Blog

Difference Between Equity Share and Preference Share

Have you ever thought of investing in the stock market? Well, if so, then you need to understand the types of securities that are there. Of these, equity shares and preference shares hold a prominent place for investors.

Investing in either offers you an opportunity to own a part of the company. But the main difference lies in their features and benefits that you get as an investor.

This is why we bring you this guide that highlights the key difference between equity shares and preference shares. Explore everything you need here and make an informed investment decision in no time.

What Are Equity Shares?

When it comes to investing, equity shares are indeed the first thing you might come across. These are the shares of the company which allows you to own a part of the company as well. When you buy them, you become an equity shareholder.

You will enjoy voting rights and will earn from the price movements of the stock on NSE and BSE. They do carry a substantial amount of risk as well. But they also offer you unlimited growth potential through rising share prices and dividends.

The common types of the equity shares include ordinary, bonus, rights, sweat, voting, and non-voting shares. This makes equity shares popular among investors seeking long-term wealth creation.

Features of Equity Shares

Equity shares come with distinct features that separate them from preference shares:

Ownership Rights: Equity shareholders are considered true owners of the company.
Voting Rights: They can participate in company decisions and elect the board of directors.
Residual Claim: In case of liquidation, they are paid after preference shareholders and creditors.
Variable Dividends: Dividends are not fixed and depend entirely on profits.
No Maturity: Equity shares are permanent. They do not have a repayment date.
High Risk, High Reward: The shares offer high risk and volatility. But if you want wealth building, these are great choices.

Pros of Equity Shares

Ownership and Control: Equity shareholders have the power to vote and so influence the decisions of the company as well.
Potential for Capital Appreciation: Changes in the share price would lead to capital building as well.
Dividend Earnings: You might get a dividend on your shares which is an additional earning apart from profits.
Liquidity: Since the shares are listed on NSE and BSE, you can easily sell them when you wish.
Inflation Protection: Over the long term, equity investments often beat inflation.

Cons of Equity Shares

Market Volatility: Prices fluctuation based on market conditions can lead to losses.
Uncertain Dividends: Companies are not obligated to pay dividends every year.
Residual Status: In liquidation, equity shareholders are the last to be paid.
Ownership Dilution: Issue of new shares reduces existing shareholders’ stake.
Requires Patience: Returns are often realised only in the long run.

What Are Preference Shares?

Preference shares are a type of ownership security. It is where the shareholders get some kind of preferential rights in the company. Though they do not have the voting rights, yet they have some rights which are better as compared to the rest.

A preference shareholder gets priority when it comes to receiving dividends and repayment of capital in case of liquidation. They have limited control over company decisions.

The common types include cumulative, non-cumulative, redeemable, non-redeemable, convertible, non-convertible, participating, and non-participating.

Preference shares are often seen as a mix between equity and debt. This is why they offer steady income through fixed dividends with lower risk.

Features of Preference Shares

Preference shares carry unique features that make them distinct from equity shares:

Fixed Dividend: Preference shareholders are entitled to a fixed dividend, regardless of profits.
Priority Claim: They are paid before equity shareholders during profit distribution or liquidation.
Limited Voting Rights: They generally cannot vote. But there are special circumstances where they can.
Hybrid Nature: They combine features of debt and equity both.
Lower Risk: They provide more stability. This makes them suitable for conservative investors.

Pros of Preference Shares

Steady Income: Preference shareholders receive fixed dividends regularly.
Priority in Payment: They get the dividend before the rest. They have priority in liquidation as well.
Lower Risk: They face less risk due to guaranteed returns.
Hybrid Advantage: You get both ownership and debt advantage.
Suitable for Risk-Averse Investors: Ideal for those looking for security rather than high growth.

Cons of Preference Shares

No Voting Rights: There is no say in the decision making at all.
Limited Growth: Dividends are fixed. So the growth chances are limited.
Redeemable Nature: Some preference shares may be recalled by the company after a certain period.
Less Liquidity: They are not as actively traded as equity shares in stock markets.
Lower Returns in Long Term: Compared to equity, preference shares offer modest wealth creation.

Equity Shares Vs Preference Shares

Both equity shares and preference shares represent ownership in a company. But there is a difference between the two that you must know. Here are differences to know:

Aspect	Equity Shares	Preference Shares
Ownership	Equity shareholders are considered the real owners of the company with full control rights	Preference shareholders have partial ownership with priority in dividends and repayment
Voting Rights	Equity shareholders have voting rights on company matters	Preference shareholders generally do not have voting rights except in special cases
Dividend	Dividend is variable and depends on company profits	Dividend is fixed and paid before equity shareholders
Risk	Higher risk due to market fluctuations and residual claims in liquidation	Lower risk as they enjoy priority in payment
Capital Repayment	Equity shareholders are paid last during liquidation	Preference shareholders are repaid before equity shareholders
Returns	Potentially high due to capital appreciation and variable dividends	Limited to fixed dividends with modest growth
Liquidity	Equity shares are highly liquid and widely traded	Preference shares are less liquid in comparison
Convertibility	Equity shares cannot be converted into preference shares	Preference shares can sometimes be converted into equity shares if specified by the company
Redeemability	Equity shares are permanent and cannot be redeemed	Some preference shares can be redeemed after a fixed period
Priority in Assets	Equity shareholders have claim over assets only after creditors and preference shareholders are paid	Preference shareholders have a higher claim on assets compared to equity shareholders

Conclusion

The difference between equity shares and preference shares is very important to know. While both have ownership in the company, their nature is unique. Their risk and return capacity also differ.

Understanding this will allow you to make the right investment call which is important to avoid losses. Both offer growth and a chance to build wealth as well. As an investor, the choice depends on whether you seek long-term capital growth or fixed returns with lower risk.

But to start investing in these, you need a great platform. This is where Pocketful can guide you with expert resources and tools to make informed decisions. Start your investment journey today with Pocketful.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Difference Between Intraday Trading and Delivery Trading
2	ETF vs Stock – Which One is the Better Investment Option?
3	Stock Market vs Commodity Market
4	Difference Between Options and Futures
5	Difference Between Trading and Profit & Loss Account
6	SIP in Stocks vs SIP in Mutual funds?
7	SIP vs Lump Sum: Which is Better?
8	Mahindra & Mahindra vs Tata Motors: Which is Better?
9	Bank of Baroda vs SBI Bank: Which is Better?
10	PNB Vs Bank of Baroda: Which is Better?
11	MRF vs Apollo Tyres: Which is Better?
12	Bank of Baroda Vs Canara Bank: Which is Better?
13	Mutual Fund vs ETF. Are They Same Or Different?
14	Gold ETF vs Gold Mutual Fund: Differences and Similarities
15	ETF vs Index Fund: Key Differences You Must Know

Frequently Asked Questions (FAQs)

Who should invest in equity shares?
Equity shares are better suited for investors who can take higher risk, stay invested for the long term, and aim for capital appreciation along with dividend income.
Who should invest in preference shares?
Preference shares are ideal for conservative investors who prefer fixed income and lower risk, even if it means limited growth opportunities.
Can a company issue both equity and preference shares?
Yes, companies often issue both. Equity shares form the base ownership, while preference shares are used to raise capital with fixed return obligations.
Do preference shareholders ever get voting rights?
Generally no, but preference shareholders may get voting rights if their dividend payments are delayed for a specified period or in special circumstances defined by law.
Are preference shares traded on stock exchanges like equity shares?
Some preference shares are listed, but they are not as widely traded as equity shares. This makes them less liquid compared to equities.

November 23, 2025

What is Hedging?

Profits from investment always come with risk, whether it can be market risk, currency risk or interest rate risk. An investor is always concerned about how to eliminate or reduce such risk. One of such techniques to reduce risk is “Hedging”.

In today’s blog post, we will give you an overview of hedging, along with its features, types and advantages.

Meaning of Hedging

Hedging is a risk management tool used by investors to protect their portfolio against losses due to adverse price movement of a particular underlying asset. It is typically known as insurance for your investment portfolio. It can be implemented using various financial instruments called derivatives, etc.

Features of Hedging

The following are the key features of hedging :

Risk Management: It is generally used to minimise the risk of a portfolio due to fluctuation in the price of the underlying asset.
Derivatives: Hedging can be implemented using derivative tools such as futures, options, etc.
Volatile Market: The effectiveness of hedging depends on the market volatility and the type of instrument used in it.
Cost: Usage of hedging comes with costs such as premiums paid for an option, etc.

Types of Hedges

The various types of hedges are as follows:

1. Forward Hedge

Under a forward hedge, two parties enter into the contract to buy or sell a particular asset at a future date for a fixed price. These contracts are customizable based on the needs of the parties.

2. Future Hedge

Future hedging contracts are standard contracts that are traded on an exchange. It allows an investor to buy and sell a particular asset at a set price in the future.

3. Money Market Hedge

Money market hedges are used by the investor to protect their bond portfolio against currency risk.

4. Option Hedge

Through buying an option, the investor gets the right but not the obligation to buy and sell an asset at a specific price before the expiry of the contract. This helps protect against unfavorable price movements.

Hedging Strategies

The key hedging strategies are as follows:

Asset Allocation: It is done by diversifying an investor’s capital across different types of assets. For example, you may invest 30% of your money into stocks and the rest into fixed assets to help balance your portfolio. However, this allocation depends on the investor’s risk profile.
Structure Investment: Under this type of strategy, a portfolio of investors is kept in debt, while the remaining portion is kept in derivatives. It ensures that the debt fetches a stable return, whereas the derivative investment helps in the protection of the portfolio against risk.

Examples of Hedging

The various examples of hedging are as follows:

Stock Hedging: For example, an investor is holding Reliance Industries stock in the cash market and is worried about the decline in its price. Then he can hedge his position by buying a put option, which gives them the right to sell at a fixed price in case of a fall in the price of the underlying stock.
Commodity Hedging: These are used by the individual who trades in commodities, etc. For example, a farmer has grown crops, but he is worried about the price drop in future. In this case, a farmer can hedge its risk by selling the futures contract for its crop at the current price.
Portfolio Hedging: In this type of hedging, the investor hedges their entire portfolio. Let’s say Mr A has a holding of Pharma-related companies, and he wishes to hedge his portfolio against any downside risk. Now he can sell the future contract of the IT index and mitigate its risk.

Advantages of Hedging

The key advantages of hedging are as follows:

Reduce Risk: The key benefit of hedging is that it protects the portfolio against the adverse impact of price movements.
Increases Confidence: Once the investor comes to know that the portfolio is protected against loss, it increases their confidence.
Diversification: Portfolio hedging spreads the risk across various asset classes, helping to reduce the risk of the portfolio.

Risk of Hedging

There are several risks involved while using hedging. A few of such risks are mentioned below:

Cost: Hedging involves various costs, such as transaction costs, premiums, etc. This can reduce the effectiveness of the strategy.
Market Risk: The market risk persists; however, hedging tries to eliminate such risk. But it cannot be eliminated.
Liquidity: There might be certain cases where the liquidity in a particular derivative contract is limited. Hence, it might be difficult for an investor to exit their position.

Conclusion

In conclusion, hedging is a clever strategy used by traders and investors to guard their portfolios from possible deviations. It can undoubtedly assist in lowering down the risk metric to a more manageable level, even though it isn’t totally eliminated. However, it is crucial to understand how it operates before attempting any hedging strategy and if at all possible, consult a financial advisor. Hedging carries its own set of risks which need to be considered further.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Small Finance Bank Share List in India
2	Best NBFC Stocks List in India
3	Top AMCs in India
4	List of Government Bank Stocks/Share in India
5	Top 10 Best Credit Cards in India
6	Best Banking Stocks in India
7	Best Banks for Savings Accounts in India
8	Best Bank Penny Stocks List
9	Open Interest: Meaning, Functionality & Importance
10	Best Education Loan in India
11	What is Non Convertible Debentures?
12	GST 2.0 Reform: Key Changes & Market Impact
13	How to Buy NCDs in India?
14	50 Passive Income Ideas in India You Can Start
15	How to Register a UPI Complaint?

Frequently Asked Questions (FAQs)

What are the types of hedging?
The most common types of hedging are forward hedging, futures hedging, options hedging, etc.
Does hedging eliminate 100% risk?
No, hedging does not eliminate 100% risk; however, it can reduce it to a certain level and can also reduce profit potential.
Why is hedging used by investors?
Hedging is generally used by investors to reduce the risk related to unexpected price movement, unfavourable losses in the portfolio.
Does hedging require only derivatives?
No, hedging does not always require derivatives; hedging can also be done through diversification of a portfolio across different industries, etc.
Does hedging involve any cost?
Yes, hedging of a portfolio involves some additional cost, such as option premiums paid, transaction costs, etc.

November 23, 2025

What is Commodity Valuation?

When you start to trade in commodities, one of the major questions or challenges that you will face will be linked to the valuation.

Though it might sound like a very basic thing, in reality, understanding the key concepts linked to the valuation becomes very important. This will ensure that not just you know what you are paying for, but also whether you are paying right or wrong.

This is where the concept of commodity valuation comes into play. So, to help you understand this better, we have curated this guide. From definition to mechanisms and factors affecting commodity valuation, everything is covered here. So, read this to know everything easily.

What is Commodity Valuation?

Commodity valuation is the process of assessing the fair market price of raw materials. It is for products such as metals, energy products, and agricultural goods. These are the products that are highly dynamic in nature. Their prices fluctuate based on various factors, starting from global demand and supply to every economic event.

The main aim of the commodity valuation is:

Provide clarity on the price
Ensure there is no case of overpricing or underpricing
Benefiting the traders with a transparent mechanism for price discovery

For traders and investors, understanding valuation is crucial. It is the key factor that impacts the buying, selling, and hedging calls. Businesses also rely on accurate valuation to manage procurement costs and reduce financial risks.

So, if we summarize this, commodity valuation is a simple act of creating a framework for the price discovery to ensure there is fairness and efficiency in the commodity market. This, in turn, helps the participants make informed choices instead of trading blindly.

Features of Commodity Valuation

To understand commodity valuation better, it is important to understand the key features of the same. Now, one important point to note here is that it is not like retail or wholesale price valuation. It is quite different. So, here are the features to know.

Market-Driven Nature: Valuation is highly based on the demand and supply conditions. This makes it sensitive to the seasonal changes and global market conditions as well. Also, consumer demand is an important aspect that impacts the value.
Dynamic Pricing: Commodity prices change every day. The dynamic pricing makes it very important for the traders to stay updated on the market conditions and the changes happening around.
Standardisation and Benchmarks: Commodities are often valued against international benchmarks. These can be the key indices like WTI for crude oil or LBMA for gold. The idea of using these is to ensure transparency and uniformity.
Quality and Grade Sensitivity: Every commodity has different grades. The higher the grade, the more would be the price. This is directly linked to the quality and features available. So, be sure to check the same as well.
Global Interlinkages: Commodity valuation is affected by the global factors as well. Be it the policies or current values, everything impacts them, and so one should stay updated on the cross-border policies as well.

Read Also: What is Commodity Market in India?

Pricing Mechanisms of Commodity Transactions

Commodity prices are discovered through different mechanisms, each suited for particular market needs. The major ones include:

1. Fixed Price

Buyer and seller lock in a price in advance, regardless of future market movements. It offers certainty but removes the chance to benefit from favourable price shifts.

2. Floor and Ceiling Price

A minimum (floor) and maximum (ceiling) price is set, usually by an exchange or authority. This prevents extreme losses or gains while keeping prices within a safe band.

3. Variable Price

The price is decided by current demand and supply conditions. Since these factors change constantly, this mechanism reflects real-time market dynamics.

4. Floating Price

Common in long-term contracts, the final price is determined by averaging market prices over a set period. It reduces the impact of sudden volatility, often used in oil or gas trades.

5. Spot Pricing

Reflects the immediate market value for instant delivery of a commodity. It is the most transparent but also the most volatile pricing method.

6. Futures Pricing

Prices are set for future delivery via exchange-traded contracts. This is mainly aimed at hedging and considers all the key aspects linked to the pricing factors.

7. Auction or Negotiated Pricing

This is more in agricultural and niche commodities. The prices are decided through direct negotiations or auctions between buyers and sellers based on need and quality.

Quick Comparison of Pricing Mechanisms

Mechanism	What it is	Pros	Cons
Fixed Price	Buyer and seller agree on a price in advance for delivery later	Provides certainty, protects from sudden price swings	No benefit if market moves favourably after agreement
Floor & Ceiling	Sets minimum and maximum prices for a commodity	Controls extreme volatility, gives safe trading range	Limits potential gains and flexibility
Variable Price	Price is decided in real time based on demand and supply	Reflects true market conditions, transparent	Highly volatile, harder to plan budgets
Floating Price	Final price is averaged over a set period in long-term contracts	Reduces impact of short-term fluctuations, stable over time	May not capture sudden favourable moves
Spot Pricing	Price for immediate purchase and delivery	Transparent, shows real market value instantly	Very volatile, risky for large buyers
Futures Pricing	Contracts set today for delivery in future at agreed price	Useful for hedging, helps forecast costs	Complex, requires margin money and market knowledge
Auction/Negotiated	Price set using buyer-seller negotiation	Flexible, often considers quality and local demand	Less standardised and lack transparency

Key Factors Affecting Commodity Valuation

It is now clear that commodity valuation is based on various factors. But the question is, what are they? Well, here are the common ones to know:

1. Demand and Supply

The basic driver of all valuations. When demand is high or supply is low, prices rise. Likewise, when the demand is less and the supply is high, prices fall. Seasonal aspects and market needs will impact this.

2. Global Benchmarks

International standards serve as the price benchmarks. These include Brent Crude for oil, LBMA for gold, or COMEX for metals. The local markets align with these for transparent and fair prices.

3. Government Regulations

Any changes in the government policies linked to import and export will change the prices. Also, if there is a ban on a certain product, prices will change as well.

4. Currency Fluctuations

Since commodities are largely priced in US dollars, exchange rate changes directly impact local valuation. A weaker local currency usually makes commodities more expensive.

5. Geopolitical Events

Wars, sanctions, and global conflicts can disrupt supply chains. This often impacts the supply and thereby the prices.

Why is Commodity Valuation Important?

Commodity valuation guarantees fairness and transparency. But there are other reasons as well that make it very important. These are:

Traders can get assurance on the prices while buying and selling.
Investors can plan and manage risks better to avoid losses.
Businesses can get the raw materials at the right prices easily.
Farmers and exporters can negotiate prices in a fair manner.
Regulators can manage inflation and unwanted spikes to avoid chaos.
Local industries can stay ahead and match the global market.

Commodity Valuation in India

In India, commodities are mainly traded through the two platforms which are:

Prices on these exchanges are influenced by various factors like global standards and domestic demand. So, if there is a change in any one of the factors, the prices will change on these exchanges. This will ensure that the traders and investors pay a fair price and earn better.

Read Also: Types of Commodity Market in India

Conclusion

Investing in commodities is a great decision. But while you plan to do so, it is important that you understand the commodity valuation as well. This will ensure you pay fair prices and are earning profits too.

In India, where exchanges like MCX and NCDEX lead the market, knowing how valuation works can protect you from risk and open better opportunities. If you are planning to enter the commodity market, start your journey with Pocketful and trade with confidence.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	How to Trade in the Commodity Market?
2	What is the Timing for Commodity Market Trading?
3	Risks in Commodity Trading and How to Manage Them
4	5 Tips for Successful Commodity Trading
5	Stock Market vs Commodity Market
6	The Pros and Cons of Commodity Trading
7	Commodity vs Forex Trading: Key Differences, Pros & Cons
8	Best Online Commodity Trading Platforms in India
9	Commodity Trading Regulations in India: SEBI Guidelines & Impact
10	Commodity Arbitrage – Types & Strategies in India
11	5 Tips for Successful Commodity Trading
12	Different Types of Trading in the Stock Market

Frequently Asked Questions (FAQs)

How are commodities valued in India?
Commodities in India are valued based on various factors. From the demand and supply to the government policies, everything impacts the prices.
Which commodities are most traded in India?
Gold, silver, crude oil, and natural gas are a few commonly traded commodities. Agricultural products like soybean, cotton, and wheat are a few others that are actively traded commodities on Indian exchanges.
What is the role of MCX in commodity valuation?
The Multi Commodity Exchange (MCX) provides a transparent platform. It is where buyers and sellers discover fair prices for commodities through real-time trading.
How do global prices affect commodity valuation in India?
Since many commodities are priced internationally in US dollars, global benchmarks are important. These directly impact Indian prices after adjusting for currency movements.
Can commodity valuation impact inflation in India?
Yes, the commodity valuation can impact the inflation in India. Hence, these are tracked by the policymakers very closely.

November 22, 2025

Barbell Strategy: How It Works & Types Explained

Investing is not easy in today’s time. The market can go up or down anytime, interest rates can change and uncertainty always remains. In such an environment, the biggest question is where to invest money so that it remains safe and also gives good returns. This is where Barbell Strategy comes in handy. So what is Barbell Strategy? This is a method in which the investment is divided into two parts – most of the part in safe options and a smaller part in more risky, but big profit options. That is why in today’s changing times, its importance Barbell Strategy increases even more.

What is a Barbell Strategy?

A portfolio structure in which investments are divided into two very different types of assets: low-risk investments on one side and high-risk, high-return potential investments on the other. The middle segment, a moderate-risk segment, is deliberately left out. This approach differs from traditional diversification because it specifically ignores the “middle option”

Origin and Background

This strategy was popularized by Nassim Nicholas Taleb. He described it as a blend of “hyper-conservative and hyper-aggressive” investing. Its main purpose is to protect against Black Swan events, i.e., unexpected market events, and also to profit when they occur.

How Barbell Strategy Works?

The barbell strategy is just like a barbell with weights on both ends and an empty middle. The same approach is adopted in investing.

Safe portion: Investments that are stable and low-risk, such as government bonds, FDs, cash or gold.
Risky portion: Small startups, small-cap stocks, crypto or new technology sectors, which have the potential to get high returns.
Middle portion: Medium-risk assets such as mutual funds or blue-chip stocks are not included in this strategy.

Example: Suppose your portfolio is of ₹10 lakh. In this, ₹8.5 lakh (85%) is in safe investments and ₹1.5 lakh (15%) in high-risk options. Due to no medium-risk investments, your portfolio is formed in a barbell-like structure.

Read Also: Options Trading Strategies

Types of Barbell Strategy

1. Conservative Barbell Strategy

In this, a large part of the portfolio remains in safe investments and a small part in high-risk investments.

Use: Investors who want safety but also want growth in a small portion.

2. Aggressive Barbell Strategy

Slightly less safe portion and more high-risk portion. Like 60–70% safe and 30–40% high-risk.

Use: Young or experienced investors who want higher returns in the long term and can take risks.

3. Hybrid Barbell Strategy

There is some flexibility in safe and risky parts. The risky part is divided into different high-risk options, like startup + crypto + small-cap shares.

Use: Investors who want more upside potential with diversification.

4. Time-Based Barbell Strategy

In this, the investment decision is taken on the basis of time. Investing in the high-risk part for the long term and focusing on the safe part for the near future.

Use: Investors who want both short-term stability and long-term growth.

Importance of Barbell Strategy

1. Risk Management

The biggest advantage of Barbell Strategy is effective risk management. In this, most of your money remains in safe instruments like government bonds or FDs, which keeps the principal capital safe. At the same time, having a small part in high-risk investments gives you a chance to get asymmetric returns.

2. Psychological Comfort

Investment is not just a game of mathematics but also of emotion and discipline. When a large part of the portfolio is in safe options, the investor does not panic even during market decline or volatility. This mental balance improves investment decisions.

3. Flexibility in Uncertain Times

In today’s era where inflation, changes in interest rates and geopolitical risks remain constant, Barbell Strategy gives flexibility. The safe part protects you from the decline and the risky part gives a chance to connect with big opportunities.

4. Popular among professional and retail investors

This strategy is not just limited to books. From big hedge funds to institutional investors to retail investors, it is adopted by everyone to control downside risk and take advantage of rare but big profits. Even common investors have started adopting it with combinations like FD + crypto or index funds + startups.

5. Right balance of safety and growth

The real meaning of the importance of Barbell Strategy is that it gives you the benefit of both worlds – safety as well as growth. That is, you have the possibility of getting good returns without taking excessive risk.

How to adopt the barbell strategy

Understand your goals and risks first : First decide what you want from your investment and how much risk you can take. If you are young and investing for the long term, you can take a little more risk. On the other hand, people close to retirement will mostly focus on safe options.
Decide the ratio of safe and risky parts : Divide the portfolio into two parts: a large part in safe investments and a small part in high-risk investments. Beginner investors can keep a ratio of 80/20 or 90/10, while experienced investors can go up to 70/30.
Choose the right investment option : Government bonds, FDs, cash or gold are good options for the safe part. For the risky part, you can invest in startups, small-cap stocks, crypto or emerging sectors like AI, biotech.
Start slowly : Start with small investments. This will reduce the fear of loss and with experience you can gradually increase the risk portion.
Review and balance from time to time : Look at your portfolio at least once a year. See if the ratio of safe and risky parts is correct or not. Rebalance if needed.

Barbell vs. Other Investment Strategies

There are many types of strategies in the world of investment. Some investors adopt traditional diversification, some core-satellite approach, while the Barbell Strategy is considered a little different and more “extreme”.

Strategy	How It Works	Advantages	Limitations
Traditional Diversification	Investment Spread across low, medium, high risk assets	Balanced, stable returns	Limited growth potential
Core-Satellite Approach	Core in safe/index funds, small part in risky bets	Mix of safety & growth	Doesn’t capture extreme opportunities
Barbell Strategy	Large portion in safe assets, small portion in high-risk assets	Capital protected + chance for big gains	Needs discipline; misses moderate returns

Psychological & Behavioral Side of Barbell Strategy

Moderate risk aversion : Often investors choose a path that is neither completely safe nor highly profitable. This is called moderate risk investing. In such a situation, investors are often dissatisfied and confused. The barbell strategy deliberately bypasses this path and focuses only on two ends, one safe and the other high risk.
Mental balance and confidence : The barbell strategy matches well with our thoughts and emotions. The safe part gives mental peace to the investor and reduces panic when the market falls. On the other hand, the risky part gives excitement and the possibility of big profits. This means that the investor can take informed decisions without fear.
Greed and decision control : When the high-risk part performs well, it feels like putting more money in it. This is natural, but doing so can unbalance the portfolio. Therefore, it is important that investors stick to their basic rules and do not take hasty decisions.
Discipline and regular balancing : Discipline is very important to make this strategy successful. The investor should review his portfolio from time to time and maintain a balance between the safe and risky components. This ensures that no component is over or underweight.
Practical benefits : The barbell strategy reduces several common investment mental mistakes:

Loss Aversion: Having a safe component prevents investors from panicking in a downtrend.
Disposition Effect: A clear division of safe and risky components makes decisions logical.

Read Also: Top Algorithmic Trading Strategies

Risks and Limitations of Barbell Strategy

Missing out on medium-risk investments : The barbell strategy deliberately leaves out moderate-risk assets such as blue-chip stocks or balanced mutual funds. This means that these safe and stable growth options are not available.
Overconfidence in risky investments : When a small portion is invested in high-risk assets, many times investors become overconfident in them. This overconfidence can lead to losses.
Low returns on safe portion : Safe assets such as government bonds or FDs can give very low returns during inflation. This means that the purchasing power of your money can decrease.
Risk of improper allocation : If too much is invested in the risky portion, the portfolio becomes unbalanced and the chances of big losses increase.
Need for patience and long-term planning : The barbell strategy does not give immediate benefits. Patience, discipline and long-term thinking are necessary to implement it correctly.

Conclusion

The barbell strategy is an investment strategy that gives a balanced mix of safe and risky components. In this, your major money remains in safe places and a small part goes into investments that have a chance of high returns. With the right planning and a little patience, this strategy helps you protect yourself from market uncertainties and also take advantage of big opportunities.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Fixed Deposit or Residential Property Investment
2	List of Best Swing Trading Patterns
3	How to Backtest Trading Strategy – Tools, Tips & Examples
4	What is Scalping Trading Strategy?
5	Short Straddle: Option Strategy with Examples
6.	What is Price Action Trading & Price Action Strategy?

Frequently Asked Questions (FAQs)

What is a Barbell Strategy?
It is an investment strategy in which your money is divided into two parts—a large part in safe investments and a small part in high-risk, high-reward investments.
Who should use the Barbell Strategy?
It is suitable for investors who want safety but also want to take a chance at big profits in a smaller portion.
Is Barbell Strategy risky?
Only a small part of the entire portfolio is high-risk, so the overall risk is low.
How to decide the split between safe and risky assets?
Decide the ratio based on the investor’s age, experience and risk tolerance, such as 80/20 or 70/30.
Can beginners follow this strategy?
Yes, beginners can also easily adopt it by starting with small investments and gradually increasing experience.

November 22, 2025

Vijay Kedia Portfolio 2026: Latest Holdings, Strategy & Analysis

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

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

Vijay Kedia Portfolio 2026

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

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

(As of 20 Nov 2025)

Vijay Kedia Portfolio 2026 – Sector-wise Breakdown

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

(As of 20 Nov 2025)

Key Performance Indicators (KPIs) of Vijay Kedia Portfolio

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

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

(As of 20 Nov 2025)

About Vijay Kedia

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

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

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

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

How Vijay Kedia Identifies Multibagger Stocks

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

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

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

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

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

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

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

Key Lessons for Retail Investors from Vijay Kedia’s Portfolio

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

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

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

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

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

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

Common Misconceptions About Vijay Kedia’s Portfolio

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

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

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

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

Myth 3: He never sells his stocks.

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

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

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

Myth 5: He only invests in large companies.

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

Conclusion

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

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Shankar Sharma Portfolio: Top Stocks & Strategy
2	Mukul Agarwal Portfolio: Top Holdings, Net Worth & Strategy
3	Ashish Kacholia Portfolio: Top Stocks & Strategy
4	Top 10 Best Trading YouTube Channels in India
5	Top 10 Books for Beginners in Trading & Investing
6	Top 10 Investors in the World
7	Ashish Dhawan Portfolio : Top Holdings, Strategy & Lessons
8	Top 10 Best Traders in India – Learn from the Legends
9	Rakesh Jhunjhunwala Portfolio: Top Holdings & Strategy
10	Dolly Khanna Portfolio

Frequently Asked Questions (FAQs)

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

November 21, 2025

Raj Kumar Lohia Portfolio 2026: Holdings, Strategy & Analysis

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

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

Raj Kumar Lohia Portfolio in 2026

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

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

(As of 19 Nov 2025)

Key Performance Indicators (KPIs) of Raj Kumar Lohia Portfolio

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

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

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

(As of 19 Nov 2025)

Who is Raj Kumar Lohia?

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

Raj Kumar Lohia Profile Summary

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

Latest Investment Portfolio Status

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

Raj Kumar Lohia’s Investing Philosophy

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

Risk Factors in the Raj Kumar Lohia Portfolio

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

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

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

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

Should Retail Investors Copy Raj Kumar Lohia’s Portfolio?

Is it right to copy his portfolio?

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

What should be understood from his strategy?

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

Should retail investors buy the same stocks?

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

Conclusion

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

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Shankar Sharma Portfolio: Top Stocks & Strategy
2	Vijay Kedia Portfolio: Latest Holdings, Strategy & Analysis
3	Rakesh Jhunjhunwala Portfolio: Top Holdings & Strategy
4	Radhakishan Damani Portfolio: Stock Holdings and Strategy
5	Mukul Agarwal Portfolio: Top Holdings, Net Worth & Strategy
6	Ashish Kacholia Portfolio: Top Stocks & Strategy
7	Top 10 Investors in the World

Frequently Asked Questions (FAQs)

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

November 21, 2025

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

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

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

What are Dividend-Paying Stocks?

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

Why Choose a Dividend-Paying Stock for Passive Income?

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

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

Read Also: What is Dividend ETF?

Example of Passive Income Through Dividends

Let’s understand passive income through an example.

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

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

10,00,000 * 2%

= 20,000 INR.

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

How to Start Earning Passive Income Through Dividend-Paying Stocks

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

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

Read Also: 50 Passive Income Ideas in India

Mistakes to Avoid While Choosing Dividend-Paying Stocks

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

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

Conclusion

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

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	How Do Mutual Funds Pay Dividends?
2	Top 10 Highest Dividend Paying Penny Stocks in India
3	How to Check Mutual Fund Status with Folio Number?
4	10+ Best Investment Plan for Monthly Income in India
5	Types of Dividend Policy Explained
6	Top 5 Highest Dividend Paying Stocks in India
7	What Is Dividend Yield? Definition, Formula, and Investment Insights
8	What Is Dividend Yield?
9	What is Dividend Policy?
10	What is a Dividend? Meaning, Key Dates, and Types Explained

Frequently Asked Questions (FAQs)

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

November 20, 2025

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

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

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

Top 10 Biggest and Richest Investors In The World

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

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

1. Elon Musk

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

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

2. Larry Ellison

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

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

3. Jeff Bezos

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

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

4. Mark Zuckerberg

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

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

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

5. Larry Page

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

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

6. Sergey Brin

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

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

7. Bernard Arnault

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

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

8. Steve Ballmer

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

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

9. Warren Buffett

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

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

10. Jim Simons

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

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

Conclusion

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

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top 10 Highest Leverage Brokers in India
2	Top 10 Intraday Trading Strategies & Tips for Beginners
3	10 Best YouTube Channels for Stock Market in India
4	Top 10 Best Trading YouTube Channels in India
5	Top 10 Books for Beginners in Trading & Investing
6	Top 10 Best Traders in India
7	Vijay Kedia Portfolio: Latest Holdings, Strategy & Analysis
8	Raj Kumar Lohia Portfolio: Holdings, Strategy & Analysis
9	How to Earn Passive Income Through Dividend-Paying Stocks in India
10	Gold Rate Prediction for Next 5 Years in India (2026–2030)

Frequently Asked Questions (FAQs)

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

November 20, 2025

7 Common Mistakes in Commodity Trading New Traders Must Avoid

Ever wondered why the price of onions shoot up in the market during changing weather or let say why oil prices shoot up rapidly if there is some trouble during war or international market changes. And somewhere, people are predicting these price changes and even making money from it.

This is known as commodity trading, it is a market where you can trade in items like gold, silver, crude oil, and even agricultural products like cotton and spices. But this market also has its own set of rules, just like any other trading market. Many new traders jump in hoping to make quick money from the commodity market, but end up losing due to some common mistakes.

In this blog we will look at these common mistakes in commodity markets and we will learn about mistakes that new traders need to avoid in commodity trading.

What is Commodity Trading?

Think of it as your local vegetable market but instead of buying vegetables for your home, people are buying and selling raw materials in large quantities in the market and this is the commodity market. Commodities are basically goods that are used in our day to day lives or in industries. These are divided into two types: Hard Commodities and Soft commodities. Hard commodities generally include gold, silver, copper or energy products like crude oil and natural gas, these are natural resources that are mined or extracted. Soft commodities include agricultural products like wheat, cotton, spices like red chilli or turmeric.

Common Mistakes in Commodity Trading

Now that we learnt about the basics of the commodity market, let’s look at some common mistakes in commodity trading.

1. Emotional Trading

Trading based on emotions like making instant money with greed or fear as you may instantly lose money, this type of trading done emotionally rarely comes to your favour. Successful trading revolves around making logical decisions based on a plan. Stick to your plan and avoid making impulsive decisions.

2. Trading Without a Plan

Jumping into the commodity market without a plan is just testing your luck, but you will mostly end up on the negative side. A trading plan is your roadmap which helps you in helping you to decide what to trade, when to enter, when to exit, and how much to risk for. Without a plan, your decisions will be random and you might gamble instead of trading. Before putting in your hard earned money in action, create a simple trading plan.

3. Not Applying Stop-Loss

A stop-loss is an order you place to automatically exit from a trade if the price moves against you by a certain amount. It is a type of a safety net and many new beginners don’t use a stop-loss because they hope a losing trade will turn around. This hope can be very expensive as you might lose all your investment. Imagine you bought crude oil at Rs. 6,000, and expected it to rise but it starts to fall further if you don’t apply a stop-loss it can go further against your expectations. A stop-loss would automatically sell your position at a set price, limiting your loss.

4. Putting All In One Trade

This is one of the biggest mistakes that beginners make. They often get excited about a trade and put a large portion of their capital into one single trade. If this trade goes against your plan then it can cause a massive loss.

A popular guideline in trading which says that you should never risk more than 1% to 2% of your total trading capital on a single trade as it ensures that even a few losing trades might not take away all your money.

5. Overtrading

It means that you are trading more than what is needed as it can happen due to boredom, the urge to earn more, or trying to recover from a loss. Every trade you make has a cost attached to it like brokerage and taxes on your trades. Trading too much increases your investment cost and often leads to making poor decisions.

Stick to your trading plan. Only take trades that meet your criteria. Remember, sometimes the most profitable thing to do is nothing at all. Quality of trades is more important than quantity.

6. Not Knowing Details

Every commodity contract has specific details that you must look upon as this could be a very common mistake, you should always look at the lot size meaning a fixed quantity to trade in, the expiry date of the as it is an important in derivatives. And also should watch your trading timings, choose your commodity and look for the right time to invest in it like crude oil and gold prices are heavily influenced by the US markets, so investors shall monitor the movement in the evening according to the International Markets. But one thing to keep in mind, read all contract specifications on the exchange website like MCX or NCDEX and be aware of expiry dates or active trading hours of the market.

7. Averaging a Losing Trade

You bought a commodity at Rs.80,000 and it starts to fall till Rs.77,000 and you buy more of it, thinking it will lower your average purchase price. This is known as averaging down. But it can be a mistake sometimes as you are increasing your exposure to a falling trade. Investors should always use stop-loss to get secured from losing all of their investment and avoid adding more funds to a falling trade.

Things to Consider Before Starting Commodity Trading

Create a Solid Trading Plan for all your trades and it shall cover your financial goals, the risk that you are comfortable to take.
Commodity prices can be very volatile so investors shall understand the volatility of the market, as these commodities can move up and down really quick. Factors like global news, weather, government policies as well as supply and demand can affect the prices of these commodities. While volatility may open doors to opportunities but it also raises the level of risk.
Investors shall always learn basic analysis like fundamental analysis which involves real-world factors of supply and demand like bad monsoon in India as it is the fundamental factor for agricultural commodities. Also one should focus on the technical analysis as it involves studying price charts to identify patterns and trends.

Conclusion

Commodity trading Plateform can be a good source of high returns but on the other hand it is risky as well. So, one should always try to gain knowledge as it is about risk management, following a plan with discipline and learning. By looking at managing your risks, being disciplined, and learning continuously. By looking at the common mistakes one should avoid them.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Income Tax on F&O Trading in India
2	What is Capital Gains Tax in India?
3	Types Of Taxes In India: Direct Tax And Indirect Tax
4	What is Future Trading and How Does It Work?
5	Why Do We Pay Taxes to the Government?
6	How are Different Forms of Gold Investments Taxed
7	Income Tax Return Not Received on ITR AY 2025-26 – ITR Refund Delay Reasons
8	Top 10 Tax Saving Instruments in India
9	Tax-Free Bonds: Their Features, Benefits, and How to Invest
10	What is Securities Transaction Tax (STT)?

Frequently Asked Questions (FAQs)

Can I make profit from commodity trading?
You can make profit from the commodity market but it can be very risky. Profitability depends on your risk management strategy, skills and discipline.
What amount is best to start with?
There is no exact amount but you should have enough capital to pay the margin for your trades and also to handle the potential loss.
How are profits taxed in commodity trading?
Profits from commodity futures and options trading are ‘non-speculative business income’ meaning the profits are added to your total income as tax as per income tax slab.
What happens if I don’t close my futures contract before it expires?
By not closing the positions the broker might close them automatically on the expiry date, this is known as auto square off and this may attract extra charges as well. Investors shall close their positions before the due date.
What are the timings of the commodity market in India?
The commodity market opens from 9:00 AM to 11:30 PM (or 11:55 PM, depending on US daylight saving). However, the agricultural commodities market closes at 5:00 PM.

November 19, 2025

Best Winter Season Stocks In India

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

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

What are Winter Stocks?

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

Top Winter Stocks to Buy in India

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

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

(As of 13th January 2026)

Overview of Best Winter Season Stocks in India

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

1. Larsen and Toubro Limited

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

2. HCL Technologies Limited

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

3. Trent Limited

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

4. Bharat Electronics Limited

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

5. Power Finance Corporation Limited

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

6. Polycabs India Limited

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

7. Info Edge (India) Limited

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

8. Central Depository Services (India) Limited

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

9. Laurus Labs Limited

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

10. Titan Biotech Limited

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

Key Performance Indicators (KPIs)

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

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

(As of 31st March 2025)

Benefits of Investing in Winter Stocks

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

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

Factors to consider before investing in winter stocks

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

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

Conclusion

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

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	List Of Best Healthcare Stocks in India
2	7 Top Food Stocks in India
3	10 Best Copper Stocks in India
4	Top 7 Lithium Mining Stocks to Watch in India
5	List of Best Liquor Stocks in India
6	Top 10 Best Summer Stocks in India
7	Best Air Purifier Stocks in India

Frequently Asked Questions (FAQs)

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

November 19, 2025

Blog

What Are Equity Shares?

Features of Equity Shares

Pros of Equity Shares

Cons of Equity Shares

What Are Preference Shares?

Features of Preference Shares

Pros of Preference Shares

Cons of Preference Shares

Equity Shares Vs Preference Shares

Conclusion

Frequently Asked Questions (FAQs)

Who should invest in equity shares?

Who should invest in preference shares?

Can a company issue both equity and preference shares?

Do preference shareholders ever get voting rights?

Are preference shares traded on stock exchanges like equity shares?

Meaning of Hedging

Features of Hedging

Types of Hedges

1. Forward Hedge

2. Future Hedge

3. Money Market Hedge

4. Option Hedge

Hedging Strategies

Examples of Hedging

Advantages of Hedging

Risk of Hedging

Conclusion

Frequently Asked Questions (FAQs)

What are the types of hedging?

Does hedging eliminate 100% risk?

Why is hedging used by investors?

Does hedging require only derivatives?

Does hedging involve any cost?

What is Commodity Valuation?

Features of Commodity Valuation

Pricing Mechanisms of Commodity Transactions

1. Fixed Price

2. Floor and Ceiling Price

3. Variable Price

4. Floating Price

5. Spot Pricing

6. Futures Pricing

7. Auction or Negotiated Pricing

Quick Comparison of Pricing Mechanisms

Key Factors Affecting Commodity Valuation

1. Demand and Supply

2. Global Benchmarks

3. Government Regulations

4. Currency Fluctuations

5. Geopolitical Events

Why is Commodity Valuation Important?

Commodity Valuation in India

Conclusion

Frequently Asked Questions (FAQs)

How are commodities valued in India?

Which commodities are most traded in India?

What is the role of MCX in commodity valuation?

How do global prices affect commodity valuation in India?

Can commodity valuation impact inflation in India?

What is a Barbell Strategy?

Origin and Background

How Barbell Strategy Works?

Types of Barbell Strategy

1. Conservative Barbell Strategy

2. Aggressive Barbell Strategy

3. Hybrid Barbell Strategy

4. Time-Based Barbell Strategy

Importance of Barbell Strategy

1. Risk Management

2. Psychological Comfort

3. Flexibility in Uncertain Times

4. Popular among professional and retail investors

5. Right balance of safety and growth

How to adopt the barbell strategy

Barbell vs. Other Investment Strategies

Psychological & Behavioral Side of Barbell Strategy

Risks and Limitations of Barbell Strategy

Conclusion