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Risks in Commodity Trading and How to Manage Them

Commodity trading is the process of buying and selling commodities such as crude oil, gold, agricultural products, etc. Numerous trading opportunities emerge for traders every day, but unfortunately, risk also accompanies commodity trading. These risks arise from geopolitical and other economic factors, making this market very volatile and filled with high-risk-reward trading opportunities.

This blog focuses on the different risks involved and risk management in commodity trading. We will explain the major risks and describe the strategies to tackle them.

5 Key Risks in Commodity Trading

Commodity trading risks are the various risks that traders face while participating in the commodity market. These risks are determined by factors such as the supply-demand balance, general macroeconomic conditions, and sometimes the impact of unexpected events. Below are the most important risks, with examples cited and techniques on how to manage them.

1. Price Volatility Risk

What it is:

One of the greatest risks in commodity trading is price volatility. Commodities are extremely sensitive to supply and demand, political instability, weather conditions, or any other natural disasters.

Examples:

A rise in crude oil prices was observed in 2022 when the war began between Ukraine and Russia.

The price of wheat and many other commodities was high due to the drought affecting specific regions.

How to Manage:

Set stop-loss orders in volatile market conditions.

Diversify your trading positions across different commodities in order to minimize risk.

Track the latest market trends and make quick trading decisions according to them.

2. Credit Risk

What it is:

Credit risk arises when a party in the commodity trading contract fails to meet his financial obligations. This occurs in OTC markets.

Examples:

A buyer fails to make payment upon maturity of the forward contract.

A counterparty defaults and is unable to deliver commodities as specified in the forward contract.

How to Manage:

Engaging in regulated exchanges with clearinghouses that eliminate counterparty risks.

Conduct due diligence before entering into contracts with counterparties.

Security deposits or collateral agreements so that counterparty fulfills the contract obligations.

3. Geopolitical Risk

What it is:

Events such as wars, trade restrictions, and political instability can cause a disruption in the supply chain and dramatically influence commodity prices.

Examples

Sanctions on Russian oil exports caused a global shortage of crude oil in 2022.

China placed restrictions on the export of rare earth metals in 2023, which affected the semiconductor manufacturing companies that use them as raw materials.

How to Manage:

Monitor recent news in the world to be able to anticipate any disruption beforehand.

Use derivative instruments to fix prices and reduce uncertainty.

4. Leverage Risk

What it is:

Leverage enables the trader to create large positions with relatively small amounts of capital. Both profits and losses are magnified using leverage. Overuse of leverage can lead to huge losses.

Examples:

A trader’s long position in gold futures with high leverage can result in huge losses if there is an unexpected drop in gold prices.

High levels of leverage caught many retail traders off-guard when the price of oil crashed overnight in 2020.

How to manage:

Limit the use of leverage by ensuring that position size is aligned with your level of risk tolerance.

Maintain a sufficient balance in your trading account to avoid margin calls.

5. Liquidity Risk

What it is:

Liquidity risk occurs when not enough trading activity is happening in the commodities market. Without sufficient liquidity, creating a long or short position in a commodity can be challenging without affecting its price.

Examples:

Commodities like lead and copper usually have lower liquidity than crude oil or gold.

When the economy experiences a recession, market participation reduces, and liquidity worsens.

How to control:

Trade in high-liquidity commodities such as crude oil, gold, and natural gas.

Monitor the trading volumes and identify trading sessions during which market activity usually declines and avoid trading during that session.

How to Effectively Manage Risks in Commodity Trading

Identifying the possible risks may be the first step, but a comprehensive risk management strategy provides you with a plan to mitigate these risks. Below are a few ways to manage the risks in commodity trading effectively:

Developing a Risk Management Plan: Begin with a comprehensive plan that defines your risk tolerance, investment goals, and exit strategies.
Derivative Instruments: Derivatives include futures, options, and swaps. Such instruments can be used to hedge the risks that exist in commodity trading.
Stay Informed on Market Developments: Use real-time market data and news to anticipate future events and the associated risks. Most commodity trading platforms provide regular updates that help traders make the right decisions.
Diversify Your Portfolio: Allocate your trading capital across different commodity types so that you don’t suffer a huge loss due to unfavorable events affecting a particular commodity.
Use Technology: The most advanced trading platforms have all these sophisticated tools, such as algorithmic trading bots, risk analytics, and automated alerts, which allow traders to make swift decisions and, thereby, reduce risks.
Set Realistic Expectations: Don’t be tempted to overtrade and chase high returns. Consistent profits arise from disciplined trading and proper risk management.

Conclusion

Buying and selling commodities is considered risky, but you can master it with a disciplined approach to risk management and a well-defined trading strategy. Active risk management approach and advanced trading platforms can help you avoid major risks arising from price volatility, high leverage or geopolitical events. Before trading in commodities, one must make sure that one’s knowledge, trading strategy, and risk management system are in place in order to remain successful over the long term.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

What are the most volatile commodities to trade?
Some of the most volatile commodities are crude oil, natural gas, and lead. Their prices can change sharply due to supply-demand imbalances, weather conditions, or geopolitical events.
How can I avoid losses due to leverage?
You can avoid losses due to leverage by creating conservative trading positions, maintaining sufficient margins, and having strict stop-loss levels to prevent significant drawdowns.
What is the best way to hedge in commodity markets?
The best way to hedge is by using derivative instruments such as futures and options.
Can I trade commodities with minimal risk?
No trade can be completely risk-free; however, you can definitely minimize risks by trading in highly liquid commodities, designing sophisticated risk management tools, and using leverage judiciously.
What is the role of diversification in commodity trading?
Diversifying the portfolio ensures the lowering of risk by spreading investments across many classes of commodities like energy, metals, and agriculture. If there is an adverse price change for a certain commodity, the rest can mitigate losses by performing well, ensuring effective risk management during volatile markets.

Top Algorithmic Trading Strategies of 2025

Picture a fast-paced market where prices fluctuate every few seconds, requiring quick decision-making. In such a situation, we can’t rely solely on human intuition. This is where algorithmic trading comes into action. It uses computer programs to analyze data and execute trades automatically based on predetermined criteria.

This blog will explain algorithmic trading, popular strategies, its growing popularity, and its impact on the future of trading.

What is an Algorithmic Trading Strategy?

An algorithmic trading strategy is a systematic method for trading financial instruments like stocks, bonds, commodities, or currencies using computer algorithms. These strategies use complex mathematical models and fast computers to analyze data, spot trading opportunities, and execute trades automatically. Algorithmic strategies improve trading efficiency and profitability by removing human error and emotions from decision-making.

Algorithms use real-time data and historical data, such as price feeds, economic indicators and social media sentiment. Orders are automatically executed when the strategy’s conditions are met, usually in milliseconds. Algorithmic strategies are tested on past data to confirm their reliability and performance in different market conditions.

Read Also: What is Algo Trading?

Best Algorithmic Trading Strategies

The five best algorithmic trading strategies mentioned below will likely stay relevant in the future.

1. Mean Reversion: This is a strategy that takes advantage of asset prices returning to their historical averages. It involves identifying assets that are overvalued or undervalued and placing trades accordingly.

2. Trends Following: Trend following strategy seeks to capitalize on the persistence of current market trends. These algorithms detect and follow trends using technical indicators to find when to enter and exit trades.

3. Arbitrage: Arbitrage strategy takes advantage of differences in prices of the same asset in two different markets. High-frequency trading (HFT) algorithms excel at spotting and taking advantage of quick opportunities.

4. Statistical arbitrage (Stat Arb): This strategy involves finding and taking advantage of statistical relationships among various assets. It often means creating asset portfolios with a low correlation among assets to lower overall risk.

Some other algorithmic trading strategies, apart from those mentioned above, are as follows,

VWAP (Volume-Weighted Average Price Strategy): This strategy seeks to execute orders at prices near the day’s average based on the volume traded at each price level. In this strategy, the trader breaks a large order into smaller parts for execution over a set time frame.
Pair Trading: This is a market-neutral strategy that involves identifying correlated securities and trading on their temporary mispricing.
Index Arbitrage: This strategy takes advantage of price differences between an index and its underlying stocks. If an index’s price diverges from its underlying components, an arbitrage algorithm will buy or sell to take advantage of the price difference.

How to Start Algo Trading Strategies with Pocketful API

The Pocketful API provides traders and investors with professional tools for algorithmic trading. It supports various programming languages like Python, Javascript, and Golang, making it accessible to many users. The API enables easy order placement, real-time market data access, portfolio management, etc. Pocketful streamlines the creation and execution of algorithms for better efficiency and speed.

To get started, you need a basic computer, a good internet connection, and an interest in trading. Furthermore, Pocketful APIs are completely free to use with no hidden charges. The steps to start algo trading using Pocketful API are mentioned below:

Step 1: Log in to Pocketful Web and enter your login credentials.

Step 2: Generate AppId and AppSecret by creating a new app.

Step 3. Authenticate by entering your login details in the authentication section to generate an access token.

Step 4: Start coding to automate trading strategies with Pocketful APIs.

Reasons for Algo Trading’s Growing Popularity

Algorithmic trading is now essential in today’s financial markets. Its increasing popularity among institutional and retail investors is due to technological advancements, changing market dynamics, and the need for efficiency and speed in trading. Below are some of the reasons behind algo trading’s growing popularity:

Speed & Efficiency: Algo trading executes trades in milliseconds, which is much faster than any human trader. This eventually helps in seizing trading opportunities in volatile market conditions.
Cost Effectiveness: Algo trading automated trading, reducing the need for human intervention and lowering transaction costs. Reduced manual input lowers overhead costs for trading desks.
Elimination of emotional bias: Human emotions such as fear, greed, and overconfidence can result in bad trading choices. Algorithms operate based on predefined rules and are unaffected by psychological factors. The outcome is consistent decision-making and disciplined execution.
Advanced data processing capabilities: Real-time data analysis is a game changer for traders. Algorithmic trading uses large datasets with historical and real-time prices and news to identify trading opportunities.
Growing availability of technology: Advancements in computing, internet infrastructure, and financial software have made algo trading more accessible to a wider audience.
Diversified strategies: Algo trading offers various strategies to cater to traders with different goals and risk levels. Examples include statistical arbitrage, news-based trading, momentum trading, and mean reversion.
Better risk management: Algo trading strategies include risk controls to reduce exposure in unfavorable market conditions. The algorithms execute trades automatically to minimize losses or lock in your profits.
Rise of AI and Machine Learning: AI and machine learning have revolutionized algorithmic trading, allowing for flexible responses to complex market situations. Sentiment analysis uses algorithms to evaluate social media, news, and public opinions for practical insights.
Backtesting Feature: Traders can use advanced software and historical data to simulate strategies before using them with real capital. Backtesting confirms that strategies will work well in different conditions.

Conclusion

Algorithmic trading strategies have transformed financial markets, enhancing efficiency and making trading more data-driven and systematic. Using the right strategy allows traders to quickly and accurately take advantage of the opportunities. Algorithmic trading will remain essential for retail and institutional investors as technology evolves in fast-changing markets. The concept is becoming popular because it simplifies operations, lowers costs and improves decision-making in competitive financial markets. As technology advances, algorithmic trading will grow more popular and help traders succeed in complex global markets. However, trading can be risky, and it is advised to consult a financial advisor before trading.

Frequently Asked Questions (FAQs)

Who uses algorithmic trading?
Both institutional investors and retail traders use algorithmic trading.
What technologies power algorithmic trading?
Technologies behind the rise of algorithmic trading are machine learning, natural language processing (NLP), big data, and high-speed computing.
Is algorithmic trading safe?
It is safe and legal but regulated to ensure fairness and prevent market manipulation.
What is backtesting in algorithmic trading?
Backtesting evaluates the performance of a trading strategy using historical market data.
What are the risks involved in algo trading?
Common risks include software glitches, market volatility, and overfitting to historical data.

January 20, 2025

Maha Kumbh Mela 2025: Stocks and Sectors to Watch

The Maha Kumbh Mela is of significant spiritual importance in Hinduism. This grand event will attract millions of pilgrims and tourists from around the globe, creating substantial economic opportunities for companies or sectors such as tourism, infrastructure, FMCG, etc.

In this blog, we will discuss the sectors and the associated stocks that are likely to benefit from this Maha Kumbh Mela.

What is Maha Kumbh Mela?

The Maha Kumbh Mela, or the Maha Kumbh 2025, is a religious gathering organized after every 12 years. Maha Kumbh Mela 2025 is even more special as it occurs once every 144 years. It is estimated that more than 45 crore people will come and join this religious gathering. It is organized in Prayagraj, Uttar Pradesh, and the state government manages this event. As per various research analysts, it is assumed that this event will increase the country’s GDP by 1%, and the Uttar Pradesh government is estimating a potential turnover of INR 2 Lakh crore. This event will showcase India’s rich cultural heritage globally. The event will begin on 13th January 2025 and end on 26th February 2025.

List of Sector and Stocks which will benefit from Maha Kumbh Mela

The sectors and stocks that could benefit from Maha Kumbh Mela are as follows:

1. Tourism and Hospitality Sector

Millions of tourists and pilgrims will visit the Kumbh Mela, and the demand for travel services, accommodation and hospitality will increase. Various companies that are engaged in providing such services will benefit directly from this. Both affordable and luxury options hotels are available, with ultra-luxury tents priced between ₹70,000 to ₹1,00,000. To cater to the increased demand, the Ministry of Tourism has also set up the Incredible India Pavilion, a 5,000 sq.ft. area for accommodating devotees, scholars, foreign tourists, etc.

Stocks To Watch: The stocks which will benefit from this industry include Thomas Cook, Easy Trip Planners, Indian Hotels Company Limited, TajGVK Hotels & Resorts, and Lemon Tree Hotels.

Read Also:

2. Transportation Sector

During the Maha Kumbh, people from all around the world will travel to Prayagraj. Indian Railways is operating 13,000 trains over 50 days. On the other hand, Prayagraj airport has increased weekly departures to 117, connecting 23 cities, and airlines have added special routes. Additionally, Uttar Pradesh State Road Transport Corporation has added 7,000 rural buses alongside 350 shuttle buses.

Stocks To Watch: IndiGo, Spice Jet, and IRCTC (Indian Railway Catering and Tourism Corporation).

Read Also: Best Logistics Stocks in India

3. Consumption Sector

The FMCG (Fast Moving Consumer Goods) will see a spike in demand because of an increase in daily essential and packaged foods. Companies engaged in the FMCG sector will benefit greatly from the consumption of products like snacks, beverages, and hygiene essentials.

Stocks To Watch: The FMCG companies benefiting from this Kumbh Mela are Hindustan Unilever, Dabur and ITC.

Read Also: Best FMCG Stocks In India

4. Telecom Sector

Communication is the key requirement in the Kumbh Mela as it helps in connectivity among the visitors. It also helps the management centres maintain uninterrupted connectivity throughout the event area. The Department of Telecom has prepared an extensive plan to ensure the same and has established 78 transportable towers, 150 outdoor small cells, and 192 KM of optical fibre cable in the Mela area to maintain uninterrupted services. Telecom players such as Bharti Airtel, BSNL, Reliance Jio, and Vodafone Idea have set up three disaster management centres to ensure proper connectivity during the event.

Stocks To Watch: The major telecom stocks that will benefit from this event are Bharti Airtel, Vodafone Idea, Reliance, etc.

Read Also: Best Telecom Stocks in India

5. Media and Entertainment Sector

Kumbh’s event will be covered by national and international media, and it will be broadcast live on various networks. Hence, it will generate business for media companies and production houses and also act as a major source of revenue for content creators. Also, the print media sector will benefit from this Maha Kumbh Mela, as various articles will be published in magazines and newspapers.

Stocks To Watch: Zee Entertainment, Network 18, Den Network, Jagran Prakashan, Sun TV, etc.

6. Infrastructure Sectors

The temporary and permanent development of tents, toilets, water supply systems, hotels, and other amenities will generate revenues for all the real estate and infrastructure companies. The government has also developed roads and flyovers to provide better transport services.

Stocks To Watch: Larsen and Toubro, IRB Infrastructure Developers, NBCC India, etc., are the companies which will be the primary beneficiaries of infrastructure development in Kumbh Mela.

Conclusion

On a concluding note, the Maha Kumbh Mela is a significant event for Hindus around the world. Maha Kumbh Mela 2025 can set the record for the world’s largest spiritual and cultural gathering, with an expected attendance of over 45 crores. Apart from its religious significance, the Maha Kumbh Mela will also impact the Indian economy positively as it will benefit multiple sectors, such as infrastructure, tourism, hospitality, etc. The benefits of the Kumbh Mela event will not be short-lived, as the improved infrastructure and tourism appeal will continue to benefit the region long after the event concludes. However, investment in a particular sector carries higher risk. Therefore, you are advised to consult your investment advisor before making any investment decision.

Frequently Asked Questions (FAQs)

Which sector will benefit from Kumbh Mela 2025?
The major sectors that are the direct beneficiaries of the Maha Kumbh Mela are infrastructure, transportation, hospitality, FMCG, and media and entertainment.
What is Maha Kumbh 2025?
Maha Kumbh Mela is an event of significant importance in the Hindu religion. The event happens once every 12 years, but the Maha Kumbh Mela of 2025 is a special event as it occurs once every 144 years. This event will take place in Prayagraj from 13th January 2025 to 26th February.
What are some stocks that will benefit from Maha Kumbh Mela?
The stocks that will benefit from the Kumbh Mela are Easy Trip Planners, Yatra Online, Indian Hotels Company Limited, Lemon Tree Hotels, IndiGo, ITC, HUL, IRCTC, etc.
What could be the long-term impacts of Maha Kumbh Mela on different sectors?
The long-term impact of Kumbh Mela is that it will improve infrastructure, boost the local economy and enhance the capacity of different sectors to manage large-scale events in future.
How will the hospitality and tourism sector benefit from the Maha Kumbh Mela?
Tourists attending Maha Kumbh Mela will increase the demand for hotels, guesthouses, and temporary accommodations, which will result in higher revenues for companies operating in the hospitality and tourism sectors.

January 18, 2025

5 Tips for Successful Commodity Trading

If you are looking for some tips on how to successfully trade commodities, then this blog is for you. There are various commodity trading tips and tricks through which you can increase your chances of earning a profit while trading in commodities. You can make better commodity trading strategies by incorporating the tips discussed in this blog.

In this blog, we will give you an overview of five tips for successful commodity trading.

Here Are the 5 Tips for Successful Commodity Trading

Commodity trading has gained popularity in recent years. Trading commodities can be difficult for a new trader, but to successfully negotiate the complexity of the commodities market, you must take calculated risks, and for this, you must have proper trading strategies. The following are the five key commodity tips for new traders that can help them succeed in commodity trading:

1. Market Cycle

Similar to other financial markets, the commodities market likewise goes through cycles. The commodity market cycle is affected by various elements, including industrial, geopolitical, and economic.
For example, depending on the needs of the area, the demand for fossil fuels for heating purposes may increase in the winter, causing their prices to rise.
These short-term cycles offer trading opportunities; however, it is required to manage your risk efficiently.

2. Tracking the Global Events

The prices of commodities are dependent on various international events. A trader must keep track of these events to see patterns and make wise judgments. For example, a rise in geopolitical tension or political instability can cause the demand for safe havens such as gold and silver to rise, resulting in an increase in the price of gold.
Reuters, Bloomberg, and other platforms are available to track world events. In addition, several government organizations disclose various kinds of data on a weekly or monthly basis, which must also be monitored. The performance of a specific commodity is directly impacted by such news and data.

3. Volatility

Commodity trading is characterized by significant volatility, which is caused by several variables, including supply and demand, global events, market liquidity, etc. Thus, it is crucial to understand volatility to effectively manage risk. The two main determinants of volatility are supply and demand; commodities with limited supply are typically more volatile, whereas those with abundant supply have low volatility. Due to their widespread use in various industries, base metals like copper and aluminium saw a sharp increase in price during periods of economic expansion.

4. Leveraged Positions

Leverage allows a trader to take on significant market positions with very little capital. This raises the possibility of increasing profit, but it also raises the risk. Borrowing money from the broker is known as leverage, and it is advantageous when the market is moving in your favour. If the market is moving against your trading position, the leveraged position increases your losses.
The commodity market is unpredictable, and any significant price change can result in margin calls and large losses for traders. These losses can cause emotional stress and make impulsive trading decisions that further increase losses. Therefore, it is advisable to use leverage with caution.

5. Selecting Broker

Even after designing a profitable trading strategy, you might face issues on how to execute it. There are various commodity trading platforms in the market offered by brokers; however, finding the right broker who offers smooth transaction execution at minimum cost should be one’s top priority. The commodity trading platform must be registered with regulatory bodies such as the Securities and Exchange Board of India. Furthermore, a good broker sends authentic research reports and related study materials to their traders.

Thus, pick a broker like Pocketful that offers you top-notch services at a low cost through their cutting-edge technology-driven platforms. In addition to this, they offer you a variety of tools and enable you to trade in all commodities at the lowest cost, which helps you maximize your profit.

Conclusion

On a concluding note, using the above-mentioned tips, a trader increases his/her probability of being profitable in commodity trading, but doing so calls for self-control and the ability to make wise decisions. The likelihood of designing a profitable trading strategy can be increased by constantly learning new things as the market’s dynamics change so quickly, so it is necessary to be up to date on news and events when trading in the commodity market. If you miss any crucial updates, you could potentially lose money.
Before making any investment decisions, it is advisable to speak with your investment advisor because commodity trading carries a high level of risk and may not be appropriate for all market participants.

You can open a free commodity trading account with Pocketful, which provides advanced charting tools for analyzing the commodity market.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

How much capital do I need to start trading in commodities?
The minimal amount of capital needed to begin trading in the commodity market depends on the commodity being traded. A commodity with a higher contract value requires more margin than a commodity with a lower contract value.
What commodities are best for beginners to start trading?
Beginners can begin trading in commodities such as crude oil, gold, copper, aluminium, etc.
What is commodity trading?
Commodity trading is the process of forecasting future price movements and creating long and short positions in commodities to make money.
How to start commodity trading?
A commodity trading account is necessary to begin trading in commodities. There are various commodities trading platforms in the market, but Pocketful provides the best commodity trading platform with advanced research tools.
What are the most traded commodities in India?
The most common commodities traded by traders in India are gold, silver, and crude oil.

January 18, 2025

Top 5 AMC Stocks in India 2025 – Overview and Insights

Imagine while reading a newspaper you came to know that the mutual fund industry currently has around 68,00,000 crores of assets under management (AUM), delivering impressive returns to investors. But did you know there are some companies that manage these funds that are also listed on the Indian stock market?

In this blog, we will give you an overview of the stock of top asset management companies stocks in India.

What are Asset Management Companies?

Asset management companies (AMC) are those financial institutions which manage the funds or investments of different categories of investors such as individuals, institutions, businesses, etc. Their main objective is to earn a profit for their investors, and for their services, they charge a certain amount of fees depending on the Asset Under Management or AUM. The asset management company stocks are the shares issued by the companies managing the mutual funds.

List of AMC Stocks in India

Below mention are the listed Asset Management Companies (AMC) in India:

HDFC Asset Management Company Limited
Nippon Life India Asset Management Limited
Aditya Birla Sun Life AMC Limited
UTI Asset Management Company Limited
Shriram Asset Management Company Limited

Company	Current Market Price (INR)	Market Capitalisation (In Crore)	52-Week High	52-Week Low
HDFC Asset Management Company Limited	3,865	82,583	4,864	3,255
Nippon Life India Asset Management Limited	638	40,378	816	430
Aditya Birla Sun Life AMC Limited	738	21,296	912	450
UTI Asset Management Company Limited	1,186	15,231	1,408	802
Shriram Asset Management Company Limited	485	631	697	226

(As of 16th January 2025)

Overview of AMC Stocks

1. HDFC Asset Management Company Limited

The HDFC Asset Management Company Limited was incorporated in 1999 as a joint venture between HDFC Limited and Standard Life Investments Limited. In 2003, it acquired Zurich Mutual Fund and Morgan Stanley Mutual Fund in 2014. The company launched its IPO in 2018 and became a publicly listed company.

Key Highlights:

As of 30th September 2024, the company manages an AUM of more than ₹7.5 Lakh crores.
The company has more than 90,000 distributors empanelled with them.
It has 255 branches and more than 1,597 employees.
The company’s headquarters is situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
16.37%	64.64%	26.95%

(As of 16th January 2025)

2. Nippon Life India Asset Management Limited

The company was incorporated in 1995 under the sponsorship of Reliance Capital Limited. Initially, it was known as Reliance Mutual Fund. Nippon Life Insurance acquired a 26% stake in Reliance Mutual Fund, and by this, it entered into the asset management sector. In 2017, the company got itself listed on the Indian Stock Exchange and rebranded itself as Reliance Nippon Life Asset Management Limited. After that, in 2019, Nippon Life Insurance acquired 75% of the total equity in the company and renamed it Nippon Life India Asset Management Company.

Key Highlights:

The company’s AUM is around 5.49 lakh crores.
The total number of folios managed by the company is 287.77 lakhs.
As of 31st March 2024, the company has 263 branch offices across India.

The company’s headquarters is situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
34.02%	83.13%	95.01%

(As of 16th January 2025)

3. Aditya Birla Sun Life AMC Limited

Aditya Birla Sunlife Mutual Fund was incorporated in 1994, and it was a joint venture between Aditya Birla Group and Sun Life Financial Incorporation. In 2017, the company changed its name to Aditya Birla Sun Life Asset Management Company. The company launched an IPO in 2021 and got itself listed on the Indian Stock Exchange.

Key Highlights

The company has more than 1.02 crore folios managed under its brand.
The company has a presence across 300 locations.
The total amount of assets managed by the company is around 4 Lakh crores.
The company’s headquarters is situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
52.38%	30.60%	7.48%

(As of 16th January 2025)

4. UTI Asset Management Company Limited:

UTI Mutual Fund is India’s oldest mutual fund and played an important role in channeling the savings of the Indian people into equity investments. Unit Trust of India was established in 1963, and later, in 2003, after the restructuring of Unit Trust of India, UTI Mutual Fund was made a separate entity and registered with the Securities and Exchange Board of India. The company launched its IPO in 2020, and with this, it became a publicly listed company.

Key Highlights

The total number of folios managed by the company is 1.22 crore.
The company has a presence across 210 locations.
The total amount of assets managed by the company is around 2.83 Lakh crores.
The company’s headquarters is situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
40.59%	15.90%	150.59%

(As of 16th January 2025)

5. Shriram Asset Management Company Limited

Shriram Asset Management Company was incorporated in 1994 with the aim of managing investor funds. It is a part of the Shriram Group, which was incorporated in 1974. The company launched its first mutual fund scheme in 1995 and is currently focusing on improving its investment platform using innovative technologies.

Key Highlights

The company is currently managing an AUM of around 876 crores.
The company’s headquarters is situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
43.47%	388.40%	402.92%

(As of 16th January 2025)

Key Performance Indicators (KPIs)

Company	Operating Profit Margin (%)	Net Profit Margin (%)	Return on Equity (%)	ROCE (%)	Current Ratio
HDFC Asset Management Company Limited	96.12	75.17	27.45	33.99	29.79
Nippon Life India Asset Management Limited	82.68	67.32	27.87	32.75	17.32
Aditya Birla Sun Life AMC Limited	74.91	57.66	24.62	30.73	16.04
UTI Asset Management Company Limited	57.46	46.17	17.44	19.69	17.83
Shriram Asset Management Company Limited	-70.08	-86.37	-8.84	-7.08	48.15

(All of the above data is from the year ended March 2025)

Read Also: Top AMCs in India

Advantages of Investing in the Finance Asset Management Sector Stocks

The advantages of investing in Finance Asset Management Companies stocks are as follows:

Revenue Source: Asset management companies’ revenue source is very steady as they charge fees from their customers based on the assets they manage.
Growth potential: With the growing penetration of the Indian mutual fund industry, asset management companies have high growth potential. With an increasing AUM, the companies are expected to perform well in the future.
Low capital requirement: Asset management companies require less capital expenditure than other industries, which eventually increases their profit margin.
Diversification: One can diversify their portfolio by investing in asset management companies and protecting their portfolio from stock-specific or sector-specific risks.

Risk Involved while Investing in Finance Asset Management Sector Stocks

There are certain risks involved while investing in asset management companies, a few of which are mentioned below:

Competition: The finance asset management sector is highly competitive since there are established players in this sector. Companies with strong brand recognition tend to have a competitive advantage over others.
Regulation: In India, the mutual industry is regulated by the Securities and Exchange Board of India, and any new regulation introduced by the regulatory authority could impact the profit of these companies.
Economic Downturn: Asset management companies are dependent upon the investments made by the investor; any economic slowdown will reduce the company’s AUM and directly impact its revenues.
Key Person Risk: The performance of asset management companies depends on the fund manager who manages the AUM. If their investment approach generates significant profits for the investor, then other companies might try to convince that particular fund manager to work for them.

Future of Asset Management Sector Stocks

This sector will benefit from the rise of the Mutual Fund Industry. The industry has a significant growth potential in the long run due to the constant rise in the assets under management. With the rise in SIP amounts and retail participation, the mutual fund industry has grown at a compounded annual growth rate of more than 17.5% in the past five years. As of November 2024, the AUM of the mutual fund industry stood around ₹68 lakh crores and is expected to cross ₹100 lakh crores in the next five years. Due to the reasons mentioned above, the companies engaged in this sector are likely to perform well in the coming years as they are the direct beneficiaries of it.

Conclusion

On a concluding note, financial asset management companies have high growth potential in the long run, especially during the bullish market trends. Their revenue sources are based on fee structures and will increase with the increasing participation of investors. However, it is crucial to analyze the investment opportunities in this sector as asset management companies work in a highly regulated environment, and the industry is highly competitive. One can diversify its investment portfolio by including a few stocks of listed asset management companies (AMC). However, before making any investment decision, you must consult your investment advisor.

You can open a free Demat account with Pocketful to start investing in finance asset management companies.

Frequently Asked Questions (FAQs)

What is AMC?
AMC stands for Asset Management Company. AMCs are financial institutions that manage and invest funds on their client’s behalf through pooled investments such as mutual funds, ETFs or other financial instruments.
Does AMC charge fees from investors?
Yes.
Who regulates AMCs?
Securities & Exchange Board of India.
How many registered AMCs are there in India?
As of December 2023, there are 44 registered AMCs.
What is Assets Under Management (AUM)?
It is the total value of the investments managed by the AMC.
Which are the top asset management companies in India?
Based on the market capitalization, the top asset management companies in India are HDFC Asset Management Company, Nippon Life India Asset Management Company, Aditya Birla Sun Life Asset Management Company, UTI Asset Management Company, and Shriram Asset Management Company.
What is the major revenue source of asset management companies?
A major source of revenue for asset management companies is the fees they charge from their investors based on the assets managed by them.
What are the factors which can impact the performance of an asset management company?
The major factors that can influence the performance of asset management companies include the fees they charge, their investment strategies, the market dynamics and the regulations.
How do you invest in the stocks of asset management companies?
One can easily invest in an asset management company’s stock by opening a demat account with a broker. You can open an online free demat account with Pocketful and begin your investment journey.

January 17, 2025

A Demat account is necessary to participate in the stock market in India. Although many brokers in the market offer Demat account services, you should select one based on your needs.

In this blog, we will give you an overview of the best Demat account in India for 2025, along with the top three recommendations for traders and investors.

What is a Demat Account?

An investor can keep financial assets, including stocks, mutual funds, ETFs, bonds, and more, in an electronic demat account. Before 1996, securities were exchanged in physical certificates, which had several dangers, including damage from forgeries and theft. Demat accounts were created to remove these risks. If you wish to trade on the Indian Stock Market, you must have a Demat Account.

What to Look for in a Demat Account App?

The key considerations for selecting the best Demat Account:-

Brokerage – Brokers typically charge a commission as a fee for using their platform to execute trades. You should choose the broker for opening a Demat account that offers you the lowest brokerage.
Account Maintenance Fees – Customers are charged fees for maintaining their Demat accounts by the broker. Since these yearly maintenance charges differ from broker to broker, it is essential to consider brokers who offer lower annual maintenance fees.
Account Opening Fees – A one-time fee is charged by some brokers while opening a demat account with them. However, the majority of brokers are offering zero account opening fees.
Margin Interest – Brokers lend money to their clients and charge interest on it at a certain rate; therefore, if you wish to opt for a margin trading facility, then you must consider the broker who charges a minimum interest rate on this facility.
Research Tools – There are various types of research tools offered by brokers; therefore, one must choose a broker who offers the most advanced trading tools.
Customer Support – One of the most important things to consider when opening a Dement account is customer service. Customer service is crucial because you want any issue you encounter when managing a Demat account to be fixed as soon as possible.

Read Also: Best Trading Apps in India

The 15 Best Demat Accounts in India for 2025 – AMC Free/Paid

Detailed Comparison Table

Broker	Account Opening Fee	Annual Maintenance Fee (AMC)	BrokerageCharges	Unique Features
Pocketful	₹ 0	₹ 0	Pocketful offers you 0 delivery charges.	Cutting-edge technology lets you invest in different asset classes in one place.
Zerodha	₹ 0	₹300 + GST	₹20 or 0.03% per executed order, whichever lower	User-friendly platform, educational tools
Angel One	₹ 0	₹240 (1st year free)	₹20 per order	Comprehensive research, versatile mobile app
ICICI Direct	₹ 0	₹ 700	0.55% for equity delivery, 0.275% for intraday	3-in-1 account, extensive research
Kotak Securities	₹ 0	₹ 600	0.49% for equity delivery, 0.049% for intraday	Advanced trading tools, personalized advisory
Upstox	₹ 0	₹ 150	₹20 or 0.05% per order	Low brokerage fees, intuitive platform
5paisa	₹ 0	₹ 300	₹20 per order	Flat brokerage rates, mutual fund investments
Sharekhan	₹ 0	₹ 400	0.5% for equity delivery, 0.1% for intraday	Training programs, advanced trading platforms
Motilal Oswal	₹ 0	₹ 199	0.5% for equity delivery, 0.05% for intraday	Personalized advisory, portfolio management
SBI Securities	₹ 0	₹ 750 (1st year free)	0.5% for equity delivery, 0.05% for intraday	3-in-1 account, strong banking integration
Axis Direct	₹ 0	₹ 750	0.5% for equity delivery, 0.05% for intraday	Seamless fund transfers, advanced research tools
IIFL Securities	₹ 0	₹ 250	0.5% for equity delivery, 0.05% for intraday	Free research reports, advisory services
Edelweiss Broking	₹ 0	₹ 500	0.5% for equity delivery, 0.05% for intraday	Research-driven advisory, diverse investment options
Groww	₹ 0	₹ 0	₹20 or 0.01% per order	Zero AMC, a user-friendly platform
Paytm Money	₹ 0	₹ 0	₹20 per intraday order, ₹20 for delivery	Integrated with the Paytm ecosystem, low transaction costs

Paytm offers a user-friendly application to provide their investors with a hassle-free trading experience.
It also offers access to direct mutual funds through which a customer can save costs.
It offers various calculators, such as SIP, lumpsum, etc., on its platform.

Best For: It is suitable for investors who are looking for platforms that offer trading facilities at a lower cost and fulfill their investment needs.

Top 3 Recommendations for Traders

The 3 recommended brokers for the traders are as follows:-

Zerodha: Due to their cost-effectiveness, investors adore Zerodha, which is regarded as the biggest broker in India with millions of customers, affordable pricing, and flat brokerage costs. Sensibull for sophisticated options trading, Streak for algo trading, KITE for web and mobile-based trading, and a tiny case for theme-based investment are some of its intelligent trading tools. Their trading tools make it easy to place orders, and Varsity, their educational program, is a special selling point.

Pocketful: Another up-and-coming stock broking company that provides a variety of investing possibilities and has no equity delivery fees. The application is simple to use and navigate. The platform, which aims to make investing easier, is a relatively new fintech platform in India. Its goal is to offer a smooth trading experience. The Goel brothers, Rishabh and Sarvam, founded it. The Goel Brothers are differentiating Pocketful from other bargain brokers by using their family’s experience from the Pace Stock Broking company, which has been involved in financial services for more than 30 years.

Upstox: In addition to offering slick trading interfaces, Upstox charges trading costs that are comparable to Zerodha’s flat rates. It has sophisticated charting capabilities, and Upstox has a special feature called Tick-by-Tick Engine that gives retail traders information regarding buy and sell orders. Previously, this capability was restricted to institutional and wealthy individual clients.

Top 3 Recommendations for Investors

The 3 recommended brokers for the investors are as follows:-

Pocketful: The ideal alternative for those who want to make long-term investments is Pocketful. This finance platform is modern. There are no annual maintenance fees, account opening fees, or delivery fees with Pocketful. Their platform is built on state-of-the-art technology created by experts with over 27 years of experience. Through their site, one can invest in a wide range of assets, improving the user experience.

Kotak Securities: One of the biggest private sector banks in India, Kotak Mahindra Bank, owns Kotak Securities as a subsidiary. Additionally, it provides its clients with bank accounts and integrated demat trading for simple money transfers. Kotak Securities offers a vast array of investing options, such as mutual funds, stocks, derivatives, fixed-income products, and more. It provides cutting-edge trading platforms like Kotak Stock Trader, a web-based trading platform, and KEAT Pro X, a desktop-based trading platform that gives active traders access to real-time market data. It also offers sophisticated charting tools.

Motilal Oswal Financial Services Limited: Founded in 1987, it is one of the top broking organizations in India, providing a wide range of investment alternatives, portfolio management services, and consulting services. Their advanced trading systems include. It provides the desktop trading terminal in addition to the investor and trader apps. Motilal Oswal’s research and advising services are regarded as some of the best in the business. It provides customized consulting services for its HNI clientele and has thirty years of research knowledge. One of the best PMS services available in the market is their portfolio management platform.

Also, check out our blog- Top 10 Highest Leverage Brokers in India

Benefits of Good Demat Account

The benefits of good demat account follow as:-

Cost Efficient – A good demat account must be cost-efficient, which means the brokerage and other kinds of fees levied by the broker are less.
Ease of Tracking and Managing Investment – As securities are held in electronic form, the tracking and managing of investments is efficient and hassle-free.
Enhanced Trading Experience with Advanced Platforms – The trading platform offered by the broker must be equipped with advanced trading tools to enhance the trading experience of a trader.
Ease of Account Opening – The process of opening an account with a broker should be easy and convenient. Nowadays, a demat account can be opened in just 24 hours.
Free Research Tools— Many brokers provide demat accounts for free. However, their trading and research tools are paid; for this reason, one should consider opening a demat account with a broker that provides free research resources.
Reliability – The broker with whom you open your demat account must be credible and reliable.
Transparent Pricing – The pricing offered by the broker must be transparent. There must be no hidden charges.

Importance of Demat Account in Trading and Investing

There are various of having demat accounts, a few of which are mentioned below-

Holding Securities – A Demat Account allows you to hold securities electronically.
Transactions – If you want to sell or buy any securities, a demat account makes the process simpler.
Nomination – An investor can nominate their close ones who will inherit the securities held in their demat account in case of the holder’s unfortunate death.
No Minimum Balance – You are not required to have any minimum balance in your demat account.
Corporate Actions – The demat account manages all the corporate actions like right issues, bonus shares, etc.

How to choose the right Demat Account for Long Term Investment

There are various factors one should consider before choosing the right demat account, a few of which are mentioned below:-

Investment Objective: Selecting a platform that provides sophisticated trading tools and cheap transaction fees is essential if you are a short-term trader. However, you should search for a broker that offers cheap annual maintenance fees if you are a long-term investor.
User-friendly interface: Before selecting a broker, you should confirm that the platform they provide is user-friendly and straightforward to use so that you can trade with ease.
Research Services: If you are new to investing, then you must opt for a broker which offers you valuable research reports and research calls that can make your investments.
Customer support: The customer support offered by the broker must be taken into consideration as Whenever you face any issues the queries must be resolved on an immediate basis.
Hidden charges: Various brokers in the industry charge some kind of hidden fees from their customers; therefore, before choosing a broker, one must conduct proper research about the hidden charges.
Trading Platform: Before choosing a broker, one must consider a trading platform which offers all the key features required by a trader or investor.

Conclusion

In conclusion, you should evaluate the services, fees, customer service, etc., that your broker offers if you intend to open a demat account. The investor’s investment goal also influences the broker’s choice. A Demat account, which provides the lowest brokerage and cutting-edge trading platforms, is something you should think about if you are a short-term investor. Choose a broker that offers the lowest or no annual maintenance fees, though, if you are a long-term investor. With its cutting-edge trading tools, lowest brokerage, lowest annual maintenance fees, and other features, Pocketful provides you with a demat and trading account. By clicking the link, you can open a demat account with us.

Frequently Asked Questions (FAQs)

Which Demat Account is Best for Beginners?
Depending on their investing goal, beginners should select a Demat account. When searching for short-term trading opportunities, a Demat account with the lowest brokerage is a requirement, but when seeking long-term investment, a Demat account with the lowest yearly maintenance expenses is a must. We at Pocketful provide you with the most affordable brokerage and yearly maintenance fees.
Is there a difference between a demat account and a trading account?
Indeed, the trading account allows you to buy or sell assets, whereas the Demat account just keeps them in electronic form.
Can I open a trading and demat account with the same broker?
Yes, you can open both trading and demat accounts with any broker that offers integrated account services.
Who can open a trading and demat account?
Any resident or non-resident person, corporate entity, or minor may open a Demat account; however, the legal guardian must be the only person able to manage the minor’s account.
What is the minimum amount required to open a demat account?
To start a demat account, you simply need to pay the opening fees, which are typically waived by brokers. There is no minimum amount needed.

Best Online Commodity Trading Platforms in India: Top 10 Picks for Traders

Commodity trading is a dynamic sector that requires speed, reliability, and accuracy; hence, before starting commodity trading, choosing the best commodity trading platforms is essential. A new trader who wishes to start their commodity trading journey is generally confused about which trading platform is suitable for them.

To clear your confusion, Pocketful is here with another blog explaining the key features of the top 10 commodities platforms in India.

What Makes a Good Online Commodity Trading Platform?

A commodity trading platform is a place where sellers and buyers come together to buy and sell different commodities such as crude oil, gold, etc. In India, there are various brokers offering trading services to investors, but choosing the best trading platform among them requires knowledge about their key features.

A good commodity trading platform plays an important role in commodity trading avenues; the major factors that make the best commodity trading brokers in India are as follows:

User Interface: The interface of the commodity trading app provided by the broker must be user-friendly and easy to use.
Reliability: The real-time data provided by the commodity trading platforms must be accurate and reliable
Analytical Tools: The platform which you choose to trade in commodities should be equipped with advanced analytical tools.
Support: The support system of the commodity trading platforms must be available 24/7 to resolve investors’ queries.

Top 10 Commodity Trading Platforms – Comparison Table

Platform	Account Opening Charges	Brokerage Fees	Annual Maintenance Charges (AMC)	Key Features
Pocketful	₹0	₹0 on equity delivery trades	₹0 for the first year	User-friendly interface, free APIs for trading automation
Angel One	₹0	₹20 per executed order or 0.25% of transaction value (whichever is lower)	₹240 per year	Robust advisory services, strong offline presence
Zerodha	₹200	₹20 or 0.03% per executed order (whichever is lower)	₹300 per year	Flat-fee structure, extensive educational resources
Upstox	₹0	Up to ₹20 per order	₹150 + GST per year	Advanced technical analysis tools, user-friendly platform
ICICI Direct Securities	₹0	₹20 per order	₹700–₹975 per year	Integrated 3-in-1 account (banking, trading, demat), comprehensive research
Kotak Securities Limited	₹0–₹499	₹20 per executed order for delivery trades	₹0–₹600 per year	Trusted brand, extensive educational support
Motilal Oswal Financial Services Limited	₹0	0.02% for commodity futures; ₹200 per lot for options	₹400 per year	Portfolio management services, in-depth research reports
IIFL	₹0	0.25% of transaction value for commodity futures; ₹25 per lot for options	₹250 per year	Robust research and advisory services, user-friendly platform
5Paisa	₹0	₹20 per executed order	₹300 per year	Flat-fee trading across segments, cost-effective solutions
Sharekhan	₹0	₹20 per order	₹400 per year	Comprehensive training programs, powerful trading terminal

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Platform features and charges may change—please verify details directly with the service providers before making any decisions.

1. Pocketful – Free Commodity Trading Apps

It is an emerging stock broking firm offering investment opportunities in various asset classes at low fees. The mobile app is easy to use and has a user-friendly interface. Pocketful was launched in 2024 and is a subsidiary of Pace Stock Broking Services. Pocketful has been developed by professionals with more than 27 years of experience. Pocketful is different from other discount brokers as it offers zero delivery and account opening fees, making it the best option for both traders and investors.

Key Features:

Pocketful offers a free commodity trading platform, as there are no account opening fees.
The account opening process is completely online and can be completed without any paperwork.
Pocketful offers APIs to code your trading strategy and automate the trading process.

Best For: The Pocketful platform is suitable for all kinds of investors and traders as it provides a user-friendly interface offering zero brokerage on equity delivery and zero annual maintenance charges for the first year. It also provides advanced trading tools to analyze the market. Hence, one can consider opening a Demat account with Pocketful.

2. Angel One

Angel One is among the leading full-time brokers in India. The company was incorporated in 1996, offering a wide range of services, ranging from stock to commodity trading. It also offers investment advisory services. Their innovative platform focuses on customer needs and wants.

Key Features:

Good customer support is considered the key benefit of opening a demat account with Angel One.
It also provides technical analysis tools in their app.
Angel One has a strong offline presence across the nation.

Best For: This platform is appropriate for individuals who rely on a broker for investing advice.

3. Zerodha

Zerodha is a prominent player in the Indian Stock broking industry. It offers trading facilities in commodity and other investment options. It was founded by the Kamath Brothers in 2010 with a focus on using advanced technology to develop a unique trading platform. Zerodha introduced a new pricing scheme, which was a flat brokerage for trading.

Key Features:

Zerodha is known for its cutting-edge technology and easy-to-use trading interface.
They also have a dedicated customer support team, which helps the investor to resolve their queries.
Zerodha offers a platform known as Varsity, which is an open and free market education platform.

Best For: This platform is suitable for investors who wish to trade in a stock market, with the broker offering low brokerage fees.

4. Upstox

This platform offers a user-friendly trading platform. They have advanced technical tools that help an investor identify the trend of a commodity and execute a trade based on it. They also offer an option chain with a strategy mode in which you can build your strategy and execute the trade.

Key Features:

Through the Upstock app, one can easily execute the trades.
On the platform, you can make multiple watchlists and keep track of various commodities.
The company charges zero AMC to maintain an account with them.

Best For: Traders who want to use technical analysis as a tool to take intraday and swing trades.

5. ICICI Direct Securities

ICICI Direct Securities is one of India’s leading stockbrokers and is a subsidiary of ICICI Bank, a major player in India’s private-sector bank. ICICI Direct offers a three-in-one account, which is a combination of savings, trading, and Demat accounts. Through their three-in-one account, an investor can easily transfer money from their savings account to their trading account.

Key Features:

The company has a strong presence across the nation through its local offices, which helps its investors resolve their queries quickly.
The company offers research and advisory services to their customers.
It also offers personalized wealth management solutions to its investors.

Best For: Investors who wish to have support through local branch offices can opt for ICICI Direct Securities.

6. Kotak Securities Limited

Kotak Securities is a subsidiary of one of India’s biggest private sector banks called Kotak Mahindra Bank. Kotak Securities offers a wide range of products to its investors, including stocks, commodities, derivatives, etc. The web-friendly Kotak Stock Trader or the desktop-centric KEAT Pro X, for example, both cater to active traders with live data from the markets.

Key Features:

In addition to commodity trading, Kotak Securities provides a variety of investment opportunities, including stocks, mutual funds, etc.
Kotak Securities runs various programs to educate investors.
The company has a strong brand reputation as it is backed by Kotak Bank.

Best For: Kotak Securities is suitable for investors who wish to access the learning material and tutorials about the stock market.

7. Motilal Oswal Financial Services Limited

Motilal is considered a prominent player in the Indian broking industry and was established in 1987. It offers various investment options, portfolio management services, advisory services, etc. They provide modern trading platforms, including a desktop terminal and a mobile app. The company has over 30 years of experience and provides research and advisory services.

Key Features:

Motilal Oswal Financial Services Limited offers customized financial solutions to its customers.
Motilal Oswal’s trading app is considered some of the best in the industry due to its user-friendly interface.
Loan against securities facility is offered by Motilal, allowing an investor to pledge their securities and get the loan.

Best For: Suitable for an investor who wants other customized financial products in one place such as portfolio management services.

8. IIFL

IIFL was founded in 1985 as a part of the India Infoline Group. Initially, it was established as an advisory firm and focused on research and its related services. It was listed on the Indian Stock Exchange in the year 2005 and rebranded itself as India Infoline. Through their research reports, the company ensures that their investors make sound investment decisions, and they also offer an advanced commodity trading platform

Key Features:

The company offers research and advisory services to their customers.
The company offers a user-friendly commodity trading platform.
IIFL provides various free educational sessions to help its clients enhance their knowledge.

Best For: Investors who want research and advisory services along with a good trading platform.

9. 5Paisa

5Paisa is one of the top discount brokers in India, providing commodity trading and other services. It was established in 2016 with the primary objective of offering affordable financial services. They are also acknowledged by AMFI as a mutual fund distributor.

Key Features:

They offer a user-friendly web platform and a mobile trading platform to investors, offering them a seamless trading experience.
5Paisa offers investment in mutual funds through its platform.
Their FnO 360 platform offers advanced tools so that investors can make informed trading decisions.

Best For: Investors looking to learn about the stock market through interactive sessions can opt for 5Paisa.

10. Sharekhan:

Sharekhan was founded in 2000, and it is one of the first broking firms in India to offer retail investors access to online trading platforms. It exponentially grows its business by offering franchisees throughout the country. It is known for its offline presence and customer support.

Key Features:

They offer a desktop-based trading terminal known as Trade Tiger, which is equipped with advanced trading tools.
Sharekhan offers an advanced training programme for its investors through its online courses, which is known as Sharekhan Classroom.
It has a dedicated customer support team to address its customers’ queries.

Best For: Sharekhan is best suited for those who wish to learn something new about technical and fundamental analysis.

How to Choose the Right Commodity Trading Platform App?

There are various parameters that one should consider before choosing an online commodity trading platform; a few of such key features are mentioned below:

Understanding Needs: Make sure the platform that you are opting for meets all of your needs.
User Interface: The user interface of the application must be easy to understand and reliable to enhance the user experience.
Technical Tools: There are various types of advanced trading tools that traders require to trade efficiently in the commodity market.
Execution: The commodity trading platform must execute orders instantly and efficiently.
Charges: The trading platform that you are opting for must offer its trade execution services at a low cost.
Hidden Charges: There must be no hidden charges in the commodity trading platform that you are opting for.

Conclusion

To sum up, in this blog, we have given you an overview of the best commodity trading platforms in India. Trading in commodities gives you a chance to gain significant profit with knowledge and expertise. Although many brokers are offering online commodity trading platforms, it is advised that you evaluate brokers based on their fees, the trading platform, etc., offered by them and then select the one suitable for you.

Pocketful also offers you an online commodity trading platform with no account opening charges, and it is among the best commodity trading apps in India.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

What are the fees involved in commodity trading on these platforms?
There are various types of fees involved in this commodities trading platform, such as brokerage, STT, SEBI Turnover Fees, GST, etc.
Can I trade commodities in India without a broker?
No, you cannot trade in commodities unless you open a commodity account with a broker.
How can I practice commodity trading without real money?
One can practice commodity trading without using real money through paper trading strategies and using a free trading simulator.
Can I trade in Gold and Silver?
Yes, you can trade in gold and silver through a commodity trading account, and you can open it with a Pocketful.
Does Pocketful offer trading opportunities in commodities?
Yes, one can begin their trading journey in commodities by opening a Demat and a trading account with a Pocketful.

January 15, 2025

What is Paper Gold? – Meaning, Types, & Benefits

Have you ever wanted to invest in gold but felt daunted by the idea of storing it in physical form? Enter Paper Gold—a modern, hassle-free alternative for both traders looking to bet on short-term price moves and investors wishing to invest in gold in a secure manner. Be it for executing speculative trades or portfolio diversification; paper gold has become the preferred way to invest or trade in gold.

In this blog, we will describe paper gold, its different types and investing mechanisms in detail. We will also describe the benefits and limitations of investing in paper gold and compare the features of paper gold with those of physical gold.

What is Paper Gold?

Unlike traditional gold investments, paper gold is a financial instrument that allows investors to gain exposure to gold’s price movement without the burden of physical possession. These are instruments like ETFs, futures contracts, or options that track the gold price, existing purely in paper or digital form. While physical gold offers a tangible security, paper gold is highly liquid, mirrors pricing movement instantly and can be easily traded.

How Different Types of Paper Gold Work?

Now, we are going to discuss the types of paper gold available in the market and how they work. There are basically four main types of paper gold:

1. Gold ETFs

ETFs or exchange-traded funds are investment funds that invest in gold whose shares trade on the stock market. These funds aim to track the price movements of gold either through physical ownership of gold or through derivatives linked to gold. The share price of the gold ETF moves according to the price changes in physical gold and thus provides market participants with a way to invest or trade in gold. Moreover, investors with small investment amounts can invest in gold ETFs as they have a very low share price.

2. Gold Futures

Gold futures is a financial contract between a buyer and a seller where the buyer agrees to buy a specific amount of gold at a predetermined price on a future date. Buying a gold futures contract doesn’t mean you actually take immediate possession of the physical asset. Rather, a futures contract gives a buyer the right to purchase the precious metal at a future date at a price set today. Gold futures trade on MCX in India.

3. Digital Gold

Digital gold provides a virtual investment option for buying, selling, or holding gold without any physical ownership. One can buy electronically through an authorized online platform. The digital gold that you buy is backed by physical gold in safe custody and stored by the issuer. Your investment can be redeemed either in cash or gold, hence giving you the flexibility of transactions with no worry of storage or security.

4. Sovereign Gold Bond

SGB, a government-backed security issued by the Reserve Bank of India, represents ownership of gold. Instead of purchasing physical gold, investors buy these bonds with a fixed interest rate per annum. At the time of maturity, the bonds can be redeemed at a price based on the market price of gold. By investing in SGBs, one does not have to worry about storage and can take advantage of tax benefits and capital gains due to gold price appreciation.

Benefits of Investing in Paper Gold

The upsides of investing in paper gold are:

Liquidity – Paper gold, such as gold ETFs, can be bought and sold in seconds on stock exchanges during trading hours. Money can be withdrawn easily, unlike physical gold, where finding a buyer and seller can take days.
No risk of theft – Paper gold does not need any locker or insurance and hence has eliminated the risk of theft.
Affordability – With paper gold, one can begin investing in gold with small amounts of money.

Limitations of Investing in Paper Gold

The limitations of investing in paper gold are:

No tangible ownership – Paper gold doesn’t provide the comfort or utility of having the actual gold that gives a sense of ownership and can be worn as jewelry or displayed.
Default risk – Though such incidences would have been rare, there is still a possibility of default when the issuer of gold bonds or certificates goes bankrupt. There is no such risk when dealing with physical gold.
Price Volatility – Paper gold prices can fluctuate considerably due to volatile price movements in gold prices. Investors may suffer losses if paper gold instruments such as gold ETFs perform poorly in the short term.

Comparison: Paper Gold vs Physical Gold

Particulars	Paper Gold	Physical Gold
Definition	Paper Gold is a certificate or digital ownership of gold that proves that you have invested in gold.	Physical Gold is real gold. The kind of gold that you can melt and shape into jewelry.
Ownership	Investing in paper gold doesn’t give you physical possession of gold.	Investing in physical gold provides ownership.
3^rd Party Management	Since the investor doesn’t hold the gold physically, he/she has to rely on intermediaries to store and manage it. This creates 3^rd party risk or credit risk.	Since the investor has possession of gold, he/she doesn’t have to face any 3^rd party risk.

Who Should Invest in Paper Gold?

Paper gold is best suited for investors who would rather have exposure to gold than take on the hassles of storing physical gold and bearing associated costs. Individuals wanting to diversify their investment portfolios can also consider investing in paper gold. Moreover, people with a small capital to invest would also benefit, as paper gold allows you to invest small amounts.

Investors can invest in SGBs as they pay a consistent stream of interest income and are eligible for capital gain exemption upon maturity. This is likely not to appeal to traditional investors, though, who might want a sense of ownership of gold and want to own gold in physical form.

How to Invest in Paper Gold?

1. Gold ETFs: To invest in Gold ETFs, open a Demat and trading account with a stockbroker, search for gold ETFs on the stock exchange, and buy the required number of units.

2. Sovereign Gold Bonds: SGBs can be bought from banks and post offices or through online platforms.

3. Gold Mutual Funds: Investing in Gold Mutual Funds can be done through asset management companies or brokers. These funds are invested directly in gold and other gold derivative instruments.

Conclusion

Paper gold is a way for investors to realize the benefits of investing in gold without the drawbacks of physical ownership. Paper gold can be in the form of ETFs, SGBs, gold futures, etc. Gold ETFs and gold futures are quite liquid, allowing investors an easy and quick way to invest in gold. SGBs provide a consistent income stream and tax exemptions. These factors make it an attractive investment proposition to modern investors. But like every other financial product, this one also has its disadvantages as many consider holding gold in physical form auspicious or for making jewelry. The choice between paper gold and physical gold will ultimately depend on your investment goals and risk profile. It is advised to consult a financial advisor before investing.

Frequently Asked Questions (FAQs)

What is paper gold?
Paper gold refers to financial instruments like gold ETFs, gold futures, and sovereign gold bonds that represent gold ownership without holding the metal in physical form. It offers exposure to gold’s price movements in a more convenient form.
What are the benefits of investing in paper gold?
Advantages of investing in paper gold include liquidity, relative affordability, absence of storage costs, etc.
What are some other risks involved with paper gold?
Risks of investing in paper gold are price volatility and third-party or default risk of the issuing entity.
Is paper gold a safe investment?
Paper gold is relatively safe if bought through trusted platforms. SGBs are also safe as they are backed by the government. Still, it has risks, such as price volatility and third-party default risks in some cases.
What is the lowest amount of investment in paper gold?
The minimum investment amount for paper gold differs from one issuer to another. There are some issuers who allow a minimum investment of Rs.1, while Sovereign Gold Bonds would require a much higher investment amount.

January 15, 2025

Commodity Trading Regulations in India: SEBI Guidelines & Impact

Commodity Trading is important for the global economy as it allows the trading of vital resources like crude, metals, and agricultural goods. But, there’s a catch – it’s not without risks as the market features volatile price shifts. The regulatory body has enforced strict rules to ensure safe and fair trading practices.

In this blog, we will examine commodity trading regulations and their impact on market participants.

What is Commodity Trading Regulation?

Commodity trading regulations refer to the framework of the laws and rules that govern the trading of physical goods and their associated derivative contracts. These commodities include agricultural products, energy resources, and metals. The commodity trading regulations safeguard participants from manipulation and insider trading by reducing excessive speculation that can cause extreme price volatility.

Regulatory Body in Commodity Trading

The Securities and Exchange Board of India (SEBI) regulates the commodity derivatives market in India. However, before September 28, 2015, the Forward Markets Commission (FMC) regulated the commodity futures market in India.

The FMC was merged with SEBI to improve regulation of the commodity futures market. SEBI now oversees commodity derivatives trading in India. Commodity exchanges that are regulated by SEBI are as follows,

Multi Community Exchange of India (MCX)
National Commodity and Derivatives Exchange (NCDEX)

Additionally, the Warehousing Development and Regulatory Authority (WDRA) collaborates with SEBI to oversee the storage of the physical commodities tied to derivative contracts.

Read Also: What is Commodity Market in India?

Regulations in Commodity Trading

Below are some of the key points from the SEBI guidelines for the commodity derivatives market.

Trading Hours

Trading hours are standardized for both agricultural and non-agricultural commodities. Trading shall be permitted only from Monday to Friday, and trading hours are fixed by the exchanges.

For non-agricultural commodities, the trade start time is 9:00 AM, and the trade end time is 11:30 PM (after the start of the US daylight savings in the spring season) and 11:55 PM (after the end of US daylight savings in the fall season). For agricultural and agri-processed commodities with international reference linkages, the trade start time is 9:00 AM, and the trade end time is 9:00 PM. The trade end time is 5:00 PM for agricultural and agri-processed commodities without international reference linkages.

Trading Holidays

The commodity market remains closed on weekends, i.e., Saturdays and Sundays and on all notified public and national holidays. However, there are a few public holidays on which the commodity market is open for trading for one session.

UCC & PAN

Unique client codes (UCC) are required for executing transactions on the exchange to ensure traceability and compliance with regulations, and brokers must disclose their proprietary trading to clients to improve transparency. Members of the exchange must upload UCC details before executing trades in the commodity derivatives segment. Furthermore, the PAN will be the only required identification number for anyone wishing to trade on a commodity derivatives exchange.

Warehouse Accreditation and Delivery Processes

Accredited warehouses are essential for the safe storage of the delivered commodities. Warehouse Service Providers (WSP) provide safe storage facilities for storing underlying goods related to a commodity derivatives contract. Standards regarding infrastructure, insurance, financial stability and corporate governance are set, and regular audits and inspections ensure compliance with quality and operational standards.

Transparency Measures and Disclosure Norms

Commodity exchanges should publicly report daily open interest, put call ratio, bhav copy and other market data to provide insights into market activities. Moreover, in the stock market, companies provide information related to commodity price risks and hedging strategies in their annual reports to help stakeholders evaluate their exposure.

Spot Price Polling

Commodity exchanges use Spot Price Polling Mechanism to determine current spot prices. Transparent spot price discovery is crucial for the smooth operation of the derivatives market, as these prices serve as reference points for contract settlements on the exchange. Commodity exchanges determine current spot prices by inviting price quotes from a panel of polling participants.

Support for Farmers and FPOs

SEBI has lowered regulatory fees on stock exchanges for agricultural commodity derivatives to encourage participation from farmers and Farmer-Producer Organizations (FPOs). The goal is to lessen the financial burdens on farmers by increasing savings from reduced regulatory fees by the exchanges. Farmers can get reimbursed a certain percentage or fixed amount of options premiums, which encourages them to participate in the derivatives market. Reimbursement of Mandi tax and clearing corporation fees are some other measures introduced to increase the participation of farmers and FPOs.

Investor Protection Mechanism

The IPF, or the investor protection fund, will be managed by a separate Trust, which will have a maximum of 5 trustees. The trust will include three public interest directors, one representative from the investor’s association, and the exchange’s chief compliance officer or chief regulatory officer. The objective behind establishing this fund is to protect investors by providing compensation to those who have been impacted by a defaulting trading member. IPF gets its money from penalties and regulatory fees.

Investor Grievance Redressal System

The stock exchange must create an Investor Grievance Redressal Committee (IGRC) to address investor complaints. Investors can submit their complaints through SCORES 2.0 (SEBI Complaint Redress System), which is a centralized grievance redressal system of SEBI. The complaint is first reviewed by the exchange and is then reviewed by SEBI.

Liquidity Enhancement Scheme (LES)

LES aims to boost trading in less active markets. The exchange’s board must approve the scheme after due diligence, review its effectiveness every six months, and provide SEBI with biannual reports. Exchanges must ensure the scheme is fair, transparent, and reviewed quarterly by their boards. Incentives like fee discounts or cash payments are designed to attract market makers. The scheme for a specific product lasts up to 3 years, aiming to boost liquidity without causing long-term dependence.

Impact of Regulations on Commodity Traders

Regulations and commodity trading greatly affect market participants. These impacts can be both beneficial (promoting stability and fairness) and challenging (creating constraints and operational burdens). Let us have a quick overview of the impact of regulations.

Positive Impacts

Enhanced market integrity: Regulations ensure a transparent and fair marketplace by reducing fraud and unethical practices. Traders can feel more confident about the legitimacy of the trading environment due to the presence of strict regulations.
Risk management: Regulations like margin requirements and position limits play an important role in reducing risk.
Increased Liquidity and Participation: Strong regulatory oversight increases participation from institutional and retail investors, thus enhancing liquidity.
Price transparency: Reporting and disclosure requirements improve price discovery, which helps traders and other market participants. Price information and other market data obtained from reliable sources such as the exchange website promote the development of competitive strategies.
Investor Protection: Grievance redressal mechanisms protect small traders and investors.

Negative Impacts

Operational Costs: Complex regulatory frameworks demand substantial resources and experienced professionals for reporting and audit purposes. Smaller trading members may find it difficult to compete because of the high cost of complying with strict regulations.
Limited flexibility: Position limits, margin requirements, and contract specifications limit aggressive trading strategies. The restrictions may limit the profit potential for speculative traders.
Increased oversight: Continuous oversight by regulatory bodies can lead to extra administrative work.
Adapting To Dynamic Rules: Frequent regulatory updates require traders to stay informed and adaptable, which can be resource-intensive. Non-compliance, even if unintentional, can cause penalties or loss of trading rights.

Conclusion

SEBI’s regulations aim to establish a strong and transparent commodity trading system. SEBI promotes market stability and inclusivity, especially for farmers and small traders, by enforcing strict trading risk management systems and participant responsibility guidelines. These regulations protect investors and enhance India’s status as a growing hub for commodity trading. It is advised to consult a financial advisor before trading in commodities.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur

Frequently Asked Questions (FAQs)

Are there limits on how much a commodity’s price can move in a day?
SEBI imposes daily price limits or DPLs to prevent excessive volatility and speculative manipulation.
How does SEBI manage cybersecurity risk in trading?
Exchanges are required to carry out annual system audits, implement cyber security measures, and ensure real-time monitoring of trading platforms.
Why are regulations important in commodity trading?
Regulations ensure market transparency, prevent fraud, reduce volatility and protect investors.
What is the position limit in commodity trading?
Position limits restrict the maximum number of contracts a trader can hold to prevent market manipulation and speculative trading practices.
Can foreign investors participate in Indian commodity markets?
Foreign participants can trade in an Indian commodity market subject to SEBI regulations.

January 15, 2025

Best Artificial Intelligence (AI) Smallcap Stocks

Artificial Intelligence (AI) has been an emerging trend for quite some time due to its applications in healthcare, finance and other industries. This technological revolution has a huge potential to shape the future of the finance industry, which is why investors are always seeking investment opportunities in the AI sector. You would be surprised to know that there are some small-cap AI stocks that have the potential to grow way faster than their large-cap peers.

In this blog, we will discuss some of the best small-cap AI stocks in India, as well as their potential, risks and the future of the AI industry.

What are AI Smallcap Stocks?

AI small-cap shares are stocks issued by smaller IT corporations developing innovative AI solutions. These companies are using AI to develop superior software, data analytics tools, robots, or machine learning techniques that have a lot of applications in other sectors. Small-cap AI stocks are very different from big companies as they are high-risk, but if they achieve success in developing superior products and services compared to their peers, then they have the potential to deliver huge returns in the future.

Why Invest in Small-Cap AI Stocks?

Small-cap AI companies are usually at the forefront of innovation and bring the most important contributions to machine learning, data analytics, and automation. The companies profit through the following ways as the following:

High Growth Potential: Small-cap AI stocks have the potential to achieve exponential growth as the AI adoption rate accelerates.

Undervalued Opportunities: A good number of companies in this category are undervalued, making them quite affordable for the stockholders to get in at very low prices.

Diverse Applications: AI Applications are complex and show different tendencies in e-commerce, travel, health care, and IT services.

Market Information of AI Smallcap Stocks

Company	Share Price (in ₹)	Market Capitalization (In ₹ Crores)	52 Week High Price (in ₹)	52-Week Low Price (in ₹)
Saksoft Ltd.	218	2,895	320	168
Zensar Technologies Ltd.	794	18,024	840	513
Happiest Minds Technologies Ltd.	738	11,239	961	692
Cyient Ltd.	1,777	19,725	2,365	1,652
Kellton Tech Solutions Ltd.	159	1,553	184	85
Affle India Ltd.	1,781	25,021	1,884	998

Affle India continues to optimize mobile advertising performance by using AI insights, thereby maximizing marketing ROI for brands and effectively reaching the right audience. Its innovative approach and stronghold on AI technology will help it maintain its position as the leader in the competitive mobile advertising industry.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
32.77%	28.64%	464.25%

(Data as of 7 January 2025)

Key Performance Indicators

Company	Net Profit Margin (%)	ROE(%)	ROCE (%)	Debt to Equity Ratio	EV/EBITDA
Saksoft Ltd.	12.62	19.02	23.09	0.02	16.59
Zensar Technologies Ltd.	13.56	18.66	23.63	0.00	12.60
Happiest Minds Technologies Ltd.	15.28	16.78	21.59	0.30	24.26
Cyient Ltd.	9.83	16.03	20.61	0.11	16
Kellton Tech Solutions Ltd.	6.51	14.43	18.30	0.29	9.88
Affle India Ltd.	16.13	11.90	13.09	0.07	32.39

(Data as of 7 January 2025)

Benefits of Investing in Smallcap AI Stocks

The benefits of investing in smallcap AI stocks are:

State-of-the-Art Technology: Smallcap AI companies have the expertise to help businesses streamline their operations with the help of technology.

Market Disruption: AI technology has the potential to disrupt conventional industries, which will give investors an option to earn extraordinary returns.

Agility: Small-cap companies are able to adapt to market changes and customer demands quicker than bigger companies.

Risks of Investing in Smallcap AI Stocks

The risks of investing in smallcap AI stocks are:

Volatility: These smallcap AI stocks can be volatile due to adverse market trends, speculative trading, etc.

Intense competition: The fierce competition from established IT companies will likely be the main barrier to the success of smallcap AI stocks.

Limited resources: Small companies may face issues in their business operations, such as scaling up due to the lack of sufficient resources.

Regulatory challenges: The adoption of AI technologies can be much slower than expected if the regulatory policies are not favorable.

Future of the AI Industry in India

The future of AI looks promising due to the reasons mentioned below:

Wide-scale Applications: Companies developing AI solutions can witness an increase in their revenues as their products and services have applications in many industries.

International Collaboration: International collaboration with some big tech giants is leading innovation and funding for AI-focused start-ups.

Expanding Talent Pool: The talent pool is growing in India, which will ensure that the country will have a steady supply of skilled professionals for the AI industry.

Conclusion

Artificial intelligence small-cap stocks have the potential to be an excellent investment for those who would like to benefit from the adoption of AI technologies. The future of industries will be defined by solutions and innovations from companies like Saksoft, Happiest Minds, Affle India, etc. These are some of the best small cap AI stocks that will drive your portfolio performance in the near future.

The companies mentioned in this blog have a promising future but do not forget to consider your risk tolerance and diversify your investments to achieve a balance of risks and rewards. AI is the future, and investing in small-cap AI stocks can be one of the best ways to be a part of this digital transformation.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Best Smallcap Defence Stocks in India
2	Best Small Cap Electric Vehicle Stocks
3	Best Smallcap IT Stocks in India
4	Best Smallcap Stocks in India
5	Best Smallcap Semiconductor Stocks in India

Frequently Asked Questions (FAQs)

Which is the best AI stock in India?
Saksoft, Happiest Minds Technologies, Affle India, and Cyient are some of India’s best AI stocks. However, you should consult a financial advisor before investing in these stocks.
What is the fastest-growing small-cap AI stock?
Saksoft has been the fastest-growing smallcap AI stock as it has generated a return of 1,143.16% in the past five years.
Are small-cap AI stocks risky?
Yes, investing in small-cap AI stocks can be risky due to high volatility due to adverse market trends and speculative trading activities.
How do you evaluate small-cap AI stocks?
Consider factors such as revenue growth, market position, innovation in AI, and industry trends to identify AI stocks with the best future growth potential.
Which sectors are getting the most benefit from AI small-cap companies?
Healthcare, finance and marketing sectors are some of the key beneficiaries of AI-driven solutions offered by small-cap AI firms.

January 14, 2025

Blog

5 Key Risks in Commodity Trading

1. Price Volatility Risk

2. Credit Risk

3. Geopolitical Risk

4. Leverage Risk

5. Liquidity Risk

How to Effectively Manage Risks in Commodity Trading

Conclusion

Frequently Asked Questions (FAQs)

What are the most volatile commodities to trade?

How can I avoid losses due to leverage?

What is the best way to hedge in commodity markets?

Can I trade commodities with minimal risk?

What is the role of diversification in commodity trading?

What is an Algorithmic Trading Strategy?

Best Algorithmic Trading Strategies

How to Start Algo Trading Strategies with Pocketful API

Reasons for Algo Trading’s Growing Popularity

Conclusion

Frequently Asked Questions (FAQs)

Who uses algorithmic trading?

What technologies power algorithmic trading?

Is algorithmic trading safe?

What is backtesting in algorithmic trading?

What are the risks involved in algo trading?

What is Maha Kumbh Mela?

List of Sector and Stocks which will benefit from Maha Kumbh Mela

1. Tourism and Hospitality Sector

2. Transportation Sector

3. Consumption Sector

4. Telecom Sector

5. Media and Entertainment Sector

6. Infrastructure Sectors

Conclusion

Frequently Asked Questions (FAQs)

Which sector will benefit from Kumbh Mela 2025?

What is Maha Kumbh 2025?

What are some stocks that will benefit from Maha Kumbh Mela?

What could be the long-term impacts of Maha Kumbh Mela on different sectors?

How will the hospitality and tourism sector benefit from the Maha Kumbh Mela?

Here Are the 5 Tips for Successful Commodity Trading

1. Market Cycle

2. Tracking the Global Events

3. Volatility

4. Leveraged Positions

5. Selecting Broker

Conclusion

Frequently Asked Questions (FAQs)

How much capital do I need to start trading in commodities?

What commodities are best for beginners to start trading?

What is commodity trading?

How to start commodity trading?

What are the most traded commodities in India?

What are Asset Management Companies?

List of AMC Stocks in India

Overview of AMC Stocks

1. HDFC Asset Management Company Limited

2. Nippon Life India Asset Management Limited

3. Aditya Birla Sun Life AMC Limited

4. UTI Asset Management Company Limited:

5. Shriram Asset Management Company Limited

Key Performance Indicators (KPIs)

Advantages of Investing in the Finance Asset Management Sector Stocks

Risk Involved while Investing in Finance Asset Management Sector Stocks

Future of Asset Management Sector Stocks

Conclusion

Frequently Asked Questions (FAQs)

What is AMC?

Does AMC charge fees from investors?

Who regulates AMCs?

How many registered AMCs are there in India?

What is Assets Under Management (AUM)?

Which are the top asset management companies in India?

What is the major revenue source of asset management companies?

What are the factors which can impact the performance of an asset management company?

How do you invest in the stocks of asset management companies?

What is a Demat Account?

What to Look for in a Demat Account App?

The 15 Best Demat Accounts in India for 2025 – AMC Free/Paid