposit a fee of ₹ 50 : This fee is fixed and a receipt for update is given.

    6. The receipt has the Update Request Number (URN) : With this URN, the status of the update can be checked later on the UIDAI website.

    The mobile number update typically takes around 30 days to complete, but it can take up to 90 days in some cases. Once processed, the new number will be linked to your Aadhaar and you will be notified.

    Read Also: How Do You Apply for PAN 2.0 Online and Get It on Your Email ID?

    How to Check Aadhaar Mobile Update Status Online?

    After changing the mobile number, it is important to know whether the update has been done or not. It is very easy to check this, you just need to  follow the steps given below:

    • First of all, open the UIDAI website .
    • Go to the “My Aadhaar ” section there.
    • Then click on “Check Aadhaar Update Status”.
    • Enter the URN number that you got when you updated your mobile number.
    • Enter the captcha and submit.
    • In a few seconds, you will know on your screen whether the update is still in process, has been completed or has been rejected.

    This makes it easy to understand when your number will be updated.

    Linking a mobile number to an Aadhaar card has become very important in today’s time as mentioned in the points below.

    • Necessary for receiving OTP : Important OTP (One Time Password) comes on the mobile number linked to Aadhaar , which is necessary for many government and banking services. Without a linked mobile number, it becomes difficult to use these services.
    • Get updates and security notifications immediately : When the mobile number is linked to Aadhaar , notifications of updates or changes are received immediately, which maintains identity security. If any fraud occurs, it is detected quickly.
    • Helpful in government and financial work : Aadhaar linked mobile number is also required in processes like opening bank accounts, taking subsidies, getting a PAN card.

    Linking a mobile number to Aadhaar is not only convenient but is also very important from the security point of view. This makes both government services and digital transactions simple and reliable.

    Read Also: GST on Gold Purchase in India

    Conclusion

    Linking or updating your mobile number in the Aadhaar card makes access to digital services easy and secure. Many important tasks are completed without any hassle when the mobile number is linked with your Aadhaar card. It is important to update if you have changed your mobile number so that full benefits of the digital facilities can be availed.

    Frequently Asked Questions (FAQS)

    1. How can I change my mobile number in Aadhaar?

      To change the mobile number, one has to go to the nearest Aadhaar service centre and it is updated after biometric verification.

    2. Can I update my Aadhaar mobile number online?

      The mobile number can be updated online, but it is necessary to have access to your old mobile number as OTP is required.

    3. Is OTP required to change mobile numbers in Aadhaar?

      No, OTP is not required to change the mobile number as you can easily visit the nearest Aadhaar Seva Kendra to get your mobile number updated.

    4. Can I link multiple phone numbers with a single Aadhaar card?

      No, only one mobile number can be linked to one Aadhaar card.

    5. How to check the status of mobile number update in Aadhaar?

      You can check the status of your update application by entering the URN number on the UIDAI website.

  • 5+ Best VFX Stocks in India 2025

    5+ Best VFX Stocks in India 2025

    In the changing world of visual content, VFX plays an important role. Earlier, the quality of content was not up to the mark and was less immersive due to lack of technology. However, over time, the VFX industry has emerged as a key component in bringing creative visualizations to reality. The demand for VFX in OTT content, games, movies, etc., acts as a catalyst for this industry.

    In this blog, we will give you an overview of the VFX industry along with an overview of top stocks related to this sector. Moreover, we will discuss the benefits of investing in these stocks and factors that can directly impact their performance.

    What are VFX Stocks?

    VFX, short for visual effects, is used to create and enhance the visuals used in TV shows, video games, commercials, and movies. Companies that are primarily engaged in providing and enhancing these visual effects are called VFX companies. The global VFx market is expected to grow at a  CAGR of 10.7% from $15 billion in 2023 to $30 billion in 2030. Various listed companies in India are engaged in making animations and visual effects for television shows, video games, movies, etc. However, there are a few companies that are listed on the stock market, which are discussed below.

    Top VFX Stocks Based on Market Capitalisation

    CompanyCurrent Market Price (in ₹)Market Capitalisation (in ₹ crores)52-Week High (in ₹)52-Week Low (in ₹)
    Prime Focus Limited1233,70316585
    Basilic Fly Studio Limited4601,069658223
    Phantom Digital Effects Limited266361490165
    Digikore Studios Limited163103560157
    Picturepost Studios Limited23.97045.623.2
    Identical Brains Studios Limited4461.799.838
    (As of 13 June 2025)

    Read Also: Top 10 Best Summer Stocks in India

    Best VFX Stocks in India Based on Market Capitalisation – An Overview

    A brief overview of the best VFX Stocks in India is given below:

    1. Prime Focus Limited

    Prime Focus Limited was founded in 1997 as an integrated media service provider providing visual effects, post-production and cloud-based media solutions, etc. The company launched its IPO in 2006 and became a publicly traded company. In 2014, the company merged with a UK-based VFX company named Double Negative (DNEG) and Reliance Media Works to enhance its global VFX capabilities and expand its reach. The company has its headquarters in Maharashtra.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    24.24%76.13%361.39%
    (Data as of 13 June 2025)

    2. Basilic Fly Studio Limited

    Basilic Fly Studio Limited was founded in 2012 and is a Chennai-based VFX company providing specialised, high-end VFX to cater to different clients’ needs, including Hollywood studios and streaming platforms. The company’s clients include Netflix, Disney, Sony, Amazon, etc. The company launched its IPO in 2023, and its headquarters are situated in Chennai.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    35.30%
    (Data as of 13 June 2025)

    3. Phantom Digital Effects Limited

    The company was founded in 2011 by Bejoy Arputharaj. The various services offered by the company include visual effects, animation, concept art, VFX supervision, etc. The company has recently secured a contract of ₹72 crores to provide VFX services to one of its clients.  The company launched its IPO in 2022 and became a publicly limited company. The company’s headquarters are situated in Chennai.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -32.11%
    (Data as of 13 June 2025)

    4. Digikore Studios Limited

    The company was founded in 2000, and initially, it was known as Digikore Studios Pvt Ltd. This is a global company providing services such as rotoscopy, green screen composting, set extension, etc. The company has provided VFX services in movies like Deadpool, Jumanji, Titanic 3D, etc. The company’s headquarters are situated in Maharashtra.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -63.52%
    (Data as of 13 June 2025)

    5. Picture Post Studios Limited

    Picture Post Studio is a Mumbai-based creative studio specializing in high-end post-production services. They offer a range of services, including VFX, animation, color grading, editing, sound design, mastering, and quality check, delivering top-notch creative solutions for films, OTT content, commercials, and more. The company has its headquarters situated in Maharashtra. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -18.50%
    (Data as of 13 June 2025)

    6. Identical Brains Studios Limited

    This company was founded in 2019, and initially, it was a private limited company, founded by Mr. Raghvendra Rai, an entrepreneur of Lucknow. It offers comprehensive VFX solutions such as colour grading, rotoscoping, distribution services, etc. It has provided VFX solutions to various films, web series, TV series, etc. The company has launched its IPO in 2024. Its headquarters are situated in Maharashtra. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -35.48%757.17%1,490.53%
    (Data as of 13 June 2025)

    Key Performance Indicators (KPIS)

    CompanyNet Profit Margin (%)ROE (%)ROCE (%)Debt to Equity
    Prime Focus Limited-12.73-49.6814.435.39
    Basilic Fly Studio Limited35.5829.6540.210.02
    Phantom Digital Effects Limited19.7712.2417.990.25
    Digikore Studios Limited20.1822.7027.720.21
    Picture Post Studios Limited13.5217.7623.960.11
    Identical Brains Studios Limited15.5011.5915.890.00
    (The data mentioned above is as of March 2025, except Basilic Fly Studio and Digikore Studios)

    Read Also: List of Best Media and Entertainment Stocks in India

    Benefits of Investing in VFX Stocks

    The significant benefits of investing in VFX stocks are as follows:

    • Growth Potential: The rise in OTT platforms in the past few years has provided VFX companies an opportunity to expand their business operations as the demand for online content increased.
    • Global Player: In recent times, India has become a hub for the global VFX industry. The companies discussed above have played a key role in prominent Hollywood projects.
    • High Profit Margins: Various VFX studios in India lease the equipment rather than purchasing it, resulting in lower spending on acquiring assets, resulting in higher profit margins.
    • Innovative Technology: The Indian VFX industry has some innovative companies, which continuously adopt new technologies, which helps them in providing better quality content. 
    • Skilled Workforce: India has a skilled workforce, helping companies execute difficult and innovative projects.

    Risks of Investing in VFX Stocks

    Key risks associated with investing in VFX stocks are:

    • Financial Performance Volatility: The financial performance of VFX companies can fluctuate, impacting their profitability and stock value. Poor financial performance can result from project delays, new competitors, or unexpected costs.
    • Dependence on Technology and Innovation: The VFX industry relies heavily on adopting new technologies. Companies that fail to keep up with technological advancements may lose their competitive edge, affecting their market position and growth potential.
    • Project Delay Risks: Delays in completing major projects or unforeseen challenges in delivering high-quality content can impact a VFX company’s revenue and reputation, which could, in turn, affect stock performance.

    Factors to be Considered before Investing in VFX stocks

    The key factors which one should consider before investing in VFX stocks are as follows:

    • Financial Performance: The company’s past financial performance plays an important role in its future growth. Hence, it is advised to consider the financial performance as a key parameter before making any investment in VFX stocks.
    • Market Positioning: The company’s market share indicates its strength among the competitors; therefore, one should invest in the company with higher market share.
    • Global Exposure: The companies having higher global exposure must be considered for investment because they do not rely on the domestic market for all their revenues.

    Future of VFX Stocks

    The VFX stocks seem to have a bright future because the use of visual effects has increased significantly over the past few years. In 2023, the market size of the Indian VFX industry was around $1.38 billion and with a projected growth rate of 17.7% CAGR, it is assumed to reach around $2.2 billion by 2026. The Indian VFX industry plays an important role in gaming, movie, and OTT industry as the demand for immersive experiences is increasing. 

    Conclusion

    On a concluding note, with the increasing demand of high quality content, OTT platforms, and gaming the VFX industry is expected to grow at a significant rate. The growth of such companies depends upon the technology they use, clients, and their projects. However, there are certain risks associated while investing in VFX companies such as their volatile financial performance, high competition, project delays, etc. Therefore, it is advised to consult your investment advisor before making any investment decision.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Investing in Water-Related Stocks in India
    2Top 10 Cement Penny Stocks in India
    35 Top Artificial Intelligence Penny Stocks in India
    4Best 5G Stocks in India to Invest
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    Frequently Asked Questions (FAQS)

    1. What are the top VFX stocks in India?

      The top VFX stocks in India are Prime Focus Limited, Basilic Fly Studio Limited, Phantom Digital Effects Limited, Digikore Studios Limited, Picture Post Studios Limited and Identical Brains Studios Limited.

    2. What are the major factors which can affect the performance of VFX stocks?

      The major factors which can affect the performance of VFX stocks are financial performance, market share, technological capabilities and clients of the company.

    3. How to purchase VFX stock in India?

      To purchase a VFX stock, one is required to have a demat and trading account. Now, one can easily open a lifetime free demat account with Pocketful and purchase the VFX stocks easily.

    4. What is the future of the VFX industry?

      The future of the VFX industry is very promising because of the increasing popularity of OTT content, games, movies, etc.

  • Types of Traders in the Stock Market: Styles, Strategies & Pros and Cons

    Types of Traders in the Stock Market: Styles, Strategies & Pros and Cons

    The stock market primarily features two types of market participants, i.e. investors and traders. Most of  them are investors, but the number of traders is steadily increasing. Every day, countless people trade using different strategies, trying to make quick profits. Every trader has a different approach, i.e., some focus on small price movements throughout the day, while others stay invested in the same stock for months. In such a situation, it becomes important to understand which trading style will be right for you.

    In this blog, we will talk about different trader types, their trading styles, and the characteristics of each. This will help you decide which trading strategy will be best according to your risk tolerance and financial goals.

    Understanding Trader Classifications

    Everyone wants to earn money in the stock market, but each individual’s approach towards markets is different. Some people buy and sell financial instrument every day, whom we call traders. These people try to make quick profits from small price movements, due to which one has to constantly keep an eye on the market movements.

    On the other hand, there are market participants who think medium-term and are inclined to hold trading positions overnight ranging from a few days to a few months. The logic behind their positions is primarily based in technical analysis rather than fundamental analysis. 

    Active and Passive Trading Style

    Two major categories of trading styles are: active and passive trading, which are explained in detail below:

    • Active trading : In active trading, people buy and sell several times during a day taking advantage of small price movements. Such traders have an expertise in reading charts and taking quick action on every small change. In this, the chances of profit are higher, but the risk and stress are also significant. For example: scalper, day trading, etc.
    • Passive trading : Passive trading is a much calmer approach to trading. In passive trading, people hold their trading positions from a few days to a few months trying to take advantage of price trends. This approach involves fewer transactions and much larger price movements. It is less risky and is less stressful, but profits come slowly. For example: position trading, swing trading, etc.

    The amount of time you have and the risk you can take will determine which style is right for you. Now that we have understood the broad categorization of trading styles, let us understand their sub categories in detail.

    Types of Traders in the Stock Market

    There are different types of traders in the stock market, who trade according to their own strategies and time frames. Each trading style has its own advantages and disadvantages, which is important for every trader to understand. Let us now know about the main trader types:

    1. Scalper

    Scalpers are traders who make a lot of small trades in a single day. Their aim is to catch small profits repeatedly. They open and close positions within seconds or minutes.

    Advantages:

    • Making quick and small profits
    • Taking advantage of small price movements 

    Disadvantages:

    • Requires a lot of attention and focus
    • Transaction costs (brokerage) are high
    • More stress

    2. Day Trader

    Day traders create market positions after market opening and close all their positions by the end of the day. They avoid overnight risk as they do not hold any position while the market is closed.

    Advantages:

    • Opportunity to earn every day
    • There is no overnight market risk

    Disadvantages:

    • Have to keep an eye on the market throughout the day
    • Involves emotional stress and volatility

    3. Swing Trader

    Swing traders hold their positions for a few days to a few weeks. These traders take advantage of short to medium term trends in the market.

    Advantages:

    • Larger price movements and low brokerage costs
    • Ideal for part-time traders

    Disadvantages:

    • Trading positions can be affected by market news and unexpected global events
    • Significant capital may be required

    4. Position Trader

    Position traders hold stocks for long periods of time, which can typically range from weeks to months. These traders rely on capturing large price movements based on market trends and technical analysis.

    Advantages:

    • Less time commitment and stress 
    • Low brokerage costs

    Disadvantages:

    • Money is tied up for a long time
    • There is a risk of loss due to large market fluctuations

    5. Event-Driven Traders

    These traders trade based on global events as they react quickly to news in the market, company earnings reports, government policies or other significant events. These events cause significant price fluctuations in the market and traders following this approach try to take advantage of it. 

    Advantages:

    • Opportunities to realise immediate profit 
    • Potential to deliver high returns 

    Disadvantages:

    • Can result in huge losses if the market doesn’t react as expected
    • Quick decision needed, otherwise the opportunity is lost

    6. Algorithmic Trader

    Algorithmic trading features automatic trades made using computer programs and algorithms. These algorithms analyze market data, buy and sell financial assets based on the trading strategy.

    Advantages:

    • Fast and accurate execution
    • No interference of human emotions
    • Decisions based on back-tested data 

    Disadvantages:

    • Coding knowledge is required
    • Risk of system or network failure

    7. High-Frequency Trader

    High-Frequency Trading (HFT) is a trading approach in which hundreds of trades are made in seconds using computers. In this, trading firms or large organizations use superfast computers and advanced trading algorithms.

    Advantages:

    • Taking advantage of micro price movements
    • No human emotions are involved

    Disadvantages:

    • Requires large investment and technology expertise 
    • Coding knowledge is required

    Read Also: 10 Top Investors In India And Their Portfolios

    Trader vs. Investor: Key Differences

    PointTraderInvestor
    Holding PeriodFrom a few minutes to a few monthsSeveral months to years
    GoalMake profits in a short timeBuild wealth over the long term
    Decision makingQuick decision making is requiredDecisions are taken based on thorough research 
    Method of analysisRelies on technical analysisRelies on fundamental analysis, industry insights, etc.
    Risk LevelHigh Low
    Time CommitmentHigh as it is essential to make timely entries and exitsTime commitment is a lot less after the investing

    How to Choose the Right Trading Style? 

    Everyone has a different risk appetite and time commitment. Hence, trading styles vary for everyone. Ask yourself the following questions and decide your trading style accordingly:

    • Risk tolerance : If you are not afraid of volatility and can handle the emotional stress of frequent profits and losses associated with scalping and day trading, then active trading is for you. But if you prefer to play it safe, then passive trading such as swing trading, position trading will be the right choice.
    • Time availability : Can you track the market all day? If yes, then adopt the active trading style. Otherwise, passive trading will fit better into your daily routine.
    • Nature and thinking : If you are adept at taking quick decisions, then active trading is better. But if you are patient and believe in gradual growth, then choose the passive trading style.

    Tips for Beginners:

    • Start with one style and practice paper trading first.
    • Gain experience slowly and make small trades using small capital while learning.
    • It is important to learn from your mistakes and improve your strategy over time.

    Read Also: 10 Best Trading Apps in India

    Conclusion

    Every trader has a unique approach towards the market. Some want quick profits while others trade larger market trends. It is not important to know the characteristics of each trading approach and then determine which suits you the best, according to quick decision making ability, time commitment and risk taking capacity. Success in trading is not achieved overnight. But if you trade with the right approach and patience, then you will definitely get good results with time.

    Frequently Asked Questions (FAQS)

    1. Which trading style is best for beginners?

      Swing Trading or positional trading is better for starters as it doesn’t involve quick decision making, making it less risky.

    2. What is the difference between Scalping and Day Trading?

      In scalping, trades are made in seconds or minutes, whereas in day trading, trading positions can be kept for a few hours but are closed before the market closes.

    3. Can I follow more than one trading style?

      Yes, but it’s better to focus on one style initially and master it.

    4. Is algorithmic trading suitable for retail traders?

      If you have coding experience then yes, otherwise avoid it as small errors in strategy’s code can result in huge losses.

    5. Is Swing Trading suitable for beginners?

      Yes, because it doesn’t require you to monitor markets continuously.

    6. How risky is trading based on news?

      Trading based on news can be quite risky as the market reacts very quickly to the news.

  • Difference Between Forward and Future Contracts Explained

    Difference Between Forward and Future Contracts Explained

    Profits are essential but protecting against potential losses and managing risk is just as important. In other words, some trades are made to protect against decline in another asset’s value. Forward contracts and future contracts are types of derivative contracts that can be used for both speculation as well hedging. Both look similar, but there are several key differences between them.

    In this blog, we will understand step by step what forward and future contracts are, what is the difference between futures and forwards, when which contract is better and important things related to them which every trader and investor should know.

    What is a Forward Contract?

    A forward contract is an agreement in which two parties agree to buy or sell an asset (such as a stock, commodity or currency) at a fixed price and on a fixed date in the future. These contracts are over-the-counter (OTC), that is, they are not traded on an exchange but privately between two parties. The terms of the contracts can be customized: quantity, price, delivery date, everything is decided by both the parties by mutual consent. But due to this, the counterparty risk is high, i.e. the other party may default on its obligations.

    In the stock market and commodity market, forward contracts are mostly used by large institutional investors, exporters or importers, who want to avoid future price risk.

    Example: Suppose a farmer and a trader decide that 1 ton of wheat will be sold after 3 months at the rate of ₹2,000 per quintal. Even if the market price at that time is ₹1,800 or ₹2,200, the deal will be done at the same fixed price.

    Key points:

    • Fully customizable
    • OTC transactions
    • Higher risk (counterparty default)

    What is a Future Contract?

    A futures contract is a derivative agreement in which two parties agree to buy or sell an asset (such as a stock, commodity or currency) at a fixed price at a future date but these contracts are traded on an exchange, which makes them standardized and regulated. Each futures contract represents a specific quantity, expiry date, and strike price. They are traded on an exchange (such as NSE or MCX), and require parties to deposit margins— an upfront amount that both parties have to pay to reduce the risk of default.

    The trading positions of both the parties are marked to market daily, i.e. every day the profit or loss is calculated and adjusted in the account. This is why futures contracts are popular among traders for speculation as they can be easily sold on an exchange.

    Example: Suppose a trader buys Nifty Futures for June expiry at a price of ₹25,000. If Nifty’s spot price increases to ₹25,500, then the trader can easily sell the futures contract and realise a profit.

    Key points:

    • Standardized contracts traded on exchanges
    • Low counterparty risk
    • Daily settlement and margin required to reduce counterparty risk 

    Read Also: What is Future Trading and How Does It Work?

    Similarities Between Forward and Future Contracts

    Some of the similarities between the forward contracts and futures contract are mentioned below:

    • Both are derivative instruments: Their value depends on an underlying asset such as stocks, commodities or currency.
    • Delivery or settlement on a future date: Both contracts are an agreement to buy or sell an asset at a fixed price and date in the future.
    • Used for risk management and hedging: They are either used to take advantage of future price fluctuations, i.e. speculate or used to hedge against adverse price fluctuations.

    Key Differences Between Forward and Future Contracts

    ParametersForward ContractFuture Contract
    Trading PlatformOver-the-counter (OTC), privately tradedTraded on an exchange (like NSE,BSE, MCX)
    StandardizationFully customized, terms are set by parties involvedCompletely standardized with predefined specifications
    Margin requirementUsually isn’t requiredMargin needs to be deposited 
    Settlement MethodSettlement happens only on maturityMark-to-market settlement takes place daily
    LiquidityLess liquid as traded OTCMore liquid, as traded on an exchange
    Default riskThe risk of counterparty default is highRisk is very low due to clearing house mechanism
    Price TransparencyLess transparentComplete transparency as it is traded
    RegulationNo under direct supervision of any regulatory bodyRegulated 
    FlexibilityThe terms are completely customizable depending upon the partiesFixed contract size, expiry and strike price 
    UsersMostly institutional investors, exporters/importersTraders, investors, hedge funds and arbitrageurs

    When to Use Forwards vs Futures?

    When to use a Forward Contract?

    • When a specific deal is required and full customization of contract terms is necessary.
    • For long-term agreements, such as when an exporter/importer wants to fix transaction prices in the future.
    • When an OTC (Over The Counter) private agreement is more convenient and the counterparty is trustworthy.

    When to use a Future Contract?

    • When high liquidity, transparency and a regulated trading environment are required.
    • For short-term trading or speculation, such as taking advantage of daily price movements in indices or commodities.
    • When the risk of counterparty default needs to be avoided and exchange-backed settlement is preferred.

    If flexibility and customization is required then a Forward Contract is better. But if safety, liquidity and transparency are required then a Future Contract is a better option.

    Read Also: Top 10 Trading Apps in India

    Advantages and Disadvantages of Forward and Futures Contracts

    Every contract has its own strengths and limitations. Let’s see what are the advantages and disadvantages of forward and future contracts:

    Advantages of Forward Contract

    • Flexible terms: Buyer and seller can decide the quantity, price and maturity by mutual consent.
    • Customization: Tailor-made deals are possible according to specific requirements.

    Disadvantages of Forward Contract

    • Counterparty Risk: Being OTC, the risk of default is high.
    • Low Liquidity: It is difficult to trade in the secondary market.

    Advantages of Future Contract

    • Transparent Pricing: Price is publicly available on the exchange.
    • High Liquidity & Safety: Being standardized, they can be easily traded and clearinghouse guarantees settlement.

    Disadvantages of Future Contract

    • Limited Flexibility: Terms are predefined, due to which customization is not possible.
    • Risk of Margin Call: Due to daily price movement, you may be required to deposit extra margin.

    Conclusion

    Both forward and futures contracts are used to manage price risk. Forward contracts are more flexible and customised, while futures contracts offer higher liquidity and transparency. Forwards are more suitable for long-term deals, while futures are a better option for speculating. Choosing the right option depends on your financial objectives and risk appetite.

    Frequently Asked Questions

    1. Are forward and future contracts the same?

      Both are derivative contracts but are different from each other with respect to counterparty risk, flexibility, liquidity, etc.

    2. Are future contracts considered safer?

      Yes, because they are traded on exchanges and settlement is guaranteed by the clearing house.

    3. Can small investors trade in forward contracts?

      Small investors can trade in forward contracts, but it is uncommon since these contracts are usually large and require finding a counterparty. As a result, forward contracts are typically more suited for institutional investors.

    4. What is a margin call in futures trading?

      If the market moves against you, you may have to deposit extra margin – this is called margin call.

    5. Are profits earned from these contracts taxable?

      Yes, profits earned from both futures and forward contracts are subject to taxation.

  • 10 Best Penny Stocks with High FII Holding

    10 Best Penny Stocks with High FII Holding

    Penny stocks with strong FII backing offer significant growth potential. These low-priced shares, supported by foreign institutional investors, have the power to soar as they gain liquidity and investor confidence. With thorough research, these stocks can deliver impressive returns.

    In May 2025, FIIs have invested ₹18,082 crore in the Indian equity market, which reflects their positive sentiment towards the market. In this blog, we will present a list of top penny stocks in which FIIs have a high stake. This information will help retail investors make informed decisions and identify stocks with potential high returns.

    How to Identify FII Interest in Penny Stocks?

    Foreign institutional investors are sophisticated investors that usually invest in reputed companies with strong fundamentals. However, there are some penny stocks with high FII holdings. There are usually some solid reasons behind this—such as improvement in the company’s financial performance, launch of a new project, or major positive changes related to the industry. FIIs do in-depth research before investing and only then increase their stake in a penny stock.

    Signs of such interest are often clearly visible in the market. Some major signs can be as follows:

    • Continuous increase in FII’s stake in the shareholding pattern
    • Unusual increase in trading volume
    • Entry of institutional investors after release of quarterly results
    • Stable and consistent rise in share price 

    These signs indicate that FIIs are gradually building their position in the penny stock. However, not every rise means that the stock is fundamentally strong. Sometimes such movement is also seen due to mere speculative activities.

    Top Penny Stocks with High FII Holding

    CompanyCurrent Market Price (in ₹)Market Capitalisation (in INR crore)52-Week High (in ₹)52-Week Low (in ₹)FII holding
    Iconik Sports and Events 
    29.8
    58.629.816.659.2%
    Leading Leasing Finance & Investment Company6.6332812.32.9049.68%
    Standard Industries2012939.017.538.86%
    Mercury Trade Links16.222.11059.3729.19%
    Yes Bank 20.464,07027.416.026.88%
    Suzlon Energy65.689,033864623.04%
    Celebrity Fashions Ltd13.278.6218.3615.12%
    Zee Media Corporation14.389626.410.613.65%
    Dish TV India Ltd5.2997417.24.7010.54%
    Vodafone Idea Ltd6.7973,56519.26.466.56%
    (As of 12 June 2025)

    Also Read:Top 10 Highest Dividend Paying Penny Stocks in India

    Overview of the Top Penny Stock with High FII Holding

    An overview of the top penny stocks with high FII holding is given below:

    1. Iconik Sports and Events Ltd

    Iconik Sports and Events provides information technology and business consultancy services. The company has shown strong progress in fundamentals, including improvement in both revenue and profit. The increase in FII holdings shows that investors believe in its future prospects.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    79.21%79.21%88.14%
    (Data as of 12 June 2025)

    2. Leading Leasing Finance & Investment Company Ltd

    This company is active in financial services, such as leasing and financing projects. The company provides financial services to small and medium businesses. Its strong customer base and good collection rate make it financially stable. The company’s debt management is fine and the capital structure is strong. Foreign investors have expressed confidence in the company, which shows the possibilities of expansion in the future.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    57.80%95.67%24.23%
    (Data as of 12 June 2025)

    3. Standard Industries Ltd

    Standard Industries Ltd works in textiles and real estate. The company manufactures school uniforms and other clothes, which have good demand in the market. The company also has property in the Deonar area of ​​​​Mumbai, which the company is managing effectively and taking the business forward. The financial position of the company is strong and the debt is low. Foreign investors have shown confidence in this company, which is a positive sign for its future growth.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -20.44%-41.50%85.02%
    (Data as of 12 June 2025)

    Mercury Trade Links is involved in trading and import-export business activities. It works especially in the field of electronics and technology products. The company has strengthened its marketing and supply chain in recent years. In terms of fundamentals, the company has low debt and positive cash flow, which gives it good growth prospects in the future. FII investors have a significant stake in the company, which makes it worth considering.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    76.73%219.04%815.26%
    (Data as of 12 June 2025)

    5. Yes Bank Ltd

    Yes Bank is a large private sector bank in India, started in 2004. The bank has expanded into many financial services such as retail banking, corporate banking, and investment services. In recent years, the bank has paid special attention to improving its financial position. Foreign investors’ confidence has also increased, especially due to the bank’s corrective measures. The bank aims to increase the number of customers through better service and digitalization.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -23.49%624.30%659.35%
    (Data as of 12 June 2025)

    6. Suzlon Energy Ltd

    Suzlon is a leading renewable energy company that manufactures and installs wind energy turbines. As a leading wind energy sector company in India, Suzlon has improved the quality of its products and services in recent years. The company has adopted several strategies to reduce its debt. Foreign investors continue to have confidence in it, which leads it towards stability and growth in the future.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    35.48%757.17%1,490.53%
    (Data as of 12 June 2025)

    7. Celebrity Fashions Ltd

    Celebrity Fashions is a leading fashion and apparel manufacturing company in India. It produces and distributes branded clothing and accessories. The company has gained a good foothold in the market by improving the quality and design of its products. Financially the company is healthy and has low debt. The stake of foreign investors raises hopes of stability and growth in the company.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -29.07%-10.79%142.62%
    (Data as of 12 June 2025)

    8. Zee Media Corporation Ltd

    Zee Media is a leading media house that offers TV news channels and digital content. The company has also made rapid strides in digital media. Its channels are popular across the country and advertising revenue has also seen an increase. The company’s focus is on increasing content quality and reaching new audiences. The stake of FII investors makes it attractive for investors. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -6.35%-9.39%108.96%
    (Data as of 12 June 2025)

    9. Dish TV India Ltd

    Dish TV is one of India’s largest DTH service providers. It offers digital TV channels and is focusing on providing better service to its customers by adopting new technological changes. The company’s revenue is stable and operational costs are under control. FII investors are expressing confidence in the growth of the company by investing in it.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -65.88%-58.48%-21.95%
    (Data as of 12 June 2025)

    10. Vodafone Idea

    Vi, is a well-known telecom company of India which was formed in 2018 by the merger of Vodafone and Idea. Initially, the aim of the company was to provide a better mobile network across the country and especially to provide 4G services to rural areas.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -58.47%-24.78%-20.35%
    (Data as of 12 June 2025)

    In the last few years, the company has faced many challenges – especially due to lack of funds and increasing competition. But now the company has started preparing afresh. Recently it has raised huge funds, so that the network can be improved. The special thing about Vi is that its focus is now more on service quality and user experience than profit. The company also wants to strengthen its hold in small cities and towns and is trying to become a new age digital telecom company.

    Also Read: Best Bank Penny Stocks List

    Key Performance Indicators (KPIs)

    CompanyNet Profit Margin (%)ROE (%)ROCE (%)Debt to Equity Ratio
    Iconik Sports and Events 20.477.038.350
    Leading Leasing Finance & Investment Company133.854.234.97
    Standard Industries-48.38-11.30-8.280.10
    Mercury Trade Links8.229.9412.260.00
    Yes Bank 7.915.111.06NA
    Suzlon Energy19.0233.9224.150.05
    Celebrity Fashions Ltd-11.04-88.85-41.342.84
    Zee Media Corporation-19.20-54.10-33.390.36
    Dish TV India Ltd-31.100.00-3.610.00
    Vodafone Idea Ltd-62.850.00-1.98-2.79
    (Data mentioned above is of March 2025 except Mercury Trade Links (March 2024))

    Advantages of Investing in Penny Stocks with High FII Holding

    FII holdings in penny stocks can offer certain benefits, but it’s essential to consider the factors behind such investments. Here are the main advantages:

    • Increased Liquidity: High FII holdings in penny stocks typically increase the liquidity of these stocks, making it easier for investors to buy and sell shares without causing significant price fluctuations. This helps in smoother entry and exit strategies for retail investors.
    • Investor Confidence: When FIIs invest in penny stocks, it often indicates strong confidence in the company’s growth potential. Since FIIs do thorough research before making an investment, their backing of a stock usually points to solid fundamentals or positive future prospects, attracting additional investors.
    • Potential for High Returns: Penny stocks with high FII holdings are often seen as having significant growth potential. FIIs invest in stocks that show promise for substantial returns. These stocks, being low-priced, can experience sharp upward movement as the company’s financials improve or gain more attention.
    • Better Governance and Management: Companies with high FII involvement tend to adhere to better corporate governance practices. FIIs typically push for greater transparency and improved management practices, which results in better operational efficiency and financial stability for the company.

    Risks of Investing in Penny Stocks with High FII Holding

    FII holdings in penny stocks may raise hopes, but investing in them without proper information can result in losses. The main risks that come with investing in such stocks are mentioned below:

    • Lack of Liquidity : The biggest risk associated with penny stocks is that the number of buyers and sellers are very low. If the FIIs sell their stake, there may be no buyer present, making it difficult for retail investors to sell them when needed.
    • High Volatility : The shares of these companies can fluctuate very quickly due to market manipulation. Even a small news can cause significant price fluctuations.
    • Weak Fundamentals : Often the financial metrics of these penny stocks is not strong. Their revenue, profit or business model is not clear, which makes it difficult to trust them in the long term. 

    Factors to Consider Before Investing in Penny Stocks with High FII Holding 

    Investors should consider the following factors before investing in penny stocks:

    • Need for research : Before investing in such stocks, analyze the company thoroughly, including the background of the management team, industry trends, and the reason behind increase in FII’s stake.
    • Know your risk profile : Every investor has a different risk profile. If you are a beginner, do your research and start with a small amount.
    • Diversification is important :  Always diversify your portfolio when investing in penny stocks. This will ensure that if investment in one stock declines in value, the other stocks can balance it out.

    Conclusion

    The increasing share of FIIs in penny stocks is definitely a positive sign, but it is only one side. It is important to understand each company’s business model, financial health and future prospects.

    Penny stocks carry risks such as low liquidity, high volatility and weak fundamentals. In such a situation, just following the crowd or news without research can prove to be harmful.  If you want to invest in them, analyze these companies thoroughly, start with a small amount, keep the portfolio diversified and move ahead with a long-term vision. Also, stay updated about the recent news about the company.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Best PSU Penny Stocks in India
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    Frequently Asked Questions (FAQS)

    1. What are penny stocks with high FII holding?

      Penny stocks in which foreign institutional investors (FIIs) hold a significant stake are called penny stocks with high FII holding.

    2. Is it safe to invest in penny stocks with high FII holding?

      It is not safe to invest just by looking at FII holdings and must be done after thorough analysis.

    3. Why do FIIs invest in penny stocks?

      FIIs sometimes invest in penny stocks because of growth prospects, cheap valuations or turnaround stories.

    4. How to identify fundamentally strong penny stocks?

      To identify such stocks, one should look at the company’s financials, ROE, ROCE, EPS, and management quality.

    5. Can retail investors follow FII moves?

      Yes, but it would not be wise to invest just based on FII’s holdings and without doing any research.

  • What is Non-Repatriable Demat Account? Meaning and Definition

    What is Non-Repatriable Demat Account? Meaning and Definition

    If you are an NRI with earnings in India and are looking for an option to deploy this income and earn returns, there are various options such as equities, mutual funds, bonds, etc. However, to invest in these assets, you are required to open a non-repatriable demat account.

    In this blog, we will explain to you what a non-repatriable demat account is, and how it works.

    What is a Non-Repatriable Demat Account?

    A Non-Repatriable Demat Account can be opened by non-resident individuals who wish to invest in shares, bonds, and mutual funds in India. There are certain restrictions on the transfer of funds of these accounts, i.e. the income earned on investments held in these accounts cannot be easily transferred out of India. Non-repatriable means funds cannot be freely transferred abroad, but remittance is allowed up to $1 million per financial year, subject to conditions. As it is mandatory to hold shares, etc., in electronic form in a demat account, a non-repatriable demat account makes sure that funds are not easily transferable from India.

    Read Also: How to Open an NRI Demat & Trading Account in India

    Key Features of Non-Repatriable Demat Account

    The key features of a non-repatriable demat account are as follows:

    • NRO Bank Account: The non-repatriable demat account must be linked with the Non-Resident Ordinary bank account. 
    • Restricted Remittance of Securities: The holdings in a non-repatriable demat account cannot be freely transferred out of India easily.
    • PIS: A non-repatriable account generally does not require a separate PIS (Portfolio Investment Scheme) account for buying and selling shares.
    • Transaction: It allows NRI investors to hold and sell securities on the stock exchange easily.

    How a Non-Repatriable Demat Account Works

    A non-repatriable demat account is specially for NRIs. Let’s see how this non-repatriable demat account works:

    1. Investment: The non-repatriable demat account is used by an NRI to invest funds earned in India into Indian securities such as bonds, shares, mutual funds, etc.
    2. Restriction on Transferring Funds: The funds in a non-repatriable demat account are not freely transferable. The interest and principal amount from the account can be transferred only after deducting tax.
    3. NRO Account: The non-repatriable demat account is only for NRIs, and only a Non-Resident Ordinary (NRO) can be linked with a non-repatriable demat account.
    4. Limited Investment: An NRI can invest only up to 5% in a company’s paid-up capital through these accounts.

    Read Also: What is Corporate Demat Account? Features, Benefits, and Eligibility

    Example of Non-Repatriable Demat Account

    Let’s understand how a non-repatriable demat account works through an example.

    Mr. A has been an NRI working in Dubai for the last five years. He owns a flat in New Delhi, which he rented out for ₹20,000 per month. He wishes to invest the rent received from this flat into mutual funds in the form of an SIP. For this, he is required to open an NRO bank account, after which he needs to open a demat account, which is non-repatriable in nature, as he wishes to invest in mutual funds through a demat account. He linked his NRO bank account to his non-repatriable demat account and bought mutual funds. The principal and interest earned on the investment can be repatriated up to $1 million annually.

    Difference Between Repatriable Demat Account and Non-Repatriable Demat Account

    There are certain differences between Repatriable and Non-Repatriable Demat Accounts, which are as follows:

    ParticularsRepatriable Demat AccountNon-Repatriable Demat Account
    ObjectiveFreely invest in India and transfer funds to another country.To invest in India and retain income within the country.
    Bank AccountOnly an NRE (Non-Resident External) account can be linked with a repatriable demat account.A NRO (Non-Resident Ordinary) bank account is allowed to be attached to this demat account.
    FundOne can invest their foreign income and overseas savings through a repatriable demat account.Income earned in India can be invested through a non-repatriable demat account.
    RepatriationRepatriation is allowed in this demat account as both principal and gains can be easily transferred to another country.Repatriation of principal and interest earned is allowed up to $1 million per year. 
    TaxationSome incomes may be exempted.The income and gains generated through this demat account are fully taxable in India.
    PIS SchemeIt requires PIS permission.It does not always require PIS permission, as there are certain non-PIS routes available.
    LimitThere is no limit on repatriation funds from this account.There is a limit defined by the RBI to remit money from a non-repatriable demat account.
    SuitabilityThis account is ideal for NRIs who wish to move funds out of India.It is suitable for NRIs who want to keep their funds and use them in India.

    Read Also: Lifetime Free Demat Account (AMC Free)

    Conclusion

    On a concluding note, a non-repatriable account is mandatory for an NRI who wishes to invest in India and does not want to take the income outside. You can easily open a non-repatriable demat account with a registered stockbroker. However, there are certain restrictions placed by the RBI regarding the transfer of funds from this demat account, therefore, if you are an NRI and wish to invest income generated in India in the Indian stock market, then you must consult your investment advisor.

    Frequently Asked Questions (FAQS)

    1. Can anyone open a non-repatriable demat account?

      Only an NRI (Non-Resident Individual) and any Person of Indian Origin (PIO) can open a non-repatriable demat account.

    2. Which account is required to link with a non-repatriable demat account?

      Only an NRO (Non-Resident Ordinary) bank account can be linked with a non-repatriable demat account.

    3. Can I transfer funds to any other country from a non-repatriable demat account?

      No, you cannot transfer funds from a non-repatriable demat account; however, the RBI has allowed certain exemptions through which you can transfer funds up to $1 million annually.

    4. In which financial investment option can we invest through a non-repatriable demat account?

      An NRI can invest in stocks, mutual funds, IPOs, ETFs, and Bonds through a non-repatriable demat account.

    5. Can I convert a non-repatriable demat account to a repatriable demat account?

      No, you cannot convert a non-repatriable demat account to a repatriable one. For this, you must close your existing account and open a new repatriable demat account.

  • Lenskart Case Study: History, Marketing Strategies, and SWOT Analysis

    Lenskart Case Study: History, Marketing Strategies, and SWOT Analysis

    India has a population of more than 140 crores and is a great market for eyewear. For the past many years, there have been eyewear shops available in local areas where one used to go and buy glasses. However, since 2010, a company has drastically changed the Indian eyewear industry by including technology, affordability, and a personalized experience for the consumer. The company is called “Lenskart”.

    In this blog, we will dive deep into Lenskart’s history, marketing strategies that made it successful, and SWOT analysis.

    Overview of Lenskart Company

    Lenskart is an Indian eyewear brand founded in 2010 and is one of Asia’s largest eyewear brands. The company has changed the landscape of the Indian eyewear industry by offering users convenience to choose from a wide variety of spectacles from home. Customers can select the eyewear through their online store by trying it on using 3D technology. Later, the company also opened their offline stores as well.The company headquarters are situated in Gurugram.

    History of Lenskart

    The history of Lenskart can be divided into two phases: foundation and expansion.

    Foundation

    • Lenskart was founded in 2010 by Peyush Bansal, along with two other individuals, Amit Chaudhary and Sumeet Kaphai.
    • Peyush was a former Microsoft employee and a dropout of IIM Bangalore.
    • Initially he started Valyoo Technologies, which has four verticals such as watchkart, bagskart, jewelskart and lenskart.
    • Among all the ventures, Lenskart emerged as the most promising one.

    Expansion

    • The company initially began as an eyewear retailer offering them at the lowest prices.
    • In 2013, it introduced home eye checkup services that were not provided by any other player in the market.
    • The company introduced a 3D technology through which a user can try eyewear virtually.
    • In 2017, the company opened its retail store and began as an omnichannel model.
    • By 2019, the company had opened more than a hundred stores across the country.
    • By 2020, the company was valued at $1 billion and achieved the status of a unicorn.
    • In 2021, the company began its manufacturing facility in Rajasthan.
    • In 2022, The company acquired a controlling stake in a Japanese eyewear retail chain named OWNDAYS for $400 million.
    • The company recently raised over $200 million from Temasek and Fidelity.
    • The company opened more than 2,000 stores around the world, prominently in countries of Southeast Asia, UAE, and the USA.

    Marketing Strategy of Lenskart

    YouTube video

    Lenskart has used impressive marketing strategies to help it establish itself as a prominent player in the optical industry. The marketing strategies are as follows:

    1. Omni-Channel Presence: Lenskart has a combined presence of both online and offline retail outlets. Through their mobile application and website, they offer a try-on feature for eyewear and they have more than 1500 stores across India.
    2. Digital Marketing: The company has a social media presence across different platforms like Facebook, YouTube, Instagram, etc. They have various strategic collaborations with various lifestyle and fashion influencers. They have a dedicated team of SEO and content marketing, which primarily focuses on enhancing brand visibility.
    3. Celebrity Endorsements: They have renowned celebrities like Katrina Kaif, Bhuvan Bam, etc., as their brand ambassadors.
    4. Pricing: They offer competitive prices and discounts to their customers, through which they stay ahead of the competition. 
    5. Manufacturing: They make their glasses, lenses and frames at their in-house manufacturing facilities, which ensures quality and pricing controls.

    Product Portfolio of Lenskart

    The product portfolio of Lenskart includes the following products:

    1. Prescription Glasses: The company offers all kinds of power glasses, such as single vision, bifocal, progressive, etc.
    2. Frame: It offers a wider range of designs and frames, including rimless, half-rim and full rim.
    3. Sunglasses: The company’s product portfolio also includes all kinds of sunglasses, ranging from aviator, cat-eye, etc. to protect from UV. 
    4. Contact Lenses: Contact lenses of top brands such as Bausch Lomb, Alcon, etc. are available at Lenskart. Along with this, they also have their own brand of contact lenses named Aqualens.

    Business Model of Lenskart

    The business model of Lenskart is mentioned below:

    1. They have a presence across all channels, offering its products to customers through both digital and retail channels.
    2. Lenskart doesn’t compromise with the quality of the product; therefore, they have their manufacturing unit, allowing them to control cost and quality.
    3. The company also offers a subscription program named “Lenskart Gold”, which allows them to have a recurring revenue source.

    SWOT Analysis of Lenskart

    SWOT Analysis of Lenskart

    Strengths

    • The company has a strong brand image because of collaborations with various celebrities.
    • It offers its products at affordable rates, which helps it in staying ahead of the competition. 
    • Their customer-centric services, such as home eye testing, free eye checkups, help them establish themselves as a distinguished entity in the eyewear industry.

    Weakness

    • The company’s primary revenue comes from the urban areas, hence they are heavily reliant on urban customers.
    • Lenskart primarily focuses on eyewear and thus doesn’t have diversified revenue streams.
    • The company’s offline store adds to its high operating costs and therefore reduces profits.

    Opportunities

    • The company can expand itself in the rural areas, which provides them with better growth opportunities.
    • Lenskart can add various other products to its product lineup and have a diversified source of revenue.
    • With the rise in smartphone usage, the demand for protective eyewear will also increase, which can lead to an increase in the company’s revenue.

    Threats

    • The company faces intense competition from the local manufacturers, along with other established brands like Titan.
    • Any economic downturn might lead to a decrease in demand for eyewear and protective sunglasses.
    • With advancement in medical technologies, the eye treatment costs are getting cheaper; hence, instead of buying eyewear and contact lenses, people are increasingly preferring eye surgeries over eyeglasses.

    Conclusion

    On a concluding note, Lenskart has changed the landscape of the Indian eyewear industry by successfully integrating offline trust with online convenience. They primarily focus on latest technology and offer the customer the convenience to try on frames using their smartphones and laptops at home. They filled the gap between traditional eyewear and stylish eyewear by introducing trendy eyewear frames. They have strategically partnered with various celebrities, which helps them enhance their brand visibility. In the past 15 years, it has established itself as a prominent player in the Indian eyewear market.

    Frequently Asked Questions (FAQS)

    1. Who is the owner of Lenskart?

      Lenskart is owned by Peyush Bansal, the founder and current CEO of the company.

    2. Where is the headquarters of Lenskart situated?

      The headquarters of Lenskart are situated in Gurgaon.

    3. Is Lenskart a unicorn company?

      Yes, Lenskart is a unicorn company, and its valuation is more than $1 billion.

    4. Is Lenskart a listed company?

      No, Lenskart is not a listed company. However, there are rumours that the company is expected to launch its IPO in 2025.

    5. Is John Jacob an Indian brand?

      Yes, John Jacobs is an Indian brand launched by Lenskart in 2017.

  • Top 10 Best Summer Stocks in India

    Top 10 Best Summer Stocks in India

    With the rising heat and scorching sun, a different kind of buzz begins to form in the Indian stock market, the buzz around summer stocks. As our bodies acclimatize to warmer temperatures, there are certain companies that experience an increased demand for their products and services. Now that we know why the mid-year period sparks growth, we can focus on the companies that you should consider investing in during summers. 

    In this blog, we will discuss the top 10 summer stocks in India, their overview along with benefits and disadvantages of investing in them.

    What is Summer Stock?

    Summer stocks, or stocks for summer season refer to the shares of the companies which experience a boost in their sales during summers. The reason for this increase in sales is the fact that people spend money on the products that help them beat the scorching sun.

    Just think about the hot scorching sun. While standing outside under the glaring heat the first thing that the majority of people think of is:

    • Cooling Appliances: During summers, appliances such as air conditioners, refrigerators, and air coolers literally become lifesavers and are bought by many. As a result of an increase in demand, companies that manufacture such appliances witness a rise in their revenues.
    • Beverages: During summers, juices and cold drinks are consumed much more than compared to any other season. Want to cool off with something refreshing? Each sip of juice on a hot day helps people stay cool, not to mention that they even taste amazing.
    • Power & Utilities: The use of electricity generally increases with the increased usage of refrigerators, air conditioners, etc., hiking the revenues of the power & utilities sector as well.

    Firms in these sectors tend to enjoy a boom in revenues and profits during this time, which in turn can be beneficial for their stock prices. 

    Top 10 Summer stocks to keep an eye on!!

    Company NameCurrent Price (₹) Market Cap (₹ Cr )52 Week High (₹)52 Week Low(₹)
    Varun Beverages 4751,60,692683419
    Havells India1,57898,8812,1061,360
    Dabur India48786,343672420
    United Breweries 2,05754,4392,3001,810
    Voltas1,31443,4821,9461,135
    Blue Star1,63333,5662,4201,521
    Amber Enterprises India6,63622,4578,1773,847
    Whirlpool of India1,35117,1432,450899
    Johnson Controls-Hitachi Air Conditioner India1,7614,7942,6211,601
    EPACK Durable Ltd. 3583,431674207
    (Data as of 11 June 2025)

    Read Also: Best Air Conditioners Stocks in India

    Overview of Best Summer Stocks in India

    An overview of the best summer stocks in India is given below:

    1. Varun Beverages 

    One of the world’s largest franchisees of PepsiCo is Varun Beverages Ltd. which manufactures, distributes and sells carbonated soft drinks, juices and even packaged drinking water. During summer they perform better because everyone associates the summer season with higher consumption of refreshing beverages. VBL sells beverages under some of the leading brands such as Pepsi, Mountain Dew, 7UP, Slice, and Aquafina which significantly bolsters their revenues and profitability.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -23.49%219.04%815.26%
    (Data as of 12 June 2025)

    2. Havells India

    Havells India is a company in the electrical equipment sector and they manufacture switchgear, cables and wires, electric motors, fans, home appliances, and even air conditioners which are sold under Lloyd brand. Havells benefits from the summer season primarily through increase in sales of fans and air conditioners (Lloyd brand). The temperature rise translates directly into a rise in demand for cooling fans and air conditioners. Furthermore, other electronic products offer sustained demand due to infrastructure spending and consumer spending on homes.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -14.18%42.11%197.84%
    (Data as of 12 June 2025)

    3. Dabur India

    Dabur India is one of the oldest and leading Ayurvedic and natural healthcare brands in India. Its range of products include health care, personal care, and food items. During hot seasons certain items from Dabur’s vast product portfolio witness a rise in demand. Beverages such as fruit juices, glucose based drinks, etc. experience heightened demand as people try to beat the heat. It was founded by S.K. Burman in 1884 and has its headquarters in Ghaziabad.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -21.88%-4.16%11.20%
    (Data as of 12 June 2025)

    4. United Breweries Limited (UBL)

    It is one of the largest manufacturers and sellers of beer in India. It is a subsidiary company of Heineken. They are well known for their Kingfisher brand and other alcoholic beverages. Reasons for increase in revenues during summers is due to the hot weather which typically leads to increased consumption of alcoholic drinks. Social gatherings and outdoor events tend to increase sales volume for UBL which, in turn, helps boost their revenues. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -3.69%40.21%119.03%
    (Data as of 12 June 2025)

    5. Voltas

    It is part of the Tata group and has one of the highest market share in the air conditioning segment. They are known for a variety of room air conditioners, commercial refrigeration equipment, refrigerators, etc. During summers Voltas’ stocks performs well as it has dominant market share in India for AC’s. The rise in summer heat increases the demand for air conditioners. The company’s extensive distribution network and strong brand presence make them a consistent favorite among summer stocks. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -10.85%33.64%141.31%
    (Data as of 12 June 2025)

    6. Blue Star

    It is one of the leading Indian multinational companies engaged in the design, manufacture and distribution of air conditioning systems and commercial refrigeration systems. They have a product line that includes room air conditioners and central air conditioners, water coolers, and water purifiers. 

    Blue Star enjoys higher revenue volumes during periods of increased temperatures as their main source of revenues is by selling cooling products and services. The onset of summer is accompanied by higher demand for ACs, refrigerators, and water coolers from both the commercial and residential sectors, which translates to significantly higher revenues.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -1.73%245.80%554.07%
    (Data as of 12 June 2025)

    7. Amber Enterprises

    It is a well-known manufacturer of air conditioners and its related components (OEM or ODM) for various brands in India. They are also engaged in manufacturing of other consumer durable components also. Amber Enterprises works as an OEM (original equipment manufacturer) for some of the major air conditioning companies and thus stands to gain from the overall surge in sales. During peak summer season, their clients witness an increase in demand for ACs and related components, which translates to increased sales and profits for Amber Enterprises. This role qualifies them as a strong summer player due to their strategic position in the air conditioning value chain.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    70.90%191.84%416.06%
    (Data as of 12 June 2025)

    8. Whirlpool of India Ltd 

    Whirlpool of India Ltd is a subsidiary company of Whirlpool Corporation, which is one of the top companies in the home appliances sector. The company deals in various domestic appliances like refrigerators, washing machines, microwaves, and air conditioners. Their stock generally rises during summers as the company deals in air conditioners and fridges that are primary revenue drivers in the summer season. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -21.45%-10.67%-31.30%
    (Data as of 12 June 2025)

    9. Johnson Controls and Hitachi Air Conditioner India Ltd

    Johnson Controls and Hitachi Air Conditioner India Ltd is a collaboration that offers air conditioning equipment for domestic and commercial purposes. They deal in a variety of air conditioners such as room ACs, chillers, and VRF (variable refrigerant flow) systems. Like Blue Star and Voltas, the main focus for this company is development of air conditioning systems. Staying ahead of competition in the market by prioritizing new technologies and energy-saving appliances helps the company achieve higher revenues and customer satisfaction.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -6.72%4.04%-25.07%
    (Data as of 12 June 2025)

    10. EPACK Durable

    It is one of India’s leading Original Design Manufacturers (ODM) and Original Equipment Manufacturers (OEM) of room air conditioners and small home appliances. They also provide component manufacturing services for these appliances. Like many other businesses, EPACK Durable forms an integral segment of the AC manufacturing ecosystem. The small appliances under their diversified product range also offer some protection from seasonality.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    70.31%59.52%59.52%
    (Data as of 12 June 2025)

    Taking advantage of summer stocks can be a unique strategy to profit during the peak summer season. Regardless, it is wise to conduct a thorough fundamental analysis on the company and consult a financial advisor before investing. 

    Key Performance Indicators (KPIs)

    Company NameNet Profit Margin (%)ROE (%)ROCE (%)Debt to Equity Ratio
    Varun Beverages 13.1715.6220.860.14
    Havells India6.7517.6822.510
    Dabur India13.8416.3620.310.07
    United Breweries 4.9610.1214.490.13
    Voltas6.2312.9119.290.13
    Blue Star4.9519.2824.820.07
    Amber Enterprises India2.8110.6515.720.85
    Whirlpool of India4.589.0811.470
    Johnson Controls-Hitachi Air Conditioner India2.139.1712.100
    EPACK Durable Ltd. 2.675.7912.620.39
    (Data as of March 2025)

    Read Also: Best 5G Stocks in India to Invest

    Benefits of Investing in Summer Stocks in India

    Various benefits of investing in summer stocks in India are:

    • Expected Rise in Demand: The surge in demand for specific goods and services during the summer season stands out as the most prominent benefit of investing in these stocks. The makers and sellers of air conditioners, refrigerators, fans, beverages, ice-creams, etc. enjoy a seasonal spike in sales. 
    • Possibility for Short-term Gains: Summer stocks can provide quick returns for those investors looking for short-term profits. Purchasing these stocks during the offseason and selling just after the summer season can lead to quick profits due to stock price appreciation associated with the increased demand.
    • Portfolio Diversification : Integrating a seasonal aspect with your portfolio holdings up to some extent may help in diversification. Inclusion of these summer stocks can reduce the overall volatility of one’s portfolio, if these stocks rise independently of broader market movements. 

    Disadvantages of Investing in Summer Stocks in India

    Some of the disadvantages of investing in Summer stocks in India are:

    • Change in Weather Patterns : If the temperature is on the milder side or if there is unseasonal rain; the demand for these products can plummet, severely impacting sales and profitability. This makes these firms extremely sensitive to weather fluctuations.
    • Increased Competition and Price Wars: The summer season creates a surge in demand for air conditioners, beverages, etc., leading to fierce competition among companies. Heavy discounts, advertising, and attractive offers may lead to increased sales, but prevent the company from operating with their usual profit margins.
    • Inventory Management Challenges: Such companies face inventory management challenges as unexpectedly mild summers can lead to overstocking and holding costs. This can hurt profits and result in poor stock performance.
    • Short-Term Trading Risks: Quick gains are always accompanied by increased risks due to which it is necessary to stay updated about the weather and market conditions.

    Conclusion 

    Summer stocks often present unique prospects for market participants who are willing to invest based on the seasonal increase in demand of a company’s goods and services. The demand for cooling appliances as well as refreshment beverages soars during the summer months. Like any other investment strategy, it is crucial to know the risks. Regardless of competition, buying these shares for short intervals means the trader needs to be smart and have incredible precision about when to buy and when to sell. Although summer stocks can contribute to portfolio diversification, never forget the importance of risk management. It is advised to consult a financial advisor before investing.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1List Of Best Healthcare Stocks in India 2025
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    4Top 7 Lithium Mining Stocks to Watch in India
    5List of Best Liquor Stocks in India


    Frequently Asked Questions

    1. Is investing in summer stocks always profitable?

      No, it is not guaranteed as the performance of summer stocks depends on factors such as weather, competition, and overall market conditions. One should keep an eye on these factors before investing. 

    2. Which companies perform well during summers? 

      Companies that deal in ACs, fans, refrigerators and beverage companies offering juices, soft drinks, beer. 

    3. What is the best time to invest in summer stocks?

      Typically investors prefer buying these stocks around February and sell them as the peak summer season ends around July.  

    4. Do summer stocks have risk attached to them?

      Some of the risks that one should consider are unpredictable weather patterns, intense competition, and challenges in managing inventory.  

    5. Are all summer stocks seasonal in nature? 

      Some of the companies have a product portfolio that only has a seasonal demand during summers such as EPACK Durables; while other companies with a more varied product portfolio may have year round demand such as Havells. 

  • Parle Case Study: Business Model, Marketing Strategy, and SWOT Analysis

    Parle Case Study: Business Model, Marketing Strategy, and SWOT Analysis

    Whenever you think of biscuits, one of the names that instantly comes to your mind is Parle-G. Initially it was established as a candies manufacturing company and over time it has established itself as one of the largest biscuit manufacturers in India. 

    In this blog, we will give you an overview of Parle, its history, business model competitors along with the SWOT analysis.

    Parle Company Overview

    Parle is one of the oldest and well-known companies in the FMCG segment renowned for popular brands such as Parle G, Hide & Seek, Mango Bite, Melody, etc. In 2011, Parle G was the top-selling biscuit in India. The company was launched by the Chauhan family and initially it offered affordable snacks but later started baking biscuits. The company uses different marketing strategies to establish itself as a global brand. The company has its headquarters situated in Mumbai.

    History of Parle

    The company was incorporated in 1929 by Vijay Chauhan, Sharad Chauhan, and Raj Chauhan. It started manufacturing Parle-G biscuits in 1939, which were glucose biscuits. The biscuit was initially named Parle-Glucose biscuit, but in 1980, it changed the name to Parle-G, in which G refers to glucose, and it was campaigned as G means genius. 

    Over the years, the company acquired various international brands such as Dr. Gerard of Poland. To compete with established brands like Kellogg’s and Nestle, it also introduces cereals into its product line. The company has recently increased the prices of Parle G biscuits, but despite this, it records a surge in sales. Currently, the company has more than 50,000 employees.

    Read Also: Haldiram’s Case Study: Business Model, Marketing Strategy, Financial, and SWOT Analysis

    Product Portfolio of Parle

    The Parle has a diversified product portfolio spread across four different categories:

    1. Biscuits: The company offers various biscuits such as Parle-G, Krackjack, Hide & Seek, Monaco, etc.
    2. Confectionery: The company was originally started as a candy manufacturer and sells candies like mango bite, melody, etc.
    3. Snacks: Parle also offers snacks such as wafers, namkeens, etc.
    4. Beverages: Parle has also diversified into the beverages sector and offers beverages like Frooti, Appy Fizz, etc.

    Business Model of Parle

    The business model of Parle is as follows:

    1. Low Cost: Parle primarily focuses on high-volume production, which helps them keep the cost very low. Parle-G is the flagship product of the company which is selling at a very nominal price.
    2. Distribution Network: The company has a strong distribution network, which helps them in reaching the remote areas of India. Through a wide distribution channel the company can easily increase its revenue.
    3. Emotional Connect: The company has successfully made an emotional connection with its customers through its innovative marketing campaign.
    4.  Small Production Facilities: The company has established several small production facilities spread across the country, allowing them to easily achieve high production volumes.

    Marketing Strategy of Parle

    The company uses various marketing strategies, which help them in promoting their brand. These activities include hiring popular celebrities as brand ambassadors, advertising campaigns, etc. The company also places its flyers in stores and promotes its products across social media platforms.

    Competitors of Parle

    Various market players give intense competition to Parle; the companies are as follows:

    1. Britannia Industries Limited: This is one of the prominent competitors of Parle. Their products like Good Day, Marie Gold, Treat, etc. give intense competition to Parle’s products.
    2. ITC Limited: ITC’s snacks and biscuits such as Dark Fantasy, Sunfeast Marie Light, etc. gives direct competition to Parle.
    3. Nestle India: Nestle’s products such as Munch, Kitkat, are very famous among the Indian consumers.
    4. Surya Food and Agro Limited: The company sells its biscuits under the brand name Priya Gold. Some of its most famous products are Marie Lite, Snakker, etc. providing affordable options to the Indian consumers.

    Read Also: Zepto Case Study: Business Model and SWOT Analysis

    SWOT Analysis of Parle

    Strength

    1. Brand Image: The company has a strong brand image and is recognised as a prominent player in the biscuit industry.
    2. Pricing: The products of Parle are priced in a manner that every Indian consumer can easily buy them.
    3. Distribution Network: The company has a strong distribution network spread across India, helping them in reaching every corner of the country.

    Weakness

    1. Limited Digital Presence: The company invests less on expanding its digital presence.
    2. Focus on only Mass Segment: The Parle primarily focuses on the mass segment, and has limited offering in the premium segment.
    3. Dependence: A major source of company revenue comes from its flagship products such as Parle-G and Hide & Seek.

    Opportunities

    1. E-Commerce: With the rise of online retail platforms, companies can increase their revenue.
    2. Global Expansion: In the world of globalization, the company can expand its business operations across the world and increase its revenue.
    3. New Products: It can launch new products and can also introduce new flavours in its existing product line to cater to changing consumer preferences.

    Threat

    1. Competition: The company faces intense competition from existing and new players, including products from local brands.
    2. Consumer Preference: The preferences of consumers are evolving; therefore, in order to stay ahead they must stay in touch with their consumers and incorporate their suggestions in future product offerings.
    3. Raw Material: Increasing raw materials prices can decrease the profit margins of Parle.

    Read Also: Bikaji Foods Case Study – Product Portfolio, Financial Statements, & Swot Analysis

    Conclusion

    Parle is not just a company, it is a household name famous for its products like Parle-G, Hide & Seek, Melody, etc. It started as a small candy manufacturing company and today it has evolved into a well-known brand known for its biscuits, beverages, etc. With the changing consumer preferences, the company is also planning to introduce new flavours and better products. It has recently increased the price of a few of their products; however, it has not impacted the sales of the company. The journey of Parle from being a small business to a well-known FMCG brand can be considered one of the inspiring stories of Indian business.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Zara Case Study: Business Model and Pricing Strategies
    2Intel Case Study: Marketing Strategy and Pricing Strategy
    3McDonald’s Marketing Strategy – Case Study
    4Havells Case Study: Business Model and SWOT Analysis
    5CAMS Case Study: Business Model, KPIs, and SWOT Analysis

    Frequently Asked Questions (FAQS)

    1. Which is the best Parle product?

      Parle-G biscuit is the most famous product of Parle. However, their other products are also famous such as Krackjack, Hide & Seek, candies like mango bite, melody, etc.

    2. Is Parle an Indian company?

      Yes, Parle is an Indian company and was founded in 1929 by the Chauhan brothers.

    3. Who are the major competitors of Parle?

      Parle faces intense competition from various local and global brands like Britannia, ITC, Nestle, etc.

    4. How can Parle maintain its low prices?

      Parle has established various manufacturing units across the country, and focuses on mass production which helps them in keeping their prices low.

    5. Is Parle listed on the Indian Stock Exchange?

      No, Parle is not listed on the Indian Stock Exchange.

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