Category: Investing

Vijay Kedia Portfolio 2026: Latest Holdings, Strategy & Analysis

The Indian stock market has its share of individuals who have made a name for themselves through their intelligence and patience, and Vijay Kedia is one of them. Coming from a humble background, Kedia started from very small beginnings, but through hard work and sound judgment, he is now considered one of the country’s most renowned investors. His portfolio is now worth approximately ₹1,400 crore. In this blog, we will discuss his investment strategies, his favorite companies, and the lessons that every investor can learn from him.

In this blog, we will uncover the ideas, strategies, and experiences that turned Vijay Kedia into one of India’s most respected long-term investors.

Vijay Kedia Portfolio 2026

Vijay Kedia’s 2025 portfolio reflects his signature investing style—backing high-quality, scalable businesses with strong management and long-term growth potential.

Portfolio Stocks	Market Cap (₹ Cr)	Holding (%)	Current Price (₹)	1Y Return (%)
Atul Auto Ltd	1,273	20.91	459	-17.04%
Neuland Laboratories Ltd	21,567	1.01	16,792	12.64%
Elecon Engineering Company Ltd	11,996	1.09	534	-6.72%
TAC Infosec Ltd	1,768	14.60	844	122.79%
Sudarshan Chemical Industries Ltd	8,134	1.41	1,035	2.79%
Vaibhav Global Ltd	4,127	2.03	247	-9.17%
Yatharth Hospital	7,307	1.31	758	25.17%
Mahindra Holidays & Resorts India Ltd	6,832	1.00	338	-5.29%
Repro India Ltd	749	6.33	523	2.33%
Innovators Facade Systems Ltd	305	10.66	387	11.71%
Siyaram Silk Mills Ltd	3,509	1.00	774	8.71%
TechD Cybersecurity	1,682	3.15	177	-43.63%
Om Infra Ltd	1,074	2.49	112	-22.32%
Affordable Robotic & Automation Ltd	223	9.93	251	-65.24%
Global Vectra Helicorp Ltd	201	5.07	281	-14.10%

(As of 20 Nov 2025)

Vijay Kedia Portfolio 2026 – Sector-wise Breakdown

Sector	Equity (%)
Engineering	13%
Auto (2 & 3 Wheelers)	7%
Textiles (Weaving)	7%
Construction & Contracting (Civil)	7%
Auto Ancillaries	7%
Hotels	7%
Telecommunications (Equipment)	7%
Engineering (Heavy)	7%
Dyes & Pigments	7%
Printing & Stationery	7%
Pharmaceuticals	7%
Retail	7%
Transport & Logistics	7%
IT Services & Consulting	7%

(As of 20 Nov 2025)

Key Performance Indicators (KPIs) of Vijay Kedia Portfolio

The key performance metrics of Vijay Kedia Portfolio Stocks are mentioned below:

Company	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Neuland Laboratories Ltd	18.83	17.61	17.06	16.23	0.09
Elecon Engineering Company Ltd	24.33	18.27	20.76	24.71	0.00
Tejas Networks Ltd	10.64	5.00	11.60	22.44	0.85
Sudarshan Chemical Industries Ltd	7.41	1.71	1.62	3.64	0.61
Mahindra Holidays & Resorts India Ltd	12.29	4.56	-46.14	3.92	-3.57
Vaibhav Global Ltd	6.36	4.53	11.36	14.78	0.08
Siyaram Silk Mills Ltd	13.10	8.87	15.36	20.65	0.18
Precision Camshafts Ltd	6.51	6.25	6.82	6.80	0.12
TAC Infosec Ltd	59.25	55.72	24.27	25.73	0.03
Atul Auto Ltd	5.09	2.53	4.90	6.94	0.25
Om Infra Ltd	7.09	5.04	4.81	6.03	0.10
Innovators Facade Systems Ltd	13.81	7.12	11.04	19.64	0.42
Global Vectra Helicorp Ltd	6.68	-0.11	-3.05	10.71	4.79
Affordable Robotic & Automation Ltd	-2.60	-7.16	-11.56	-3.36	0.55

(As of 20 Nov 2025)

About Vijay Kedia

Vijay Kedia is a well-known Indian investor, whose name is synonymous with “multibagger stocks.” He was born in 1959 in Kolkata. He developed a passion for the stock market at a young age. He started trading at just 19 years old, but initially suffered significant losses. He learned from his mistakes and gradually made long-term investing his main focus.

Today, Vijay Kedia is one of India’s top value investors. He has generated huge returns by investing in stocks like Atul Auto, Cera Sanitaryware, and Sudarshan Chemical at an early stage. He believes that money is made in the market only when you have patience and wait for the growth of good companies.

Kedia’s philosophy is simple honest management, a scalable business, and a long-term vision. This approach has made him a successful and respected investor.

Detail	Information
Full Name	Vijay Kishanlal Kedia
Year of Birth	1959
Place of Birth	Kolkata, West Bengal, India
Education	Graduate in Commerce
Profession	Investor, Trader, and Entrepreneur
Famous For	One of India’s most successful value investors and multibagger stock pickers
Investment Firm	Kedia Securities Pvt. Ltd.
Investment Philosophy	SMILE Model Small in size, Medium in experience, Large in aspiration, Extra-large in opportunity

How Vijay Kedia Identifies Multibagger Stocks

Long-Term Vision : Vijay Kedia always prioritizes long-term investments. He believes that a company’s true potential unfolds over time, so patience is crucial rather than seeking quick profits. He says, “Waiting patiently in the right company is where the real money is made.”

SMILE Model : Vijay Kedia’s entire strategy is based on his famous SMILE model. It emphasizes four key points:

S – Small in Size : Choosing small but fast-growing companies.
M – Medium in Experience: The management team should have several years of solid experience.
L – Large in Aspiration: The company should have a strong desire to think big and grow.
E – Extra-large in Market Potential: The sector in which the company operates should have significant growth opportunities.

This model shows that Vijay Kedia doesn’t just look at small companies, but trusts in their future potential and the management’s vision.

Trust in Management : Kedia believes that the real strength of any company lies in its management. He invests in businesses with honest, transparent, and passionate leadership. According to him, “If the management is good, the company can navigate even difficult situations.”

Focus on Emerging Sectors : He is always on the lookout for sectors that are likely to grow rapidly in the coming years. In recent years, he has increased his investments in sectors like chemicals, manufacturing, and financial services. He believes that these sectors will play a major role in India’s growth story.

Control Over Emotions : Vijay Kedia believes that the most difficult thing in investing is controlling one’s emotions. He always makes decisions based on data and logic, not on fear or greed.

Key Lessons for Retail Investors from Vijay Kedia’s Portfolio

Finding Big Opportunities in Small Companies : Vijay Kedia always chooses companies that are currently small but have the potential for future growth. He says, “If a small company is moving in the right direction, it will eventually become a multibagger.” Retail investors can also benefit in the long term by keeping an eye on steadily growing companies.

Trust in Good Management : A company’s true strength lies in its management. If the team is honest and passionate about their work, the company can weather even difficult situations. Therefore, before investing, always check who is running the company.

Invest with a Long-Term Perspective : Kedia believes that real wealth in the stock market is created over time. If the company is good, give it time to grow. Patience is more important than getting worried about daily fluctuations.

Don’t Be Afraid of Downturns : The market doesn’t always go up. Downturns are a part of every investment. Kedia says, “Investors who sell out of fear miss out on real opportunities.” As long as the company’s fundamentals are strong, it’s wise to remain calm.

Keep an Eye on Growing Sectors : He always chooses sectors that are linked to the country’s development – such as chemicals, manufacturing, and financial services. Retail investors can also look for growth opportunities in these sectors.

Do Your Own Research : It’s better to invest based on your own understanding than to blindly follow big investors. Kedia also says, “If you haven’t done your own research, fear or greed will force you to make wrong decisions.”

Common Misconceptions About Vijay Kedia’s Portfolio

Myth 1: If we copy Vijay Kedia’s portfolio, we will get the same returns.

Reality: Everyone has different thinking, risk tolerance, and investment time horizons. Understanding his strategy is good, but blindly copying it would be wrong.

Myth 2: All the stocks he chooses are always safe.

Reality: Kedia often invests in small and mid-cap companies. These have higher growth potential, but also carry higher risk.

Myth 3: He never sells his stocks.

Reality: If he feels that a company’s situation is weakening or its fundamentals are changing, he exits the position in a timely manner.

Myth 4: His multibagger stocks are created purely by luck.

Reality: Every position he takes is a result of research, experience, and patience. It’s not luck, but understanding and hard work that are his strengths.

Myth 5: He only invests in large companies.

Reality: His specialty is identifying those small companies that have the potential to become big in the future.

Conclusion

Vijay Kedia’s story shows that money is made in the stock market only when one is patient and trusts their own judgment. He consistently chose companies with clear business models and strong growth potential. His philosophy is clearly focused on building wealth steadily rather than trying to get rich quickly.

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Frequently Asked Questions (FAQs)

Who is Vijay Kedia?
Vijay Kedia is a well-known Indian investor, famous for his long-term investment strategy and ability to pick multibagger stocks.
What is Vijay Kedia’s investment strategy?
He always invests for the long term in fundamentally strong, small but high-growth potential companies.
What is Vijay Kedia’s net worth in 2025?
His estimated net worth in 2025 is approximately ₹1,400 crore.
Which are some popular multibagger stocks of Vijay Kedia?
Some of his popular multibagger stocks include Atul Auto, Cera Sanitaryware, and Sudarshan Chemical.
Can we copy Vijay Kedia’s portfolio for investment?
No, every investor has a different mindset and risk appetite. It’s better to learn from his strategy, but blindly copying it is not advisable.

November 21, 2025

Raj Kumar Lohia Portfolio 2026: Holdings, Strategy & Analysis

Raj Kumar Lohia is not just an investor but a long-term value investor who has distinguished himself by breaking away from conventional thinking and investing in lesser-known but strong companies. A look at his 2025 portfolio is important because his chosen business-focused approach can guide investors like us in today’s changing economic environment. His holdings provide insight into how an experienced investor identifies sustainable growth, evaluates management quality, and maintains conviction in fundamentally strong businesses despite market sentiment.

In this blog, we will provide a complete analysis of his “Raj Kumar Lohia Portfolio” , the list of companies in it, recent changes, and long-term investment strategy.

Raj Kumar Lohia Portfolio in 2026

The 2025 Raj Kumar Lohia portfolio reveals his preference for quality mid-cap companies across engineering, healthcare, IT, and media. This table highlights their market cap, performance, and strategic importance in his holdings.

S.no	Portfolio Stocks	Market Cap (₹ Cr)	Current Price (₹)	1Y Return (%)	Sector
1	Shivalik Bimetal Controls Ltd	2,658	461	-20.68%	IMetals / Engineering
2	Kwality Pharmaceuticals Ltd	985	850	9.10%	Pharmaceuticals / Healthcare
3	Ceinsys Tech Ltd	2,102	1,205	-13.84%	IT / Engineering Services
4	Om Infra Ltd	1,050	109	-21.05%	Industrials / Construction & Engineering
5	Lincoln Pharmaceuticals Ltd	1,071	535	-14.20%	Pharmaceuticals/Healthcare
6	TAAL Enterprises Ltd	951	3,089	14.32%	Engineering Technical Solutions / Aviation Services
7	Linc Ltd	723	121	-20.94%	Industrials / Stationery & Writing Instruments
8	Entertainment Network (India) Ltd	628	132	-28.57%	Media / Entertainment

(As of 19 Nov 2025)

Key Performance Indicators (KPIs) of Raj Kumar Lohia Portfolio

The key performance metrics of Raj Kumar Lohia Portfolio Stocks are mentioned below:

Company	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity

Shivalik Bimetal Controls Ltd	20.61	14.82	18.99	24.60	0.08
Kwality Pharmaceuticals Ltd	17.29	10.75	15.13	23.04	0.43
Ceinsys Tech Ltd	19.47	12.58	15.35	19.41	0.10
Om Infra Ltd	7.09	5.04	4.81	6.03	0.10
Lincoln Pharmaceuticals Ltd	17.82	13.21	12.25	16.07	0.00
TAAL Enterprises Ltd	36.35	26.35	23.91	32.79	0.00
Linc Ltd	9.96	6.98	16.21	20.63	0.03
Entertainment Network (India) Ltd	6.09	2.19	1.48	3.53	0.00

(As of 19 Nov 2025)

Who is Raj Kumar Lohia?

Raj Kumar Lohia was born in 1954 into a business family. He earned a bachelor’s degree in Economics from Kanpur University. At the age of 22, he joined the family business, which included agro-trading and plant-machinery, gradually developing a strong interest in financial markets and long-term value investing through hands-on business experience.

Raj Kumar Lohia Profile Summary

Description	Information
Full name	Raj Kumar Lohia
Birth Year	1954
Education	Bachelor of Arts Kanpur University
Key positions	Chairman and Managing Director, Lohia Corp Ltd
Industry Experience	Manufacturing, Engineering Machinery, Global Supply
Investment sentiment	Quality-driven, long-term, business-savvy focus

Latest Investment Portfolio Status

According to his publicly disclosed shareholdings, he holds stakes in approximately 62 companies and his portfolio value is estimated to be around ₹227 crore+ (as of September 2025).
Year-on-year variations show that he invests while recognizing both risks and opportunities.

Raj Kumar Lohia’s Investing Philosophy

Quality-First Approach: Lohia invests only in companies with strong fundamentals. He closely analyzes a company’s earnings, cash flow, and debt levels. He believes that sustainable businesses deliver the best returns over the long term.
Long-Term & Low-Churn Strategy: His investment approach is “hold for the long term.” He doesn’t buy or sell frequently. After selecting a strong company, he holds it for many years, allowing for steady compounding.
Focus on Scalable Sectors: He focuses on sectors with real growth potential in the coming years such as manufacturing, engineering, chemicals, and export-oriented companies. India’s rapidly growing competition in these sectors attracts him.
High-Conviction Approach: Lohia relies on a small number of select companies. He conducts in-depth research on each company and includes only those businesses in his portfolio that he sees as having a strong future.
Promoter Quality & Governance: The company’s management is the most important factor for them. They prefer companies where the promoter has a clean track record, strong governance, and transparent decision-making.

Risk Factors in the Raj Kumar Lohia Portfolio

High Concentration Risk: Lohiya holds large investments in just a few companies. A decline in one major stock could impact the entire portfolio.
Cyclical Sector Exposure: Many of his holdings are in sectors that are driven by economic conditions. Recessions or falling demand can put pressure on companies’ earnings.
Promoter & Governance Risk: He invests mostly in promoter-driven companies. Any management missteps or wrong decisions could impact a company’s performance.
Low Liquidity in Smallcaps: Smallcap stocks are less volatile. It can be difficult to sell them quickly if the market falls.
Global & Macro Impact: Companies such as chemical and engineering companies depend on global markets. Changes in oil prices, dollar rates, and foreign demand directly impact their profits.

Raj Kumar Lohia’s Investment Style: What Retail Investors Can Learn

Raj Kumar Lohia’s investment philosophy is simple and practical. He only invests in companies with strong businesses, stable financials, and trustworthy management.

Business-Focused Approach: Lohia focuses on business quality, not stock prices. His priority is companies that demonstrate long-term stable earnings and clean balance sheets.
Long-Term Holding: He invests with a 5–10-year horizon and avoids frequent trading. His primary strategy is to hold a strong company for the long term.
Independent & Research-Based Thinking: He doesn’t follow the crowd. He makes decisions based on his experience, data, and business analysis.
Promoter Quality & Governance: Before investing in any company, he first looks at the management’s integrity and transparency. A good promoter is his biggest safeguard.
Risk-Controlled Allocation: Lohia balances risk and makes meaningful allocations only to select, well-recognized businesses.

Should Retail Investors Copy Raj Kumar Lohia’s Portfolio?

Is it right to copy his portfolio?

The simple truth is that copying his portfolio exactly is not wise. The timing, purchase price, and risk appetite of the companies Lohia joined differ significantly from those of the average investor. The same stock he entered years ago is available at a completely different valuation today.

What should be understood from his strategy?

It’s more important to understand his thinking than copying his portfolio. He trusts the company’s foundation, management, and business model. This habit also helps the average investor—to stick to good companies without any fuss.

Should retail investors buy the same stocks?

No, buying just by looking at a list isn’t the right approach. Everyone’s income, goals, and risk tolerance are different. If you like a stock, first verify it yourself, understand the business, and only then make a decision.

Conclusion

Raj Kumar Lohia’s investment style clearly demonstrates that stable businesses, trustworthy management, and a long-term perspective always create a strong foundation. His portfolio helps us understand that focusing on the right companies can yield strong performance without all the noise. The most important thing for retail investors is to understand the fundamentals, risks, and their needs before investing in any stock. Wisdom and patience are what create real long-term gains, and Lohia’s disciplined strategy reminds us that sustained wealth is built through conviction, consistency, and informed decision-making.

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Frequently Asked Questions (FAQs)

Who is Raj Kumar Lohia?
He is an experienced Indian investor and industrialist known for his calm and thoughtful investment style.
What makes his investment style different?
He only believes in strong and clean businesses and holds those companies for the long term.
Should retail investors follow his portfolio?
Direct copying is not advisable; every investor’s needs and risk factors are different.
What type of companies does he usually invest in?
He chooses companies with low debt, strong cash flow, and trustworthy management.
Is his strategy helpful for beginners?
Yes, his approach is worth learning, just do your research before investing.

November 21, 2025

How to Earn Passive Income Through Dividend-Paying Stocks in India

Most people think that investing in stock helps only in capital appreciation, and to cash in the profit, one should sell their holdings. But it is not a smart way to sell the stock if you wish to have a passive income. Instead of investing in growth-oriented stocks, you can invest in dividend-paying stocks and earn passive income.

In today’s blog post, we will give you an overview of how to earn passive income by investing in dividend-paying stocks.

What are Dividend-Paying Stocks?

Dividend-paying stocks are the shares of companies that generally declare a portion of their profits regularly to their investors or shareholders. This dividend can be a regular source of income for conservative investors who are seeking passive income. The frequency of dividend distribution varies from company to company, generally ranging from quarterly to annual. Companies might sometimes declare an interim dividend. PSUs, OMCs, etc., are considered dividend-yielding companies.

Why Choose a Dividend-Paying Stock for Passive Income?

One should choose a dividend-paying stock for the following reasons:

Regular Income: Investment in dividend-yielding stocks can be a regular source of passive income for investors.
Capital Appreciation: In addition to the dividend, the company’s share value also increases over time. Hence, creating wealth in the long run.
No Capital Gain: Dividends can be a source of income without generating any capital gain, as you don’t have to sell your stocks to get the cash.
Hedge Against Inflation: Dividend-paying companies increase the amount of dividends based on their profit over time. Hence, a higher dividend yield can act as a hedge against inflation.

Read Also: What is Dividend ETF?

Example of Passive Income Through Dividends

Let’s understand passive income through an example.

Suppose you have invested 10,00,000 in a stock of ABC Limited. For a particular financial year, the company has declared a dividend yield of 2%.

Then the annual dividend you will receive will be around 2% of 10,00,000.

10,00,000 * 2%

= 20,000 INR.

Hence, you will receive 20,000 INR directly into your bank account.

How to Start Earning Passive Income Through Dividend-Paying Stocks

To earn passive income through dividend-paying stock, one needs to follow the steps mentioned below:

Opening a Demat and Trading Account: The next step is to identify a broker, where you want to open a demat and trading account. It is mandatory to have a demat account to invest in dividend-paying stocks. One can select a broker based on various parameters, such as brokerage charges and trading platform.
Identifying the Dividend Paying Stock: The first step is to determine the dividend-paying stock in which you wish to invest your money. One can identify a suitable stock using technical and fundamental parameters.
Dividend Yield: Then you need to check the dividend yield of the stock in which you wish to invest. To get higher passive income, one must select the company which has a high dividend yield and has a consistent record of paying it.
Diversification: One should diversify their dividend investment portfolio, so that in case of any trouble in a particular sector, another one will compensate for the passive income.
Review: Regular monitoring of the dividend portfolio, and remove the stocks whose dividend yield of which are decreased.

Read Also: 50 Passive Income Ideas in India

Mistakes to Avoid While Choosing Dividend-Paying Stocks

An investor must avoid making the following mistakes while choosing dividend-paying stocks:

Looking for High Dividend Yield: One must not only look for high dividend yield stocks, as dividend yield is calculated based on the stock price. And if the stock price falls drastically, then the one-time dividend yield will be high.
Fundamentals of the Company: It is required to check the fundamentals of the company. And should not invest in companies having poor fundamentals, such as high debt, decreasing revenue, and profits.
Dividend Payout Ratio: One should not overlook the dividend payout ratio of the company. Which means how much percentage of a company’s profit is paid out as a dividend.
Diversification: Generally, OMCs and PSUs declare higher dividends. However, it is not advisable to invest in only these sectors; one must diversify their holdings.
Tax: Dividends are taxed as per the applicable income tax slab rate. Therefore, one must consider their tax liabilities before investing in dividend yield stocks.

Conclusion

On a concluding note, having a passive income through dividends can be a fruitful decision for a conservative investor. One must invest in stocks with a better and consistent dividend-paying history, along with good fundamentals. You can reduce the risk in your dividend portfolio by spreading it across different industries. One should take this into account as a key factor before purchasing dividend stocks for passive income, though, as dividend incomes in India are taxed according to the applicable tax slab rates. Therefore, before making any investments in dividend-paying stocks for passive income, it is best to consult with your investment advisor.

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Frequently Asked Questions (FAQs)

What is a dividend?
Dividends are a part of a company’s profit, which is distributed to its shareholders in the form of a return for investing in the company’s shares.
When do companies pay dividends?
When companies make a profit, they typically pay out dividends. However, some businesses use their reserves and extra cash to pay dividends to shareholders. Dividend payments may be made on an interim basis, semi-annually, or annually.
How are dividends taxed in India?
In India, dividend income is added to the income of the shareholder and is taxed as per the applicable income tax slab rate to which the investor falls.
Do I need to hold stock for a long time to get a dividend?
No, you are not required to hold stock for a long time to get the dividend; you are required to own the stock on the record date of the dividend.
Do all companies pay dividends?
Not every company pays dividends. The company’s board of directors has the authority to decide whether to distribute the company’s profit in the form of a dividend or use it for further expansion or growth purposes.

November 20, 2025

Top 10 Richest Investors in the World 2026 – Net Worth, Key Investments & Strategies

There are some investors in the world who have redefined the very definition of investing through their decisions and visionary thinking. These are the people who have made their mark in global markets by effectively utilizing time, managing risk, and demonstrating keen insight. Some have built their future by investing in technology, while others have achieved long-term success through patience and discipline, consistently turning opportunities into wealth and inspiring millions of aspiring investors across the globe.

In this blog, we will provide a complete breakdown of the Top 10 Richest Investors in the World 2026, including their net worth, key investments, and the strategies that shaped their wealth.

Top 10 Biggest and Richest Investors In The World

The top global investors have accumulated massive wealth by combining market foresight, disciplined strategies, and long-term conviction. Their achievements offer insight into how informed decisions and patience can create extraordinary financial success.

S.No	Name	Estimated net worth	Country
1	Elon Musk	$ 500 billion	USA
2	Larry Ellison	$ 367.9 billion	USA
3	Jeff Bezos	$ 245.3 billion	USA
4	Mark Zuckerberg	$ 266.7 billion	USA
5	Larry Page	$ 160 billion	USA
6	Sergey Brin	$ 150-160 billion	USA
7	Bernard Arnault	$ 147–160	France
8	Steve Ballmer	$ 140-150 billion	USA
9	Warren Buffett	$ 147 billion	USA
10	Jim Simons	31.4 billion	USA

1. Elon Musk

Elon Musk is considered one of the most influential investors and entrepreneurs in the world today. He has proven that true wealth is not just built on money, but on vision. Born in South Africa, Musk has made technology and innovation his hallmark. Through Tesla, he revolutionized the electric vehicle industry, while SpaceX has given a new direction to space exploration. In recent years, his focus has been on artificial intelligence and sustainable energy solutions. His success is an example of how those who dare to take risks are the ones who change the world.

Personal Information	Description
Full name	Elon Reeve Musk
Date of Birth	June 28, 1971
Place of Birth	Pretoria, South Africa
Main companies	Tesla, SpaceX, Neuralink, xAI

2. Larry Ellison

Larry Ellison is a name synonymous with success in the world of technology, a man who transformed his dreams into reality. He founded Oracle in 1977 and gradually built it into one of the largest software companies in the industry. His forward-thinking approach quickly adopting new technologies and leveraging them in business has been his greatest strength. He is also a major shareholder of Tesla. Larry believes that success comes not from luck, but from persistent effort and genuine passion. Today, Oracle’s identity is inextricably linked to his vision and leadership.

Personal Information	Description
Full name	Lawrence Joseph “Larry” Ellison
Date of Birth	August 17, 1944
Place of Birth	New York City, USA
Main companies	Oracle Corporation (Co-founder, Executive Chairman & CTO)

3. Jeff Bezos

Jeff Bezos’s story is proof that someone with a big vision can start from anywhere. He started Amazon in his garage, initially selling books online. Gradually, Amazon transformed from just a company into the world’s largest e-commerce platform. Bezos has always prioritized the customer experience above all else, and this mindset sets him apart from everyone else. His journey demonstrates that patience, focus, and innovative thinking can turn any dream into reality.

Personal Information	Description
Full name	Jeffrey Preston Bezos
Date of Birth	January 12, 1964
Place of Birth	Albuquerque, New Mexico, USA
Main companies	Amazon.com Inc.

4. Mark Zuckerberg

Mark Zuckerberg’s story is a great inspiration for the new generation. He started Facebook as just a college project, but his vision went far beyond that. Mark’s goal was to connect people around the world, and today, through Meta Platforms, he has achieved just that. He has transformed social media into a powerful force that is now an integral part of business, communication, and technology. Major focus today: AI, metaverse, VR/AR technologies.

Mark has always believed in learning new things and adapting to changing times. This very quality has made him one of the most successful investors and innovators in the world today.

Personal Information	Description
Full name	Mark Elliot Zuckerberg
Date of Birth	May 14, 1984
Place of Birth	White Plains, New York, USA
Main companies	Meta Platforms

5. Larry Page

Larry Page is one of the people who completely transformed the internet. He co-founded Google in 1998 with his friend Sergey Brin when the concept of a search engine was still new. Their vision was to make all the world’s information easily accessible to everyone. Larry has always believed that technology should be a tool to make people’s lives easier. After the success of Google, he ventured into several new projects through Alphabet, such as AI, self-driving cars, and health technology. His thinking has always been focused on the future; this is what makes him a true innovator and a major figure in the world of investment.

Personal Information	Description
Full name	Lawrence Edward Page
Date of Birth	March 26, 1973
Place of Birth	East Lansing, Michigan, USA
Main companies	Google (now Alphabet Inc.)

6. Sergey Brin

Sergey Brin is an entrepreneur who has made technology an integral part of people’s lives. Born in Russia and raised in the United States, Sergey co-founded Google with Larry Page. Their goal was to organize the world’s information in a way that everyone could easily access it. Sergey is known for his creative thinking and experimental approach. After Google, he ventured into areas like AI, robotics, and health technology through Alphabet. He believes that true success comes only when your work improves people’s lives.

Personal Information	Description
Full name	Sergey Mikhaylovich Brin
Date of Birth	August 21, 1973
Place of Birth	Moscow, Russia
Main companies	Google (now Alphabet Inc.)

7. Bernard Arnault

Bernard Arnault is a quiet yet highly astute business leader. He built LVMH into the world’s largest fashion group by consolidating numerous smaller luxury brands. Bernard believes that the true strength of any brand lies in its identity and trustworthiness. He consistently prioritizes quality and class, which is why every LVMH product exudes a distinct sense of luxury and sophistication. Bernard’s philosophy is clear: business is not just a means of making money, but also a way to preserve art and craftsmanship.

Personal Information	Description
Full name	Bernard Jean Étienne Arnault
Date of Birth	March 5, 1949
Place of Birth	Roubaix, France
Main companies	LVMH

8. Steve Ballmer

Steve Ballmer’s story is like that of an ordinary man on an extraordinary journey. He started as an early employee at Microsoft and gradually rose to become the company’s CEO. His passion and confidence helped Microsoft become one of the world’s largest tech companies. Steve was always wholeheartedly dedicated to his work, and this passion is what set him apart from others. After leaving Microsoft, he bought the NBA team Los Angeles Clippers, because he loves sports just as much as he loves business.

Personal Information	Description
Full name	Steven Anthony Ballmer
Date of Birth	March 24, 1956
Place of Birth	Detroit, Michigan, USA
Main companies	Microsoft Corporation

9. Warren Buffett

Warren Buffett is known to the world as the “Oracle of Omaha.” He started investing at a very young age and gradually built a reputation that is respected worldwide today. Buffett has always believed in long-term investing and simplicity. He says that success in the stock market comes not from luck, but from understanding and patience. He thoroughly understands a company’s business model before investing in it. Buffett’s philosophy is straightforward—invest only where there is both trust and value.

Personal Information	Description
Full name	Warren Edward Buffett
Date of Birth	August 30, 1930
Place of Birth	Omaha, Nebraska, USA
Main companies	Berkshire Hathaway

10. Jim Simons

Jim Simons is an investor who revolutionized the way people understand the stock market by using mathematics and data, Known for contributions to geometry and topology. He was initially a mathematician and codebreaker, but later ventured into the world of finance and founded Renaissance Technologies. His company trades using computer algorithms and data analysis, which has consistently generated exceptional returns. Jim has always believed that decisions should be based on logic and facts, not emotions. He proved that if you apply knowledge and technology correctly, you can even outperform the market.

Personal Information	Description
Full name	James Harris Simons
Date of Birth	April 25, 1938
Place of Birth	Newton, Massachusetts, USA
Main companies	Renaissance Technologies

Conclusion

These investors’ stories show that success doesn’t come from luck, but from intelligence and consistent hard work. Each had a different approach, but they all shared one thing in common: faith in their vision. It was this faith that propelled them to the list of the world’s most successful investors.

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Frequently Asked Questions (FAQs)

Who is the richest investor in the world right now?
The richest investor in the world right now is Elon Musk, who owns companies like Tesla and SpaceX.
Who is called the “Oracle of Omaha”?
The title “Oracle of Omaha” is given to Warren Buffett, who is famous for value investing.
Which company was founded by Larry Ellison?
Larry Ellison founded Oracle Corporation, which is one of the world’s largest software companies.
How did Warren Buffett become one of the world’s top investors?
Warren Buffett became a top investor through value investing, long-term focus, and choosing businesses he fully understands. His company Berkshire Hathaway manages a large investment portfolio.
What are the common traits of the richest investors in the world?
Most top investors share traits like long-term vision, disciplined investing, risk-taking ability, innovation, and a strong belief in their ideas.

November 20, 2025

Best Winter Season Stocks In India

Winter seasons have come, and there are various stocks which are getting high attention from the investors, as these stocks generally tend to perform better in the winter season due to an increase in demand for winter-related products. You can also earn a profit by investing in it.

In today’s blog post, we will give you an overview of “Top Winter Stocks To Buy In India during this winter season.

What are Winter Stocks?

Winter stocks are the shares of those companies which generally tend to perform during the winter season because of an increase in demand, and due to this, their profitability also increases. Investors who prefer theme-based investment consider investing in winter stocks.

Top Winter Stocks to Buy in India

Larsen and Toubro Limited
HCL Technologies Limited
Trent Limited
Bharat Electronics Limited
Power Finance Corporation Limited
Polycabs India Limited
Info Edge (India) Limited
Central Depository Services (India) Limited
Laurus Labs Limited
Titan Biotech Limited

Company	Current Market Price (INR)	Market Capitalisation (in INR crore)	52-Week High	52-Week Low
Larsen and Toubro Limited	3,888	5,34,833	4,195	2,965
HCL Technologies Limited	1,665	4,51,825	1,940	1,303
Trent Limited	3,920	1,39,333	6,519	3,843
Bharat Electronics Limited	413	3,02,113	436	240
Power Finance Corporation Limited	369	1,21,840	444	330
Polycabs India Limited	7,562	1,13,830	7,948	4,555
Info Edge (India) Limited	1,330	86,208	1,637	1,151
Central Depository Services (India) Limited	1,420	29,676	1,829	1,047
Laurus Labs Limited	1,057	57,074	1,141	501
Titan Biotech Limited	1,058	874	1,419	374

(As of 13th January 2026)

Overview of Best Winter Season Stocks in India

The overview of the best winter season stocks in India is as follows:

1. Larsen and Toubro Limited

In 1938, two engineers founded the company in Mumbai. Initially, its primary focus was on purchasing machinery from European countries. L&T eventually started manufacturing machinery and other kinds of equipment during World War II. The business is currently engaged in the construction of buildings, bridges, roads, dams, and other infrastructure. To expand its product line, the company has entered the financial services market. During the winter season, the rate of construction increases because of favourable weather conditions, which allow smooth execution of projects. Also, the government spending on infrastructure increases at the end of the fiscal year, hence making it favourable for the investor to purchase this stock during the winter season. The company’s headquarters are in Mumbai.

2. HCL Technologies Limited

HCL Tech was founded in 1976 by Shiv Nadar and a few other engineers. Before entering the software development industry in 1986, the company began manufacturing and selling personal computers. The company created HCL Technology Limited as a separate legal entity in 1991. In 1999, the company went public on the Indian Stock Exchange in order to raise funds for its expansion. As the winter season approaches, companies across the world tend to plan for their next year’s research budget, as they follow the calendar year. This helps IT companies increase their order book and revenue.. The company’s headquarters is situated in Noida.

3. Trent Limited

In 1998, the Tata Group demerged its retail business from Tata Industries Limited and formed Trent Limited. It acquired “Littlewoods Retail Chain” and rebranded it as Westside, offering affordable apparel. Later, it diversified into other retail segments such as books, music, etc. Later in 2016, it introduced another fashion chain named “Zudio”. Especially during the winter season, the consumer demand for warm clothes increases, also the company gets the direct benefits of consumer spending on festivals and holidays. The company’s headquarters is situated in Mumbai.

4. Bharat Electronics Limited

The company was established as a government company in 1954. The Government of India has granted BEL the status of Navratna, and it operates under the Ministry of Defence. The company’s primary operation is supplying the Indian military with electronic equipment. Electronic warfare systems, night vision devices, and communication devices. In order to take advantage of new opportunities, the company has entered into the retail sector by offering medical electronic devices, broadcast and telecom systems, etc. The government spending on defence increases at the end of the fiscal year, and the company gets a chance to get the benefit of its increasing order book. Its headquarters are situated in Bangalore.

5. Power Finance Corporation Limited

Power Finance Corporation Limited, one of India’s top PSUs, lends loans for the power sector. Since its founding in 1986, the PFC has funded projects relating to power generation, transmission, and distribution. The company also works to support the operation of various government programs and shows interest in renewable energy projects. The demand for energy rises during the winter season, and the projects related to infrastructure progress towards the closure due to the end of the fiscal year; hence, the PFC share tends to perform better during the winter season. The headquarters of PFC is situated in New Delhi.

6. Polycabs India Limited

Polycab India was established in 1964 and initially was known as Sind Electric Store, which distributed electrical equipment. It was later incorporated as Polycab Wires Private Limited in 1996. In the Indian electrical market, the company holds a roughly 25% market share. It sells solar products, fans, LED lighting, switches, and switchgear, among other things. As the projects related to infrastructure pick up momentum during the winter season, as it is a favourable weather condition, the demand for wires, cables, and electrical goods increases during the winter season. The company’s headquarters is situated in Mumbai.

7. Info Edge (India) Limited

The company was founded in 1995 by Sanjeev Bikhchandani. The company was incorporated with an objective to connect job seekers with providers. For this, it launched Naukri, which is an online job portal. Later the company made strategic investments in companies like Zomato and Policybazaar. During the winter season, the weeding and hiring tend to increase, hence the online portals managed by Info Edge, such as Jeevansathi and Naukri, help in generating revenue. The company’s headquarters is situated in Noida.

8. Central Depository Services (India) Limited

One of India’s largest securities depositories, Central Depository Services Limited (CDSL), was founded in 1999 and allows investors to hold and trade securities electronically. The CDSL, which is supported by the Bombay Stock Exchange (BSE), is essential to the safe and easy settlement of trades in the Indian capital market. Its offerings have grown over time to include insurance repositories, KYC, and electronic voting. The market participation increases during the winter season because of demat account opening and increasing trading activities, as investors tend to set off their profits and losses at the end of the fiscal year. The company’s head office is situated in Mumbai.

9. Laurus Labs Limited

The company was founded in 2005 by Dr Satyanarayana Chava. Laurus Labs Limited is a renowned biotechnology and pharmaceutical company. The company focuses on formulations, contract research and manufacturing services (CRAMS), and active pharmaceutical ingredients (APIs). After focusing primarily on antiretroviral APIs, Laurus Labs expanded into diabetes, cardiovascular, and oncology treatments. Because of the increase in demand for healthcare products and antiviral medicines during the winter season, the sales volume of the company increases during the winter season directly impacting the profitability of the company positively. Hyderabad is the company’s headquarters.

10. Titan Biotech Limited

The company was established in 1992. Titan Biotech Limited is a major producer and exporter of biological products and raw materials utilised in the biotechnology, food, pharmaceutical, and cosmetics industries. The company is engaged in manufacturing peptones, extracts, and culture media ingredients, which are necessary for industrial applications and microbiological research. In the winter seasons, the immunity needs to be strong, and for this, the company’s sales of products such as immunity boosters and healthcare increase. Therefore, this stock becomes investors’ favourite during the winter season. The company has a manufacturing facility in Rajasthan and a headquarters in New Delhi.

Key Performance Indicators (KPIs)

The key performance indicators of the best winter stocks to buy in India are as follows:

Company	Debt to Equity	ROE (%)	ROCE (%)	Operating Profit Margin (%)	Net Profit Margin (%)
Larsen and Toubro Limited	1.33	15.39	14.89	10.33	6.91
HCL Technologies Limited	0.03	24.96	30.84	20.42	14.86
Trent Limited	0.09	28.31	28.09	12.14	8.45
Bharat Electronics Limited	0	26.64	33.72	29.90	22.24
Power Finance Corporation Limited	8.25	19.52	65.86	96.96	28.65
Polycabs India Limited	0.01	20.55	27.96	12.80	9.12
Info Edge (India) Limited	0	2.75	4.73	68.25	50.28
Central Depository Services (India) Limited	0	29.91	37.51	63.97	48.39
Laurus Labs Limited	0.60	8.01	11.82	12.33	6.38
Titan Biotech Limited	0.01	14.03	16.03	16.08	11.67

(As of 31st March 2025)

Benefits of Investing in Winter Stocks

The key benefits of investing in winter stocks are as follows:

Seasonal Demand: The demand for various products increases during the winter season, hence these companies get the benefit of seasonal demand.
Short-term Opportunity: Investing in winter stocks for the short term can help an investor get quick profits.
Diversification: Including winter-themed stocks helps in balancing the portfolio, as the demand for winter-related products still remains high during economic downturns.

Factors to consider before investing in winter stocks

There are various factors which one should consider before investing in winter stocks, a few of which are as follows:

Financial Performance: A company’s financial growth plays an important role in deciding the performance of shares during the winter season. Poor financial results can negatively impact the company’s performance.
Input Cost: The increased cost of raw material can significantly impact the company’s profit margin. Hence, monitoring the trend of cost is also essential.
Geographical Presence: Companies with a vast geographical presence tend to perform better than companies with limited geographical presence.

Conclusion

On a concluding note, investment in winter-related stocks helps an individual generate short-term profit due to weather-related conditions. As in the winter season, the demand for products like winter apparel, skin care-related products, healthcare items, etc., increases. However, winter stocks are cyclical in nature, and there are various factors which need to be considered before investing in them. Therefore, it is advisable to consult your investment advisor before making any investment decision.

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Frequently Asked Questions (FAQs)

What are winter stocks?
Winter stocks are the shares of companies who manufacture product demand of which are increased during the winter season. These stocks generally benefit from the winter season.
What is the best time to purchase winter-related stocks?
It has been seen in the past that the demand for winter stocks increases from mid-October to November.
Is it safe to invest in winter stocks?
Yes, it is safe to invest in winter stocks; however, they are cyclical in nature, therefore, one must consider their risk profile before investing in them.
Are winter stocks only for short-term investment?
No, winter stocks are generally for short-term investment, but one can add winter stocks to their portfolio for the long term.
What are the risks related to investing in winter stocks?
The primary risk related to investing in winter stocks is the unpredictable pattern of weather, competition, input cost, financial performance of companies, etc.

November 19, 2025

What is Bullet Bond?

Imagine your friend needs money and promises you to pay back after a few years, you lend him Rs.10,000 but after some time he gives you two options to pay you back.

First, he says the money can be paid back in small bits every month with some extra interest attached to it. In this you can recover your money month by month in bits, behaving just like a small loan where principal plus interest are returned month by month. But he gives you one more option where you can get a fixed interest every year and the principal amount i.e Rs.10,000 can be returned all at once after a few years.

Bullet Bonds have the same characteristics as option 2 given by your friend, where you get interest every single year and the principal amount is settled after the end of bond tenure. A Bullet Bond is just a special kind of loan where the main amount you lent out comes back to you in one big “bullet” payment right at the end.

What is a Bullet Bond?

A Bullet Bond is an investment where you lend your money for a set amount of time. In return for your cash, the borrower pays you regular interest, which in the finance world is called a “coupon.” Here the investor’s principal amount gets returned in one single accumulated payment on the final day called the maturity date.

For Example: A big Indian company, let’s call it “Pace Infra Ltd.,” requires funds to build a new highway and decides to issue a 5 year bullet bond to get the funds.

You decide to grab this opportunity and invest Rs.10,000. This is your principal, or the face value of the bond. The bond promises to pay you an 8% interest rate every year, this rate is known as the coupon rate. For the next five years, Pace Infra Ltd. will send you Rs.800 each year (that’s 8% of your Rs.10,000) as your interest payment. Then, at the end of the fifth year, the maturity date, the company pays you your final interest of Rs.800 plus your entire Rs.10,000 principal back in one go.

Investors earn a steady income from the interest, and at the end, they get their whole investment back at once.

Read Also: Detailed Guide on Bond Investing

Key Characteristics of a Bullet Bond

Investment Back at Once: This is the main feature associated with a bullet bond. The entire principal amount is paid back to you in a single lump sum on the maturity date.
Steady Interest Payments: You get fixed interest payments (coupons) till the bond maturity. These usually come once or twice a year, giving you a predictable income you can count on.
Predefined Maturity date: When you buy the bond, you know the exact end date of the future when you’ll get your principal back. This makes it incredibly easy for investors to plan their financial goals.
Non-Callable: This is a fantastic feature for you, the investor. “Non-callable” means the company can’t return the initial investment back before the maturity date, even if interest rates in the market drop. This gives you security to the investors.

Types of Bullet Bonds

1. Corporate Bullet Bonds

These bonds are issued by companies, both private and public, across India. These bonds are a little riskier as the bonds return are dependent upon companies performance, this is why companies usually offer a higher interest rate. The term corporate bond also includes Public Sector Undertakings (PSUs) ; this means the risk of investing in a bond from a top PSU is generally much lower than investing in a bond from a purely private company. It’s a crucial difference to understand when you’re weighing your options.

2. Government Bullet Bonds (G-Secs)

These bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India also known as Government Securities or G-Secs widely.

G-Secs are the safest investment that investors can make in India, because they are fully backed by the government of India, and it’s rare that the government will fail to pay back its loans. These bonds come with a low interest rate as they have a solid safety from the government itself. Most of the government bonds are bullet bonds by nature, as you get the full principal returned back at maturity.

3. Zero-Coupon Bullet Bonds

Zero-coupon bonds are different because they don’t pay regular interest to investors. In this the investors buy bonds at much less than their actual face value (at discounted rate), when the bond matures, you get the full face value back. Your profit is the difference between the low price you paid and the full price you get at the end.

Read Also: What are Bond Valuation?

Bullet Bond Strategies

1. The Bullet Strategy

This is the most direct strategy where investors buy several different bonds, but they make sure they all mature around the same time.The goal is to gather a large sum of money on a specific date in future.

2. The Ladder Strategy

With this strategy, you invest in bonds that have different, staggered maturity dates. For example, you could buy bonds that mature in 1 year, 2 years, 3 years, 4 years, and 5 years. As each bond matures, you can reinvest that money into a new 5-year bond, keeping the “ladder” going.

3. The Barbell Strategy

This is a slightly more advanced strategy where you invest only in very short-term bonds (e.g., maturing in 1-2 years) and very long-term bonds (e.g., maturing in 10+ years), while completely avoiding the middle ground.The idea is to balance the safety and flexibility of short-term bonds with the higher potential returns of long-term bonds.

Advantages of Investing in Bullet Bonds

Simple and Predictable: Bullet bonds are simple in nature, investors exactly know the interest they’ll get and precisely when the bond will mature giving back investors their original invested amount.
Goal Centric: That big lump sum payment on the expiry date makes bullet bonds an easy goal centric option for investors as they can plan their future according to the expiry date of the bond.
Risk Protection: Bullet bonds are “non-callable” making them risk free as it locks in your interest income for the entire term and protects you from the issuer sudden return of investment.

Disadvantages of Investing in Bullet Bond

Interest Rate Risk: This is the risk that interest rates in the market could go up after you’ve bought your bond. If new bonds are being issued with higher rates, the fixed rate on your bond suddenly looks less appealing.
Reinvestment Risk: This risk pops up when your bond matures and you get your principal back. If interest rates have fallen over the years, you now have a big pile of cash to reinvest, but all the new investment options are offering lower returns than what you were getting before.
Credit Risk: This is the straightforward risk that the company you lent your money to might face downturns due to overall market, internal company issues etc and be unable to pay your interest or return your principal. The level of this risk depends entirely on the financial health of the issuer.
Liquidity Risk: It would be a challenge if you require funds urgently even before the bond matures as you might not be able to sell your bond easily. Especially from smaller companies, where they might not have a lot of buyers waiting, meaning you have to sell at a discount if you’re in a rush.

Read Also: Benefits of Investing in Bonds

Conclusion

So, there you have it. You’ve just demystified one more piece of the financial puzzle. Bullet bonds are a simple and powerful tool, especially for those of us who appreciate clarity and predictability. Their straightforward structure with regular interest, and your money back in one go at the end makes them incredibly easy to understand and perfect for planning towards your biggest life goals.

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7	What Is a Callable Bond?
8	Government Bonds India
9	Types of Bonds in India
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14	Secured and Unsecured Bonds
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17	What are Contingent Convertible(CoCo Bonds)?

Frequently Asked Questions (FAQs)

Are all G-Secs categorised as bullet bonds?
While the government issues various types of bonds, the most common fixed-rate government bonds (G-Secs) that you’ll come across act as bullet bonds. They pay you regular interest and give you the full principal back when they mature.
If a bullet bond is non-callable, does that mean investors’ money is stuck until maturity?
Here “Non-callable” means the bond issuing entity cannot pay you back early. You, as the investor, still have the freedom to sell your bond to another investor in the market if you need the cash before the maturity date.
Why do companies issue a bullet bond instead of one that pays back principal over time?
Companies issue these bonds for multiple uses such as factory building, bridge construction and such projects take a long time and might not make much money in the early years. A bullet bond lets them use the full loan amount for the entire project duration and plan for one big repayment in the future.
All zero-coupon bonds are bullet bonds?
Yes, zero-coupon bond is defined by the fact that it makes one single payment to the investor at maturity. Since that’s the very definition of a “bullet” payment, a zero-coupon bond is just a special type of bullet bond.

November 18, 2025

Difference Between Gold ETF and Silver ETF

Investing in gold and silver used to be a task in the earlier days, you would have to go to a trusted jeweller, look into the purity, pay making charges, and then look for a safe locker to place them. But now, there’s an easier way for buying called an Exchange Traded Fund, or ETF.

ETFs are investment products where you can buy and sell these metals in the stock market, just like company shares. For precious metals, knowing how to invest in gold and silver ETF products is a game-changer. Both gold and silver ETFs let you invest in these metals easily, without any hassle. But there is a difference between Gold and Silver ETF and in this blog we will break down the gold and silver ETF options to help you see which is right for you.

What are Gold ETFs?

It’s an investment that simply follows the market price of pure gold. A fund company buys big bars of pure gold and stores them safely in their vaults. For every gram of gold they own, they create one ‘unit’ of the Gold ETF. When you buy one unit on the stock market, you’re buying one gram of gold in electronic form. Investors just need a Demat and trading account, the same one that is used for stocks.

Advantages of a Gold ETF

Cheap and Easy: Forget about the making charges and locker fees as in Gold ETFs, you only pay a tiny annual fee and a small brokerage charge when you trade online.
Pure and Transparent: You get 99.5% pure gold, guaranteed and the price is the same for everyone across India, unlike at jewellery shops where prices may vary.
Buy and Sell Anytime: You can trade Gold ETFs anytime during the stock market hours. You can start with just one gram and sell easily without hunting for a buyer.

Disadvantages of a Gold ETF

No Regular Payouts: Unlike a Fixed Deposit, a Gold ETF doesn’t pay you interest on your investment. You only make money if the price of gold goes up.
Market Risk: The value of your ETF goes up and down if the price of gold fluctuates and value goes down if gold’s price falls.
No Physical Possession: With an ETF, investors own just a paper (in your Demat account), but you can’t touch it physically or wear it to a wedding.

Read Also: List of Best Gold ETFs in India

What are Silver ETFs?

A Silver ETF is just like a Gold ETF, but for silver. A fund company in the similar way buys pure silver bars, stores them in vaults, and issues units that can be traded on the stock market. They are newer as compared to Gold ETFs options in India but they work completely the same.

Advantages of a Silver ETF

Affordable: Silver is much cheaper than gold, making it easy for new investors who want to put their money in metals.
Industries Need: Silver is used in everything from smartphones, solar panels and even electric cars. It has a huge industrial demand that can really push its price up.
Grow Faster: Because its price is tied to industrial growth, silver can grow rapidly. In a booming economy silver prices can shoot up, potentially giving you higher returns.

Disadvantages of a Silver ETF

Price Swings: That industrial demand is a double-edged sword. If the economy slows down, silver’s price can fall rapidly, they are much more volatile than gold, which means it’s a riskier investment.
Not Popular: In India, most of the people trade in Gold ETFs, meaning Silver ETFs are less “liquid” and it might be a bit harder to sell your units at the exact price and time you want.
Tracking Error: Like any ETF, there can be a small difference between the ETF’s return and the actual price of silver. Though SEBI keeps this error low, it’s good to know it exists.

Similarities Between Gold and Silver ETF Funds.

Traded Like Stocks: You can easily invest in these ETFs on the stock exchange (NSE/BSE) using your Demat account and Trading account.
No Physical Possession: Both are safe from physical problems of storage, purity checks, and theft.
Clear Pricing: You can see the live prices for both ETFs anytime during the market hours.
Low Costs: They are passively managed by funds, so their annual fees (expense ratios) are usually very low.
Portfolio Enhancement: Both gold and silver can help in balancing your investments. Their prices often move differently from the stock market, which helps lower your overall risk.

Differences Between Gold ETFs vs. Silver ETFs

The real choice comes down to what you want from your investment. One is about safety, the other is about growth.

Feature	Gold ETF	Silver ETF
Main Job	People buy it to protect their money during bad economic times and fight inflation.	People buy it when they think the economy and industries will grow fast.
Price Driver	Depending upon demand, central bank policies and global uncertainty.	Depending upon industrial demand and investors actions.
Price Swings	The price moves up and down, but usually remains stable.	Very volatile. The price can shoot up or crash down sharply, making it volatile.
Trading Popularity	Very popular and highly liquid.	Less popular than gold and comparatively less liquid.
Cost to Buy	More expensive per gram.	Much cheaper per gram, so it’s easier to get started.
Best Suitable For	Cautious investors who want stability and are thinking of long-term investments.	Investors who are comfortable with risk and are hoping for faster growth.

Gold ETF vs. Silver ETF: Where Should You Invest?

You should consider the following before making the right decision:

How much risk can I handle as an investor and are you ready for the market fluctuations? If you are looking for steady investment that grows with time then Gold ETFs can be a beneficial option for your investment as they are less volatile compared to shares or stocks. On the other hand if you are looking for a good growth as well as higher risk as compared to gold then Silver ETF could be exciting, but you need to be ready for the ups and downs of this metal.
Gold ETFs are preferred if you don’t minimise the risk and looking for a stable investment option in the market, however looking for a high potential gain and risk attached, silver can be the right investment as it is directly linked to the economy, if the economy rises silver will automatically rise but if there is a slowdown then you can even expect less return on your investment.

The investment done in these ETFs are taxed on the profit you make by selling these ETFs, also the rules have changed and now there is a higher tax levied on your long term profits.

Read Also: Top Gold Mutual Funds in India

Conclusion

Gold and Silver ETFs have made it easier for Indian investors to put their money directly in these precious metals. These investments have removed all the primitive old ways like possessing these metals physically, checking the purity of the product and paying for the locker to keep your gold or silver safe.

Gold offers you stability, a safe place for your money when things get rough. Silver offers you a shot at higher growth, tied to the world’s industries, but with more risk. Neither one is better than the other, the best one is simply the one that is suitable as per your financial planning.

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Frequently Asked Questions (FAQs)

Can ETFs be bought with my regular trading account?
Yes, you can easily buy and sell these ETFs using your regular trading account and Demant account.
From how much can I start with ETF investments?
Investment can just start from just buying one unit which means one gram of the metal, it can just start from a few hundred rupees.
Are these ETFs safe to invest?
They are regulated by the Securities and Exchange Board of India (SEBI) which makes them safe for investing. Fund companies are required to keep real, pure gold or silver in secure vaults which are regularly checked.
How are they taxed?
Capital Gains tax is levied on the selling of the ETFs and profits earned from it. It is advised that you should keep a good idea about the taxes and the changing policy.
Can Investors get actual gold or silver instead of cash?
When investors sell their ETF units, they only get cash out of it and physical gold or silver is not given. Sometimes big investors who have invested a large amount can get physical metal (but it is subjective).

November 17, 2025

Top 10 Smart Beta ETFs in India 2026: Smart Investing Guide

You must have heard about ETFs in the financial market, but have you heard the Smart approach of these ETFs? Here comes the ETF that is smart in nature, you being a smart investor shall know about these Smart Beta ETFs.

An ETF is like a basket containing many different stocks that you can buy or sell as a single unit on a stock exchange. This provides a simple, low-cost way to diversify your investments.

In this blog we will learn about what a Smart Beta ETF is and also look at the Best Smart Beta ETFs that you as an investor can use for your future investment.

What is a Smart Beta ETF?

A Smart Beta ETF is a type of Exchange Traded Fund (ETF) that offers a middle path between traditional index investing and active fund management.

Unlike a standard index fund (like a Nifty 50 fund) which invests in companies based on their market size, a Smart Beta ETF uses a rules-based strategy to select stocks based on specific characteristics or “factors.” The goal is to achieve better returns or reduce risk compared to a market-size-weighted index.

In Smart Beta ETF Funds some common strategies are used like value of these ETFs, recent momentum seen in the ETFs, quality of the ETFs by focusing on the company’s financial health and even things like low volatility of these ETFs.

Top 10 Smart Beta ETFs in India

This ETF provides investors with an exposure to fundamentally strong companies beyond just the top 100 large caps. Though this ETF might have lower trading volumes (liquidity) compared to its larger peers, which could slightly increase trading costs.

Investors that are looking for a mix of both large cap and mid cap companies can opt for this ETF.

ETF Name/Fund	Factor	Price (₹)	Market Cap / AUM (₹ Cr.)	Expense Ratio (%)
UTI Nifty 200 Momentum 30	Momentum	21.29	8204	0.45
ICICI Pru Nifty 100 Low Vol 30 ETF	Low Volatility	22.39	3,757	0.41
ICICI Pru Nifty Alpha Low-Vol 30 ETF	Alpha & Low Volatility	27.18	1770	0.41
Nippon India Nifty 50 Value 20	Value	149.99	168	0.26
DSP Nifty 50 Equal Weight ETF	Equal Weight	336	595	0.20
Kotak Nifty Alpha 50 ETF	Alpha / Momentum	48.86	689	0.30
HDFC NIFTY 100 Equal Weight	Equal Weight	16.87	396	0.40
Mirae Asset Nifty 200 Alpha 30 ETF	Alpha / Momentum	25.20	425	0.47
Edelweiss Nifty 100 Quality 30	Quality	14.72	155	0.32
SBI ETF Quality	Quality	225.53	80	0.30

(as on 10 October, 2025)

Here is a list of the top 10 smart beta ETFs and index funds in India.

1. UTI Nifty 200 Momentum 30 Index Fund

In this fund Momentum strategy is used as it tracks the Nifty 200 Momentum 30 Index and picks 30 stocks from the top 200 companies which tracks the strongest performance for the last 6 to 12 months.

This smart beta ETF has potential to give very high returns during the strong market uptrend, as the fastest moving stocks are included in this. Though this could be termed as a high risk strategy as the market trend can change as the high momentum stocks can even fall quickly as they can rise.

This smart beta ETF is best suitable for Aggressive investors who can take high risk as this strategy is cyclical to understand.

You can add this high octane strategy to your portfolio through Pocketful. Simply search for the UTI Momentum 30 Index Fund and start investing with just a few taps.

2. ICICI Prudential Nifty 100 Low Volatility 30 ETF

In this ETF a low volatility strategy is used as it tracks Nifty 100 Low Volatility 30 Index. In this ETF 30 stocks from the top 100 companies are selected that have witnessed least price fluctuation over the past year, you can expect a less fluctuation in this ETF.

This smart beta ETF provides stability to your financial portfolio which may fall less than the others during the market corrections. But during the bullish market scenario this fund might give you a lower return than the main index.

Conservative investors, retirees, or anyone who wants to avoid high market swings or minimize their overall portfolio risk can opt for this smart beta ETF.

You can Invest in this smart beta ETF using the Pocketful platform as it gives you a friendly interface to make your financial investments.

3. ICICI Prudential Nifty Alpha Low-Volatility 30 ETF

This ETF is a multi strategy ETF that combines two different strategies combining ‘Alpha’ (high momentum) and ‘Low Volatility’ at one place. This smart beta ETF tracks the well performing companies that are relatively stable. You can expect good returns with minimal risk attached to it.

This smart beta ETF offers diversification to the investors compared to single factor ETF as low volatility can reduce the risk of the aggressive alpha strategy. Though this fund cannot fully protect like a low volatility fund.

It is best suitable for moderate risk taking investors who like to do factor investing but do not want to bet on just one factor.

With Rs.0 brokerage on delivery, you can build a diversified factor portfolio efficiently by investing in ICICI Pru Alpha Low-Vol 30 ETF that is available on Pocketful.

4. Nippon India Nifty 50 Value 20 Index Fund

A ‘Value’ investing strategy is used in this smart beta ETF as it tracks the Nifty 50 Value 20 Index, which selects 20 companies from the Nifty 50 that appear to be undervalued based on metrics like low P/E ratio, low P/B ratio, and high dividend yield.

In this a “buy low, sell high” strategy is used as there is a high potential for great returns when these undervalued stocks are discovered by the market and their prices rise.

But these stocks can stay at low prices for a long time (also known as ‘value trap’) as the market gets affected by the expensive, high growth stocks.

Investors that are looking for long term Patient investors with a long term horizon who believe in the value investing philosophy shall invest in this smart beta ETF.

5. DSP Nifty 50 Equal Weight ETF

Here a strategy known as ‘Equity Weight’ strategy is used where instead of giving more weight to the bigger companies it divides the investment and only invests 2% of the whole amount equally in all 50 companies of the Nifty 50 index.

It reduces the risk of having too much money in just a few top companies. It gives more exposure to smaller companies in the Nifty 50, which could have higher growth potential. But you should be aware that it can underperform the regular Nifty 50 when a few giant companies are driving the entire market rally and this frequent rebalancing can lead to slightly higher costs.

It is best suitable for investors who want to invest in the top 50 companies but are worried about the heavy concentration in the standard Nifty 50 index.

The DSP Equal Weight ETF on Pocketful offers a truly diversified way to invest in the Nifty 50.

6. Kotak Nifty Alpha 50 ETF

This smart beta ETF follows the Nifty Alpha 50 Index that is a pure ‘Alpha’ or high momentum strategy. Here 50 stocks from the top 300 companies are selected according to their previous years performance.

This smart beta ETF selects the top performing stocks of the market offering very high returns during strong market trends. But this can be very risky as well as the stocks that rise rapidly can even fall very fast.

If you are an aggressive investor who has complete understanding of the market cycle and is aware about the sharp falls then this smart beta ETF is suitable for you.

For those with a high risk appetite seeking high returns, the Kotak Alpha 50 ETF can be found on the Pocketful app. Remember to research thoroughly before investing in such aggressive strategies.

7. HDFC NIFTY 100 Equal Weight Index Fund

This smart beta ETF tracks the Nifty 100 Equal weight index and gives equal 1% weight to each of the 100, this is also an Equal Weight fund but is more diverse than DSP one.

The best part is that it has diversification across 100 large cap stocks, which greatly reduces concentration risk but remember, it may lag when a few mega cap stocks are driving the market.

If you want your portfolio to represent the broad Indian large cap market without just some of these being dominated, you can opt for this ETF.

8. Mirae Asset Nifty 200 Alpha 30 ETF

A high momentum or ‘Alpha’ strategy is used in this ETF, where it tracks the top 30 stocks from the top 200 companies using Nifty 200 Alpha 30 Index.

This ETF captures the fast growing mid cap stocks as the focus is on 30 high momentum stocks. Though it comes with all the risks of a momentum strategy, including high volatility and the risk of sharp reversals. It is also a relatively new ETF with a limited track record.

This is best suitable for aggressive investors who are comfortable with high risk and want to bet on current market trends continuing.

You can invest in this smart beta etf using the Pocketful platform where you can even compare it with other momentum ETFs to make a balanced strategy.

9. Edelweiss Nifty 100 Quality 30 Index Fund

In this ETF Nifty 100 Quality 30 Index is tracked where 30 companies from the Nifty 100 based on their quality score like high return on equity, low debt, and stable earnings growth are selected. This fund follows the ‘Quality’ strategy as it relies on qualities of the tracked companies.

This fund provides steady long term growth as you invest in fundamentally strong, well managed companies which can be resilient during bad economic times. But the quality of the stocks can sometimes be expensive, as it might give lower returns during market rallies led by riskier, lower quality stocks.

This fund is ideal for long term investors who prefer to own stable, profitable businesses.

10. SBI ETF Quality

Quality factor is followed in this ETF, where it tracks the Nifty 200 Quality 30 Index. It is similar to the Edelweiss fund but selects stocks from a broader list of the top 200 companies, which means it can include some high quality mid cap stocks.

Read Also: Best ETFs in India to Invest

Risks & Limitations of Smart Beta ETFs

Before you invest, it is very important to understand the risks because “Smart” does not mean “risk free.”

Market Cycle Dependency: Performance of these ETFs may differ according to the market cycles, as different sectors have their good and bad years and different factors also have their own cycles. Some of these can perform poorly for a few years and then suddenly become the top performer.
Limited liquidity in India: Although ETFs trade like stocks but not all of them are traded with the same intensity, some of the small beta ETFs might have few buyers or sellers which can lead to a wider “bid ask spread” (the difference between the buying and selling price), this can act as a small hidden cost every time you trade.
Factor concentration risk: When you invest in a single factor ETF, you are concentrating your money in one particular style of investing. If that style goes out of favour with the market, your portfolio could underperform the broader market for a long time.

Read Also: Small-Cap ETFs to Invest in India

Conclusion

Smart beta ETFs offer an exciting and intelligent way to invest and also are a great middle path between simple, passive index funds and expensive, actively managed funds.

However, they are not a magic wand for higher returns. The right smart beta ETF for you depends completely on your own financial goals, how long you want to invest for, and how much risk you are comfortable taking. Investors that are looking for conservative investments can opt for a low volatile ETF or Quality ETF and for aggressive investors a Momentum or Alpha ETF can be best suited.

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Frequently Asked Questions (FAQs)

Difference between a Nifty 50 ETF and a smart beta ETF?
A Nifty 50 ETF simply buys the 50 stocks in the index according to their market capitalization; on the other hand smart beta ETF uses a set of rules to pick stocks based on factors like value, quality, or momentum.
Active mutual funds or smart beta ETF, which one should I choose?
Smart beta ETFs are rules based, transparent, and usually have lower fees and active funds depend on a fund manager’s skill, which can be great but often costs more. For new investors smart beta is a good middle ground for their financial investments.
How much of my portfolio should I put in smart beta ETFs?
There is no fixed rule, many investors start by putting a small part, maybe 10% to 20%, of their equity investment into smart beta funds. It is always a good idea to consult a financial advisor.
From how much investment can I start investing in Smart Beta ETFs?
New investors can start by only buying one unit of the ETF (similarly like a stock), whereas the price of one unit can start from just Rs.100. Platforms like Pocketful that have an easy interface for the users makes investing easier for everyone.
Can smart beta ETFs give guaranteed returns?
No, there is no guarantee because different factors perform well at different times. A smart beta ETF can underperform the main market for long periods, so it is important to understand the risks.

November 16, 2025

Stock Market vs Real Estate: Which Is Better?

A good investing decision is incomplete until you do a deep analysis and comparison of the options before you. With that being said, it is important to consider all the options available to you to ensure you do not omit a golden opportunity.

Among these, the stock market vs real estate investment stands out. While both offer great returns to the investors, the risk of losses is equally high as well due to market uncertainty. But that is not it. Many investors are still looking for an answer to know which of these two is.

So, if you are planning your investments for this financial year, then read this guide. Understand the key aspects and get an answer to the most searched question of the stock market or real estate: which is better. So, let us get started here.

What is Stock Market Investment?

Stock market investment refers to buying shares of companies. These are the ones that are listed on exchanges like NSE and BSE in India. By this investment, you own a small portion of the company.

Your wealth grows when the company performs well. This is because a positive performance will raise the share prices and will help you earn profits on them. At the same time, a few companies also offer dividends. This all helps you earn better.

Compared to real estate, stocks offer higher liquidity and easier diversification. This is why it is more appreciated by investors of all sorts.

Features of Stock Market Investment

Ownership in Companies: You own a part of the company when you buy shares.
High Liquidity: These can be easily bought and sold on the exchanges during working hours.
Volatility: Prices fluctuate daily. These are influenced by company performance, the economy, and global events.
Diversification: Investors can select from various companies to invest in. It can be spread across sectors. This helps with better risk-return balance.
Regulation: The transactions in the stock market are regulated by SEBI. This is mainly to safeguard investors.

Pros of Stock Market Investment

Potential for High Returns: The stocks are known to offer good returns when kept for a longer run.
Liquidity Advantage: The stocks are easy to trade. This means when the prices are high, you can sell them. This will help you earn a profit and exit the trade.
Dividend Income: Investors earn passive income as well. This is mainly through dividends from profitable companies.
Lower Entry Cost: There is no limit to trade. You can start trading with as low as INR100.
Portfolio Diversification: There is no limit to the number and type of stocks you can invest in. It is all based on your plan and profile.

Cons of Stock Market Investment

Market Volatility: The prices tend to move up and down quite frequently. So, there is a risk of loss as well.
Risk of Capital Loss: If the company performs below standard, then you might be in a position to book the losses.
Requires Knowledge & Discipline: Knowing the market and trends is important. If you fail to analyze, you might incur losses.
Short-Term Uncertainty: Longer run is usually good in the stock market. But those looking for short-term returns can face uncertainties.
Dependence on Economic Cycles: Stocks are impacted by various factors. Any change in one of these will directly impact the stock prices.

What is Real Estate Investment?

Real estate investment involves purchasing physical property. This can be a land, house, apartment, or even a commercial space. The main aim of such investments is to generate rental income and have capital appreciation.

These are tangible in nature, which is a primary reason why people prefer them. For profits, you need to stay invested for the long run. In India, property has traditionally been one of the most preferred ways to build wealth due to cultural trust and potential price appreciation.

Features of Real Estate Investment

Tangible Asset: It is a physical asset.. You can use, rent, or sell it.
Capital Intensive: The amount that you need to invest in property is quite high. It usually starts from lakhs.
Illiquidity: It is not easy to sell property. You might need months to find a good buyer and a preferred rate.
Appreciation Over Time: If your property is located in a developmental area, the price will rise. But if it is not, the growth will be very slow.
Dual Returns: Investors can earn from rental income. There is capital appreciation as well.

Pros of Real Estate Investment

Stable and Secure Asset: It is tangible in nature. Hence, the chances of sudden losses are less.
Regular Rental Income: You get a regular passive income in the form of rent. Capital appreciation is inherent.
Hedge Against Inflation: The property can offer you a cushion against inflation. This is why it is considered a good passive income.
Emotional and Social Value: This is why people prefer to have their own house and property in India.
Leverage Opportunity: You can get loans to buy the property and pay gradually over the years.

Cons of Real Estate Investment

High Entry Cost: Requires substantial capital compared to starting with stocks.
Low Liquidity: Selling property takes time. If the market conditions are bad, the time will be longer.
Maintenance and Taxes: There are various additional costs that you would need to pay when you own a property.
Location Risk: The returns from your property will be based on where it is located, so there is uncertainty.
Less Diversification: There will be huge capital locked up when you buy a property. This can be used somewhere else for faster growth.

Read Also: Stock Market vs Commodity Market

Stock Market vs Real Estate: A Comparison

When it comes to stock market vs real estate in India, both are great choices. But they differ in their features, which makes it important for you to compare them.

Factor	Stock Market Investment	Real Estate Investment
Returns	Historically higher in long-term. The average returns around 10–15% annually.	Moderate returns. The property values rise 6–10% yearly plus rental income.
Liquidity	Highly liquid; shares can be sold instantly on exchanges.	Low liquidity; selling property may take months or years.
Entry Cost	Very low; can start with as little as ₹100.	Very high; usually requires lakhs to crores in capital.
Diversification	Easy; investors can spread across sectors and companies.	Difficult as most of the capital is invested in one property.
Risk	High short-term volatility. It is influenced by markets and the economy.	Lower volatility. All the risks depend on location, demand, and legal issues.
Tax Benefits	Capital gains tax on profits; tax-saving options through ELSS.	Deductions on home loans and tax benefits on rental income.
Management	Requires research and monitoring but no physical upkeep.	Requires maintenance, property management, and legal checks.

Stock vs Real Estate Returns

When it comes to stock vs real estate returns, the difference lies in growth speed and stability. If you see, the stocks have seen a good growth of 12-15% annually for the past years. But the properties grew by around 2-4% on average.

Over the long term, stocks tend to outperform real estate, but real estate remains attractive for those seeking security and tangible assets.

Investor Profile for Stock Market vs Property Investment

Stock Market Investment Suits:

Young professionals with a long investment horizon.
Investors with high risk tolerance and appetite for volatility.
Those seeking liquidity and flexibility in their portfolio.
Individuals looking for diversification across multiple sectors.
People are happy with regular monitoring and research.

Real Estate Investment Suits:

Families seeking stability and tangible ownership.
Conservative investors who like lower volatility.
Those looking for steady rental income and social value.
Investors are comfortable locking large sums for long-term growth.
Individuals who want a physical asset as security.

Conclusion

The choice between stock market vs real estate depends on your goals. While both are great choices, the ultimate decision would be based on what you need.

Stocks are good for long-term returns and flexibility. But you need consistent and safe returns, property investment might be your choice. But yes, you can use both for wealth creation over time.

A balanced mix works best, but starting with stocks ensures faster growth. With Pocketful, you can begin investing in stocks easily and build wealth for the future.

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Frequently Asked Questions (FAQs)

Which is safer: stock market or real estate?
Real estate is generally considered safer because it is a tangible asset and less volatile. However, stocks can also be safe if invested in quality companies for the long term.
Can stocks give better returns than property in India?
Yes, equities have historically outperformed real estate in India, especially over 10–15 years.
Is real estate a good investment for regular income?
Yes, rental income provides steady cash flow along with gradual appreciation.
Can small investors enter real estate like they do in stocks?
No, real estate requires large capital outlay. Stocks require as low as ₹100, making them more accessible for beginners.
How do I start investing in the stock market easily?
You can start by opening a demat account and exploring beginner-friendly platforms. Pocketful makes this simple by offering easy access to stocks and tools for building wealth.

November 16, 2025

What is Collateralized Debt Obligation (CDO)?

What if you have multiple products and you want to sell all these products, but individually selling all these products can be a bit slow. But what if you create a combo basket of all these products and sell them togetherly.

Surprisingly similar things happen in the financial world as well, let’s talk about banks that have a lot of different types of loans available, like home loans, car loans, and even credit card debt. Instead of holding onto them for years, banks bundle all these loans into one big package and this cumulative package is known as the Collateralized Debt Obligation (CDO). It’s simply a mix of different debt products crafted into a single product that can be sold to investors.

How Does a Collateralized Debt Obligation (CDO) Work?

The journey of creating a CDO is like a financial assembly line. It turns everyday loans into a complex investment product through a few key steps.

It all starts when a bank or a financial institution gathers a huge pile of loans. These can be anything from mortgages to business loans. This large pool of loans acts as the “collateral” that supports the CDO. In simple terms, it’s the assurance that money will keep coming in from the borrowers who originally took those loans.

Next, the bank sells this pile of loans to a brand-new, separate company. This new company is called a Special Purpose Entity (SPE), and this step is most important. By selling the loans, the bank gets them off in their own books. This means the risk that people might not repay their loans is now passed on from the bank to someone else.

The SPE now needs cash to pay the bank for all those loans. To get this money, it issues and sells bonds to investors and these bonds are the CDOs. The money from the investors goes back to the bank, which is now free to use that cash to give out even more loans.

And just like that, the system is up and running. The people who took out the original loans keep paying their monthly installments. This money now flows to the SPE, which then passes it along to the investors who bought the CDO bonds. This steady stream of payments is how the investors earn a return.

The Structure of a CDO

CDOs are complex due to their structure and it doesn’t act like one big investment block, instead it is divided into different layers which are called “tranches” – meaning slices in French.

Picture it like a multi-story building where the money from the loan payments flows from the top to the bottom.

Senior Tranche: This is the top most level and is the safest slice of the CDO, here investors who buy these tranches are the very first to get paid from it because it is very safe as the interest rates offered are very low. This slice usually gets a top ‘AAA’ credit rating and is popular with less risk taking investors.
Mezzanine Tranche: This is the middle floor and is a bit riskier than the senior tranche. Investors get paid once everyone on the top level has been paid in full. To make up for this extra risk, a higher interest or return is offered..
Equity Tranche: This is the ground level and is considered as the riskiest part. These investors are the absolute last in line to get paid and if people start defaulting on their loans and the money dries up, this tranche is the first to lose everything. But with great risk comes the potential for the greatest reward, so it offers the highest potential returns.

Types of Collateralized Debt Obligations

Collateralized Loan Obligations (CLOs): These are packed with business or corporate loans.
Collateralized Bond Obligations (CBOs): These are backed by a collection of corporate bonds.
Mortgage-Backed CDOs: These were the worst performing and most problematic CDOs during the 2008 crisis. They are filled with mortgage-backed securities (MBS), which are themselves pools of home loans.
Synthetic CDOs: These are the most mind-bending of all as they don’t actually hold any loans. Instead, they are made up of financial bets called credit default swaps (CDS), which work like insurance policies on loans. They let investors bet on whether loans will be repaid without ever owning them.

The Role of CDOs in the 2007-2008 Financial Crisis

In the early 2000s, investors all over the world were hungry for CDOs. To keep making more of them, banks needed a constant supply of new loans to stuff inside. This created a giant “demand engine” for mortgages, due to which lending standards were neglected and banks started handing these to people who have shaky credit histories as well and the main goal was simply to create more loans, package them into CDOs, and sell them off for a quick fee.

Also during this time we have noticed that credit rating agencies, like Moody’s and S&P gave many of these CDOs, even the ones filled with the riskiest subprime mortgages, their highest ‘AAA’ rating because the same banks that were creating the CDOs were also paying the agencies to rate them and the computer models used to predict risk were deeply flawed with assumptions that house prices would always go up, and that a wave of mortgage defaults in one part of the country which wouldn’t affect another.

When the US housing market finally started to wobble in 2007, the whole system fell apart, people with subprime mortgages began to default on their loans in huge numbers leading to slow funds accumulation in CDOs and all these losses completely wiped out the equity and mezzanine tranches. Even the “super-safe” AAA-rated senior tranches started to lose money. The value of these CDOs plummeted, causing devastating losses for banks and investors everywhere, setting off a chain reaction, freezing up credit markets and pushing the world into the worst financial crisis since the Great Depression.

The Evolution of CDOs

After the 2008 crisis, the world of finance knew things needed to be changed and Governments stepped in by introducing new rules to stop a disaster like that from ever happening again.

The most important act was the Dodd-Frank Act in which the idea was to mandate the sponsors of residential mortgage backed securities retain at least 5% of the credit risk associated with the mortgage they securitize and the idea is that if they have their own money on the line, they’ll be much more careful about making sure the loans inside are actually good quality.

The “CDO” brand name became so toxic after the crisis that it’s rarely used now. Instead, the market has shifted towards their cousin, the Collateralized Loan Obligation (CLO). CLOs are mostly backed by corporate loans, which are seen as more stable and easier to understand than the subprime mortgages of the past. The structures are also generally safer, with more built-in protection for investors.

Conclusion

Collateralized Debt Obligation is just a financial tool in the market, if used responsibly, it can be a good thing, helping to spread risk around the economy and freeing up banks money giving them a higher lending power and investors more choices.

Although after the 2008 crisis lesson, we have learnt what can happen if complexity is used to hide risk, and the chase for fees goes completely aside. Through CDOs we know that while financial innovation can be a force for good, it must be balanced with strong rules, clear transparency, and common sense.

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Frequently Asked Questions (FAQs)

Difference between a CDO and a regular bond?
A regular bond is a straightforward loan to a single entity, like a company or a government, on the other hand CDO is a security backed by a whole pool of different loans (like mortgages, car loans, etc.).
Can small investors buy CDO?
No,as CDOs are very complex products that are sold to big institutional investors like banks, insurance companies, and hedge funds.
Are CDOs and Mortgage-Backed Securities (MBS) similar?
They’re related, but not quite the same. An MBS is a product that is backed only by a pool of mortgages and CDO is generally a broader kind of package that can actually hold an MBS inside it.
Are CDOs legal after the 2008 crisis?
CDOs are still created and sold today with stricter rules and largely they’ve moved towards what are considered safer versions, like Collateralized Loan Obligations (CLOs).
Why were CDOs rated higher by the rating agency in 2008?
There was a major conflict of interest, as the banks creating the CDOs were the same ones paying the agencies to rate them and also the computer models used by the agencies were fundamentally flawed.

November 13, 2025

Category: Investing

Vijay Kedia Portfolio 2026

Vijay Kedia Portfolio 2026 – Sector-wise Breakdown

Key Performance Indicators (KPIs) of Vijay Kedia Portfolio

About Vijay Kedia

How Vijay Kedia Identifies Multibagger Stocks

Key Lessons for Retail Investors from Vijay Kedia’s Portfolio

Common Misconceptions About Vijay Kedia’s Portfolio

Conclusion

Frequently Asked Questions (FAQs)

Who is Vijay Kedia?

What is Vijay Kedia’s investment strategy?

What is Vijay Kedia’s net worth in 2025?

Which are some popular multibagger stocks of Vijay Kedia?

Can we copy Vijay Kedia’s portfolio for investment?

Raj Kumar Lohia Portfolio in 2026

Key Performance Indicators (KPIs) of Raj Kumar Lohia Portfolio

Who is Raj Kumar Lohia?

Raj Kumar Lohia Profile Summary

Latest Investment Portfolio Status

Raj Kumar Lohia’s Investing Philosophy

Risk Factors in the Raj Kumar Lohia Portfolio

Raj Kumar Lohia’s Investment Style: What Retail Investors Can Learn

Should Retail Investors Copy Raj Kumar Lohia’s Portfolio?

Is it right to copy his portfolio?

What should be understood from his strategy?

Should retail investors buy the same stocks?

Conclusion

Frequently Asked Questions (FAQs)

Who is Raj Kumar Lohia?

What makes his investment style different?

Should retail investors follow his portfolio?

What type of companies does he usually invest in?

Is his strategy helpful for beginners?

What are Dividend-Paying Stocks?

Why Choose a Dividend-Paying Stock for Passive Income?

Example of Passive Income Through Dividends

How to Start Earning Passive Income Through Dividend-Paying Stocks

Mistakes to Avoid While Choosing Dividend-Paying Stocks

Conclusion

Frequently Asked Questions (FAQs)

What is a dividend?

When do companies pay dividends?

How are dividends taxed in India?

Do I need to hold stock for a long time to get a dividend?

Do all companies pay dividends?

Top 10 Biggest and Richest Investors In The World

1. Elon Musk

2. Larry Ellison

3. Jeff Bezos

4. Mark Zuckerberg

5. Larry Page

6. Sergey Brin

7. Bernard Arnault

8. Steve Ballmer

9. Warren Buffett

10. Jim Simons

Conclusion

Frequently Asked Questions (FAQs)

Who is the richest investor in the world right now?

Who is called the “Oracle of Omaha”?

Which company was founded by Larry Ellison?

How did Warren Buffett become one of the world’s top investors?

What are the common traits of the richest investors in the world?

What are Winter Stocks?

Top Winter Stocks to Buy in India

Overview of Best Winter Season Stocks in India

1. Larsen and Toubro Limited

2. HCL Technologies Limited

3. Trent Limited

4. Bharat Electronics Limited

5. Power Finance Corporation Limited

6. Polycabs India Limited

7. Info Edge (India) Limited

8. Central Depository Services (India) Limited

9. Laurus Labs Limited

10. Titan Biotech Limited

Key Performance Indicators (KPIs)

Benefits of Investing in Winter Stocks

Factors to consider before investing in winter stocks