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What is Ledger Balance in a Demat Account?

Whenever you log in to your trading and demat account, you will see numerous figures displaying your balances, including ledger balance, available balance, and margins. Among all these, the ledger balance holds the key position. But do you know what exactly a ledger balance means?

In today’s blog post, we will give you an overview of what a ledger balance is, its importance, and the difference between a ledger balance and an available balance.

What is Ledger Balance in a Demat Account?

The ledger balance in a demat account is a balance which reflects the total settled funds in your trading account, which is linked to your demat account. This balance is the final figure reflecting all the purchasing, selling, and settlement processes of a day. However, it excludes all unsettled trades and any pending withdrawal.

A trader can track the net movement of funds resulting from the purchase and sale of shares, including brokerage fees and other charges.

Features of Ledger Balance

The important key features of a ledger balance are as follows:

Net Fund: The ledger balance reflects the net fund after adjusting all debit and credits.
Charges: All kinds of charges, including brokerage, STT, GST, etc., are factored into this ledger balance.
Updation: The ledger balance updates regularly. Whenever any financial transaction takes place in your demat account, the ledger balance updates immediately.
Unsettled Transactions: The ledger balance may sometimes display the amount from recent trades.
Verification: Ledger can be useful for an investor while reconciling the brokerage and other charges paid by a trader.

Difference Between Ledger Balance and Available Balance

The key difference between the ledger balance and available balance is as follows:

Particular	Ledger Balance	Available Balance
Settlement	Ledger balance may include the amount of unsettled trades.	Available does not include any amount of unsettled trades.
Frequency	Updates once per business day, typically overnight, after all transactions have been Processed.	This only updates whenever there is any kind of debit or credit of funds in your account.
Importance	It helps in tracking all the financial transactions of your trading and demat account.	The available balance only helps you in identifying the amount available for trade and withdrawal.
Settlement	Ledger balance includes the amount of unsettled trades.	Available balance does not include the amount from any unsettled trades; it only includes the amount which is available for use.
Objective	The objective of the ledger balance is to show you the overall fund position.	The objective of the available balance is to reflect the investable and withdrawal amount.

Importance of Ledger Balance

The key importance of the ledger balance in demat account is as follows:

Tracking Expenses: The ledger balance of a trader reflects all the charges, such as brokerage fees, taxes, etc. Hence, one can easily track all such expenses.
Reduce Overtrading: Once you know the ledger balance, you can avoid overtrading by evaluating the trading limit of the ledger account.
Transparency: Ledger balance account is an official record maintained by your stockbroker. This provides transparency on what kind of charges are deducted from your trading and demat account.
Planning: It helps in planning your future trade based on the available balance in your ledger account.
Mismatch in Balance: Ledger balance helps resolve the disputes related to any unnecessary expenses deducted from your demat account.

How ledger balance affects your trading decision

The key factors which can affect your trading decision are as follows:

Identifying True Purchasing Power: Ledger balance shows a complete picture of your account, hence it can give you an estimation of the amount which you can utilise for trading.
No Rejection of Orders: If you trade based on your available balance instead of your ledger balance, your order might get rejected due to insufficient settled funds.
Reinvestment: If you sold any shares, then the proceeds of such trade start reflecting in your available balance account immediately, but you can only invest based on the ledger balance.
Margin Eligibility: Brokers generally calculate the margins based on the ledger balance. Hence, if you plan to trade on margin, then the ledger balance can help you in calculating the margin availability.

Tips to Monitor Your Ledger Balance

The important tips that one should remember while monitoring their ledger balance are as follows:

Checking Balance: One should check their ledger balance before executing any trade, and should not rely on the available balance.
Pending Dues: Always keep a track of your ledger balance in order to avoid any penalties due to an unsettled amount.
Detail View: A trader is required to check the detailed ledger balance in order to check if there are any penalties or additional charges deducted by their broker.
Corporate Cycle: Equity trades follow a T+1 settlement cycle, which can help in evaluating the available ledger balance.

Read Also: How to Use a Demat Account?

Conclusion

On a concluding note, a ledger balance in your demat account is a key figure which you need to check before placing any buy order. It includes the complete record of your trades, including credit, debit, charges, and any unsettled trades. Understanding your ledger balance can help you make informed decisions and avoid any penalties due to an insufficient balance. Therefore, it is advisable to check your ledger balance before executing any trade.

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4	Difference Between Demat Account and Trading Account
5	NSDL Demat Account: Open, Manage & Understand Charges

Frequently Asked Questions (FAQs)

What is the difference between a ledger balance and an available balance?
The ledger balance will reflect total funds available in your demat account, including unsettled balances of a trade, while the available balance will reflect only the funds which can be used for trading or withdrawal.
Can a ledger balance show negative figures?
Yes, a ledger balance can be negative if your account has any pending charges or penalties that exceed your available funds.
What is the frequency of updating the ledger balance?
The ledger balance is generally updated by your broker on a real-time basis.
Can I withdraw my full ledger balance?
If your ledger balance has any unsettled trade, then you cannot withdraw it. You can withdraw only the available balance from your trading and demat account.
What happens if my trading account balance shows a negative figure?
Whenever your ledger balance shows a negative figure, it indicates that there might be some unpaid dues, such as pending margins, unpaid charges, annual maintenance charges, etc.

September 20, 2025

SBI Gold ETF vs HDFC Gold ETF: Where To Invest?

Over the past few years, when stock market volatility and inflation have plagued investors, one option has slowly become the most popular Gold ETF. The number of accounts investing in gold ETFs in India has grown 13 times in the last 5 years, which shows that people are now moving more towards digital gold than physical gold, till March 2025. Amidst this change, the two most popular options are SBI Gold ETF and HDFC Gold ETF. In this article, we will do an in-depth comparison between the two so that you can know which is the better option for your investment goals, SBI Gold ETF vs HDFC Gold ETF.

What is Gold ETF and why is its popularity increasing?

Gold ETF (Gold Exchange Traded Fund) is an investment option in which you invest in gold, but without buying physical gold. These funds run according to the price of real gold and are listed in the stock market. That is, you can buy and sell them from your demat account like stocks.

How does it work?

Each unit of Gold ETF is usually equal to 1 gram of gold. When you buy an ETF, you are actually buying digital gold of the value that the fund house invests in physical gold. You do not get the gold, but its value appears in your demat account and you can trade it anytime.

Why is Gold ETF becoming so popular?

There is no storage or locker charge
There is no making charge like in case of physical gold
The purity of gold is guaranteed usually 99.5% or more
Liquidity means it can be easily bought and sold
Investment can be started even with a small amount (like ₹100 or ₹500)

How has been the performance in the last few years?

Gold ETFs have given an average annual return of 10%-11% in the last 5 years. Especially when the market fell or inflation increased, gold ETFs helped in handling the portfolio. This is the reason why the number of gold ETF investors has increased by 13 times by March 2025 and this boom is still continuing.

What is SBI Gold ETF?

SBI Gold ETF is an exchange traded fund launched by SBI Mutual Fund in 2009. The fund tracks the price of 99.5% pure gold in India, giving investors an opportunity to invest in gold without buying physical gold. The ETF trades on the stock exchange under the name SEFTGOLD.

Fund Manager	Vandna Soni
Launch Year	2009
ETF Trade Symbol	SETFGOLD

Key features:

Less expensive option than physical gold
1 unit = approximately equal to 1 gram of gold
Changes in NAV based on market value of gold
Easy purchase and sale possible through demat account
Indexation benefit is available in long term capital gain tax

Who is this ETF for: SBI Gold ETF is a good option for those investors who want to invest in gold but want to avoid hassles like security, storage or making charges. It is an excellent tool for retail investors as well as for portfolio diversification.

SBI Gold ETF – Key Metrics Table

ETF Name	Current Price (₹)	AUM (₹ Crores)	52-Week High (₹)	52-Week Low (₹)	Expense Ratio (%)	Tracking Error (%)
SBI Gold ETF	84.30	9,505.83	97.00	62.85	0.70	0.22

What is HDFC Gold ETF?

HDFC Gold ETF is an open-ended exchange traded fund that allows investors to invest in gold digitally, without the need to hold physical gold. The objective of this ETF is to track the price of 24 carat gold, and investors can benefit from changes in gold prices.

Fund Manager	Bhagyesh Kagalkar
Launch Year	2010
ETF Trade Symbol	HDFCGOLD

HDFC Gold ETF – Key Metrics

ETF Name	Current Price (₹)	AUM (₹ Crores)	52-Week High (₹)	52-Week Low (₹)	Expense Ratio (%)	Tracking Error (%)
HDFC Gold ETF	94.18	11,378.56	96.96	63.31	0.59	0.0

SBI Gold ETF vs HDFC Gold ETF: Key Differences

Feature	SBI Gold ETF	HDFC Gold ETF
Launch Year	May 2009	August 2010
AUM (2025)	9,505.83	11,378.56
Expense Ratio	0.70	0.59
Tracking Error	0.2	0.0
Liquidity	Moderate	Generally better liquidity
3-Year CAGR Returns	27.70%	29.50%
Benchmark Index	Domestic prices of 99.9% purity gold	Domestic prices of 99.9% purity gold
Available Trading Platforms	BSE, NSE	BSE, NSE
Trust Factor	Backed by government-owned bank	Trusted private sector institution

Key Risk Factors Before Investing in Gold ETFs

Gold ETFs are a convenient and transparent investment option, but they also have some hidden risks that every investor should be aware of. If you invest without full understanding and just thinking “gold is safe”, then sometimes it can prove to be harmful. Let us know what things should be kept in mind before investing in Gold ETFs:

Volatility in Gold Prices : The international prices of gold depend on many global factors such as dollar index, interest rates, geo-political tensions and central bank policies. These have a direct impact on the returns of your ETF.
Currency Risk : Since gold is purchased in India in INR against the dollar, changes in the USD-INR rate can affect the returns of gold ETFs even if international gold prices are stable.
Tracking Error : Gold ETFs track the price of gold, but their returns may differ slightly from physical gold due to reasons such as management fees, expense ratio and liquidity.
Liquidity Risk : The trading volume of some gold ETFs is very low, which may make it difficult to sell the ETF in the market at the time of need or may not get the right price.
Regulatory Changes : Any new guidelines of the government or SEBI regarding taxation or ETFs may affect the investment, such as changing the rates of long term capital gains tax.

What to keep in mind while choosing between SBI and HDFC Gold ETF?

AUM (Assets Under Management) : The total AUM of an ETF indicates how many investors have invested in that scheme. Generally, funds with higher AUM are considered more trusted and liquid.
Tracking error : Tracking error shows how much the return of an ETF differs from its benchmark (such as gold price). A low tracking error means that the ETF is tracking its benchmark correctly.
Expense ratio : This is the fee that the AMC charges you every year. Funds with a low expense ratio keep more of your money invested.
Liquidity and trading volume : You buy ETFs on the exchange like stocks. If the trading volume in the ETF is high, you will find it easy to buy/sell.
History and performance of the fund : It is important to see how many years the fund has been running and how it has performed in the past years. ETFs with a long and stable track record are more reliable.
Expertise of the fund manager : The skill and experience of the professional managing the fund is also an important factor. Under an experienced manager, the fund operates in a more professional manner.
Platform access and buying facility : It is important whether your brokerage platform supports that ETF or not. Also, check features like SIP facility, login process and mobile access.
Age and stability of investment : If you are young and can invest for a long time, then high-risk options may be right. On the other hand, if you are close to retirement, then stable and low-risk ETFs may be better.
Benchmark Index : It is important to know which benchmark the ETF is tracking such as domestic gold price or international gold price. This helps in understanding the direction of the ETF’s performance.
Taxation Rules : Gold ETFs are considered non-equity for taxation purposes. If sold before 3 years, it attracts short-term capital gains and thereafter long-term capital gains, which is 20% with indexation.

How to Invest in Gold ETFs? Easy Step-by-Step Guide

Step 1: Open Demat & Trading Account on Pocketful

The first step is to open a Demat and Trading Account. You can use a trusted and SEBI-registered stock broking platform like Pocketful.

Step 2: Search for ETF

After logging into the Pocketful app or website, type in the search box – “SBI Gold ETF” or “HDFC Gold ETF”. Here you get important data like price, NAV, past returns.

Step 3: Buy ETF as per stock

You can buy or sell Gold ETF in real-time just like stocks. Just enter the quantity, check the price and place the order.

Step 4: SIP is also an option

If you want to invest a little every month, then Pocketful also has the facility of SIP. With this you can average the price fluctuations.

Step 5: Track Your Portfolio

Pocketful lets you track your ETF holdings in real-time. You can also sell it when needed.

Read Also: Best ETFs in India to Invest

Conclusion

Today, the way of investing in gold has completely changed. Gold ETF is a smart, digital and secure option that allows you to invest without worrying about lockers, jewellery or physical gold. These can be bought and sold just like stocks and can also be cashed immediately when needed. If you are looking for easy, transparent and low-cost gold investment, then Gold ETF can prove to be an excellent option.

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4	Gold ETF vs Gold Mutual Fund: Differences and Similarities
5	Top 10 Reasons to Invest in Gold

Frequently Asked Questions (FAQs)

What is a Gold ETF?
Gold ETF is an investment tool that is linked to the price of gold and can be bought and sold on the stock exchange.
Is it safe to invest in Gold ETFs?
Yes, Gold ETFs are fully SEBI-regulated and are purchased through Demat accounts, which makes them quite safe.
Can I start SIP in Gold ETFs?
Yes, you can start SIP with a fixed amount every month, which makes investing in gold easier in the long term.
How to sell Gold ETFs?
You can sell them from your trading platform anytime like stocks. The money comes directly to your bank account.
What is the minimum amount to invest in a Gold ETF?
You can start investing in Gold ETF from around ₹50 to ₹1000, depending on the price of the ETF.

September 20, 2025

Scam 2003: Who was Abdul Karim Telgi, and what was the Stamp Paper Scam?

India has witnessed many scams over the years, but the 2003 Stamp Paper Scam remains one of the most infamous. At its centre was Abdul Karim Telgi, who rose from selling peanuts on trains to building a vast counterfeit empire. His story is not just one of fraud, but also a reflection of how sharp ingenuity combined with systemic corruption enabled one of the country’s largest financial scandals.

In this blog, we will trace the rise of Telgi, walk through the chronology of the stamp paper scam, examine its massive impact, and highlight the key lessons it left behind for India’s financial system.

About Abdul Karim Telgi

Abdul Karim Telgi was born in 1961 in Khanapur, Karnataka. After his father, a railway employee, passed away, the family struggled. As a boy, Telgi sold peanuts and fruit on trains to survive. He went to Saudi Arabia seeking better opportunities. There, he picked up odd jobs and also learned the tricks of shady businesses.

When he returned to India, he started a company, namely ‘Arabian Metro Travels’ and began forging passports to help people travel illegally.

Stamp Paper Scam – An Overview

The Telgi Scam, also known as the Stamp Paper Scam, is one of those true stories that sounds like it was taken from a crime thriller. In the early 2000s, Abdul Karim Telgi pulled off a scam so big that it shook India’s economy and showed that there was corruption at almost every level.

It was all about stamp papers, which one needed for loans, property deals, insurance, and legal work. Telgi realized that since there was such a high demand for them, making counterfeits could be quite lucrative. And he was right. He began to flood the market with fake stamp papers after getting access to printing presses and support from corrupt officials.

His fake papers became so popular that banks, insurance companies, and even government offices started using them. The scam was worth more than ₹30,000 crore by the time the truth was found. It wasn’t just about the money either; countless legal documents suddenly became questionable, creating chaos everywhere.

Telgi was finally caught and sentenced to a 30-year prison term, but the destruction was already done. The only good thing that happened because of the scandal was that it prompted the system change, and now e-stamping is used to ensure that this never happens again.

Chronology of the Stamp Paper Scam

The chronology of the stamp paper scam is given below:

1. Learning about stamp papers

The government gives stamp papers for legal and financial transactions, such as selling property, making loan agreements, getting insurance, and going to court. They are only supposed to be printed and sold by the government through authorised vendors because they have legal value.

This meant that there was a lot of demand, but not enough supply. This was a perfect situation for Telgi to take advantage of.

2. Getting to Printing Presses

Telgi did not just make bad counterfeits. Instead, he paid people to let him into government security presses, places that printed real stamp papers. He was able to get printing machines, special ink, and security paper with the help of corrupt officials. That is why his fake stamp papers looked so real that banks couldn’t tell the difference.

3. Setting up a distribution network

Once he had the supply, Telgi needed reach. He created a network of agents, middlemen, and vendors that could ship things all over the country. These were not just random petty criminals; a lot of them were licensed stamp paper sellers. They mixed fake stamp papers with real ones to get his stock across the country without anyone noticing.

4. Paying people to be quiet

No scam of this magnitude could last without strong protections. Telgi paid police officers, politicians, and bureaucrats to make sure things ran smoothly. In many instances, the people who were supposed to look into him ended up working for him. This network of corruption kept the scam going for years.

5. Getting into every area

The fake stamp papers were not simply floating around in local stores. They made it to:

Banks (used in loan and mortgage papers)
Insurance companies (policies written on fake papers)
Government offices (contracts and legal papers)
Courts (filing cases and making deals)

This meant that the scam wasn’t just about money; when it was revealed, it caused legal and administrative chaos.

6. Scale of the Scam

Telgi’s business was worth more than ₹30,000 crore. To put that into perspective, his fake papers were so common that they were used for multiple financial transactions by big companies. It was not just a scam; it was a system that worked beside the real one.

7. The Beginning of the End

The scam fell apart when whistleblowers and journalists started looking into it more closely. Eventually, the police had to pay attention to it. When he was caught, Telgi admitted how big his operation was.

How was he caught?

Catching Abdul Karim Telgi wasn’t easy. Fake stamp papers had surfaced as early as 1991 and 1995, but weak investigations allowed him to escape.

Unlike most fraudsters, Telgi did not hide in the shadows; instead, he lived lavishly, which helped him build powerful connections.

The turning point came when R. Sri Kumar, head of the Stamp Paper Investigation Team, arrested Telgi’s colleague Soni. Around the same time in 2002, a tip to Pune Police uncovered a racket that eventually traced back to Telgi.

With rising public anger, the Maharashtra government formed a Special Investigation Team (SIT). Karnataka followed with its own SIT, STAMPIT, which exposed how deeply Telgi’s network had spread, from government staff to police officers and even politicians.

By 2004, the scam had grown too large for state agencies, and the CBI stepped in. That August, it filed a detailed chargesheet. Telgi shocked many by pleading guilty, openly admitting his crimes

End

Telgi’s story ended sadly, even though he was smart. He was diagnosed with AIDS while he was in jail. His health worsened over the years, and in 2017, he died in a Mumbai hospital from multiple organ failure.

This is the end of the story of a man who went from selling peanuts on trains to being involved in one of the biggest financial scams in India’s history.

Impact of the Scam

The Telgi Stamp Paper Scam was not just about fake papers; it shook up the entire system.

1. Huge Financial Loss – A lot of money was lost by the government, money that could have been used for public welfare and development.

2. Trust was broken – People started to doubt the validity of their insurance policies, loans, and property papers.

3. Banking and Legal Mess – Courts, banks, and insurance companies were stuck with papers that may or may not be valid, which led to arguments and delays.

4. Changes Made – The scam led to e-stamping in 2005, which made the system more open and safe from fraud.

Conclusion

The Telgi scam exposed how corruption thrives when those in power look the other way. Though Telgi died in 2017, the damage he caused left a lasting mark on India’s economy and politics. At the same time, it pushed the government to introduce much-needed reforms like e-stamping, making the system more secure. His story is not just about one man’s crime, but a reminder that scams succeed only when the system allows them to.\

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6	Explainer on UPI Scams
7	Financial Scams in India

Frequently Asked Questions (FAQs)

How did Telgi manage to fool everyone?
He used actual government printing presses and sold fake stamp papers as originals.
Was this scam only in Maharashtra?
No, it spread across more than 12 states from Karnataka to Delhi, like a spiderweb.
How did it affect common people?
Imagine buying a house or taking a loan, only to find later that all the paperwork was worthless. This is how it affected common people.
How did Telgi’s story end?
He spent his final years behind the bar, fighting with illness and eventually passed away because of multiple organ failure in 2017.
What changed after the scam?
The government introduced e-stamping to make the process digital and safe.

September 19, 2025

List of Best Gold ETFs in India

Earlier investment in Gold is a dream for many individuals because of its high prices. But with time, Gold ETFs were introduced, which can be an economical option for an investor to invest in Gold and get the benefit of appreciation in physical Gold Price.

In today’s blog post, we will give you an overview of the Gold ETF, along with the key factors to consider before investing in it.

Meaning of Gold ETFs

A Gold exchange-traded fund, or Gold ETF, is a kind of investment vehicle that tracks the price of actual Gold and can be bought and sold on a stock exchange like any other stock. The fund manager of the ETF purchases the physical Gold on your behalf, and by purchasing the units of the Gold ETF, you actually become the owner of one unit of physical Gold it represents. The value of a Gold ETF fluctuates with the price of Gold. Generally, each unit of a Gold ETF usually represents 1 gram of Gold, Also an ETF is a basket of Securities that includes Stocks, bonds & Commodities.

Key Features of Gold ETF

The key features of Gold ETF are as follows:

Physical Gold: Each unit of Gold ETF represents the ownership equal to one gram of 99.5% pure Gold.
Convenience: Gold ETFs can be purchased or sold on the stock exchange using your demat account, just like shares.
Transparency: A Gold ETF’s price fluctuates in accordance with the Gold market price.
No Storage Cost: You don’t require a locker or have to worry about theft because units of Gold ETFs are electronically stored.

Best Gold ETFs in India 2025

The best Gold ETFs in India 2025 are mentioned in the table below based on the past one-year returns:

Scheme Name	AUM (Crore)	Expense Ratio (%)	6 Months	1 Year	3 Years	5 Years
UTI Gold ETF	2,156.36	0.48	26.39	48.64	30.00	15.03
LIC MF Gold Exchange Traded Fund	526.96	0.41	23.98	47.39	30.14	15.48
ICICI Pru Gold ETF	8770.32	0.5	25.14	49.15	29.70	15.16
ABSL Gold ETF	1253.31	0.47	24.59	49.10	29.62	15.14
Axis Gold ETF	2083.89	0.56	24.96	49.01	29.64	15.20
Mirae Asset Gold ETF	952.37	0.31	25.09	48.86	–	–
Kotak Gold ETF	8315.38	0.55	23.20	48.90	29.61	15.10
SBI Gold ETF	9505.83	0.70	22.50	48.84	29.47	14.28
Nippon India ETF Gold BeES	23832.47	0.80	22.56	48.72	29.48	14.90
Baroda BNP Paribas Gold ETF	199.87	0.59	24.35	48.60	–	–
Edelweiss Gold ETF	293.98	0.66	22.82	48.45	–	–
Invesco India Gold ETF	315.71	0.55	25.29	48.31	29.75	15.21
HDFC Gold ETF	11378.56	0.59	23.41	48.45	29.60	15.08

(As of 15-Sep-2025)

How do Gold ETFs work

When you purchase the Gold ETF on the stock exchange, you are actually purchasing the unit of physical Gold it represents. The fund manager appointed by the Asset Management Company on your behalf purchases the physical Gold having 99.5% purity. And the performance of an ETF depends on the price of physical Gold. If the price of Gold moves upside then the value of your ETF investment also goes up, and vice-versa.

Read Also: How to Invest in Gold ETF

Benefits of Investing in Gold ETF

The key benefits of investing in Gold ETF are as follows:

Safe: When you purchase a Gold ETF, you don’t have to worry about keeping physical Gold safe in lockers or paying any storage fees.
Liquidity: You can easily sell the units of the Gold ETF on the stock exchange during trading hours and liquidate your investment.
Purity: Investors need not worry about the purity of Gold, as the fund manager invests the amount in 99.5% pure physical Gold.
Transparent Pricing: The prices of Gold ETFs change according to the price of physical Gold in the market.
Diversification: One can easily diversify their investment portfolio in Gold through a Gold ETF.

Factors to Consider Before Investing in Gold Investing

The key factors to consider before investing in Gold are as follows:

Risk Tolerance: One must consider their risk appetite before investing in a Gold ETF, as the price of a Gold ETF depends on the price of physical Gold.
Gold Price Trend: The Gold price fluctuates based on various national and international factors. Hence, one should keep an eye on the Gold price trend.
Investment Objective: One should consider its investment objective, such as whether they are investing in a Gold ETF for long-term wealth creation or short-term trading, before investing in a Gold ETF.
Fund House: The fund house’s reputation needs to be checked before investing in Gold ETFs.
Expense Ratio: An investor should opt for investing in a Gold ETF of an AMC which has a lower expense ratio.
Tracking Error: Tracking error plays a vital role in analysing the performance of passively managed funds such as Gold ETFs. Therefore, one should invest in a Gold ETF which has the least tracking error.

Who Should Invest in Gold ETFs

Gold ETFs can be considered as an investment option by the following investors:

Portfolio Diversification: One who is looking to diversify their investment portfolio can opt for investment in a Gold ETF.
Risk-Averse Investor: Investors who do not wish to take risks in their portfolio can consider investing in a Gold ETF. Gold is considered a haven during economic downturns.
Cost-Effective Option: Investors who are looking for a cost-effective investment option for investment in Gold can consider investing in a Gold ETF. As it has the lowest management charges.
Investor Looking for Liquidity: Investors who are looking for liquidity in their Gold investment can invest in a Gold ETF, as it can be easily sold on the stock exchange during trading hours.

Conclusion

On a concluding note, Gold ETFs provide an opportunity to diversify your investment portfolio and get the benefit of Gold price appreciation. Gold ETF also provides liquidity, and it can be easily traded on the stock exchange. However, tracking error can impact the performance of Gold ETFs, also their prices fluctuate based on the physical Gold, hence can show volatility in the portfolio. Therefore, it is advisable to consult your investment advisor before making any investment decision in a Gold ETF.

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4	Top 10 Reasons to Invest in Gold
5	Best Silver Stocks in India

Frequently Asked Questions (FAQs)

What is a Gold ETF?
A Gold ETF is an investment product offered by an asset management company which is traded on the stock exchange. The performance of the Gold ETF depends on the physical price of Gold. Each unit purchased by an investor represents the ownership of 1 gram of Gold.
Does the Gold ETF provide dividends to its investors?
No, Gold ETF do not provide dividends to their investors. The returns from investment in Gold ETFs come only in the form of capital appreciation.
Is it mandatory to have a demat account for investing in ETFs?
Yes, one should have a demat and trading account for investing in ETFs.
What are the factors that impact the performance of Gold ETFs?
Various factors impact the performance of the Gold ETF are International price of Gold, inflation, Geopolitical uncertainties, etc.
Is there any possibility of tracking error in the Gold ETF?
Yes, as a Gold ETF is a passive fund, therefore, like any other index fund it can also have a tracking error.

September 19, 2025

20 Things to Know Before the Stock Market Opens

Before the stock market opens, the biggest question in every investor and trader’s mind is which direction will the market go today? The activity during the opening hour often sets the tone for the rest of the session. In such a situation, “things to know before market opens” i.e. important information before the market opens acts as a guide for you.

In this blog, we will understand 20 important things that will help you make better decisions, identify the right opportunities and avoid unwanted risks.

The 20 Things to Know Before Market Opens

Global & Domestic Cues (Macro Factors)

1. Overnight US Market Performance

The movement of US indices such as Dow Jones, Nasdaq and S&P 500 has a direct impact on the Indian market. If the US markets have closed higher at night, the possibility of a positive opening in the Indian market increases. At the same time, the trend of tech-heavy Nasdaq has a greater impact on IT and technology stocks. Therefore, it is important to look at the charts and closing levels of these indices first thing in the morning.

2. Asian & European Market Trends

Before the Indian market opens, Asian indices (Nikkei, Hang Seng, Kospi) and GIFT Nifty give early indications. GIFT Nifty is often used to guess the direction of Nifty. European markets usually have an impact in the afternoon, but if there is any big news (such as ECB policy) in the morning, its effect can also be seen in the early hours.

3. Currency Movements (USD-INR)

The movement of dollar and rupee directly affects IT, pharma and import-export companies. Importing companies benefit when rupee strengthens, while weak rupee supports exporting IT and pharma sectors. By looking at the opening of USD-INR in the morning, you can guess which sectors would be better to take interest in.

4. Crude Oil Prices

Crude oil is important for the Indian economy because we import most of the oil. The increase in the price of crude oil increases the cost of transport and aviation companies and puts pressure on inflation. At the same time, a decrease in price provides relief to these sectors. Be sure to check the price of Brent crude and WTI every morning.

5. Bond Yields & Interest Rates

The US 10-year Treasury yield and Indian government bond yield reflect the mood of foreign investors. If the yields are going too high, then money may flow out of the equity market. At the same time, RBI or Fed rate signals are also worth paying attention to before the market opens.

6. Government & RBI Announcements

It is important to take a look at government policies, tax changes, budget updates or any fresh notifications from RBI in the morning. These announcements can have a big impact on sectors (such as banking, infrastructure, auto).

Market-Specific Indicators (Technical and Data Points)

7. GIFT Nifty & Pre-Open Indicators

GIFT Nifty is a mirror of the opening mood of the Indian Nifty. Also, the pre-open session of NSE between 9:00-9:15 indicates the initial direction of the market. If a stock shows unusual moves in the pre-open, then there is a possibility of volume throughout the day.

8. FIIs vs. DIIs Data

It is important to look at the previous day’s buying and selling data of foreign institutional investors (FIIs) and domestic institutional investors (DIIs) in the morning. If FIIs have made heavy purchases, then the trend is considered positive. On the other hand, their selling often brings pressure in the market.

9. Corporate Earnings Announcements

In the result season, the quarterly results of companies can change the direction of the day. If the result of a company is better than expected, then that stock can see a rise. On the contrary, there is a decline in disappointing results.

10. Bulk & Block Deals

If an unusual block deal or bulk deal has taken place in a stock on the previous day, then it indicates the interest of institutional investors in it. Such stocks can remain active even the next morning.

11. Insider Activity / Promoter Pledging

If the promoters are selling or pledging shares, then it can be a warning for investors. On the other hand, insider buying indicates trust in a company. Therefore, it is important to see NSE/BSE updates.

12. Keep an eye on technical levels

Before the market opens, write down the support and resistance levels of Nifty, Bank Nifty and the stocks you are keeping an eye on. This will give you a clear idea of where it would be right to buy and where to exit. Entry without knowing the level often leads to mistakes based on emotions.

News & Events That Can Move Markets

13. Big news and geopolitical events

Sometimes a big international event like election results, war or a new decision by oil producing countries changes the mood of the entire market. It is important to catch such news early in the morning, as it can suddenly shake both sectors and indices.

New policies or rules of the government, such as subsidies on electric vehicles or approval from abroad to pharma companies, directly affect the stocks of the same sector. If you are trading in that sector, then these updates should not be ignored.

15. Company announcements

News of a company’s merger, acquisition, dividend or new investment can bring a big move at market opening. Therefore, keep the companies from which such announcements are expected in your watchlist.

16. Impact of economic data

Reports like inflation (CPI), industrial production (IIP), GDP or US job data can change the trend of the entire market. Especially on the days when the data is released, they have a direct impact on the opening and volatility of that day.

17. Analyst reports

In the morning, reports of brokerage houses or big funds come in which a stock is given a rating of “Buy” or “Sell”. Many times, a rise or fall is seen in small stocks on the basis of these reports. Therefore, it is beneficial to look at them before the beginning of the day.

Personal Preparation & Trading Psychology

18. Finalize your watchlist

Every morning, decide which 4–5 stocks you will focus on. Trying to track too many stocks often distracts you and you miss out on opportunities. A focused watchlist will help you trade smartly.

19. Check Risk Management Rules

Decide stop-loss, position size and capital allocation for every trade in advance. This prevents big losses.

20. Mental preparation and discipline

The most important thing is to calm your mind before the market starts. If you trade in panic, greed or haste, the chances of loss increase. It is better to decide your strategy in advance and stick to it. In the hustle and bustle of the day, only the trader succeeds who is patient, follows the rules and takes every decision thoughtfully.

Why is pre-market preparation important?

Controlling emotions : When you trade without preparation in the morning, decisions are often taken in haste or out of fear and greed. A pre-market checklist keeps you calm and disciplined.
Understanding global cues : The trend of the US and Asian markets often influences the mood of the Indian market. Therefore, it is important to keep an eye on GIFT Nifty and foreign indices.
Important data and news : Crude oil, dollar-rupee rate, bond yields and fresh economic announcements play an important role in deciding the direction of the day.
Identifying technical levels : Knowing the support-resistance of nifty, bank nifty or stocks in advance can help you avoid wrong entries.
Right order strategy : There is less liquidity in the pre-market, so it is safe to use limit orders instead of market orders.

Tools & Resources for Pre-Market Research

1. Official Websites (NSE & BSE)

The most reliable and reliable way to view pre-market data is through the official websites of NSE and BSE. Here you get important details like index levels, pre-open session information, corporate announcements and block/bulk deals. Since these updates come directly from the exchange, it is considered safe and important to trust them.

2. Pocketful App and Web

Pocketful is an all-in-one tool for pre-market analysis. Here you can easily:

Check the fundamentals of any company
See top gainer and top loser stocks
Analyze sector-wise performance
Follow live charts and trends
Also get important financial news

This gives you a clear understanding of which sector is strong and which stocks are under pressure. Pocketful proves to be useful for everyone, from new investors to professional traders.

3. Popular Financial Portals

Portals like Moneycontrol, Investing.com and TradingView are quite popular among traders and investors. On these platforms, you get features like charting tools, technical analysis, data from international markets and live price movements. You can also easily track different stocks and sectors by creating your watchlist.

Common Mistakes Traders Make Before Market Opens

Before the market opens, traders often make mistakes that have a big impact on the day’s performance. If these things are not taken care of, then despite the right analysis, there can be losses. Let’s know some common mistakes that are often seen:

Blindly trusting news headlines : Taking trades by just reading the morning headlines sometimes proves to be risky. News often shows short-term sentiments, while the real trend is understood through technical and fundamental analysis.
Over-depending on GIFT Nifty and global signals : Asian markets or GIFT Nifty can help in indicating the trend, but domestic factors like RBI policies, FII-DII flow and local news have a greater impact on the Indian market. It is wrong to create positions based only on global signals.
Taking entries without risk management : The most common mistake is to trade without setting a stop-loss or paying attention to position sizing. Without risk management, one wrong move can wipe out your entire capital.
Ignoring trading psychology : Decisions made in haste, overconfidence or fear are often detrimental. A calm mind and discipline are the most important weapons in the market.
Giving more importance to discipline than prediction : No one can predict the exact market move. Successful traders are those who constantly focus on discipline, proper planning and risk control not just prediction.

Conclusion

To be successful in the stock market, preparation is equally important not just during trading but also before the market opens. If you keep an eye on global trends, sector movements, top gainers-losers and the latest financial news, your decisions become even stronger. Correct information and preparation is the real strength of a good investor. So start every day before the market opens by keeping these points in mind and choose the path of smart investment.

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Frequently Asked Questions (FAQs)

What should I check before the market opens?
Make sure to check pre-open data, global market moves and sector conditions.
How does pre-market data help traders?
It helps to understand the initial trend and mood of the stocks.
Can Pocketful help in pre-market research?
Yes, top gainers/losers, charts and sector analysis are easily available in Pocketful.
Should I rely only on GIFT Nifty before the market opens?
No, GIFT Nifty gives signals but looks at domestic factors as well.
What mistakes should I avoid before the market opens?
Hastiness, not doing risk management and relying only on news.

September 18, 2025

10 Best Indicators for Swing Trading 2025

Swing trading is one of the most Best trading strategies in the stock market, particularly among retail traders and part-time investors. Contrasting with day trading, where you pay attention to the markets continuously, swing trading allows traders to hold positions for several days to a few weeks. This timeframe provides enough flexibility to conduct research, analyze setups, make informed decisions, and capture price movements as they unfold in short- to medium-term swings.

However, luck is not enough to succeed in swing trading. You require a toolkit of good technical tools that can assist you in the determination of the right entry and exit points. That is where the swing trading indicators are needed. These technical tools help traders interpret market behavior, identify trends, and manage risk effectively.

In this post, we’ll break down the 10 best technical indicators for swing trading that can help you improve your strategy and increase your chances of success.

Top 10 Swing Trading Indicators Every Smart Trader Should Know

In swing trading timing is everything and accuracy is what sets profitable traders apart. Whether you are just starting out or already an experienced trader the right indicators can help you gauge market momentum, identify potential trend reversals, and execute buy and sell decisions with confidence.

Here are the 10 most effective swing trading indicators that every trader should master to improve consistency and precision in their trades.

1. Moving Averages (SMA & EMA)

The moving averages are the trend-following indicators that smooth the price movement by eliminating the short-term fluctuations.

Simple Moving Average (SMA) embodies the average price over a particular period of time.
The Exponential Moving average (EMA) places more importance on recent price levels and thus it is more sensitive to new trends.

Swing traders often identify short-term and medium-term trends using the 20-day and 50-day Exponential Moving Averages (EMA). One of the common buy signals identified with this indicator is a crossover, such as when the 20-day EMA rises above the 50-day EMA.

Why it matters: Moving averages help confirm the direction of the trend. It serves as dynamic support or resistance levels.

2. Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and magnitude of recent price movements on a scale from 0 to 100.

If the RSI is over 70, it could mean that a stock is overbought.
If the RSI is below 30, it could be oversold.

As one of the most widely used swing trading indicators, the RSI is particularly useful for spotting potential reversals in price action.

Pro tip: Watch for divergence between RSI and price. For example, if the price makes a new high but RSI does not, it can be a strong signal of an upcoming reversal.

3. MACD (Moving Average Convergence Divergence)

MACD helps traders spot changes in the strength, direction, and momentum of a trend.

A bullish crossover occurs when the MACD line crosses above the signal line.
A bearish crossover happens when the MACD line drops below the signal line.

MACD is particularly effective in trending markets, making it a must-have in your swing trading toolkit.

4. Bollinger Bands

Bollinger Bands are built in using the form of two outer bands that are formed at a level of one or more standard deviations above and below a central line, which usually averages 20-day simple moving average.

When the price touches the upper band, it may be overbought.
If it hits the lower band, it might be oversold.

In swing trading, Bollinger Bands are used to anticipate price reversals and periods of volatility contraction or expansion.

Bonus: A “squeeze” in the bands often precedes a breakout—watch for it!

5. Stochastic Oscillator

This momentum indicator compares a stock’s closing price to its price range over a specific period.

Readings above 80 = overbought.
Readings below 20 = oversold.

When used together with support/resistance levels, swing traders time their trade with it. The indicator works best in the market conditions of sideways moving or range-bound.

6. Volume

While not a standalone indicator, volume is essential in confirming the strength of a price move.

Increasing volume on a breakout = strong signal.
Decreasing volume = weak or false breakout.

Volume surges often come before big price movements; it is a powerful tool for searching for swing trade opportunities.

Tip: Pair volume with MACD or RSI for better trade confirmation.

7. Fibonacci Retracement

According to the Fibonacci sequence, this instrument will be used to determine possible retracement levels prior to a stock resuming its initial direction.

Common Fibonacci levels:

38.2%
50%
61.8%

These levels are support or resistance. They are used by swing traders to strategize entry after a reversal of a trending market.

8. Average True Range (ATR)

ATR measures market volatility by averaging the range between the high and low of a stock over a set period.

High ATR = high volatility.
Low ATR = low volatility.

Swing traders also use ATR to determine where to put stop-loss and whether that stock has sufficient price movement to make it worth taking.

9. Parabolic SAR (Stop and Reverse)

The Parabolic SAR appears as dots above or below the price chart.

Dots below the price indicate a bullish trend.
Dots above the price show a bearish trend.

This indicator helps swing traders lock in profits and set trailing stops.

Pro tip: Combine it with EMA or MACD for clearer signals.

10. Pivot Points

Pivot points can be a support level or a resistance level, which is computed using the previous day’s high, low, and close.

The pivot point (P) is the average of high, low, and close.
Support (S1, S2) and resistance (R1, R2) levels are calculated from it.

Traders use these levels to predict price movement and potential reversal zones during the next session or week.

Conclusion

There is no single perfect indicator for swing trading. The most successful traders often combine two or three indicators to filter out market noise, confirm signals, and improve risk management. By using the right mix of tools you can make more informed decisions and reduce risk whether you are new to swing trading or refining your current strategy.

With Pocketful you gain access to live market data, advanced technical analysis, and proven trading strategies tested by experienced traders. Whether you are a beginner building confidence or an experienced trader seeking an edge, PocketFul is your trusted partner for smarter investing.

Start trading smarter—sign up today.

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5	Top Indicators Used By Intraday Traders In Scalping

Frequently Asked Questions (FAQs)

What is the most accurate indicator for swing trading?
No particular indicator may be called the most exact one, yet RSI, MACD, and moving averages may be taken as the most accurate together. By using a combination, there is increased accuracy in the overall accuracy.
How many indicators should I use in swing trading?
The best would be 2 to 3 complementary indicators; one to capture the trend (such as EMA), another one to capture momentum (such as RSI), and a last one capturing volatility or confirmation (such as ATR or volume).
Can I swing trade using just RSI?
RSI can be applied separately, but when other indicators, such as the moving averages or Bollinger Bands, are applied, it works better. When it is used independently, it increases the chances of false signals.
Are technical indicators better than fundamental analysis in swing trading?
In swing trading, it usually works better to use technical indicators because it is the short-term price action that matters. Nevertheless, earnings reports and news are also part of the strategies of some traders.
What’s the best timeframe for swing trading indicators?
Swing traders primarily utilize 4-hour and daily charts. These intervals are chosen to combine signal clarity with a reduction in market noise.

September 18, 2025

Sovereign Gold Bonds vs. Gold ETF: Which is a Better Investment?

Indians have always had a special place in their hearts for gold, whether it’s for weddings, festivals, or to have a safety net when things are uncertain. You do not need to keep heavy jewellery or gold coins in a vault to invest these days. You can enjoy the benefits of gold without having to store it in real life with contemporary options like Sovereign Gold Bonds (SGBs) and Gold Exchange-Traded Funds (ETFs). The two options are both tied to gold prices, but they work in very different ways. For example, the way you make money, how they are taxed, and how easy it is to buy and sell them are all different.

In today’s blog, we will learn about the pros and cons of each option, as well as the taxation, so you can choose the one that works best for your investment style.

What are Sovereign Gold Bonds?

Sovereign Gold Bonds, or SGBs, are an effective and simple way to invest in gold without having to buy it. You can trust SGBs completely because the government gives them out through the Reserve Bank of India.

You don’t have to keep gold at home or in a safe; instead, you buy these bonds that keep track of the price of gold. So, when the price of gold goes up, the value of your investment goes up too.

Read More: What is Sovereign Gold Bonds?

What are Gold ETFs

Gold Exchange-Traded Funds, or ETFs for simple terms, are an easy way to invest in gold without having to buy and hold the precious metal.

Consider it this way: you buy “units” of gold from the stock market rather than storing gold coins or jewellery at home. Its price fluctuates in line with the market price of gold, and each unit usually corresponds to one gram of gold.

Gold ETFs are appealing for the following reasons;

They are supported by real gold, which is stored in vaults and is extremely pure (often 99.5% or more).

bought and sold like shares; all you need is a trading account and a demat account.

Unlike jewellery, you get exactly what you see, so there are no manufacturing fees or purity concerns.

Like stocks, prices fluctuate continuously.

Transparent and regulated; managed by mutual fund firms under SEBI’s supervision.

Table of Differences between Sovereign Gold Bonds & Gold ETFs

Feature	Sovereign Gold Bonds (SGBs)	Gold ETFs
About	SGBs are government-issued bonds that are linked to the price of gold, so you get the benefit of gold price movements without holding physical gold.	Gold ETFs are exchange-traded funds that aim to match the market price of gold and can be bought or sold just like shares.
Backed by	They are backed by the Government of India and the prevailing market price of gold.	They are backed by physical gold of high purity, safely stored in secure vaults.
Form	You receive a digital certificate; there’s no physical gold involved.	You hold them in your demat account in the form of ETF units.
Minimum Investment	You can start with as little as 1 gram of gold.	You can start with 1 unit, which is usually equal to 1 gram of gold.
Liquidity	You can sell them on the stock exchange, but trading volumes are often lower, so selling instantly at the best price might not always be possible. They work best if you hold till maturity.	You can buy or sell anytime during market hours, and liquidity is generally better than SGBs.
Returns	Your returns come from any increase in the gold price, plus an extra 2.5% interest each year (which is taxable).	Your returns come purely from changes in the gold price; there’s no extra interest.
Tax on Maturity	If you hold till maturity (8 years), any profit you make is completely tax-free.	There is no tax exemption at maturity; gains are taxed under capital gains rules.
Interest	You earn 2.5% interest per year, paid every six months. This interest is taxable.	No interest is paid — your only gain is from the gold price.
Best For	Great for long-term investors who can hold till maturity and enjoy tax-free gains plus interest along the way.	Ideal for those who want flexibility and the ability to enter or exit anytime without a long lock-in.

Advantages of Investing in Sovereign Gold Bonds

Some of the advantages of investing in SBGs is given below:

Gains on maturity that are tax-free – Any profit you make from the redemption of your SGBs is fully exempt from capital gains tax if you hold them until they mature, which is 8 years.

Additional income each year – You receive 2.5% interest on your investment each year, which is paid every six months. In addition, the price of gold has increased.

Do not be concerned about storage – Since your holdings are digitally stored and supported by the Indian government, there is no need for lockers or safes.

High purity by default – You do not need to worry about verifying purity or quality because you are not holding actual gold.

Government-backed – The Government of India guarantees the principal and interest payments, which makes them extremely safe.

Advantages of Investing in Gold ETFs

Advantages of investing in gold ETFs is given below:

No problems with storage – You do not need to be concerned about home safety, insurance, or lockers. The investment account keeps your gold safe.

High purity is assured – You know exactly what you’re getting because it’s typically 24 carat or 99.5% gold.

Simple to buy and sell – You can enter or exit at any time during market hours because they are traded on the stock exchange just like shares.

No manufacturing or waste fees – Unlike jewellery, you only pay for the actual value of the gold, not additional expenses.

Transparent pricing – There are no unexpected costs because the price is determined in accordance with the gold market rate.

Diversification – Gold helps balance your portfolio because it frequently moves differently from stocks and bonds.

Risks & Limitations of Sovereign Gold Bonds & Gold ETFs

GOLD ETFs

Volatility of Gold Prices – Short-term fluctuations in gold prices can cause losses if you sell during a drop in prices.

No Interest Income – Gold ETFs, in contrast to SGBs, do not pay interest; instead, your returns are centred on changes in the price of gold.

Tax on Sale – There is no unique tax-free maturity benefit; gains are always taxed when sold.

Changes in Liquidity – Extreme market conditions can increase bid-ask spreads, which could marginally lower your selling price, even though ETFs usually are liquid.

Annual Costs – ETFs’ small annual expense ratio gradually reduces returns.

No option for physical gold – Real gold cannot be delivered; it is only an investment in paper.

Timing Trap in the Market – Some investors attempt to time their buys and sells because ETFs trade like shares, which, if done incorrectly, can reduce returns.

Sovereign Gold Bonds

Dependency of Gold Prices – Even with the 2.5% annual interest, a decline in gold can lower your returns because SGB values fluctuate along with gold prices.

Loss of Tax Benefit if Sold Early – If you sell before maturity, you lose the special tax-free benefit, and your gains will be subject to taxes.

Low Liquidity in the Secondary Market – Finding buyers may not always be simple, and you might need to sell in the secondary market for less.

High-Risk Secondary Market Buys – Although there isn’t an expense ratio, purchasing SGBs at a premium on the secondary market may result in overspending.

No Delivery of Gold in Physical Form – Instead of actual gold, you get cash at maturity that is equal to the gold’s value.

Extended Maturity Time – SGBs have an 8-year maturity, and the only ways to exit early are through an RBI buyback or an exchange sale after 5 years.

Price Differences in Market Transactions – The RBI sets the issue price, but secondary market prices are subject to supply and demand in addition to the market value of gold.

Taxation – Sovereign Gold Bonds & Gold ETFs

Gold ETFs

The profit is considered short-term and subject to your standard income tax slab rate if you sell within a year.

Holding for more than a year is considered long-term and is subject to a flat 12.5% tax rate; indexation benefits are no longer available.

Gold ETFs are without interest; the only source of your return is changes in the price of gold.

SGBs, or Sovereign Gold Bonds

The main benefit is that any profit you make upon redemption is completely tax-free if you hold until maturity, that is, eight years.

Additionally, you receive 2.5% interest annually, which is paid every six months. However, this interest is subject to slab rate taxation as “Income from Other Sources.”

If you sell your SGB on the secondary market before it matures:

Short-term gains are taxed at the slab rate if they are held for less than a year.
Long-term gains are taxed at a rate of 12.5% (without indexation) after being held for more than 12 months.

Conclusion

SGBs are a great choice if you want to invest for a long time because they pay you interest regularly and tax-free gains when they mature. Gold exchange-traded funds (ETFs) are the best choice if you want to buy or sell at any time during market hours while enjoying flexibility. Which option is ideal for you will depend on your investment objectives. Either way, both are much better than leaving gold jewellery in a locker, since here, your gold is working for you.

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Frequently Asked Questions (FAQs)

What is the lock-in period for SGBs?
SGBs have an 8-year maturity, with an exit option from the 5th year onwards.
Can I trade SGBs before maturity?
Yes, they can be sold on stock exchanges, but liquidity may be low.
Do Gold ETFs give interest?
No, Gold ETFs only track gold prices and don’t pay any interest.
How much interest do SGBs offer?
SGBs offer 2.5% per annum on the initial investment, paid semi-annually.
Are SGB returns tax-free?
Yes, capital gains on SGBs at maturity are tax-free for individuals.

September 17, 2025

Open Interest: Meaning, Functionality & Importance

In the stock market, price and volume tell you what is happening around. Where price tells you how a company is performing, the volume suggests how many people are interested in the company. But there is one more term that holds an equal importance and should be known to you. This is called open interest.

It tells you who’s still in the game. If you trade in futures or options, open interest is a key metric you can’t afford to ignore. It tracks how many contracts are still active. This allows you to explore the actual situation or picture of the market.

But there is more to it. So, let us explore the concept of open interest in the guide over here and see how it helps.

What is Open Interest?

Open Interest is the total number of outstanding derivative contracts, such as futures or options, that are currently active in the market. These contracts have not been closed, settled, or expired. It represents the number of ongoing positions that traders are holding.

When a new buyer and seller enter a contract, open interest increases. If either party exits by closing their position, open interest decreases. By checking this number, traders can understand the value of participation in the specific contract.

Where traders’ volume only focuses on the number of transactions in a day, the open interest goes a step ahead. It shows you the number of the contracts that are actually open at the end of the day. This does not change with every trade. But when you create a new contract or close an existing one, there will be a change.

To understand this, here is a simple example to follow.

Say, the open interest is rising, and prices are also rising. This means that the traders are entering long positions. This now supports the trend. Now, if the prices rise but the open interest falls, then traders are closing some of the older positions. They are not creating new ones here, which means the trend is now weak.

Features of Open Interest

Reflects active market positions: Open interest shows how many contracts are still live and held by traders.
Changes only with creation or closure: It increases with new contracts and decreases when positions are closed.
Used to confirm trends: A rising open interest alongside price movement indicates strength in the trend.
Helps track market participation: Higher open interest suggests more engagement from traders and investors.
Applies to derivatives only: This metric is relevant to futures and options contracts. This is not regular stock trading.

How Does Open Interest Work?

To understand the working of the open interest, here is a simple working mechanism. It is clear that the open interest changes only when some new positions are added and old ones are closed.

To break this down, here is a clear and simple situation.

Say, there are two trades Mr. X and Mr. Y.

Now, Mr. X is willing to buy one Nifty futures contract. Mr. Y is willing to sell the same. Now, one contract option is open. The open interest is now 1.

Further, Mr. X sells this contract to Mr. Z. Still, the open interest stays at 1. Why? Well, this is because one trader is moving out of the trade and a new one is entering. So, the number of active people in trade is still the same.

However, if Mr. X and Mr. Y both close their positions completely and there is no third person in trade, then the open interest will fall to 0.

This shows that open interest reflects the number of existing contracts, not the number of trades.

The value is updated at the end of each trading day. You can see this data on the exchange website or your trading platform. For options, open interest at specific strike prices can also hint at support and resistance zones based on where the most contracts are active.

How to Interpret Open Interest in Trading

Open interest allows the traders to understand market sentiment, confirm trends, and detect possible reversals. Here are some of the key interpretations that you can get from the same.

1. Rising Open Interest with Rising Prices

This is typically viewed as a strong bullish signal. It shows that there is an inflow of money and people are looking for long positions. This is a good time, and price and open interest will both rise. This shows that there is an upward trend, which is great.

2. Rising Open Interest with Falling Prices

This combination is often interpreted as bearish sentiment. Traders are opening new short positions, betting that prices will continue to decline. The increase in open interest shows fresh participation supporting the downtrend.

3. Falling Open Interest with Rising Prices

Here, the rise in price is not supported by new positions. This can indicate short covering, where traders who had short positions are now exiting. While prices are going up, the falling open interest warns that the trend may lack sustainability.

4. Falling Open Interest with Falling Prices

This setup usually means traders are closing existing short positions. This is most likely a sign of a down trend in the market. It may point to market exhaustion. Here, the sellers are stepping aside, and a bottom could be near.

An important point to note here is that these are not fixed. These are just indications, and so solely acting based on them is not right.

Strategies Using Open Interest for Trading

Open interest can enhance decision-making across different trading styles. It helps to understand the market and risk position better. Some strategies that can help in the process are as follows:

1. Swing Trading

Swing traders look to earn from short-term price movements. So, when the open interest is rising, it means that the current trend is working out. This supports the decision to ride the trend for a few days or weeks.

Tip: Always confirm with volume. High volume and rising open interest make the trend more reliable.

2. Position Trading

Position traders hold trades for longer durations. If there is a steady increase in the open interest for a long time, then this means that the positions are developing. This is a sign of mainly institutional investors entering the trade. This adds strength to the trend and helps position traders commit confidently.

Tip: Combine with moving averages or trend indicators. This will help you time your entry during pullbacks.

3. Scalping

Scalpers look for quick trades with small price movements. Their target is to earn quickly and exit. So, if there is a high open interest, then there is more liquidity. This means the bid-ask spreads are very tight. This allows scalpers to enter and exit positions quickly without significant price impact.

Tip: Monitor intraday open interest changes in liquid contracts only.

4. Hedging

Investors use open interest data to hedge large positions using derivatives. In case of a high open interest in the future and options, you will find more liquidity. This makes it easier to set up effective hedging strategies. All this will assist with minimal slippage.

Tip: For hedging, try to prioritize instruments with the highest open interest to reduce risk.

Common Misconceptions About Open Interest

Open interest is used quite prominently. But still, there are a few misconceptions that are around it. Clearing them is very important to make the right calls. So, here are the common misconceptions to know:

1. Open Interest and Volume Are the Same

This is incorrect. Volume shows how many contracts changed hands during a trading day, regardless of whether they were new or existing. Open interest reflects the number of contracts that are still active. A contract can have high volume but unchanged open interest if traders are simply exchanging existing contracts.

2. Rising Open Interest Always Signals Bullishness

Not necessarily. Rising open interest indicates fresh participation, but the sentiment depends on price movement. If prices are rising along with open interest, it is bullish. If prices are falling, it suggests bearishness due to new short positions.

3. Declining Open Interest Means the Trend Is Reversing

Not always. A fall in open interest simply shows that traders are exiting positions. It can be a sign of the trend losing its strength. But it is not a sure sign of reversal. Prices can still continue in the same direction. This is possible even with reduced momentum.

4. Open Interest Is a Leading Indicator

Open interest is best used as a confirming indicator. This is not a predictive one. It works most effectively when combined with other signs. These include the price action, volume, and technical analysis. All these help to validate trends or spot potential exhaustion.

Open Interest vs Volume: Key Differences

Understanding the distinction between open interest and volume is essential. The key differences that you must understand are as follows:

Feature	Open Interest	Volume
Definition	Total number of contracts still active	Total number of contracts traded during the day
Change Criteria	Increases or decreases when contracts are opened or closed	Increases with every buy-sell transaction
Reset Frequency	Carried forward until position is closed	Resets to zero at the beginning of each trading day
Indicates	Market participation and existing commitments	Daily trading activity and interest
Used For	Assessing trend strength and liquidity	Gauging intraday interest and momentum
Dependency on New Trades	Reflects net additions or closures of positions	Counts all trades, regardless of position change

Benefits and Limitations of Open Interest

Open interest is a valuable metric and helps gauge the strength of a trend. However, like any market indicator, it has its strengths and weaknesses. The pros and cons to know are as follows.

Benefits of Open Interest

Confirms the strength of a price trend when used with volume and price data
Indicates active participation and rising liquidity in the contract
Helps traders identify potential reversals or continuation of trends
Useful in options trading to spot support and resistance zones
Assists in risk management and planning hedge positions

Limitations of Open Interest

Cannot be used in isolation, as will give incomplete results
Offers limited insights during sideways or low-volatility markets
The real-time effectiveness is reduced
Not applicable to cash equity markets; only used for futures and options
Does not clearly show bullish or bearish positions without context

Conclusion

Open interest offers valuable clues. These are linked to the market sentiment, trend strength, and trader activity. But these should be used with price and volume. Then it becomes a powerful tool for smarter trading decisions.

Using this can help you build better strategies, irrespective of your position. This will offer profitable outcomes and will help limit the losses.

So, are you ready to put your market knowledge to work? Start trading with confidence on Pocketful, a platform built for smart, informed investors like you.

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Frequently Asked Questions (FAQs)

Can open interest help identify market manipulation?
Yes, unusual spikes in open interest without major price movement can sometimes indicate speculative activity or attempts to trap retail traders. Always confirm with volume and broader market trends.
How does open interest affect option premiums?
High open interest can increase liquidity. This often results in tighter bid-ask spreads and fairer premiums. However, premiums are more directly affected by implied volatility and time to expiry.
Is open interest relevant for intraday traders?
While open interest updates at the end of the day, some platforms provide live estimates. For intraday traders, it’s more useful to track trends over a few days than for real-time entries.
What does negative change in open interest mean?
A negative change means contracts are being closed. This could be due to profit booking, reduced interest, or traders waiting for a clearer direction. It is neither bullish nor bearish on its own.
Should retail traders follow open interest data of FIIs and DIIs?
Yes, tracking how institutional investors are building or reducing positions using open interest can offer useful clues. Their activity often sets the tone for broader market movements.

September 17, 2025

Best Education Loan in India

In today’s world, education plays an important role in shaping the country’s future. Higher education plays an important role in creating a skilled workforce for the economy. However, with the rising cost of such education, it becomes difficult for a student to opt for higher studies. Therefore, to cater for this problem, banks and NBFCs offer “Education Loan” to them so that they can pursue their higher education without worry.

In today’s blog post, we will give you an overview of the best education loan, along with the documents required to apply for the same.

Meaning of Education Loan

An Education Loan, also known as a student loan, is generally taken out for students who wish to pursue higher education in India or another country. It covers all charges paid during the tenure of education, such as tuition fees, accommodation, travel, etc. Once the student completes his/her education and gets employed, he/she can start repaying the loans.

Features of an Education Loan

The salient features of education loans are as follows:

Lower Interest Rate: The interest rate on education loans is typically lower when compared to other loans such as personal loans.
Tax Deduction: One can claim the benefit of tax under section 80E of the Income Tax regarding the payment of interest on a loan.
Financial Help: Parents who cannot afford to give their child higher education can opt for monetary support in the form of an education loan.
Repayment Duration: The education loan can be repaid over time, so it does not significantly impact cash flow.

Best Education Loan in India 2025

The best education loans in India for 2025 are as follows:

Bank	Loan Amount	Interest Rate (p.a.)	Collateral Required	Courses Covered	Key Features
SBI – Global Ed-Vantage	Up to ₹1.5 Cr	From 9.15%	Above ₹7.5 lakh	India & Abroad	No processing fee (India), girl student concession, long tenure
Bank of Baroda Scholar	Up to ₹1.5 Cr (abroad)	From 9.20%	Above ₹20 lakh	India & Abroad	100% expense coverage, interest subsidy
PNB – Udaan / Saraswati	Up to ₹1 Cr	From 9.25%	Above ₹7.5 lakh	India & Abroad	Multiple schemes, no margin up to ₹7.5 lakh
ICICI Bank iSMART	Up to ₹3 Cr	From 10.25%	Required above ₹50 lakhs	India & Abroad	Pre-visa disbursal, fast-track approval
HDFC Credila	No fixed upper limit (with collateral)	From 9.95%	Mandatory (profile-based)	India & Abroad	Custom loans, pre-visa disbursal, flexible repayment

Overview of Best Education Loan in India 2025

The overview of the best education loans in India 2025 is as follows:

1. SBI

SBI is India’s largest public sector bank in India. It offers Global Ed-Vantage as an education loan to the public through which one can cover the cost of domestic and mainly for overseas studies. It offers a low interest rate, with no processing fees for studies in India.

2. Bank of Baroda

This is a public sector bank offering “Baroda Scholar” which gives an education loan at no processing fees. It offers a competitive interest rate for higher education.

3. PNB

PNB is one of the oldest public sector banks in India, and offers “PNB Udaan” to Indian students, allowing them to take a loan to complete their higher education. The loans are available for various courses such as graduation, post-graduation and professional courses.

4. ICICI Bank

This is one of the leading private sector banks. ICICI Bank offers online processing of education loans, with flexible duration for both domestic and international students. It also offers pre-visa disbursal of loan.

5. HDFC Bank

HDFC Bank is the largest private sector bank in India. It operates a dedicated education loan NBFC under its name, “HDFC Credila”. It offers a zero collateral loan facility to top students.

Eligibility Criteria for an Education Loan

The eligibility criteria for an education loan are as follows:

Nationality: The applicant for the education loan must be an Indian. However, in some cases, it can either be a non-resident individual or a person of Indian origin.
Age: The applicant’s age generally can vary from 16 to 40 years. But there are a few government schemes in which there is no age bar.
Co-Applicant: Generally, in case of a full-time course co-applicant or a joint holder is mandatory.
Collateral: There are certain asset such as residential and commercial properties, fixed deposits, etc., which needs to be kept with the loan companies.
Admission: The applicant must have a secured admission to a recognized institute or university in India or abroad.

Expenses Covered Under Education Loans in India

The list of expenses covered under the education loans is as follows:

Tuition Fees: The tuition fees charged by the educational institute are covered under the educational loan.
Accommodation: The hostel fees or rent paid by the student for off-campus accommodation are covered under the educational loan.
Examination Fees: The fees payable to the college regarding the exam are covered under the educational loan.
Travelling: In case of foreign studies, the amount payable toward the cost of travel from a foreign country is covered under the education loan.
Project Work / Thesis Expenses: The cost related to completing the project is covered under the education loan.
Library and Lab Fees: Certain colleges levy fees to use the library and laboratory, which are covered under the education loan.
Other reasonable expenses: Some banks cover student life insurance, if opted. Other expenses like Fund Expenses, Stationery, equipment expenses are also borne by banks.

You can even use Education Loan EMI Calculator

Documents Required for Education Loan

The documents which are required to take an education loan are as follows:

An admission letter was received from the educational institute where one is looking to take admission.
Marksheets of previous classes. Generally, higher secondary and senior higher secondary marksheets are preferred.
Address Proof
Identity Proof
Age Proof in case of a minor child.
Salary slip of the applicant or co-applicant to verify the income sources.
Bank statements to verify the salary.
Income tax returns of previous years, so that the income can be verified.
Loan Application form.
Visa and Passport if applied for foreign education.
Passport-size photos.
Additional documents for studying abroad.

Advantages of an Education Loan

The significant advantages of education loans are as follows:

Access to higher education: It enables a student to get higher education from various reputed colleges in India and abroad for under-graduation , post-graduation, vocational studies, skill development courses
Tax Benefit: The interest paid of education loans is eligible for tax deduction under section 80E of Income Tax upto 8 years.
Repayment: The repayment of loans can be started after 6-12 months once the course is completed or after getting a job, whichever is earlier. Loan tenure ranges from 5-15 years.
No Financial Burden: Taking an education loan generally does not create any financial burden on the family for the higher education of a child.

Conclusion

On a concluding note, opting for an education loan for higher education is a crucial step towards building your future. There are various banks and NBFCs offering such loans, but one should do a deep comparison before opting for an education loan. Taking education loans comes with a tax benefit on the amount of interest paid under section 80E of the Income Tax. However, it is advisable to consult your investment advisor before opting for an education loan.

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Frequently Asked Questions (FAQs)

What is the moratorium period for an education loan?
A moratorium period, the waiting period is a duration of 6 to 12 months after completing the course or till the child gets a job; during this period, no EMI is required to be paid; however, the interest may accrue on it.
Is there any tax benefit on an education loan?
Yes, interest paid on an education loan is eligible for deduction under section 80E of the Income Tax Act, and it can be carried forward up to 8 years.
What types of expenses are covered under an education loan?
Almost all kinds of educational expenses are covered under an education loan, suc
Is having a co-applicant mandatory for an education loan?
Yes, a co-applicant is mandatory while taking an education loan; generally it can be a parent, guardian, or spouse.

September 17, 2025

What are Contingent Convertible(CoCo Bonds)?

The 2008 global financial crisis revealed serious vulnerabilities in banks across the world. To address these weaknesses, regulators and financial institutions developed new tools to safeguard banks during times of stress. One such innovation is the Contingent Convertible Bond (CoCo Bond). These bonds are designed to protect a bank’s capital by automatically converting into equity or losing value when certain conditions are triggered.

In this blog, we’ll explain in simple terms what CoCo Bonds are, how they work, and why they continue to play an important role in today’s financial system.

What Are Contingent Convertible Bonds (CoCo Bonds)?

Contingent Convertible Bonds, or CoCo Bonds, are a special type of financial instrument that can automatically convert into equity (shares) if required or can be completely written off i.e. their value can become zero. They give returns like normal bonds, but their role changes when the financial condition of the bank deteriorates.

CoCo Bonds are called “hybrid securities” because they have the features of both debt (debt) and equity (shares). As long as the bank is strong, they act like bonds. But as soon as the bank’s capital falls below a certain limit, these bonds convert into shares or can become completely worthless.

What is a Trigger Event?

The most special aspect of CoCo Bonds is their Trigger Mechanism. When a bank’s Common Equity Tier 1 (CET1) ratio falls below the limit set by regulators such as 5.125% it becomes a trigger and in that case CoCo Bonds are converted or written-down.

Why were CoCo Bonds introduced?

After the 2008 global financial crisis, there was a need for new tools to correct the weaknesses of banks. CoCo Bonds were promoted to strengthen banks under Basel III regulations. Their purpose is that if a bank is on the verge of sinking, then through these bonds the bank has a safety shield, so that it does not have to take a bailout from the government.

How Do CoCo Bonds Work?

CoCo Bonds or Contingent Convertible Bonds have a special condition called Trigger. When a bank’s financial condition weakens such as its capital ratio (CET1 ratio) goes below a set limit then this trigger gets activated. In India, this limit is usually 5.125% or more, which is set by regulatory bodies like RBI.

When the trigger is activated, two things can happen:

The bonds convert into shares, which gives the investor shares of the bank.
The value of the bond can be completely lost, that is, the money can be lost.

How does the conversion happen?

The purpose of CoCo Bonds is to give the bank an opportunity to provide capital in an economic crisis. When the trigger is activated, these bonds are either converted into shares of the bank (Debt to Equity Conversion) or their principal amount is written off, that is, it is completely eliminated.

How is the interest payment (Coupon Payment)?

CoCo Bonds pay interest (coupon), but the special thing is that the bank can stop this interest if it wants without it being considered a default. This is what makes them different from normal bonds. This is why CoCo Bonds are a little more risky, but often their returns are also higher.

Example : Suppose an Indian bank has issued CoCo Bonds and its financial position becomes weak its CET1 ratio goes below 5%. Now this trigger can be activated as per RBI rules. The bank will convert these bonds into shares or can destroy their value. This increases the capital of the bank, but investors can also suffer losses.

Why Banks Use CoCo Bonds

To strengthen Tier 1 Capital : CoCo Bonds allow banks to increase their Tier 1 Capital without directly issuing shares. This capital is the safety wall of the bank, which comes in handy in any financial crisis.
Protection from Insolvency : If the financial condition of a bank starts deteriorating, then CoCo Bonds work like a Loss Absorption Buffer. When the capital level decreases, these bonds convert into shares and save the bank from failure.
Helpful in meeting Capital Adequacy Norms : According to the rules of Reserve Bank of India (RBI) and Basel III, banks are required to maintain a fixed capital level. CoCo Bonds help in meeting this requirement, so banks give them priority.
Protection from Government Bailout : Private investors invest in CoCo Bonds, and when the need arises, they bear the loss not taxpayers. This eliminates the need for the government to give a bailout package and the public’s trust in the banking system remains intact.

Pros of Investing in CoCo Bonds

Higher Yields : CoCo Bonds usually offer higher interest (coupon) than traditional bonds. This is why they are attractive to investors who want better returns with fixed income.
Diversification in Portfolio : This is a unique asset class that occupies a space between debt and equity. This allows investors to better diversify their portfolio.
Contribution to the financial stability of banks : CoCo Bonds help strengthen the balance sheet of the bank. When a bank is in trouble, these bonds provide capital support, which maintains financial stability.
Flexibility (Innovative Structure) : The most important thing about these bonds is their conditional conversion – which gives the issuing bank the flexibility to convert them into shares if needed.
Liquidity in the secondary market : CoCo Bonds issued by big banks are often liquid in the secondary market, meaning investors can sell them if needed.

Read Also: What Is a Callable Bond?

Cons and Risks of CoCo Bonds

Trigger Uncertainty : Conversion in CoCo Bonds is based on fixed conditions, but these conditions are often complex. The investor does not know in advance when the bond will convert into shares or when its value will end.
Principal Loss Risk : If the condition of the bank deteriorates, the entire value of the CoCo Bond can be wiped out. That is, the investor may have to bear the loss of principal as well.
Complex Structure : The legal and financial language of CoCo Bonds is difficult for ordinary investors to understand. Therefore, these products are mainly suitable for institutional or experienced investors.
Market Sentiment Risk : The price of these bonds depends a lot on the credibility of the bank. If trust in a bank decreases, the price of CoCo Bonds can also fall even without a trigger.
No assurance of interest payment (Coupon Cancellation) : In CoCo Bonds, the bank has the right to stop paying interest for some time without considering it as a default. This affects the expectation of regular income.

CoCo Bonds vs Traditional Bonds vs Preferred Shares

Feature	CoCo Bonds	Traditional Bonds	Preferred Shares
Risk	Very High (Can be written off entirely upon trigger)	Low (Fixed returns and repayment of principal)	Medium (Dividend may be skipped in case of company losses)
Returns	High (Typically higher coupon rates)	Stable but lower	Moderate (Fixed dividend, generally higher than bonds)
Conversion Rights	Yes Can convert to equity or be written down completely	No	Sometimes Depends on company terms
Liquidity	Medium to High (Often actively traded if issued by large banks)	High (Easily tradable in secondary market)	Medium (May have lower trading volumes)
Interest/Dividend	Payable but can be skipped without default	Fixed interest regularly paid	Fixed dividend, but not guaranteed

Read Also: What are War Bonds?

Conclusion

Contingent Convertible (CoCo) Bonds can serve as an effective capital-strengthening tool for banks, but they remain highly complex and risky instruments for investors. While they typically offer higher yields, they also carry the risk of complete principal loss through write-downs or conversion to equity during stress events. CoCos are therefore best suited for sophisticated or institutional investors with a high risk appetite and a clear understanding of their structure. For most retail investors, prudence and caution are strongly advised.

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4	Secured and Unsecured Bonds: Understand the Difference
5	Detailed Guide on Bond Investing: Characteristics, Types, and Factors Explained
6	What is Coupon Bond?
7	Tax-Free Bonds: Their Features, Benefits, and How to Invest
8	What are Bond Yields?
9	Stocks vs Bonds: Difference Between Bonds and Stocks
10	What Are Corporate Bonds?
11	What are Social Bonds?
12	What is Insurance Bond?
13	What is Sovereign Gold Bonds?

Frequently Asked Questions(FAQs)

What are CoCo Bonds in simple terms?
CoCo Bonds are hybrid debt instruments that convert into equity or are written down if a bank’s capital falls below a regulatory threshold, helping the bank absorb losses.
Are CoCo Bonds safe for retail investors?
No, they are too risky for common investors and are suitable only for experienced investors.
Do CoCo Bonds pay regular interest?
Yes, but banks can stop paying interest if they want and it will not be considered a default.
Can I buy CoCo Bonds in India?
In India, these bonds are mainly available to institutional investors; they are not available to common investors.
Why do banks issue CoCo Bonds?
CoCo Bonds help banks strengthen their capital and enable them to handle themselves in times of crisis.

September 17, 2025

Blog

What is Ledger Balance in a Demat Account?

Features of Ledger Balance

Difference Between Ledger Balance and Available Balance

Importance of Ledger Balance

How ledger balance affects your trading decision

Tips to Monitor Your Ledger Balance

Conclusion

Frequently Asked Questions (FAQs)

What is the difference between a ledger balance and an available balance?

Can a ledger balance show negative figures?

What is the frequency of updating the ledger balance?

Can I withdraw my full ledger balance?

What happens if my trading account balance shows a negative figure?

What is Gold ETF and why is its popularity increasing?

How does it work?

Why is Gold ETF becoming so popular?

How has been the performance in the last few years?

What is SBI Gold ETF?

SBI Gold ETF – Key Metrics Table

What is HDFC Gold ETF?

HDFC Gold ETF – Key Metrics

SBI Gold ETF vs HDFC Gold ETF: Key Differences

Key Risk Factors Before Investing in Gold ETFs

What to keep in mind while choosing between SBI and HDFC Gold ETF?

How to Invest in Gold ETFs? Easy Step-by-Step Guide

Conclusion

Frequently Asked Questions (FAQs)

What is a Gold ETF?

Is it safe to invest in Gold ETFs?

Can I start SIP in Gold ETFs?

How to sell Gold ETFs?

What is the minimum amount to invest in a Gold ETF?

About Abdul Karim Telgi

Stamp Paper Scam – An Overview

Chronology of the Stamp Paper Scam

1. Learning about stamp papers

2. Getting to Printing Presses

3. Setting up a distribution network

4. Paying people to be quiet

5. Getting into every area

6. Scale of the Scam

7. The Beginning of the End

How was he caught?

End

Impact of the Scam

Conclusion

Frequently Asked Questions (FAQs)

How did Telgi manage to fool everyone?

Was this scam only in Maharashtra?

How did it affect common people?

How did Telgi’s story end?

What changed after the scam?

Meaning of Gold ETFs

Key Features of Gold ETF

Best Gold ETFs in India 2025

How do Gold ETFs work

Benefits of Investing in Gold ETF

Factors to Consider Before Investing in Gold Investing

Who Should Invest in Gold ETFs

Conclusion

Frequently Asked Questions (FAQs)

What is a Gold ETF?

Does the Gold ETF provide dividends to its investors?

Is it mandatory to have a demat account for investing in ETFs?

What are the factors that impact the performance of Gold ETFs?

Is there any possibility of tracking error in the Gold ETF?

The 20 Things to Know Before Market Opens

Global & Domestic Cues (Macro Factors)

1. Overnight US Market Performance

2. Asian & European Market Trends

3. Currency Movements (USD-INR)

4. Crude Oil Prices

5. Bond Yields & Interest Rates

6. Government & RBI Announcements

Market-Specific Indicators (Technical and Data Points)

7. GIFT Nifty & Pre-Open Indicators

8. FIIs vs. DIIs Data

9. Corporate Earnings Announcements

10. Bulk & Block Deals