Pocketful

Category: Investing

  • Difference Between Trading and Investing

    Difference Between Trading and Investing

    The stock market is a place where you can invest and trade to achieve your financial goals. However, many of us tend to believe that investing in the stock market is the same as trading. Although both investing and trading involve buying and selling stocks, they are quite different in their approach.

    In this blog, we will explain the difference between investing and trading in detail, along with their features and types.

    What is Investing?

    Investing refers to buying stocks of listed companies for a long period to create wealth through capital appreciation and dividends. Investing is basically buying shares of a company that is supposed to do well in the future; therefore, investors prefer to buy stocks at lower prices and sell them at higher prices. In order to judge the future potential of the company, it is necessary to do the necessary due diligence on the company’s financial statements and other required analysis.

    Features of Investing

    The key features of investing are as follows:

    1. Growth Potential: Through investing, an investor can grow their capital over time.
    2. Diversification: One can reduce the risk of one’s portfolio by diversifying across different sectors.
    3. Tax Benefit: Long-term capital gains are subject to lower tax rate than short-term trading.
    4. Compounding: Investing allows an investor to compound their returns, which can lead to a significant increase in wealth over time.

    Types of Investing

    Investing can be categorised into the following types:

    1. Value Investing: In this type of investing, an investor selects undervalued stocks which are fundamentally strong. Value investors buy such stocks as these stocks are undervalued and significant growth can be expected in future.
    2. Growth Investing: In this, the investor identifies which stocks have a good potential for long-term growth and earnings.
    3. Dividend Investing: There are some companies which regularly pay dividends so investing in such companies provides a regular cash flow in the form of dividends.
    4. Index Investing: This involves creating a diversified portfolio that replicates a market index or investing in index ETFs and mutual funds.

    What is Trading?

    Trading in the stock market involves actively buying and selling stocks within a short term to earn profits from frequent price fluctuations. Basically, the traders use market volatility to their advantage to earn profits. Short-term trading is the art of finding the trend in stock prices, and capitalize on them.

    Features of Trading

    The key features of trading are as follows:

    1. Short Term: Trading generally involves buying and selling stocks over a short period of time typically ranging from a few minutes to a few weeks.
    2. Actively Managed: A trader is required to actively track the price movement of stocks, based on various factors such as news, geopolitical events, economic conditions, etc.
    3. Only High Liquid Assets: Traders generally prefer to trade in only those assets that have high liquidity.
    4. Leveraged Positions: Various traders use leverage to increase their returns by borrowing funds from brokers.

    Read Also: Trading For Beginners: 5 Things Every Trader Should Know

    Types of Trading

    Trading is highly risky as it is dependent on market volatility that can be impacted by factors such as news, economic conditions, inflation, interest rates, etc. Trading in the stock market can be majorly categorised into four types:

    1. Scalping: This involves generating quick profits based on small price movements.
    2. Day Trading: Day Trading In this type of trading, a trader opens a trading position and closes it within the same day. They make decisions based on technical analysis to earn profits from intraday price movements.
    3. Swing Trading: The traders hold the stocks for a few days or weeks in swing trading. 
    4. Momentum Trading: In momentum trading, the traders spot the significant price momentum and take a bet in accordance with that scenario to earn profits. The holding period can be up to a few months.

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

    Difference Between Investing and Trading

    There are significant differences between investing and trading, a few of which are as follows:

    ParticularsTrading Investing
    TimeTrading is done on a short-timeframe, i.e. minutes, hours, or daysInvesting is done for years and decades.
    ObjectiveThe primary objective is to earn profit from price fluctuations.The objective of investing is to accumulate wealth through capital appreciation as the company’s revenues and profits grow.
    MonitoringIt requires active monitoring.It only requires periodic reviews.
    AnalysisTrading is based on technical analysis.It generally involves fundamental analysis.
    LeverageTrading is highly leveraged.Investing is usually not leveraged. 
    TaxabilityShort-term profits are subject to higher tax rates.Profits earned from investing are subject to lower tax rates.
    RiskTrading generally carries high risk due to market volatility.It generally has a lower risk level.
    Investor PsychologyIt requires quick decision-making and emotional control.Investing requires patience and discipline.

    Who should Invest and Who should Trade?

    Trading is suitable for investors who wish to take high risks for high returns. Consistent traders have a well-defined strategy and good risk-reward ratio that helps them consistently outperform the benchmarks. However, it is hard to master trading and it is not suitable for conservative market participants who can’t monitor their portfolios regularly and can’t handle market volatility. It is true that high returns can be earned through trading but there is also a high probability of losing significant capital.

    While on the other hand, if you wish to create wealth in the long run and are a risk-averse investor then investing is for you. You must be an expert in conducting fundamental analysis of companies and focus on identifying future growth drivers. Long term investing is best for those who wish to have regular income through dividends as well as capital appreciation.

    Read Also: Top 10 Books for Beginners in Trading & Investing

    Conclusion

    On a concluding note, trading and investing are two opposite approaches to wealth creation. Trading could provide quick returns, but risk is also much higher compared to investing. On the other hand, investing follows the principle of “slow and steady wins the race”. For retail investors it is always suggested to consult your financial advisor before making any decision.

    Pocketful provides you with an opportunity to earn profits from both investing and trading, through its mobile application equipped with advanced trading tools. One can open a lifetime free demat account that does not require paying any brokerage on equity delivery-based trades.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Difference Between Intraday Trading and Delivery Trading
    2Value Investing Vs Intraday Trading: Which Is More Profitable?
    3Mutual Funds vs Direct Investing: Differences, Pros, Cons, and Suitability
    4Swing Trading vs Day Trading: Which Strategy Is Right For You?
    55 Must-Read Best Swing Trading Books for Trader

    Frequently Asked Questions (FAQs)

    1. What carries higher risk among investing and trading?

      There is a higher risk in trading because of short-term market volatility and quick decision-making. On the other hand, investing is less risky as it focuses on future growth prospects of the company.

    2. Which is better for a long-term investor?

      Investing is better for long-term goals as it comes with the benefit of compounding, lower risk, and tax efficiency.

    3. What are the tax rates for short-term traders and long-term investors?

      Traders are required to pay taxes on short-term capital gains at a rate of 20%, while long-term investors pay according to a tax rate of 12.5% with no tax on gains up to ₹1.25 lakh.

    4. What are the goals of trading and investing?

      Trading aims for short-term profits from market price fluctuations. Investing seeks long-term wealth creation and financial security.

    5. Can I do both trading and investing at the same time?

      Yes, you can be a long-term investor while doing short-term trading. However, both require a separate skill set to be done profitably. 

  • What is Coupon Bond?

    What is Coupon Bond?

    Have you ever thought how investors earn steady income from bonds, even before the bond maturity date? Let’s introduce you to the world of coupon bonds where you can invest and grow your wealth for decades. Coupon bonds are a type of debt instrument where the bondholders get regular periodic interest payments known as coupon payments, representing consistent income at regular intervals.

    In this blog, we will discuss coupon bonds, its working, advantages, disadvantages and factors to consider before investing in these bonds.

    Brief Introduction to Bonds

    Bonds are fixed income instruments through which you can lend money to an organisation, like a company or government. In return, they promise to pay you regular interest payments for a specific period (say annually or semi-annually) and at maturity, you get your original investment amount back.   

    In India, there are many institutions that issue bonds, such as PSUs, corporates, RBI on behalf of Govt., etc. to raise money. Bonds can be bought through banks, brokers, or online platforms. They are a safe way to earn passive income but one should always keep in mind that income earned from these bonds are usually taxable, so one should keep all the factors in mind before investing. Now let’s understand Bond coupons in more detail. 

    What is Coupon Bond?

    A coupon bond is a subtype of bond that pays fixed coupon payments at regular intervals over the lifetime of the bond. The bond’s face value or the principal amount is returned at the time of maturity (pre decided maturity date). The term “coupon” is a term that was used back in times when physical bond certificates had detachable coupons, and payments were made after presenting these bonds physically to the issuer.  However, today the interest payments or coupon payments related to the bond are made electronically.

    Read Also: What are Bond Yields?

    Before investing in a coupon bond, it is important to understand its structure. The following terms related to bonds are explained in detail:

    1. Face Value (Par Value or Principal)

    The amount of money the bondholder will receive back at the time of bond maturity.

    Let’s look at the bond with ₹1,000 par value and a coupon rate of 7%. The bondholder will receive ₹70 annually until maturity and then receive the principal amount.

    Importance: The face value of a bond is fixed while the market price of the bond tends to change due to interest rate fluctuations as well as credit reassessment.

    2. Coupon Rate

    The coupon rate is the annual interest rate stated on a bond, expressed as a percentage of the bond’s face value.

    If the coupon rate is set at 6% per year and the face value of the bond is ₹10,000, then the annual coupon payment will be ₹600, these payments are usually made semi-annually, annually, or even quarterly.

    3. Coupon Payment

    This represents the bond’s interest payment and is the actual amount that is paid to the holder of the bond at pre designated intervals (annual, semiannual or quarterly) based on the coupon rate and the bond’s face value.

    Coupon Payment = Face Value x Coupon Rate ÷ Number of Payments per Year

    A ₹1,000 bond with a coupon 6% paid out semi annually will yield ₹30 every 6 months. Payments are usually made directly into the investor’s registered bank account.

    4. Maturity Date

    The particular point in time when the bond will mature and the issuer pays the bond holder the face value of the bond.

    Maturity Range: This could be short-term, medium term or long-term. In general, short term is less than 1 year, medium term is 1-10 years and long term is 10-30 years or longer.

    The time to maturity of a particular bond determines its exposure to interest rate risk, i.e., when bonds with longer maturity experience greater fluctuation due to changes in interest rates. Knowledge about the maturity dates also facilitates financial planning as certain bonds maturing 5, 10, or 20 years down the line can assist in planning for education or retirement funding.

    5. Fixed vs Floating Coupon Bonds

    In a fixed-rate bond, the interest rate is pre-determined and it remains the same due to its fixed nature till the maturity of the bond.

    A floating-rate bond’s coupon payment changes according to some benchmark, such as RBI repo rate.

    Read Also: What Are Corporate Bonds?

    How Coupon Bonds Work?

    When you purchase a coupon bond:

    • You’re giving your investment amount to the issuer, which can be a government, municipality, or corporation.
    • The issuer pays you interest or coupon payments at a specified rate and frequency, usually semi-annually or annually.
    • You receive the principal amount after the bond maturity.

    Advantages of Coupon Bonds

    Advantages of investing in coupon bonds are: 

    1. Stable & Predictable Income : Interest payments on coupon bonds are made during specified periods making them perfect for pensioners or people dependent on passive income streams. Compared to stocks, bonds are less volatile.

    2. Lower Risk than Equities : Though subject to price volatility, regular interest payments and principal value is received at maturity (unless there’s a default). This statement is most applicable to sovereign or AAA-rated bonds.

    3. Capital Preservation : Bonds that are held to maturity pay back the full principal amount. It enables capital preservation while maintaining a regular income stream.

    4. Portfolio Diversification : Bonds are crucial in compensating for unpredictable equity markets. They have a low correlation to stocks, which mitigates overall portfolio risk. 

    5. Secondary Market Options : Bonds are also available for buying or selling on the secondary market, i.e. brokers, banks and digital platforms. The liquidity, however, is subject to change based on the availability of buyers and sellers in the market.

    Disadvantages of Coupon Bonds

    It is important to know the associated risks and limitations of coupon bonds as well:

    1. Change in Interest Rate Risk : If interest rates go up, the bond prices will fall. This may lead to loss if the bond is sold before maturity. Bonds with longer durations are more sensitive to these interest rate changes.

    2. Inflation Risk : Inflation may diminish the real value of the fixed coupon payments, reducing the purchasing power over time. With rising inflation the interest income may be less valuable as the general price level of goods and services across the economy rises.

    3. Default Risk : Investors could incur losses if the issuer refuses to pay interest or principal amount owed. Credit default risk in government bonds is very low as they are backed by sovereign guarantee while corporate bonds carry higher default risk. 

    4. Liquidity Risk : Certain bonds are not actively traded on secondary markets. Hence, selling them at a fair price within a short period becomes difficult. So, sudden exit can lead to potential losses in illiquid markets.

    5. Call Risk : An issuer tends to call a bond before its maturity date when interest rates decrease. They do this to issue further bonds at a reduced coupon rate.

    Read Also: What Is Bowie Bond (Music Bonds) : History, Features, Advantages & Disadvantages

    Factors to Consider Before Investing in Coupon Bonds

    Various factors to consider before investing in coupon bonds are:

    • Interest Rate Environment : Bonds values are negatively affected by an increase in interest rates, so check analyze economic conditions and RBI guidelines.
    • Issuer’s Creditworthiness : Check CRISIL, ICRA, Moody’s or S&P rating of the bond issued and evaluate the issuer’s financial position.
    • Time Horizon : Align your financial objectives with the bond maturity date. Long-dated bonds have greater price volatility due to changes in interest rates.
    • Yield to Maturity (YTM) : An indicator which estimates the total return on investment if the bond is held till maturity. 
    • Inflation Outlook : Real returns = Nominal returns – Inflation. Invest in bonds that have an inflation protection clause attached.
    • Callability : Verify if the bond is callable, if yes determine what call provisions may be attached. Early redemption of a callable bond adversely impacts returns.
    • Liquidity : Ponder on the considerations of how simply the bond can be sold before the maturity date if the need arises.
    • Reinvestment Options : Contemplate the possibilities where you intend to allocate the periodic coupon payments ahead of time.
    • Bond Ratings : Bonds that are rated investment grade (BBB or above) are less risky, while those graded junk (BB or below) carry higher risk, but yield higher returns.

    Read Also: Benefits of Investing in Bonds

    Conclusion

    Coupon Bonds are integral to the fixed income market as they provide a reliable income stream, preservation of capital, and diversification benefits. Though they are deemed safer than equities, one must appreciate the many factors and risks associated with these types of investments, such as, coupon rate, inflation, and credit risk of the issuer.

    Assessing your financial objectives, income tax bracket, risk appetite, and the prevailing market conditions determine if coupon bonds are suitable for your investment portfolio or not. It is also important to consult a financial advisor before investing.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
    1Detailed Guide on Bond Investing: Characteristics, Types, and Factors Explained
    2Electoral Bonds Explained: What Are They and Why Did Supreme Court Ban It?
    3Stocks vs Bonds: Difference Between Bonds and Stocks
    4CAT Bonds: An Easy Explainer
    5What is Debt Mutual Funds: Invest in the Best Debt Funds in India

    Frequently Asked Questions (FAQs)

    1. How are coupon payments made?

      Payments are transferred directly into the bank account of the investor on predetermined days.

    2. Do coupon bonds give guaranteed returns?

      If kept till maturity, coupon bonds offer regular interest payments and issuers also return principal back at maturity, given that the issuer doesn’t default.

    3. Can coupon bonds be sold prior to maturity?

      Sure, they can be sold in the secondary market, but their prices depend on prevailing economic conditions.

    4. Are coupon bonds better than FDs?

      Usually they provide better returns than FDs; however, they entail more risk than conventional fixed deposits.

  • What Happens If a Stockbroker Shuts Down?

    What Happens If a Stockbroker Shuts Down?

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

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

    Why Stockbrokers Might Shut Down?

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

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

    Key examples (as per SEBI Action) :

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

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

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

    What Happens When a Broker Shuts Down?

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

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

    Read Also: How to Become a Sub Broker in India

    Are Your Shares & Mutual Funds Safe?

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

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

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

    How to track?

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

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

    Investor Protection Fund (IPF): Your Safety Net

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

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

    How much can I claim?

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

    How to claim IPF?

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

    Why is it important for you 

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

    Read Also: How to Close Your Demat Account Online?

    Tips to Stay Protected as an Investor

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

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

    Conclusion

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

    Frequently Asked Questions (FAQS)

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

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

    2. Can I transfer my shares to another broker?

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

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

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

    4. How much compensation can I get from IPF?

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

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

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

  • 5+ Best VFX Stocks in India 2025

    5+ Best VFX Stocks in India 2025

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

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

    What are VFX Stocks?

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

    Top VFX Stocks Based on Market Capitalisation

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

    Read Also: Top 10 Best Summer Stocks in India

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

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

    1. Prime Focus Limited

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

    Know the Returns:

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

    2. Basilic Fly Studio Limited

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

    Know the Returns:

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

    3. Phantom Digital Effects Limited

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

    Know the Returns:

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

    4. Digikore Studios Limited

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

    Know the Returns:

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

    5. Picture Post Studios Limited

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

    Know the Returns:

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

    6. Identical Brains Studios Limited

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

    Know the Returns:

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

    Key Performance Indicators (KPIS)

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

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

    Benefits of Investing in VFX Stocks

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

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

    Risks of Investing in VFX Stocks

    Key risks associated with investing in VFX stocks are:

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

    Factors to be Considered before Investing in VFX stocks

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

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

    Future of VFX Stocks

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

    Conclusion

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

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    Frequently Asked Questions (FAQS)

    1. What are the top VFX stocks in India?

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

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

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

    3. How to purchase VFX stock in India?

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

    4. What is the future of the VFX industry?

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

  • 10 Best Penny Stocks with High FII Holding

    10 Best Penny Stocks with High FII Holding

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

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

    How to Identify FII Interest in Penny Stocks?

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

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

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

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

    Read Also: 10 Best Paper Trading Apps in India

    Top Penny Stocks with High FII Holding

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

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

    Overview of the Top Penny Stock with High FII Holding

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

    1. Iconik Sports and Events Ltd

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

    Know the Returns:

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

    2. Leading Leasing Finance & Investment Company Ltd

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

    Know the Returns:

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

    3. Standard Industries Ltd

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

    Know the Returns:

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

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

    Know the Returns:

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

    5. Yes Bank Ltd

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

    Know the Returns:

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

    6. Suzlon Energy Ltd

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

    Know the Returns:

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

    7. Celebrity Fashions Ltd

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

    Know the Returns:

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

    8. Zee Media Corporation Ltd

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

    Know the Returns:

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

    9. Dish TV India Ltd

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

    Know the Returns:

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

    10. Vodafone Idea

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

    Know the Returns:

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

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

    Also Read: Best Bank Penny Stocks List

    Key Performance Indicators (KPIs)

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

    Advantages of Investing in Penny Stocks with High FII Holding

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

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

    Read Also: Top 10 Option Trading Books in India

    Risks of Investing in Penny Stocks with High FII Holding

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

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

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

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

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

    Conclusion

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

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

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    Frequently Asked Questions (FAQS)

    1. What are penny stocks with high FII holding?

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

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

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

    3. Why do FIIs invest in penny stocks?

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

    4. How to identify fundamentally strong penny stocks?

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

    5. Can retail investors follow FII moves?

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

  • Top 10 Best Summer Stocks in India

    Top 10 Best Summer Stocks in India

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

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

    What is Summer Stock?

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

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

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

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

    Top 10 Summer stocks to keep an eye on!!

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

    Read Also: Best Air Conditioners Stocks in India

    Overview of Best Summer Stocks in India

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

    1. Varun Beverages 

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

    Know the Returns:

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

    2. Havells India

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

    Know the Returns:

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

    3. Dabur India

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

    Know the Returns:

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

    4. United Breweries Limited (UBL)

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

    Know the Returns:

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

    5. Voltas

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

    Know the Returns:

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

    6. Blue Star

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

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

    Know the Returns:

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

    7. Amber Enterprises

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

    Know the Returns:

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

    8. Whirlpool of India Ltd 

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

    Know the Returns:

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

    9. Johnson Controls and Hitachi Air Conditioner India Ltd

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

    Know the Returns:

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

    10. EPACK Durable

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

    Know the Returns:

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

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

    Key Performance Indicators (KPIs)

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

    Read Also: Best 5G Stocks in India to Invest

    Benefits of Investing in Summer Stocks in India

    Various benefits of investing in summer stocks in India are:

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

    Disadvantages of Investing in Summer Stocks in India

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

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

    Conclusion 

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

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    Frequently Asked Questions

    1. Is investing in summer stocks always profitable?

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

    2. Which companies perform well during summers? 

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

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

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

    4. Do summer stocks have risk attached to them?

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

    5. Are all summer stocks seasonal in nature? 

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

  • Best 5G Stocks in India to Invest 2025

    Best 5G Stocks in India to Invest 2025

    You have probably heard the word 5G a lot: faster internet, smarter gadgets, better everything. But here is something you might not have thought about: 5G is not just exciting for technology enthusiasts; it is also opening up some interesting opportunities for investors.

    As more companies jump into building and supporting this new technology, 5G stocks are starting to grab attention. But like any new opportunity, they come with their own mix of potential and risk. In this blog, we will be discussing 5G stocks, why they matter, and what you should know if you are thinking of investing in them.

    What are 5G Stocks? 

    Shares in 5G stocks include companies that build, support or benefit from 5G wireless technology. It is expected that 5G will boost growth in industries like IoT, autonomous vehicles, smart cities, AR/VR and cloud gaming. These companies may be involved in telecom infrastructure, semiconductors and chipmaking, telecom service providers, network equipment manufacturing, software and cloud services supporting 5G applications. Such companies could enjoy high demand for their products in the coming years.

    List of the Best 5G Stocks 

    CompanyStock Price (In ₹)Market Capitalization (In ₹ Crores)52-Week High (In INR)52-Week Low (In INR)
    Reliance Industries1,46219,78,3791,6091,115
    Bharti Airtel1,85911,14,8351,9171,373
    Tech Mahindra1,6291,59,5321,8081,209
    Indus Towers3901,05,049461311
    Vodafone Idea7.0376,16519.26.46
    ITI33031,752593210
    HFCL93.113,42617171.5
    Tejas Networks 71912,6961,495647
    Sterlite Technologies773,75911352.2
    Mahanagar Telephone Nigam54.13,40910237.4
    (Data as of 11 June 2025)

    Read Also: List of Best Telecom Stocks in India

    Overview of the Top 10 5G stocks in India

     An overview of the top 10 5G stocks in India are:

    1. Reliance Industries 

    Reliance Industries began its journey in 1966 with Dhirubhai Ambani’s big dreams as a small textile business. What started as a modest venture has grown into one of India’s most influential companies, with business operations in everything from oil and petrochemicals to retail, telecom, and digital services. Under Mukesh Ambani’s leadership today, Reliance isn’t just about scale; it is about changing how people in India shop, connect, and live. From its humble beginnings to reaching global heights, the story of Reliance is one of ambition, bold thinking, and a vision that keeps growing with the times.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -1.29%9.60%85.19%
    (Data as of 11 June 2025)

    2. Bharti Airtel 

    Bharti Airtel started its journey in 1995 when Sunil Bharti Mittal started making mobile phones something every Indian could access. Back then, it had just a few thousand users in Delhi. Today, it is one of the biggest telecom players in the world. Whether it is mobile services, broadband, DTH, or business solutions, Airtel is now a part of daily life for millions across India and even in parts of Asia and Africa. Known for its reliable network and focus on people, Airtel’s story is one of grit, constant innovation, and growing with the digital times.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    30.50%181.99%231.77%
    (Data as of 11 June 2025)

    3. Tech Mahindra 

    Tech Mahindra, part of the Mahindra Group, started in 1986 as a tech outsourcing company and has grown into a global leader in IT and digital services. Initially, the company focused on serving British Telecom, and later it expanded rapidly into software, consulting, and digital transformation across industries. Headquartered in Pune, it now operates in over 90 countries, helping businesses with everything from AI and cloud solutions to cybersecurity and customer experience. Tech Mahindra combines technology and innovation to drive meaningful change in the digital age, while staying connected to its people-first values.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    21.25%51.27%176.73%
    (Data as of 11 June 2025)

    4. Indus Towers 

    Indus Towers started operations in 2007 following a joint venture agreement between Bharti Airtel, Vodafone India and Idea Cellular to collaborate on sharing towers. Based in Gurugram, it has become a leading global telecom tower company, operating over 190,000 towers across India today. Towers are essential for supporting mobile networks and making sure that people living in cities or far-reaching areas can always connect. By emphasising sustainability and new technologies, Indus Towers is helping to establish a robust digital network for India, while also supporting the advancement of 4G and 5G.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    10.67%90.47%67.18%
    (Data as of 11 June 2025)

    5. Vodafone Idea

    Vodafone Idea, now called Vi, came into existence in 2018 when Vodafone India and Idea Cellular joined hands. The goal was simple and that was to build a stronger, more reliable network across the country. With offices in Mumbai and Gandhinagar, Vi serves millions of people in cities and small towns alike, offering mobile and broadband services. Even though the telecom market is highly competitive and has its challenges, Vi keeps working hard to improve its network and help more people stay connected in today’s digital world.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -56.43%-22.78%-37.21%
    (Data as of 11 June 2025)

    6. ITI

    ITI Limited, short for Indian Telephone Industries, has been operating since 1948, making it India’s first telecom company in the public sector. Earlier, it helped set up the country’s telephone network by making switches and phones when telecom was just starting off. Based in Bengaluru, ITI has come a long way and now works on things like smart cards, secure networks, and even technology for defence. The company had its ups and downs, but ITI is steadily bouncing back by trying to embrace new-age tech and playing a part in India’s digital growth story.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    10.59%264.43%280.74%
    (Data as of 11 June 2025)

    7. HFCL

    Himachal Futuristic Communications Limited, known as HFCL, was established in 1987 with the hope of supporting India’s telecom industry. Since its inception, it has grown to play a key role in producing optical fibre cables, telecom equipment and network solutions. HFCL, based in Delhi, has contributed to major projects, among them BharatNet, which is working to ensure fast internet in Indian villages. Now, the company is expanding into areas such as 5G, IoT and smart cities. HFCL’s main goal is to drive innovation and ensure India remains ready for the future.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -7.03%46.02%520.34%
    (Data as of 11 June 2025)

    8. Tejas Networks

    Tejas Networks started back in 2000 in Bengaluru, built by a group of technology enthusiasts who wanted to create top-quality telecom gear in India. Since then, it’s come a long way; its products now power networks in over 75 countries. From optical fibre systems to 4G and 5G solutions, Tejas makes the technology that helps us stay connected, stream videos, and build smart cities. Now part of the Tata Group, the company continues to focus on homegrown innovation while helping expand digital access across India and beyond. 

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -44.72%61.81%1,194.94%
    (Data as of 11 June 2025)

    9. Sterlite Technologies 

    In 1988, Sterlite Technologies Limited (STL) was launched under Sterlite Industries and focused on manufacturing telecom cables. In 2000, the company became independent and in 2007, the name was officially changed to Sterlite Technologies Limited.  The headquarters of the company are in Pune, and thanks to its optical and digital products, it has expanded to operate in more than 150 countries. The company manufactures fibre-optic cables and handles network services and software. STL has participated in important projects like BharatNet, which aims to improve digital access in rural parts of India. STL’s emphasis on new ideas and sustainability helps drive India’s progress in the digital world.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    -41.73%-53.45%-28.27%
    (Data as of 11 June 2025)

    10. Mahanagar Telephone Nigam 

    In 1882, Bombay got its first telephone exchange, and in 1986, the government founded MTNL to upgrade telecom services in Mumbai and Delhi. Ever since, MTNL has constantly introduced new ideas such as 3G, broadband and IPTV, leaving many others behind. Even though MTNL has faced various challenges due to new competition and advances in technology, it remains a major provider of landlines, telephones and internet access. Recently, it has collaborated with BSNL and made fibre networks a priority, thus keeping itself relevant in India’s developing telecom industry.

    Know the Returns:

    1Y Return (%)3Y Return (%)5Y Return (%)
    40.92%159.52%479.78%
    (Data as of 11 June 2025)

    Read Also: Best Small Cap Semiconductor Stocks in India

    Key Performance Indicators (KPIs)

    CompanyNet Profit Margin (in %)ROE (in %)ROCE (in %)
    Reliance Industries8.378.258.70.41
    Bharti Airtel19.5229.5214.721.3
    Tech Mahindra8.0115.5318.740.02
    Indus Towers32.9730.5627.70.07
    Vodafone Idea-62.850-1.98-2.79
    ITI-6.44-13.22-2.30.91
    HFCL4.254.38.610.33
    Tejas Networks 511.622.440.85
    Sterlite Technologies-3.07-6.184.50.91
    Mahanagar Telephone Nigam-476.99014.88-1.2
    (Data as of March 2025)

    Benefits of Investing in the Best 5G Stocks

    The benefits of investing in the best 5G stocks are: 

    • High Growth Possibilities: 5G is expected to play a crucial part in achieving initiatives such as smart homes and self-driving cars to virtual reality and remote healthcare. Companies building or supporting 5G could see huge growth in the years to come.
    • Early Mover Advantage: We’re still in the early days of 5 G. Investing now means you could benefit as the technology rolls out more widely across cities, towns, and even rural areas.
    • Infrastructure Boom: Rolling out 5G takes a lot of equipment, towers, fibre cables, and data centres. Companies that are involved in this sector are seeing a rise in revenues, which is great for investors.

    Risks of Investing in the Best 5G Stocks 

    The risks of investing in the best 5G stocks are: 

    • Mass Rollout will take Time: 5G rollout isn’t happening overnight. It’s a gradual process that depends on present infrastructure, regulation, and market readiness. This means returns might be slower than expected.
    • High Capital Costs: Building 5G networks is expensive and companies investing heavily in 5G tech may take on a lot of debt, which can hurt profits in the short term if things don’t go as planned.
    • Intense Competition: The telecom and technology sectors are highly competitive. Even strong 5G players face pressure on pricing, market share, and margins, especially from global companies.

    Conclusion 

    5G is not just about faster downloads, it is about big changes in the way we live and connect. From smarter cities to connected cars, the possibilities are exciting, and so are the opportunities for investors. However, it is not a guaranteed win as like any investment, 5G stocks come with their share of advantages and disadvantages. But if you are someone who likes being part of something that might revolutionize the future, 5G could be a smart space to explore. Take your time analyzing these companies and see if it fits in your portfolio. It is advised to consult a financial advisor before investing.

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    Frequently Asked Questions

    1. Is it a good time to invest in 5G?

      If you’re looking to invest for the long term then you should definitely consider investing in 5G stocks. Consult a financial advisor before investing.

    2. Are 5G stocks risky?

      Like investing in any other stock, there are some risks involved due to which thorough analysis is necessary before investing.

    3. How do these companies make money?

      Companies involved in 5G technologies make money by providing telecom services, building network infrastructure, manufacturing hardware, or powering the tech behind 5G.

    4. Are there 5G mutual funds or ETFs?

      Globally, yes. In India, options are still limited, but you can build your own portfolio by considering the stocks mentioned above.

    5. Why should I consider 5G stocks for investment?

      Because 5G is shaping the future, and being part of that shift can be both exciting and rewarding.

  • Features and Benefits of ETF (Exchange Traded Funds)

    Features and Benefits of ETF (Exchange Traded Funds)

    Exchange Traded Funds (ETFs) are becoming increasingly popular in today’s time. These investment instruments trade like stocks but offer the diversification and transparency of mutual funds by tracking stock market indices. In 2025, the global ETF market attracted $2 trillion of new capital, which shows their credibility and demand.

    In this blog, the features and benefits of ETFs are explained in a simple and detailed manner. Moreover, a comparison between ETF and other investment options is shown to better understand them.

    What are Exchange Traded Funds (ETFs)?

    ETFs or Exchange Traded Funds are an investment option that follows a stock market index such as Nifty 50 or Sensex. The most special thing about these funds is that they can be bought and sold in the market throughout the day just like shares. That is, unlike mutual funds, ETFs can be bought and sold throughout the trading day at real-time prices, without waiting for end-of-day NAV pricing.

    What do ETFs invest in?

    ETFs invest not just in stocks but also in many other asset classes, such as:

    • Equity:  Stocks included in the index 
    • Bonds: Government or corporate bonds
    • Commodities:Such as gold, silver, etc.
    • International: ETFs that invest in companies of foreign countries
    • Sector-focused:  Such as technology, pharma, banking, etc.

    Some special features of ETFs (ETF Features)

    • Liquidity:  Buy and sell whenever you want, like shares.
    • Transparency:  ETFs provide their holding information and tracking error on a regular basis.
    • Low Cost:  Fees are much lower than mutual funds.
    • Tax Efficiency:  Better for tax planning.

    Due to all these features, ETFs are becoming a smart, accessible and affordable option for investors these days. Be it a new investor or an experienced one, ETFs are proving to be useful for every investor profile.

    Know More: Calculate returns on ETF investments.

    Key Features of Exchange Traded Funds

    Exchange Traded Funds (ETFs) are easy to understand, but they have some special features that make them different from other investment options.

    • Liquidity: ETFs can be bought or sold like shares throughout the trading hours. This means that when the market is open, investment or withdrawal in an ETF can be done at any time, that too at real-time price. This facility is not available in mutual funds.
    • Transparency: Most ETFs update their holding information on a regular basis. This helps the investor to know in which companies or assets his money has been invested.
    • Diversification : Investment can be made in different sectors, companies or asset classes through a single ETF. This distributes the risk and diversifies the portfolio.
    • Cost Efficiency: ETFs usually have a very low expense ratio because they passively follow the index, which results in reduced cost to the investor.
    • Tax Efficiency: ETFs are structured in such a way that the impact of capital gains tax is less. Especially when invested for a long time, the benefit of tax saving increases even more.

    Benefits of Investing in ETFs 

    Exchange Traded Funds (ETFs) provide investors with an option that balances risk and also provides returns. Here are some reasons why ETFs are considered a smart investment choice today:

    • Flexibility: ETFs are traded just like stocks, which allows them to be used for intraday trading. This allows active investors to adopt multiple trading strategies.
    • Low Investment Threshold: Most ETFs do not require a large amount to start investing, which allows new and small investors to enter the market.
    • Variety of Choices : Today, there are sector-based, theme-based, international and bond-based ETFs, providing options for any investment goal.
    • Performance Tracking: The specialty of these funds is that they track the index or sector very closely, making the returns easily comparable.
    • Real-time pricing: The price of ETFs keeps changing throughout the trading hours, allowing for timely entry and exit.
    • Automatic risk diversification: An ETF invests in many stocks or assets, reducing the impact of a single company’s decline on the entire portfolio.
    • No entry or exit load: There are no entry or exit loads when investing in ETFs, making the investment process cost-efficient.
    • Better control and transparency: Since ETFs are listed on the stock exchange, investors are better informed about their holdings and market movements.

    Read Also: How to Invest in Gold ETF – Benefits, Risks and Charges

    ETFs vs other Investment options: Which is better and when?

    Exchange Traded Funds (ETFs) are often compared with mutual funds or other investment options. But each option has its own strengths and limitations. The table below gives a quick overview of their key features:

    Feature/AspectETFsMutual FundsFixed Deposits 
    Trading FlexibilityTrades like stocks throughout the dayTransact at end of day at NAV onlyLock-in and invested for a Fixed Period
    Cost / FeesVery low expense ratioRelatively higher feesNo fund management charges
    TransparencyInvestors have a better idea of where their money has been invested as holdings information is published daily.Holdings are published quarterly, which makes them less transparent.Limited information is available as the bank lends your deposited amount.
    LiquidityHigh – can be bought/sold at any timeModerate – redemption takes timeLow – Early withdrawal penalty
    Market ExposureDiversified index, sector, commodities, etc.Based on the investment strategy mentioned in the fund documentsNo direct link to the market

    Considerations Before Investing in ETFs 

    Although ETFs have many benefits, it is important to understand a few key points before investing.

    • Effect of market volatility: ETFs are directly linked to the stock market, so their prices can also go down rapidly when the market falls.
    • Possibility of tracking error: Sometimes the return of an ETF does not match the index it is following. This is called tracking error.
    • Understand the investment strategy: Before investing, it is important to know in which assets or sectors the ETF is investing.
    • Research and clarity are important: Before investing in an ETF, conduct your own research to select the best fund for your portfolio.

    How to Invest in ETFs Step-by-Step with Pocketful?

    You can easily invest in ETFs with Pocketful by following the steps mentioned below:

    • Open an account on Pocketful:  First, create your account by visiting Pocketful’s website or app.
    • Complete KYC and verification: Your account will be activated after your documents and other information are verified.
    • Transfer funds to your account So that you can trade in the stock market.
    • Choose and buy ETFs : Select the fund of your choice from the ETFs available on the Pocketful platform and buy.
    • 0 Charges on Delivery Investment: ​​There is no charge for delivery of ETF units on Pocketful, making investing even more affordable.

    Pocketful’s user-friendly platform and low cost makes investing easy.

    Read Also: Best ETFs in India to Invest

    Conclusion 

    ETFs are an easy, flexible and affordable option for investment. They are traded in the stock market, allowing real-time buying and selling. ETFs have low cost and offer transparency and diversification, which helps in reducing risk. For any investor, whether new or experienced, adding ETFs to their portfolio can be a wise move. For a better decision, one should include ETFs in their investment portfolio after consulting an expert or doing thorough research on their own.

    Frequently Asked Questions (FAQs)

    1. How are ETFs different from mutual funds?

      ETFs trade like stocks throughout the day, whereas mutual funds are bought or sold only at the end of the day at NAV.

    2. Are ETFs cheaper than mutual funds?

      Yes, ETFs generally have lower expenses than mutual funds.

    3. Can I buy and sell ETFs anytime?

      Yes, ETFs can be bought or sold at any time during trading hours.

    4. What are the main benefits of investing in ETFs?

      Investing in ETFs reduces costs and provides diversification.

    5. Do ETFs carry risk?

      Yes, ETFs are also linked to the stock market, hence they are also affected by market fluctuations.

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    5What is Nifty BeES ETF? Features, Benefits & How to Invest?
  • Best ETFs in India to Invest in 2025

    Best ETFs in India to Invest in 2025

    In the world of financial markets, there are various investment options available. If an investor is looking to diversify their portfolio and has a limited amount of capital, they can consider investing in ETFs or Exchange Traded Funds. They are passively managed funds offered by various AMCs. But do you know which ETFs have been top performers in recent years?

    In this blog, we will give you an overview of the top 10 ETFs in India, along with the factors to consider before investing in them.

    What is an ETF?

    An ETF or Exchange Traded Fund is a passive investment tool that predominantly invests the capital in a basket of stocks, commodities, etc. ETFs are generally traded on the stock exchange like any other ordinary stock; therefore, to buy and sell ETFs, you are required to have a demat and trading account. 

    List of Best ETFs in India

    The following are the best ETF to invest in 2025:

    ETF NameSymbol5-Year Return
    Kotak NV 20 ETFKOTAKNV20203.26%
    Kotak Nifty Bank ETFBANKNIFTY1196.54%
    SBI NIFTY NEXT 50 ETFSETFNN50186.79%
    Nippon India ETF Junior BeESJUNIORBEES184.70%
    Bandhan NIFTY ETFIDFNIFTYET181.53%
    Quantum Nifty ETFQNIFTY180%
    Motilal Oswal M50 ETFMOM50175.04%
    Invesco India NIFTY ETFIVZINNIFTY171.90%
    SBI NIFTY 50 ETFSETFNIF50167.28%
    Invesco India Gold ETFIVZINGOLD95.16%
    (Data as of 15th May 2025)

    Overview of the Best ETFs in India

    An overview of the top ETFs in India is as follows:

    1. Kotak NV 20 ETF

    This ETF invests in Nifty 50 Value 20 index stocks. These stocks represent companies with strong fundamentals and attractive valuations. It primarily tracks share prices of 20 companies with low PE, low PB and high dividend yield. It is managed by Kotak AMC.

    2. Kotak Nifty Bank ETF

    This ETF, launched by Kotak Mutual Fund, tracks the Bank Nifty index and provides investors with an exposure to the top 12 banking stocks. Investors who wish to make a tactical allocation in the banking industry can opt to invest in Kotak Nifty Bank ETF.

    3. SBI Nifty Next 50 ETF

    The SBI Nifty Next 50 ETF was launched by SBI Mutual Fund and tracks the Nifty Next 50 Index. It is also a good investment option for investors who want to participate in the growth of the next 50 companies.

    4. Nippon India ETF Junior BeES

    This ETF primarily invests in the Nifty Next 50 Index, or the next 50 companies after Nifty 50 companies by market capitalisation. The stocks in which this ETF invests belong to the large and mid-cap segments. They are managed and operated by Nippon AMC and are suitable for investors seeking growth.

    5. Bandhan Nifty ETF

    The Bandhan Nifty ETF also invests in Nifty 50 stocks. Earlier, it was launched by IDFC mutual fund, which was later taken over by Bandhan AMC. Therefore it is known as Bandhan Nifty ETF.

    6. Quantum Nifty ETF

    This ETF, launched by Quantum AMC, tracks the Nifty 50 Index and offers similar exposure to large-cap stocks of India as specified by the Nifty 50 index. It is another ETF that invests in the Nifty 50 index that has generated substantial returns in the recent past.

    7. Motilal Oswal M50 ETF

    For investors who wish to invest in the Nifty 50 index ETF, Motilal Oswal M50 is another option as it offers exposure to the top 50 companies of India. This ETF has also given tremendous returns over the past 5 years.

    8. Invesco India Nifty ETF

    This ETF is managed by Invesco India Asset Management Company. It primarily invests in the top 50 companies listed on the National Stock Exchange based on market capitalisation. Those 50 companies have exhibited strong performance over many years.

    9. SBI Nifty 50 ETF

    As the name indicates SBI Nifty 50 ETF tracks the Nifty 50 Index and is managed by SBI. It is highly liquid in nature and is often used as an investment option by EPFO and other institutional investors.

    10. Invesco India Gold ETF:

    This ETF tracks the domestic price of Gold and allows the investor exposure to Gold digitally. It is also known as commodity ETF, and can be used as a hedge against inflation and currency fluctuations.

    Read Also: How to Invest in Gold ETF – Benefits, Risks and Charges

    Factors to Consider before Investing in an ETF

    Factors to Consider before Investing in an ETF

    The key factors which an investor should consider before investing in an ETF are as follows:

    1. Expense Ratio: The expense ratio plays a major role when choosing an ETF for investment; the lower the expense ratio, the higher the returns.
    2. Tracking Error: A tracking error defines the difference between the performance of an ETF and the index which it replicates; the lower the tracking error, the better the returns.
    3. Liquidity and AUM: Check the trading volume and the assets under management (AUM) of the ETF. A high trading volume and larger AUM generally indicate better liquidity, which makes it easier to buy and sell an ETF. 
    4. Underlying Asset: There are various ETFs available in the market tracking the different indices; therefore an investor should choose the ETF based on their investment objective.
    5. Past Performance: This is one of the key factors to be considered before choosing an ETF for investment. ETFs which have posted consistently higher returns with low tracking errors should be considered for investment.

    Know More: Calculate returns on ETF investments.

    Which ETF is suitable for you?

    The amount to be invested in the ETF depends on various factors such as your existing financial conditions, debt level, your investment objective, and your risk tolerance. If you are an aggressive investor and want to invest in a specific sector for a higher return, then you can opt for sectoral ETFs. However, if you are a conservative investor, then you can opt for investing in equity-oriented ETFs, which primarily invest in the top 50 or 100 companies. Alternatively, if you are looking to diversify your portfolio and wish to invest in Gold and other commodities, then you can invest in commodity ETFs.

    Read Also: What is Gold ETF? Meaning & How to Invest Guide

    Conclusion

    On a concluding note, there are various categories of ETFs available in India, and if someone is looking to invest passively, ETFs are a good option. However, ETFs generally have a slight tracking error, due to which their returns are approximately similar to that of the indices they follow. Hence, an investor must compare the tracking error of the ETFs investing in the same underlying asset to select the best ETF among them before investing. Among the various ETFs available in India, one must consider the ETF which suits their risk profile and always invest in an ETF after consulting with their investment advisor.

    To invest in an ETF one can easily open a lifetime free demat and trading account with Pocketful, as it offers free brokerage on delivery based trades, along with an advanced trading platform.

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    3ETF vs Index Fund: Key Differences You Must Know
    4How to Invest in ETFs in India – A Beginner’s Guide
    5What is Nifty BeES ETF? Features, Benefits & How to Invest?

    Frequently Asked Questions (FAQS)

    1. Are ETFs active or passive funds?

      ETFs are passively managed funds as they replicate the index that they follow.

    2. What is the minimum amount one can invest in an ETF?

      The minimum amount that an investor can invest depends on the price of the ETF; there are various ETF prices which start from as low as ₹50.

    3. Which type of tax applies to ETFs?

      Capital Gain Tax is applicable on ETFs, depending on whether it is an equity, debt or gold ETF.

    4. How can I buy an ETF in India?

      To purchase an ETF in India, one must have a trading and demat account with a broker. If you have one, you can buy it like any other stock.

    5. What are the risks associated with investing in ETFs?

      ETFs generally carry lower risk than other asset classes. However, there are tracking errors, due to which the returns of ETFs can be lower than the index they follow.

  • Gold BeES vs Silver BeES: Which is the Better Investment?

    Gold BeES vs Silver BeES: Which is the Better Investment?

    Investing in gold or silver today no longer means just buying jewellery as the way to invest in gold and silver has changed. Today, investing in these metals through ETFs like Gold BeES and Silver BeES is not only easy but also very transparent and affordable. Recently, the total trading volume of these ETFs crossed ₹644 crore on Akshaya Tritiya 2025, which is three times more than last year. 

    Gold BeES is considered a symbol of stability and reliability, while Silver BeES has the potential to give better returns. In this blog, both the options are weighed wisely to make the right investment decisions.

    Understanding Gold BeES

    Gold BeES is an exchange-traded fund (ETF) that tracks the domestic price of gold and allows investors to invest in gold digitally. It was launched by Nippon India Mutual Fund.

    Key Features

    • Each unit represents approximately 0.01 grams of 99.5% pure gold, and its value fluctuates with gold prices.
    • It can be bought and sold like shares on NSE or BSE.
    • Investment is possible through Demat accounts.
    • There is no hassle of storage cost, making charges or theft.
    • There is an opportunity to invest in gold even with less capital.
    • Provides stability in long term portfolio and protection from inflation (Inflation Hedge).
    • Gold is traditionally considered a safe haven asset.

    Understanding Silver BeES 

    Silver BeES is an ETF that tracks domestic silver prices and gives investors the option to invest in it digitally without buying physical silver. It has also been launched by Nippon India Mutual Fund.

    Key features:

    • Each unit contains the value of about 1 gram of silver.
    • It can also be traded like a stock in real time on NSE/BSE.
    • Investment can be done with the help of a Demat account.
    • There is no need to store physical silver, which reduces the risk.
    • Silver is also an industrial metal, which is used in electronics, solar and auto sectors.
    • There is a sharp fluctuation in prices, which can lead to high returns in the short term.
    • Risk is slightly higher, but growth opportunities are also better.

    Gold BeES vs Silver BeES: Key Differences 

    PointsGold BeESSilver BeES
    Underlying AssetTracks 99.5% pure physical gold.Tracks domestic silver prices, which depend on both industrial and investment demand.
    Liquidity and AccessibilityLiquidity remains good due to high trading volume.The trading volume is comparatively lower, but still significant.
    Demand in IndustriesMainly used for jewellery and investment purposes, industrial demand is low.There is high demand for silver in industries like electronics, solar panels, automobiles.
    Volatility and RiskPrices remain relatively stable, considered a safe investment option.Prices fluctuate wildly, risk is high but the potential for returns is also high.
    ReturnsGold BeEs give stable returns in the long term and help in protecting against inflation.Potential for higher returns in the short-term, but prices are more volatile.

    Read Also: Gold BeES vs Gold ETF: Meaning, How It Works, Taxation

    Performance Comparison: Gold BeES vs Silver BeES

    Lets compare the performance of Gold BeEs and Silver BeEs:

    1. Historical Returns 

    Gold BeES has given investors an annual compounded annual growth rate (CAGR) of around 20.37% in the past 3 years. This means that long-term investment in gold has been stable and profitable.

    On the other hand, Silver BeES has risen rapidly to achieve a CAGR of around 12.20% between 2022 and 2025. Since silver prices are influenced by industrial demand, its performance has been volatile.

    2. 2024 Annual Performance 

    Gold ETFs delivered an average return of 19.23% in 2024, which was a big positive for investors amid economic uncertainty and inflation concerns. Silver ETFs also achieved a return of around 15.01%, which was possible due to global economic recovery and rising industrial demand.

    • Gold BeES : Gold is traditionally considered a ‘safe haven’. When global economic uncertainty, inflation or geopolitical tensions rise, Gold BeES performs better. It helps investors protect their portfolios.
    • Silver BeES : Silver prices are linked to its demand in the manufacturing industry. Its increasing demand in sectors such as electronics, solar panels, and automobiles can increase Silver BeES prices rapidly. However, its prices are highly volatile, so it can be a bit risky for new investors.

    4. Comparison from Investor Perspective : 

    Both investing in Gold BeES and Silver BeES depends on the investor’s financial goals, risk tolerance and holding period.

    • Gold BeES performance is generally considered stable and suitable for long-term investments.
    • Silver BeES has higher volatility, making it suitable for investors who can tolerate more risk and are focused on faster growth.

    Pros and Cons of Investing in Gold BeES and Silver BeES

    Both Gold BeES and Silver BeES are exchange traded funds (ETFs) that track the prices of gold and silver. While both these metals are considered valuable, the advantages and disadvantages of investing in them can differ:

    1. Pros and Cons of Gold BeES 

    Pros 

    • Stability : Gold is traditionally considered a safe asset, performing stable in economic uncertainty.
    • Inflation Hedge : Gold prices often rise in times of inflation, helping preserve value.
    • High Liquidity : Gold BeES has a high trading volume, making it easy to buy and sell.

    Cons 

    • Lower Short-Term Potential: Returns may be slow in the short term.

    2. Pros and Cons of Silver BeES 

    Pros 

    • Affordable : Low unit price makes it affordable even for small investors.
    • Short-Term Gain Potential : Prices may rise if industrial demand increases.
    • Industrial Support : Sustainable demand comes from electronics and green energy sectors.

    Cons : 

    • High Volatility : Prices can change rapidly, which can increase risk.
    • Industry Cycles Impact : Investment performance may be affected by economic recession or production decline.

    Know More: Calculate returns on ETF investments.

    Which is Better for Your Investment Portfolio?

    Both ETFs Gold BeES and Silver BeES may look similar but their return profiles and market behaviour differ. Every investor has different needs, time horizon and risk appetite, and hence the utility of these options may vary.

    Selection based on investment goals and risk profile 

    1. For those seeking stability – Gold BeES 

    • Investors who prioritize stability and low risk are often attracted to assets that do not fluctuate much.
    • Gold BeES prices remain relatively stable, and it maintains its value even in times of economic uncertainty.
    • It can help balance a portfolio over the long term.

    2. For those seeking growth – Silver BeES

    • Some investors prefer options with higher return potential, even if it comes with a little more risk.
    • Silver BeES is more volatile, but it can provide good returns when industrial demand increases.

    3. Investment Horizon 

    • Gold BeES is generally considered better for the long term as its price increases steadily over time.
    • Silver BeES has the potential to deliver faster returns in the short to medium term, but the risk is higher.

    4. Importance of Diversification 

    • Many investors prefer to create a diversified portfolio that includes both – Gold BeES and Silver BeES.
    • Gold provides protection against inflation and global uncertainty, while silver offers growth potential.
    • Combining the two can create a balanced investment portfolio that balances both risk and return.

    How to Invest in Gold BeES and Silver BeES?

    Investment Process (Step-by-Step Process) : 

    • First, it is necessary to open a Demat and Trading account. You can open one free of cost with Pocketful.
    • Submit the required documents and after successful verification, you will be sent the login credentials, which you can use to log in to your trading account.
    • Investors can search for Gold BeES or Silver BeES on the trading platforms. It is useful to check factors such as expense ratio, fund performance and tracking error before investing.
    • Then, orders can be placed to buy these ETFs during market hours.
    • TRack the investment performance of the ETFs at regular intervals.

    Easy Investing with Pocketful : Pocketful is a registered stock broking platform from where one can invest in Gold BeES and Silver BeES in just a few clicks. Pocketful offers its clients a user-friendly interface, fast order execution and dedicated support team.

    Read Also: How to Invest in Gold ETF – Benefits, Risks and Charges

    Conclusion

    Gold and silver are different in nature; one is a safe haven linked to tradition, the other is a volatile metal driven by industrial demand. Gold BeES and Silver BeES allow investors to invest in these precious metals without having to buy them physically. It is important to understand these ETFs not just from a returns perspective but also economic and market dynamics behind them. It can be useful to keep in mind the objective, time horizon and market trends while deciding their suitability for your investment portfolio. Consult a financial advisor for advice before investing.

    S.NO.Check Out These Interesting Posts You Might Enjoy!
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    4How to Invest in ETFs in India – A Beginner’s Guide
    5What is Nifty BeES ETF? Features, Benefits & How to Invest?

    FAQs

    1. What is the minimum amount required to invest in Gold BeES or Silver BeES?

      Investment can be started from as low as ₹100 as both ETFs are currently priced below ₹100.

    2. Can I hold Gold BeES or Silver BeES for the long term?

      Yes, both these ETFs are considered suitable for long term holding.

    3. Are Gold BeES and Silver BeES backed by physical gold/silver?

      Yes, these ETFs are usually backed by physical gold or silver.

    4. Is there any tax on profit from Gold BeES or Silver BeES?

      Yes, long term and short term gains are taxed.

    5. Are these ETFs safe to invest in?

      They are regulated and listed on an exchange, but every investment carries some risk.

    6. Can I sell Gold BeES or Silver BeES anytime?

      Yes, you can sell it anytime during market hours, just like you sell any stock.

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