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Best Cyclical Stocks in India 2026

India is a developing economy, and in the past few years, it has established itself as a key player in the world and has become the 4th largest economy in the world. And with this growth, there are various stocks which move in line with the economy of the country, such stocks are known as “Cyclical Stocks”.

In today’s blog post, we will give you an overview of the best cyclical stocks, along with the benefits and factors to be considered before investing in them.

What are cyclical stocks?

Cyclical stocks refer to the shares of those companies whose performance depends upon the economic cycle of a country. When the economy is in a growth phase, it tends to perform well, and whenever there is a condition of economic slowdown in the country, its performance also struggles. Because consumer spending tends to increase during economic growth and vice versa, so as the performance of cyclical stocks.

Top Cyclical Stocks to Buy in India

Shriram Finance Limited
Punjab National Bank Limited
ABB India Limited
Jindal Steel Limited
Shree Cement Limited
SRF Limited
The Phoenix Mills Limited
JK Cement Limited
Honeywell Automation India Limited
Tata Chemicals Limited

List of Top Cyclical Stocks in India

Company	Current Market Price (INR)	Market Capitalisation (in INR crore)	52-Week High	52-Week Low
Shriram Finance Limited	975	183508	1026	493
Punjab National Bank Limited	123	141248	128	85.5
ABB India Limited	5093	107925	6597	4590
Jindal Steel Limited	1010	103060	1098	723
Shree Cement Limited	26950	97238	32508	24811
SRF Limited	3023	89615	3325	2484
The Phoenix Mills Limited	1904	68094	1965	1402
JK Cement Limited	5718	44182	7566	4219
Honeywell Automation India Limited	33500	29614	42100	31025
Tata Chemicals Limited	747	19029	1027	742

(As of 9th Jan 2026)

Read Also: Best Growth Stocks in India

Overview of Best Cyclical Stocks to Buy in India

1. Shriram Finance Limited

Shriram Finance Limited was incorporated in 1974, and started its working by focusing on financing commercial vehicle segments. However, over time, the company has expanded into various services, including insurance, asset management, and housing finance. In April, Shriram Transport Finance merged with Shriram City Union to form Shriram Finance Limited. It has a strong network presence in semi-urban and rural areas. The company’s headquarters is situated in Mumbai.

1-Year Return	3-Year Return	5-Year Return
84.44%	279.33%	300.42%

(As of 9th Jan 2026)

2. Punjab National Bank

Punjab National Bank In 1894, Lala Lajpat Rai, the Indian freedom fighter, founded the bank in Lahore, Pakistan. After independence, the bank’s headquarters were shifted to New Delhi. Later in 1969, the bank was nationalised along with 13 other banks. In 2020, it amalgamated with the United Bank of India and Oriental Bank of Commerce. The company is successfully catering for the needs of MSMEs, retail investors, and big companies.

1-Year Return	3-Year Return	5-Year Return
34.10%	124.88%	245.28%

(As of 9th Jan 2026)

3. ABB India Limited

ABB India Limited was founded in 1949 with the name Hindustan Electric Company Limited. However, the company was later renamed Hindustan Brown Boveri Limited in 1965. In 2013, the company was finally changed to ABB India Limited. The company issued its IPO in 1992. The company mainly deals with electrification, motion, robotics, etc, which is capital-intensive. It is headquartered in Karnataka.

1-Year Return	3-Year Return	5-Year Return
-19.08%	71.19%	286.75%

(As of 9th Jan 2026)

4. Jindal Steel Limited

Jindal Steel Limited one of the major steel companies in India and a subsidiary of the Jindal group. O.P. Jindal established the company in 1979. The company produces and markets a variety of steel products, which also include steel, rails, coils, etc. Manufacturing facilities of the company are situated at various locations in other cities of India, i.e., Chhattisgarh, Odisha, Jharkhand, etc. The headquarters of the company is located in New Delhi.

1-Year Return	3-Year Return	5-Year Return
18.50%	70.74%	247.51%

(As of 9th Jan 2026)

5. Shree Cement Limited

In 1979, the Bangur family established Shree Cement in Ajmer. The company established its first manufacturing unit in Rajasthan. The company expanded both its geographic reach and its cement manufacturing capacity to meet the demands of the Indian infrastructure sector. In 2010, the company became the top cement manufacturer in India’s Northern Region. The company then established production plants in West Bengal, Bihar, Odisha, Jharkhand, and other parts of India. By acquiring Union Cement in 2018, the company began operations in the United Arab Emirates. The company has its headquarters in Kolkata.

1-Year Return	3-Year Return	5-Year Return
11.06%	14.16%	11.34%

(As of 9th Jan 2026)

6. SRF Limited

The company was incorporated in 1970, and initially was known as Shri Ram Fibres Limited and focused on nylon tyres and cord fabric. In the early 2000s, the company shifted its focus to chemicals and packaging films. Now SRF is serving various industries such as refrigeration, pharmaceuticals, agrochemicals, etc. The company directly benefits from manufacturing growth and chemical usage in different sectors. The headquarters of the company is situated in Gurugram.

1-Year Return	3-Year Return	5-Year Return
21.13%	37.51%	151.48%

(As of 9th Jan 2026)

7. The Phoenix Mills Limited

The Phoenix Mills Limited company was founded in 1905, and initially it was established as a textile manufacturing unit. Later in the 1990’s the company completely exited the textile industry and entered into real estate development. Over time, it has expanded its footprint into various cities such as Bengaluru, Lucknow, Chennai, Pune, etc., offering real-estate solutions like retail offices, residences. The company’s head office is situated in Mumbai.

1-Year Return	3-Year Return	5-Year Return
21.41%	158.67%	368.36%

(As of 9th Jan 2026)

8. JK Cement Limited

JK Cement was founded in 1975, and its manufacturing plant was established in Rajasthan with a capacity of around 0.3 tonnes per annum. Over time, it has become one of India’s leading cement suppliers, both in the grey and white cement segments. Later, the company established various manufacturing plants across the country. It offers products like cement, wall putty, chemicals, and other building-related materials. The company’s head office is situated in Kanpur, whereas its corporate office is situated in Gurugram.

1-Year Return	3-Year Return	5-Year Return
31.47%	97.40%	154.16%

(As of 9th Jan 2026)

9. Honeywell Automation India Limited

Honeywell Automation India Limited company initially came into existence as a joint venture between the Tata group and Honeywell International under the name Tata Process Control Private Limited. The company was later renamed to Tata Honeywell Limited. Following the acquisition of most of the company shares by Honeywell International Incorporated in the year 2004, it was renamed Honeywell Automation India Limited. The company offers a wide variety of products, such as automation and control systems to be used in industrial, commercial, and residential applications. The headquarters of the company is located in Pune.

1-Year Return	3-Year Return	5-Year Return
-16.76%	-15.74%	-18.57%

(As of 9th Jan 2026)

10. Tata Chemicals Limited

Tata Chemicals Limited company was founded in 1939, and began its operation by establishing a soda ash plant. It has acquired many domestic and international companies to strengthen its market position. It started focusing on specialty products, consumer-facing brands. Currently, it has manufacturing units in different countries such as Europe, North America, Africa, etc. The company’s headquarters is situated in Mumbai.

1-Year Return	3-Year Return	5-Year Return
-19.76%	-21.74%	39.46%

(As of 9th Jan 2026)

Read Also: Best Consumption Stocks in India

Key Performance Indicators (KPIs)

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

Company	ROE (%)	ROCE (%)	Operating Profit Margin (%)	Net Profit Margin (%)
Shriram Finance Limited	16.91	17.30	70.28	22.86
Punjab National Bank Limited	14.80	1.49	29.18	14.06
ABB India Limited	26.45	35.54	20.75	15.35
Jindal Steel Ltd	5.95	9.94	13.85	5.73
Shree Cement Limited	5.21	6.67	7.86	5.82
SRF Limited	10.96	13.89	17.10	10.80
The Phoenix Mills Limited	9.42	10.36	52.06	34.12
JK Cement Limited	14.14	12.51	13.45	7.33
Honeywell Automation India Limited	12.96	17.17	17	12.49
Tata Chemicals Limited	1.08	3.33	7.08	1.56

(Data as of 31st March 2025)

Benefits of Investing in Cyclical Stocks

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

High Returns: Cyclical stocks directly benefit from a country’s economic growth, as consumer spending increases during the economic growth cycle. This will lead to an increasing stock price.
Valuation: When the economy of a country struggles, cyclical stocks also tend not to perform during such conditions, hence it can be a value buy during an economic downturn.
Diversification: One can easily diversify their stock portfolio by investing in cyclical stocks, which can increase overall portfolio return during the growth phase of the economy.

Factors to Consider Before Investing in Cyclical Stocks

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

Economy Stage: One must understand the economy phase and invest accordingly. Investments in cyclical stocks are suggested during the economic growth phase.
Financial Performance: Analysing the financial performance of the cyclical stocks before investing is advisable. One must invest in cyclical stocks of companies which have strong growth potential and strong balance sheets.
Government Regulations: Cyclical stocks are sometimes affected by the changes in government policies related to import, export, etc. Hence, favourable policies help cyclical stocks in the long run.

Read Also: Best Manufacturing Stocks in India

Future of Cyclical Stocks

The future of cyclical stocks looks very promising because of increasing demand in the consumption sector and increasing consumer spending. This sector is expected to grow at an average CAGR of 6-7% in the coming years. There are various initiatives by the Indian Government which will lead to an increase in the demand for cyclical stocks, such as PLI schemes and Make in India initiatives. Hence, one can invest in cyclical stocks to create wealth in the long run. To invest in cyclical stocks, you can open a lifetime free demat and trading account with Pocketful, as it also offers free brokerage on delivery trades.

Conclusion

To sum up, cyclical stocks are significant to the development of the Indian economy. These consist of the stocks of different industries such as banking, infrastructure, chemicals, etc. Increasing consumption, government spending etc is the major strength of such stocks. However, they can be volatile in the short term, but long term can lead to wealth generation. Before making any investment decision, however, it is advisable to consult your investment advisor.

Start your investing journey in cyclical stocks with Pocketful simple, seamless access to opportunities aligned with economic growth cycles.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
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6	Best Copper Stocks in India
7	Best Jewelry Stocks in India
8	Best Metal Stocks in India
9	Best Semiconductor Stocks in India
10	Best Chemical Stocks in India

Frequently Asked Questions (FAQs)

What do cyclical stocks mean?
Cyclical stocks refer to the shares of the company whose performance solely depends on the economic condition of the country. These stocks tend to perform well during economic growth and underperform during economic downturns.
Which sectors in India are considered cyclical in India?
In India, cyclical stocks belong to different sectors such as financial services, metal, chemical, automobiles, infrastructure, cement, etc.
What are the risks involved while investing in cyclical stocks?
The key risks involved while investing in cyclical stocks are lower earnings during economic downturns, rising interest rates, and increasing input costs.
Which is the best time to invest in cyclical stocks?
One can consider investing in cyclical stocks during an economic downturn, as the valuations of cyclical stocks are lower.
How to invest in cyclical stocks?
One can invest in cyclical stocks by opening a lifetime free demat account with Pocketful, as it also offers free brokerage on delivery trades, along with mobile applications equipped with advanced trading tools.

Selection Methodology and Important Disclaimer

The stocks included in this list are selected primarily on the basis of their market capitalisation, which represents the total market value of a company’s outstanding shares. The companies are arranged in descending order of market capitalisation, with larger companies appearing first, followed by relatively smaller companies. This methodology is intended to provide a structured approach for identifying companies based on their market size and overall presence within a sector.

However, market capitalisation should not be considered the sole factor while evaluating investment opportunities, as it does not guarantee future performance, profitability, or returns. Investors should also assess other important factors such as financial health, business fundamentals, management quality, valuation metrics, industry outlook, and market conditions before making investment decisions.

The information provided is for educational and informational purposes only and should not be construed as investment advice, recommendation, solicitation, or an offer to buy or sell any securities by Pocketful Fintech Capital Private Limited.

January 27, 2026

How to Check the Purity of 20-Carat Gold: Easy Methods & Tips

Whenever we go to buy gold, our attention is mostly focused on its shine, design, and price. But the real question is is the gold truly pure? People, in particular, lack accurate information about 20-karat gold. Some mistake it for 22K, while others think it’s 24K. This blog has been written to clear up this confusion, so you can understand the purity of 20-karat gold, how to identify hallmarks, and what to keep in mind when buying it.

What is 20-Carat gold?

20-karat gold means that the gold is not entirely pure. It contains approximately 83.33% pure gold, while the remaining portion consists of other metals. These metals are added to make the jewelry more durable and less prone to damage. In simple terms, 100 grams of 20-karat gold contains approximately 83 grams of pure gold.

Easy Methods to Check 20-Carat Gold Purity at Home

1. Magnet Test

Real gold does not stick to a magnet. If your jewelry is attracted to a magnet, it may be impure.Some fake metals also do not stick to magnets, so this test is not entirely conclusive.

2. Water Test (Float Test)

Gold is heavy, so it sinks immediately when placed in water.

How to do it?: Take a bowl of water and drop the jewelry in. If it floats, you should be suspicious.

3. Vinegar Test

Put a little vinegar on the gold. If the color changes, it is not pure.

Wash the jewelry with clean water afterward. This is not a reliable purity test.

4. Skin Reaction Test

Many people say that wearing fake gold causes skin discoloration, but this method is not reliable. Skin reactions can also be caused by sweat and other chemicals.

Professional Methods for Accurate Purity Testing

1. XRF Machine Test

This is the most reliable and non-destructive method available today. Jewelers can check the complete composition of gold in just a few seconds using this machine. Since it doesn’t require cutting or damaging the jewelry, it is considered the safest method.

2. Acid Test

In this method, a special acid is applied to the gold, and its reaction is used to determine the purity. If done incorrectly, the jewelry can be damaged, so always have this test performed by an expert.

Testing at a BIS Assaying Center:

If you want 100% guaranteed results, get your jewelry tested at a nearby BIS-accredited laboratory.

The difference between 18K, 20K, 22K and 24K.

Carat	Accuracy (%)	Use
18K	75%	Fashion Jewelry
20K	83.33%	Limited Jewelery
22K	91.67%	Indian jewelry
24K	99.9%	Investments, coins

What is a 20 Carat Gold Hallmark?

A hallmark is an official mark that proves the purity of gold has been tested according to government standards. A 20-carat gold hallmark means that the purity of the jewelry has been tested in a laboratory.

Role of BIS

In India, the responsibility for hallmarking lies with the BIS (Bureau of Indian Standards). Gold is tested in BIS-accredited laboratories to ensure that customers receive the correct quality.

Why is Hallmarking Now Mandatory ?

The government has made hallmarking mandatory to protect customers from fraud. This ensures that the gold you are buying is of the correct purity.

Difference Between Hallmark and Purity Certificate

Hallmark: An official mark stamped on the gold.
Purity Certificate: A document provided by the shop.

A hallmark is more reliable because it is based on government standards.

How to identify the 20-karat gold hallmark sign?

First, look for the BIS mark: Hold the jewelry in your hand and examine it carefully. There should be a small BIS logo on it. This indicates that the gold has been tested in a government-approved laboratory.
Always check the purity number: 20-karat gold is usually marked with 20K or 833. This is its true identifier. If this number is missing, you should be suspicious.
Look for the testing lab’s mark: Every hallmarked piece of jewelry has the mark of the center where it was tested. It’s small, but very important.
There should also be a jeweler’s code: The shop from which you are buying the gold will also have a unique code in the hallmark. This identifies the seller of the jewelry.
The markings should be clearly visible: If the markings are blurry, worn, or difficult to read, be cautious.

Smarter Gold Investment Options

Investing in Gold Mutual Funds

Gold mutual funds are funds that invest in gold ETFs or companies related to gold. You don’t need to buy physical gold with this option.

Advantages

You can start investing with a small amount
No worries about storage or theft
Professional fund managers manage the money

Risks

Returns depend on market performance
Expense ratio is applicable

List of Top 5 Gold Mutual Funds available to invest

Mutual Fund	NAV ( in INR )	AUM ( in INR Cr.)	Expense Ratio	1-year Return
SBI Gold Fund	43.68	10,770	0.23%	79.13%
HDFC Gold ETF FoF	44.66	8,500	0.18%	79.23%
ICICI Prudential Regular Gold Savings Fund (FOF)	45.65	4,480	0.09%	79.10%
Nippon India Gold Savings Fund	56.92	5,300	0.13%	78.42%
Kotak Gold Fund	57.37	5,210	0.16%	78.19%

(As on 15 January, 2026)

Investing in Gold ETFs

Gold ETFs are traded on the stock exchange, just like shares. Their price is based on the price of gold.

Liquidity Advantage You can buy or sell it whenever you want, meaning you can access your money quickly.

Taxation

Short-term tax if sold before 1 years
Long-term capital gains tax after 1 years

Physical Gold vs. ETF

No making charges in ETFs
No concerns about purity
Safe and transparent investment

ETFs	NAV ( in INR )	AUM ( in INR Cr.)	Expense Ratio	1-year Return
Nippon India ETF Gold BeES	118.01	39,900	0.8%	73.54%
ICICI Prudential Gold ETF	122.28	17,750	0.5%	74.44%
SBI Gold ETF	122.01	17,400	0.7%	74.05%
HDFC Gold ETF	122.19	18,500	0.59%	78.93%
Kotak Gold ETF	118.51	12,150	0.55%	78.21%

(As on 15 January, 2026)

For investors who prefer a simple and cost-efficient way to invest, platforms like Pocketful allow you to invest in Gold ETFs with free account opening and zero brokerage on delivery trades, making long-term gold investing more convenient and transparent.

Common Mistakes Buyers Make

Confusion between 20K and 22K: Many people confuse 20-karat and 22-karat gold, even though they have different levels of purity. This mistake can affect the price and resale value.
Ignoring the Hallmark: Some buyers simply trust the jeweler’s word and don’t check the hallmark. Buying gold without a hallmark can be risky.
Not checking the purity on the bill: Often, people receive a bill but don’t carefully read the karat details mentioned on it. This small mistake can lead to big problems later.
Buying based solely on design: It’s common to be swayed by a beautiful design and forget to check the purity and weight, which is not the right approach.
Relying on verbal promises: Avoid trusting statements like, “This is absolutely pure.” Always look for written proof and the hallmark.

Conclusion

Checking the purity of 20-karat gold isn’t difficult; you just need to know the right method. Recognizing hallmarks, performing basic tests at home, and getting a professional assessment when needed these three things can protect you from making a bad purchase. If you take a few precautions yourself, you won’t have to blindly trust the jeweler’s word. Making an informed choice is true wisdom.

Frequently Asked Questions (FAQs)

Is 20-carat gold considered pure gold?
No. 20-carat gold contains 83.33% pure gold, with the remaining portion made of other metals like copper or silver. It is purer than 18K but less pure than 22K or 24K.
Is 20K gold hallmarked in India?
Yes. Under BIS rules, 20-carat gold can be hallmarked, provided it is tested at a BIS-accredited assaying center and carries all required marks such as BIS logo, purity mark (20K or 833), jeweler code, and lab mark.
Is 20-carat gold good for investment purposes?
Not really. For investment, 24K gold (coins, bars, ETFs) is preferred due to higher purity and better resale value. 20K gold is more suitable for limited jewelry use rather than long-term investment.
How can I differentiate 20K gold from 22K gold easily?
Check the purity mark on the jewelry.20K gold is marked 20K or 833 22K gold is marked 22K or 916Never rely on appearance alone, as both can look similar.
Does 20-carat gold have good resale value?
Yes, but it is lower than 22K and 24K gold. During resale, the value is calculated based on the actual gold content (83.33%) and prevailing gold rates, after deducting making charges if applicable.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur
Gold rate in Kerala	Silver rate in Kerala
Gold rate in Kolkata	Silver rate in Kolkata
Gold rate in Lucknow	Silver rate in Lucknow
Gold rate in Madurai	Silver rate in Madurai
Gold rate in Mangalore	Silver rate in Mangalore
Gold rate in Mumbai	Silver rate in Mumbai
Gold rate in Mysore	Silver rate in Mysore
Gold rate in Nagpur	Silver rate in Nagpur
Gold rate in Nashik	Silver rate in Nashik
Gold rate in Patna	Silver rate in Patna
Gold rate in Pune	Silver rate in Pune
Gold rate in Rajkot	Silver rate in Rajkot
Gold rate in Salem	Silver rate in Salem
Gold rate in Surat	Silver rate in Surat
Gold rate in Trichy	Silver rate in Trichy
Gold rate in Vadodara	Silver rate in Vadodara
Gold rate in Vijayawada	Silver rate in Vijayawada
Gold rate in Visakhapatnam	Silver rate in Visakhapatnam

January 26, 2026

Why Are Silver Prices Rising in India?

Silver prices in India have recently reached a new all-time high. The price of silver has touched approximately ₹2.91 lakh per kilogram, which is considered the highest level ever. This has led to many people asking: why is silver becoming so expensive? In this blog, we will explain in simple terms the reasons behind this rapid increase in silver prices.

Current Silver Price Trend in India

The surge in silver prices over the past year has surprised everyone. At the beginning of January 2026, the price of 1 kg of silver was around ₹2.38 lakh, but by January 15th, it had risen to approximately ₹2.90 lakh per kg. This represents a gain of more than 22% in just 2 weeks. The rise clearly indicates a rapid increase in interest from both investors and traders.

During this surge, silver recently touched its all-time high of approximately ₹2.95 lakh per kg. This is considered the all-time high for silver in the market.

Although there are daily fluctuations in prices, and occasional dips, the overall trend clearly shows that silver prices are consistently moving upwards.

Global Silver Market Influence on Indian Prices

Direct Impact of the International Rally : International silver briefly touched over $90 per ounce in early 2026, more than 140% higher than its level at the beginning of the previous year. This is driving up the prices of imported silver in India.
Increased Safe-Haven Demand : Uncertainty surrounding US Federal Reserve policies, global economic pressures, and geopolitical tensions are leading investors to pour money into safe-haven assets like gold and silver. This global safe-haven demand is also pushing up prices in the Indian markets.
Pressure from Heavy Retail Investment : Retail investors globally have invested record amounts in silver, particularly through increased capital flows into ETFs. This is sustaining the upward momentum in silver prices, which is also impacting rates in importing countries like India.
International Supply-Demand Imbalance : Global supply remains low while demand is high, resulting in low inventories and higher prices. The limited supply of silver and its industrial uses suggest that this rally may be prolonged.
Technical Readings and Bullish Outlook : Analysts, such as those at domestic brokerage SAMCO, suggest that silver is technically strong and has the potential to reach ₹4 lakh/kg in 2026, driven by supply-side factors and technical breakouts.
Record Rates and Surge on MCX : In India, silver futures on the MCX are consistently trading at new record highs (around ₹2.9 lakh/kg), maintaining the upward pressure on prices in the domestic market.
Surge in Delhi Bullion Market : The Delhi bullion market has witnessed a surge of up to ₹27,500 in silver prices in recent days, reaching new highs and reflecting strong investor demand.

Investment Demand – Biggest Reason Behind the Rally

Increased Participation of Retail Investors : In late 2025 and early 2026, small investors began investing in silver in large numbers, leading to a rapid increase in demand.
Strong Buying in Physical Silver and ETFs : Silver coins, bars, and silver ETFs have seen significant inflows. People are now viewing silver as an investment asset alongside gold.
Investment Demand Outweighs Jewelry Demand : According to market experts, this time the price surge is driven by industrial demand, not by jewelry demand.
Entry of Large Investors : Institutional investors and high-net-worth individuals are also building positions in silver, which has strengthened the price support.
FOMO (Fear of Missing Out) : Seeing the price surge, many people are buying silver out of fear of missing out on the opportunity, further increasing demand.

Rising Industrial Demand

Growing Use in the Solar Sector : More solar panels are being installed these days, and silver is an essential component in their manufacturing. Government renewable energy plans have further increased its demand.
Focus on Green Energy : India is now focusing on clean energy, which could lead to even greater demand for silver in the future.
Use in Mobile Phones and Gadgets : Silver is used for connections in phones, laptops, and other electronic devices, maintaining a consistent demand.
Impact of EVs and 5G : Silver is also crucial for electric vehicles, battery manufacturing and 5G technology, contributing to increased demand and consumption.
More Than Just Jewelry : People no longer consider silver solely for jewelry; they now recognize it as a vital metal for various industrial usages.

Supply Constraints & Mining Challenges

Global Supply Shortage : The global supply of silver is falling short of demand, which is directly impacting prices.
Mines are not producing as much silver as before : Silver mining has decreased in many countries compared to previous levels, resulting in less new silver entering the market.
Silver is not mined separately : Silver is often extracted along with copper and zinc. This means that if the mining of those metals decreases, the production of silver will also automatically decrease.
Starting a new mine is not easy : Opening a new mine takes years, and there are separate costs for paperwork, permits, and other expenses. Therefore, the supply cannot be increased quickly.
Mining costs have increased : The rising costs of diesel, electricity, labor, and machinery have made mining more expensive. This directly impacts the supply of Silver which is reflected in rising prices.

Import Dependence & Rupee Impact

India imports most of its silver : Most of the silver used in India is imported from abroad. The country is unable to produce its entire supply domestically.
Weak rupee makes silver expensive : When the rupee weakens against the dollar, imported silver becomes more expensive. This directly impacts the price.
International price is determined in dollars : The price of silver worldwide is determined in dollars. If the dollar strengthens, the price in India automatically increases.
Currency movements drive up prices : As soon as the rupee falls or the dollar strengthens, the import cost increases. This is why silver prices in India go up.

Inflation & Economic Uncertainty

As inflation rises, people turn to silver : When everyday necessities become more expensive, people start investing in safe assets like silver to protect their savings.
Silver comes in handy when the rupee weakens : If the value of the rupee falls, people look for assets that retain their value. Silver is considered safe for this reason.
A cheaper alternative to gold : Gold is expensive, but silver serves a similar purpose and fits within the budget.
A safe investment in times of uncertainty : When there is uncertainty in the market, people avoid taking risks and start investing in safe assets like silver.

Gold-Silver Relationship

When gold rises, silver doesn’t lag behind : It’s often observed in the market that when gold prices go up, silver follows the same trend. Both precious metals move together.
Silver gets support from the gold rally : When investors put money into gold and its price increases, people look for a cheaper option and shift to silver. This increases the demand for silver.
What does the gold-silver ratio indicate : This ratio shows how much silver is needed to buy 1 gram of gold. Currently, this ratio is quite high, indicating that silver is still undervalued.
Why do experts say silver is cheap : Market experts believe that the price of silver is still low compared to gold and that it may rise further in the future.

Will Silver Prices Continue to Rise in 2026?

The upward trend is likely to continue : Experts believe that the surge in silver prices could continue into 2026, especially as both global demand and investment remain strong.
Global Market Indicators : In the international market, silver is currently trading above its all-time record level of $90/oz, and several forecasts predict further upward movement.
All-Time High and Rally Strength : In 2025, silver registered a gain of approximately 170%, and this trend has continued to some extent in 2026.
Expert Price Targets : According to brokerage reports in India, the price of silver could soon reach ₹320,000 per kilogram if demand and pricing trends remain strong.

Should You Invest in Silver Now?

Portfolio Diversification : Investing in silver means your money isn’t limited to just stocks or mutual funds; it adds a different asset class to your portfolio.
Hedge Against Inflation : When inflation rises, the value of precious metals like silver tends to hold steady. This is why it’s considered a good safe-haven asset.
More Affordable Entry Point than Gold : Compared to gold, silver is still more affordable, making it easier for small investors to get started.

Investment Risks

High Volatility : Silver prices fluctuate rapidly, so there’s a higher risk in the short term.
Potential for Sudden Corrections : After a sharp rally, prices can sometimes drop suddenly, leading to potential losses.

Best Ways to Invest

Physical Silver : You can buy silver coins, bars, or biscuits, but proper storage is essential.
Silver ETFs : You can invest in silver through the stock market without physically owning it.
Digital Silver : Mobile apps offer the option to buy silver in small amounts.

Top 5 Silver ETF you can invest in

ETF	NAV (INR)	AUM (INR Cr.)	Expense Ratio
Nippon India Silver ETF	300	28,900	0.56%
ICICI Prudential Silver ETF	315	14,800	0.40%
HDFC Silver ETF	301	6,075	0.45%
SBI Silver ETF	307	4,750	0.40%
Kotak Silver ETF	300	3,380	0.45%

(as on 20 January, 2026)

You cannot invest in Silver ETFs using Pocketful. This can easily be done online on Pocketful. Complete the e-KYC procedure. Your account will then be ready for trading.

Conclusion

Several solid factors are behind the recent surge in silver prices, including increasing investment demand, industrial use, and global market influences. Fluctuations in the Indian rupee have also impacted domestic prices. Further minor price fluctuations are possible, but the long-term outlook for silver still appears positive.

Frequently Asked Questions (FAQs)

Why is the silver price increasing in India?
The increasing demand for investment and the bullish global market are the main reasons.
Why is the silver rate increasing day by day?
Because people are continuously buying, and international rates are rising.
Is this the right time to invest in silver?
It might be suitable for the long term; make a decision after considering your budget.
Will the silver price go up in the future?
The trend is positive, and there is a possibility of further increase.
Is silver better than gold for investment?
It is cheaper than gold, making it more accessible for small investors.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur
Gold rate in Kerala	Silver rate in Kerala
Gold rate in Kolkata	Silver rate in Kolkata
Gold rate in Lucknow	Silver rate in Lucknow
Gold rate in Madurai	Silver rate in Madurai
Gold rate in Mangalore	Silver rate in Mangalore
Gold rate in Mumbai	Silver rate in Mumbai
Gold rate in Mysore	Silver rate in Mysore
Gold rate in Nagpur	Silver rate in Nagpur
Gold rate in Nashik	Silver rate in Nashik
Gold rate in Patna	Silver rate in Patna
Gold rate in Pune	Silver rate in Pune
Gold rate in Rajkot	Silver rate in Rajkot
Gold rate in Salem	Silver rate in Salem
Gold rate in Surat	Silver rate in Surat
Gold rate in Trichy	Silver rate in Trichy
Gold rate in Vadodara	Silver rate in Vadodara
Gold rate in Vijayawada	Silver rate in Vijayawada
Gold rate in Visakhapatnam	Silver rate in Visakhapatnam

January 26, 2026

Difference Between Hallmark Gold, KDM Gold and BIS 916

Buying gold in India often starts with questions around KDM and what it actually represents. Many buyers still look up the KDM full form to understand whether it relates to purity or certification. This confusion usually begins at the jewellery counter. This is because the older terms continue to be used in daily conversations. Without clarity, it becomes easy to assume KDM is a quality mark, even though that is no longer true.

To make better choices, it is important to understand the KDM meaning in gold. At the same time, you must know how gold standards have changed over time. Regulations today focus more on safety and verified purity. This is one of the reasons many invest in gold funds now, and this is indeed a major shift.

Along with purity, the gold rate in India also plays a key role in buying decisions. When prices change daily, knowing what you are paying for becomes even more important. Read this guide to understand the key differences clearly and make confident gold buying decisions.

What Is KDM Gold

KDM meaning in gold refers to the older jewellery-making method. This was one where the cadmium was mixed with gold solder to join pieces. Many people still search for the KDM full form, assuming it reflects purity. So, KDM is the welding process and not a sign of purity. However, cadmium is toxic. Hence, it is no longer used in the process.

It is important to understand that KDM meaning was never a purity standard or certification. It only described a joining technique. Jewellery labelled as KDM does not carry any legal assurance of gold purity today and should be avoided when buying new gold.

What Is Hallmark Gold

Hallmark Gold refers to gold jewellery that has been independently tested and certified for purity by authorised assaying centres. This certification is issued under the Bureau of Indian Standards framework. It ensures that the gold that a person is buying matches what the seller is claiming.

A hallmarked gold item includes key identifiers. Some of these are:

BIS logo
Purity mark
Year of hallmarking
Jeweller identification
Assaying centre mark

This is a mandatory thing for any jewellery that is designed and sold in India. This is what ensures that you are buying a pure and authentic product. But if you invest in a gold ETF, there is no need for this sign check.

What Is BIS Mark Gold

The BIS stands for the Bureau of Indian Standards. It is the mark that confirms that gold jewellery matches all the purity standards that are set. This is a sign that ensures you are buying from a genuine seller and you are getting value for money. When you see a BIS mark, it means the jewellery has followed a defined process, not just a promise from the seller.

Common BIS Gold Purity Marks in India

BIS Purity Mark	Karat Value	Gold Purity	Common Usage
BIS 999	24 Karat	99.9%	Gold coins and bars
BIS 958	23 Karat	95.8%	High-purity jewellery
BIS 916	22 Karat	91.6%	Traditional gold jewellery
BIS 875	21 Karat	87.5%	Durable jewellery designs
BIS 750	18 Karat	75%	Diamond and studded jewellery
BIS 585	14 Karat	58.5%	Light weight and affordable jewellery

KDM vs Hallmark Gold vs BIS Mark Gold

When you walk into a jewellery store, these three terms often come up together. That is where most confusion begins. Each of them plays a very different role in gold buying.

KDM relates to how jewellery was once made.
Hallmark Gold focuses on purity assurance.
BIS connects the entire system by setting and monitoring the standards.

Understanding this difference helps you know what truly protects your money.

Basis of Comparison	KDM Gold	Hallmark Gold	BIS Mark Gold
Meaning	Jewellery made using cadmium solder	Gold certified for purity	Gold certified under BIS standards
Purpose	Joining gold pieces	Assuring declared purity	Legal purity verification
Purity Guarantee	No purity assurance	Yes, purity is verified	Yes, purity is verified
Health Safety	Unsafe due to cadmium	Safe and regulated	Safe and regulated
Legal Status in India	Banned	Mandatory for jewellery	Mandatory certification
Buyer Protection	None	High	High
Recommended for Purchase	No	Yes	Yes

Which One Should You Choose

When buyers compare KDM and hallmarked gold, confusion usually comes from older terms that are still used in conversations. Many people look up KDM full form in gold, thinking it reflects purity. In reality, KDM is only an old jewellery-making method. Today, certified purity and buyer protection matter far more.

1. Choose Hallmarked Gold for Safe Jewellery Buying

Hallmarked gold is tested. This is the one that is certified for purity. It ensures the gold content matches what is claimed. This protects you from paying for lower purity gold and gives confidence at the time of resale.

2. BIS 916 Is Ideal for Jewellery Use

BIS 916 gold offers a good balance between purity and durability. It is strong enough for daily wear while still holding high gold content. This is why it is the most commonly used standard for gold jewellery in India.

3. Higher Purity Gold Works Better for Investment

If your goal is investment, gold coins or bars are more suitable than jewellery. Higher purity gold holds value better because it does not include making charges or design costs.

4. Always Verify the BIS Hallmark Before Buying

Checking the BIS hallmark stamp is simple. But if you are buying gold, then it is an important step. It confirms that the gold has been tested. All tests are conducted by an authorised centre and follow national quality standards.

5. Avoid KDM Gold Without Exception

KDM gold is outdated and not legally accepted today. It does not guarantee purity and involves unsafe materials. Even if offered at a lower price, it should not be considered for purchase.

Conclusion

Buying gold should never feel confusing or uncertain. Once you understand what KDM stands for, the choice becomes clear. KDM is an outdated jewellery-making method with no purity assurance or legal backing today. Modern gold buying is built around certified standards that protect your money and health. Always focus on hallmarked gold backed by BIS norms, especially when prices are high and resale value matters.

So, if you are planning to buy gold, check all these aspects well. And if you are looking to get updates on the market, visit Pocketful.

Frequently Asked Questions (FAQs)

What is the KDM full form in gold?
KDM refers to a jewellery-making method that uses cadmium as solder. It was never a purity standard.
Is KDM gold legal in India today?
No, KDM gold is not legally permitted. This is mainly due to health and safety risks linked to cadmium.
What does BIS 916 mean in gold jewellery?
BIS 916 indicates 22 karat gold with 91.6% purity. It is certified under national standards.
Is hallmarked gold mandatory in India?
Yes, hallmarking is mandatory for most gold jewellery sold in India. This step is there to ensure purity and buyer protection.
Which gold is better for jewellery and investment?
For jewellery, BIS 916 hallmarked gold is ideal. For investment, higher purity gold coins or bars are more suitable.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur
Gold rate in Kerala	Silver rate in Kerala
Gold rate in Kolkata	Silver rate in Kolkata
Gold rate in Lucknow	Silver rate in Lucknow
Gold rate in Madurai	Silver rate in Madurai
Gold rate in Mangalore	Silver rate in Mangalore
Gold rate in Mumbai	Silver rate in Mumbai
Gold rate in Mysore	Silver rate in Mysore
Gold rate in Nagpur	Silver rate in Nagpur
Gold rate in Nashik	Silver rate in Nashik
Gold rate in Patna	Silver rate in Patna
Gold rate in Pune	Silver rate in Pune
Gold rate in Rajkot	Silver rate in Rajkot
Gold rate in Salem	Silver rate in Salem
Gold rate in Surat	Silver rate in Surat
Gold rate in Trichy	Silver rate in Trichy
Gold rate in Vadodara	Silver rate in Vadodara
Gold rate in Vijayawada	Silver rate in Vijayawada
Gold rate in Visakhapatnam	Silver rate in Visakhapatnam

January 26, 2026

Why Are Gold Prices Rising in India?

Whenever you check the gold price lately, you must be wondering why the prices are rising so frequently. They are rising because of various reasons, which include both macroeconomic and microeconomic factors, Global inflation concerns, geopolitical tensions, central bank buying, currency fluctuations, and rising demand for safe-haven assets continue driving gold prices higher worldwide.

In today’s blog post, we will give you an overview of why the gold prices are increasing in India, and how it affects the Indian economy and jewellery industry.

History of Gold Prices in India

Gold prices started to rise after the COVID period for a number of reasons, including a change in the world economy and a fall in the value of the domestic currency. Although there has been a short-term correction in gold prices, the long-term trend remains upward due to global central banks’ purchases and concerns about inflation. Let’s look at the changes in gold prices over time.

Year	24 Karat Gold Price in INR/10 gram	Reason
2019	35,220	Because of consistent worldwide demand, the price of gold rises a little during this time.
2020	48,651	Gold prices increased during the COVID-19 pandemic because it was seen as a haven.
2021	48,720	Following the 2020 rally, the gold market slowed down.
2022	52,670	The price of gold increased during this time because of higher inflation, adverse geopolitical conditions and a weak dollar.
2023	65,330	The demand for gold has increased globally, and the price of gold has increased because of investments in safe havens.
2024	77,913	Gold prices increased as a result of the pandemic, rising inflation, macroeconomic uncertainty, and the wedding season.
2025	1,36,570	The combination of rising global gold prices, the falling Indian rupee, and rising demand for gold led the prices of gold to touch a record high last year.

Reasons Behind the Rising Price of Gold

The key reason behind the rising price of gold in India is as follows:

Increasing Demand: Gold is considered a haven during unstable economic conditions and geopolitical tensions, which increases the fear of investors and prompts them to consider gold as an investment option.
Decreasing Interest Rates: When central banks reduce interest rates, other investment options become less attractive, thereby increasing the demand for gold.
Buying by Central Banks: Numerous central banks across the world are increasing their gold reserves to decrease their dependency on the dollar. It also acts as a major cause of the increasing price of gold.
Weak Indian Currency: The Indian Rupee is weakening, and India imports around 80% of their gold from other countries, which increases the import cost, eventually increasing the gold prices.
Seasonal Demand: Gold has key importance in India, and it increases the demand especially during the wedding and festive season.
Limited Supply: The supply of gold is limited, and any continuous buying increases the price of gold.

How Increased Price Affects the Jewellery Industry

The increased price of gold can adversely impact the jewellery in the following manner:

Decline in Demand: The rising price of gold is making jewellery unaffordable for buyers. There may be many buyers who can postpone their purchase, especially those in the middle-income group.
Margin Pressure: A jewellery manufacturer’s profit margin can be significantly reduced because of the higher price of gold. Also, their sales will decline because of it.
Alternate Jewellery: The higher prices of gold can increase the demand for alternative options of gold jewellery, such as diamond, gemstone, etc.
Wedding and Festive Season: The wedding season of India plays a key role in the Indian jewellery industry. A higher gold price will lead to a reduction in purchase volume.

Effect of Gold Price on the Indian Economy

Gold prices play a key role in the Indian Economy because of the following factors:

Trade Deficit: India primarily imports gold from different countries; hence, an increase in the gold price can significantly increase the trade deficit for India as its import bill increases.
Inflation: Gold prices can significantly affect inflation indirectly because gold is not directly considered in the Consumer Price Index.
Consumption: A higher gold price will attract investors, and they might shift their savings towards purchasing gold as an investment option, which will reduce consumer spending on consumer goods.
Import Duties: Due to an increase in gold prices, the government will raise the import duty to curb the rising gold price.

Will Gold Prices Rise in Future

Yes, gold prices are expected to rise in future; however, there might be some short-term volatility, but the long-term factors remain supportive. There are various ongoing factors, such as economic uncertainties and inflation concerns, which promote gold as a haven. And at the same time, decreasing interest rates by central banks across countries and strong buying by the central bank increase demand. Although market cycles may cause temporary declines, the long-term outlook will be positively strong.

Invest In Gold ETF

These are based mainly on 1-year return figures and notable performance trends

ETFs	Assets Under Management (AUM)	1 Year Returns (%)	Expense Ratio (%)	Tracking Error (%)
Nippon India ETF Gold BeES	₹39,901	84.65	0.80	0.23
ICICI Prudential Gold ETF	₹17,769	80.03	0.50	0.21
SBI Gold Exchange Traded Scheme	₹17,401	78.33	0.70	0.23
Axis Gold Exchange Traded Fund	₹3,895	83.38	0.56	0.24
UTI Gold Exchange Traded Fund	₹3,282	86.06	0.51	0.16
Mirae Asset Gold ETF	₹2,061	84.16	0.35	0.37
LIC MF Gold ETF	₹1,101	85.03	0.41	0.29
Quantum Gold ETF	₹573	80.91	0.56	0.17

(Date as of 20 Jan, 2026)

Conclusion

On a concluding note, gold prices are rising in India due to uncertainty among investors regarding the economy’s future, leading to increased gold purchases. Inflation concerns, currency depreciation, etc., are also increasing their demand and price. One can invest in gold for the long term for wealth creation, but in the short run, it might show some volatility. Before making any investment in gold, one can consult their investment advisor.

Invest in Gold ETF, throw pocketful savings regularly and build long-term wealth with stability, safety, and smart diversification.

Frequently Asked Questions (FAQs)

Why are gold prices rising in India?
In India, gold prices are rising because of various factors such as a weakening rupee, inflation, increasing domestic demand, and purchasing by the central governments of different countries.
How do USDINR exchange rates impact the gold prices in India?
India primarily imports gold from different countries; therefore, in India, gold becomes expensive even if global gold prices remain stable.
Will gold prices continue to rise in future?
Yes, based on the various factors such as inflation, currency exchange rate, demand, etc., it is expected that gold prices will still rise in future; however, short-term corrections are expected.
How can we purchase digital gold?
There are various options through which you can invest in digital gold, such as gold ETFs, SGBs, gold mutual funds, etc. To invest in gold ETFs and SGBs, you can open a lifetime free demat account with Pocketful and invest in it. Pocketful also offers free brokerage on delivery trades, and their trading platform is equipped with advanced trading tools.
Which is a better investment mode in gold – digital or physical?
From an investment point of view, digital gold such as Gold ETFs, SGBs, and Gold Mutual Funds is considered a more cost-efficient investment mode.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur
Gold rate in Kerala	Silver rate in Kerala
Gold rate in Kolkata	Silver rate in Kolkata
Gold rate in Lucknow	Silver rate in Lucknow
Gold rate in Madurai	Silver rate in Madurai
Gold rate in Mangalore	Silver rate in Mangalore
Gold rate in Mumbai	Silver rate in Mumbai
Gold rate in Mysore	Silver rate in Mysore
Gold rate in Nagpur	Silver rate in Nagpur
Gold rate in Nashik	Silver rate in Nashik
Gold rate in Patna	Silver rate in Patna
Gold rate in Pune	Silver rate in Pune
Gold rate in Rajkot	Silver rate in Rajkot
Gold rate in Salem	Silver rate in Salem
Gold rate in Surat	Silver rate in Surat
Gold rate in Trichy	Silver rate in Trichy
Gold rate in Vadodara	Silver rate in Vadodara
Gold rate in Vijayawada	Silver rate in Vijayawada
Gold rate in Visakhapatnam	Silver rate in Visakhapatnam

January 25, 2026

1 Tola Gold in India: How Many Grams, Price & Investment Insights

Gold and India go way back. From wedding jewellery to festive gifting and long-term savings, gold has always played a major role in Indian households. While now gold prices are quoted in grams, many buyers still ask the same question their parents and grandparents did: “How many grams of 1 tola gold are?”

If you have ever stood at a jewellery counter feeling slightly confused by the mix of grams, tolas, and prices flashing on a screen, you are not alone. Everyone has faced it. This guide breaks it all down in a simple, practical way.

What is Tola?

Tola, being a conventional measure of weight, has been used in India and other South Asian countries for centuries, especially in the field of gold and silver. Before the introduction of digital weighing tools and metrics, merchants used physical indicators like seeds and balance scales to ensure fair trade.

To put it simply, the tola is an ancient measure that will always remain relevant, as it is still used by the people. Even nowadays, when visiting many local jewellery stores, one will definitely come across price quotes in terms of per tola, especially when dealing with older jewellery or family gold reserves.

1 Tola Gold is equal to How Many Grams?

1 Tola = 11.66 grams of gold

This is the official and historically standard conversion.

Examples

2 Tolas = 23.32 grams
5 Tolas = 58.32 grams
10 Tolas = 116.64 grams

Imagine your grandmother says her necklace weighs “5 tolas.” Without converting it properly, you might underestimate its value if you assume it is only 50 grams. That 8 grams of difference can translate into thousands today.

Why do some jewellers say 1 Tola is 10 grams?

This is where confusion usually begins. In many local markets, jewellers casually consider 1 tola as 10 grams.

History

Ancient Roots: The concept of a tola goes back to ancient India, where weights were often based on natural objects. Traditionally, one tola was equal to 100 ratti seeds, which were commonly available and uniform in weight.
British-Era Standardisation: During British rule, the tola was officially standardised to 180 troy grains, which was later translated into 11.6638 grams under the metric system.

Even after India officially adopted the metric system, the tola did not disappear. Jewellery, tradition, and habit kept it alive, especially in household gold conversations.

Importance of Tola

Jewellery Buying – Gold jewellery to many Indian families is not only an ornament; it is a combination of emotional and financial security.
Gold Investment and Coins – Tola denominations of gold bars and gold coins still exist, particularly in the traditional bullion markets. When you invest in gold in the form of physical gold, knowing how to convert it correctly will assist you: Compare prices, do not overpay, and better know the resale value.
Gold Loans – Banks and NBFCs always calculate gold value in grams, not tolas. If your gold is described in tolas but evaluated in grams, knowing the actual weight ensures: Fair loan value, better transparency, no unpleasant surprises during valuation.

Gold Prices: Tola vs Gram

Gold prices in India move daily, sometimes hourly. While financial websites usually quote prices per gram, many local markets still discuss prices per tola.

So when someone says, one Tola gold is expensive, they are usually referring to the gram price multiplied by 11.66.

Investment Insights

1. Small Weight Gaps Can Mean Big Rupee Differences

The difference between 10 grams and 11.66 grams may not seem significant on paper. But when gold prices are high, that gap starts to matter.

Think of it this way, If gold is priced at ₹6,500 per gram, that extra 1.66 grams adds up to more than ₹10,000 per tola. Now imagine buying five or ten tolas. This is why investors should always work with exact gram weights, and not approximate figures.

2. Physical Gold Investors Should Always Think in Grams

Gold bars and coins may still be sold in tola denominations in some markets, but their value is always calculated in grams. International prices, purity checks, resale rates, everything runs on the metric system.

If you are investing for the long term, thinking in grams helps you compare prices across sellers more accurately, avoid emotional or traditional pricing bias, and track your investment in line with global gold rates.

3. Jewellery Is Emotional, but the Investment in Gold is not

For many families, gold is an emotion and that emotional value is real. But when jewellery doubles as an investment, numbers matter just as much as sentiment.

Before making a big jewellery purchase, ask for the exact gram weight of the gold, separate the gold value from the making charges, and confirm the purity (22K vs 24K)

Conclusion

The tola is not only a measure of value. It is a practice that has been passed down through generations. When you know that the weight of 1 tola is 11.66 grams, you become an even smarter buyer, a more confident investor, and can easily negotiate at the jewellery counter. Gold may shine emotionally, but the math behind it should always be crystal clear.

Investors looking to add gold to their portfolio can do so digitally using Gold ETFs and Gold Funds, easily accessible through Pocketful’s free demat account facility and zero brokerage on delivery trades.

Frequently Asked Questions (FAQs)

Is 1 tola always 11.66 grams?
Yes. Any other number is just a rounded convenience.
Should I buy gold in tola or grams?
Think in grams when paying. Understand tolas when talking.
Do jewellers still use tola?
Very much, especially in local and traditional markets.
Does gold purity change with tola or gram measurement?
No, purity depends on karats, i.e., 22k or 24k and not on whether gold is measured in tolas or grams.
Why is it important to know the tola-to-gram conversion?
It is important to know because even a small weight difference can mean thousands of rupees when gold prices are high.

Gold Rate in Top Cities of India	Silver Rate in Top Cities of India
Gold rate in Ahmedabad	Silver rate in Ahmedabad
Gold rate in Ayodhya	Silver rate in Ayodhya
Gold rate in Bangalore	Silver rate in Bangalore
Gold rate in Bhubaneswar	Silver rate in Bhubaneswar
Gold rate in Chandigarh	Silver rate in Chandigarh
Gold rate in Chennai	Silver rate in Chennai
Gold rate in Coimbatore	Silver rate in Coimbatore
Gold rate in Delhi	Silver rate in Delhi
Gold rate in Hyderabad	Silver rate in Hyderabad
Gold rate in Jaipur	Silver rate in Jaipur
Gold rate in Kerala	Silver rate in Kerala
Gold rate in Kolkata	Silver rate in Kolkata
Gold rate in Lucknow	Silver rate in Lucknow
Gold rate in Madurai	Silver rate in Madurai
Gold rate in Mangalore	Silver rate in Mangalore
Gold rate in Mumbai	Silver rate in Mumbai
Gold rate in Mysore	Silver rate in Mysore
Gold rate in Nagpur	Silver rate in Nagpur
Gold rate in Nashik	Silver rate in Nashik
Gold rate in Patna	Silver rate in Patna
Gold rate in Pune	Silver rate in Pune
Gold rate in Rajkot	Silver rate in Rajkot
Gold rate in Salem	Silver rate in Salem
Gold rate in Surat	Silver rate in Surat
Gold rate in Trichy	Silver rate in Trichy
Gold rate in Vadodara	Silver rate in Vadodara
Gold rate in Vijayawada	Silver rate in Vijayawada
Gold rate in Visakhapatnam	Silver rate in Visakhapatnam

January 25, 2026

10 Best Small Cap Mutual Funds in India 2026

Small cap mutual funds often come into the picture when you want higher growth and are ready to stay invested for the long term. These funds invest in smaller companies that are still finding their space in the market. Some grow steadily, while others grow fast after years of struggle. This is why many investors track the top performing small cap mutual funds before making any decision.

When you look for the best small cap funds, returns alone should not guide you. You also need to understand the fund’s strategy, how the manager handles market volatility, and whether the portfolio is spread across sectors. Small cap investing is about patience and discipline.

In this guide, let us explore the top 10 small cap mutual funds and their details.

What Are Small Cap Funds?

Small cap funds are mutual funds that invest mainly in companies with a smaller market value. These companies are usually in the early stages of growth. These are the ones that are still building their business presence. Many of them operate in niche areas or emerging sectors.

Since these businesses are still growing, their stock prices can fluctuate more than large companies. This leads to higher short-term volatility. At the same time, small cap funds offer strong long-term growth potential. They are suitable for investors who have patience, a higher risk appetite, and a long-term investment horizon.

Features of Small Cap Funds

Invest mainly in companies with a smaller market value.
Focus on businesses in early or expansion stages.
Higher exposure to emerging sectors and new ideas.
Managed actively to identify growth opportunities.
Suitable for long-term investment horizons.

Pros of Small Cap Funds

Offer higher growth potential over the long term.
Help in portfolio diversification beyond large stocks.
Can benefit early from rising companies.
Opportunity to invest in future market leaders.

Cons of Small Cap Funds

High short-term volatility and price swings.
Higher risk during market downturns.
Returns may be uneven year to year.
Not suitable for short-term goals.

Top 10 Small Cap Mutual Funds

Small cap funds offer you an opportunity to invest in companies that are in the growing stage. This offers investors a chance to not just gain benefits but also ensure that they have managed risk. So, here is the list of the top 10 small cap mutual funds that you should consider investing in.

Fund Name	AUM (₹ Cr)	NAV (₹)	1Y Return (%)	2Y Return (%)	5Y Return (%)	Expense Ratio (%)
Nippon India Small Cap Fund – Direct Growth	68,287.15	181.51	-1.81	7.79	26.54	0.63
HDFC Small Cap Fund – Direct Growth	37,753.13	154.32	2.2	7.64	24.24	0.67
SBI Small Cap Fund – Direct Growth	36,268.45	186.97	-2.39	6.62	18.33	0.75
Quant Small Cap Fund – Direct Growth	29,784.55	265.17	-2.31	5.33	27.92	0.75
Axis Small Cap Fund – Direct Growth	26,546.88	119.26	1.29	9.75	21.99	0.57
Bandhan Small Cap Fund – Direct Growth	18,990.28	50.25	4.63	17.43	26.23	0.42
Kotak Small Cap Fund – Direct Growth	17,257.64	284.45	-6.58	5.14	20.04	0.55
DSP Small Cap Fund – Direct Growth	16,934.59	211.03	2.05	9.14	22.34	0.79
HSBC Small Cap Fund – Direct Growth	15,968.70	84.48	-8.09	4.69	23.86	0.7
Franklin India Small Cap Fund – Direct Growth	13,238.40	184.85	-2.96	5.03	22.32	0.92

Note: The information is as of 17 January 2026. It is for educational purposes only. Check everything well before investing.

1. Nippon India Small Cap Fund

This fund follows the Nifty Smallcap 250 TRI and focuses on diversification to manage liquidity risks common in small caps. It spreads exposure across a large number of stocks, which helps reduce concentration impact during volatile phases. The investment approach balances growth and stability within the small-cap space. It suits long-term investors who can stay invested through cycles. Many investors track it while researching top performing small cap mutual funds for sustained growth potential.

2. HDFC Small Cap Fund

It is benchmarked to the S&P BSE 250 SmallCap TRI. It follows a quality-driven and bottom-up investment style. It focuses on companies with strong governance, stable earnings visibility, and long-term scalability. Portfolio turnover remains controlled. It is mainly because of the easy access approach. The fund avoids chasing short-term momentum and instead prioritizes fundamentals. It is often preferred by investors looking for the best small cap funds with consistency and disciplined execution.

3. SBI Small Cap Fund

This fund is benchmarked to the S&P BSE 250 SmallCap TRI and is known for its cautious capacity management. It focuses on protecting existing investors by limiting inflows and maintaining portfolio discipline. Stock selection emphasizes balance sheet strength and earnings visibility. The portfolio is selective rather than widely spread. It suits investors who prefer risk control within small caps. Many consider it a reliable best small cap option for long-term investing.

4. Quant Small Cap Fund

Tracking the Nifty Smallcap 250 TRI, this fund follows a highly active and adaptive investment framework. Portfolio decisions are driven by valuation comfort, liquidity signals, and market timing. The strategy allows frequent shifts based on changing conditions, which can lead to higher volatility. It suits investors with a higher risk appetite and tactical mindset. It is often shortlisted among the top 10 small cap mutual funds for aggressive growth seekers.

5. Axis Small Cap Fund

Axis Small Cap Fund tracks the Nifty Smallcap 250 TRI and follows a selective investing style. The fund prefers businesses that can grow without heavy capital needs and show steady earnings visibility. Portfolio choices reflect patience rather than fast rotation. Exposure is spread across financials, healthcare, and industrial segments to avoid overdependence on one theme. This approach suits investors who want controlled participation in small caps and often search for the best small cap funds with balance.

6. Bandhan Small Cap Fund

Benchmarked to the S&P BSE 250 SmallCap TRI, this fund emphasizes downside protection alongside growth. It maintains a broad stock spread. This helps to manage volatility and liquidity challenges. The portfolio tilts towards financial services, construction, and consumption-driven sectors. The approach suits investors who want smoother participation across market cycles. Over time, it has gained attention among top performing small cap mutual funds with a risk-aware structure.

7. Kotak Small Cap Fund

This fund follows the Nifty Smallcap 250 TRI. It adopts a research-driven and bottom-up approach. It focuses on identifying emerging businesses. These are the ones with long growth runways and improving fundamentals. Sector exposure is diversified. The main tilt is towards healthcare, industrials, and consumer segments. Investment decisions are driven by fundamentals rather than market noise. It suits patient investors and is often discussed among the top 5 small cap mutual funds.

8. DSP Small Cap Fund

It is a fund that follows the S&P BSE 250 SmallCap TRI. This fund follows a buy-and-hold investment philosophy. It targets under-researched companies. These are companies with good models and better potential. Portfolio turnover remains relatively low, supporting long-term compounding. Sector exposure leans towards consumer cyclicals and industrials. It suits investors who value patience and conviction. Many investors shortlist it while evaluating the best small cap funds for long-term holding.

9. HSBC Small Cap Fund

This fund uses the Nifty Smallcap 250 TRI as its benchmark and follows a blend of growth and value investing. It focuses on niche and undervalued businesses with improving fundamentals. Portfolio construction emphasizes diversification to manage volatility. The strategy suits investors comfortable with short-term fluctuations. Over time, it has featured in several discussions on top performing small cap mutual funds for diversified exposure.

10. Franklin India Small Cap Fund

Benchmarked to the S&P BSE 250 SmallCap TRI, this fund follows a conservative and research-led investment style. It focuses on under-owned companies. Portfolio diversification helps manage liquidity risks. Also these companies have growth potential. The fund suits investors who prefer a measured approach rather than aggressive positioning. It is often considered among the top 10 small cap mutual funds for steady participation.

Top 5 Small Cap Mutual Funds With Consistent Performance

Now that you know the best small cap funds, it is time to explore the ones that have a considerable AUM and have generated positive returns over the last 10 years. These are as follows:

Fund Name	AUM (₹ Cr)	NAV (₹)	1Y (%)	2Y (%)	5Y (%)	10Y (%)	Expense Ratio (%)
HDFC Small Cap Fund	37,753.13	154.32	2.20	7.64	24.24	19.66	0.67
Axis Small Cap Fund	26,546.88	119.26	1.29	9.75	21.99	19.69	0.57
DSP Small Cap Fund	16,934.59	211.03	2.05	9.14	22.34	17.58	0.79
ICICI Prudential Smallcap Fund	8,427.64	94.48	1.79	6.03	22.05	17.38	0.77
Aditya Birla Sun Life Small Cap Fund	4,937.52	95.04	1.11	6.8	18.21	14.48	0.90

Note: The information is as of 17 January 2026. It is for educational purposes only. Check everything well before investing.

1. HDFC Small Cap Fund

It has remained consistent because it sticks to fundamentals. This is even when markets turn volatile. The fund manager avoids chasing trends. The main focus is on businesses with stable cash flows and clear growth paths. This discipline has helped the fund stay positive across time periods without sharp swings.

2. Axis Small Cap Fund

This shows consistency by being selective rather than aggressive. It prefers companies that can grow steadily. The focus on heavy capital pressure is low. The fund does not react quickly to market noise. It helps control downside during corrections and supports smoother long-term return delivery.

3. DSP Small Cap Fund

It benefits from a patient investment style. Instead of frequent buying and selling, it holds businesses through cycles once conviction is built. This approach reduces unnecessary churn. It allows compounding to work over time, which explains its stable performance across different market phases.

4. ICICI Prudential Smallcap Fund

The fund maintains consistency through diversification and careful stock sizing. No single theme dominates the portfolio. This balance helps cushion the fund during weak phases. The fund is still participating in growth periods. This makes it one of the best for a return profile creation and for steadier growth compared to many peers.

5. Aditya Birla Sun Life Small Cap Fund

It stays consistent by spreading risk across sectors. This helps in avoiding concentrated bets. The fund focuses on business durability rather than short-term excitement. This measured approach has helped it remain positive over longer horizons despite regular small-cap volatility.

Who Should Invest in These Small Cap Funds?

Investors with a long-term horizon of at least 7 to 10 years.
Those who already have exposure to large-cap or index funds.
Investors who can handle short-term volatility without panic selling.
Individuals investing for wealth creation, not short-term goals.
SIP investors who prefer disciplined and gradual allocation to equities.

Read Also: Best SIP Mutual Funds in India

Conclusion

Small cap funds are not about quick wins. They reward investors who stay patient during weak phases and allow compounding to work over time. The funds discussed here have shown consistency across different market cycles, which matters more than temporary spikes in returns. If your goals are long-term and your risk appetite allows some volatility, these funds can add meaningful growth potential to your portfolio.

Start your investment journey with Pocketful, where you can compare funds, set up SIPs, and track performance easily in one place. Pocketful helps you invest with clarity, not guesswork.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Best Money Market Mutual Funds in India
2	Best Index Funds in India
3	Best Children’s Mutual Funds in India
4	Best Mid-Cap Mutual Funds in India
5	List of 10 Top Smallcap Stocks in India on NSE
6	Best Thematic Mutual Funds in India
7	Best Short-Term Investments
8	Types of Mutual Funds in India
9	Top Specialized Investment Funds (SIFs) in India
10	Best Books on Mutual Funds for Beginners in India

Frequently Asked Questions (FAQs)

Are small cap funds risky?
Yes, small cap funds are volatile in the short term, but they can offer higher growth over the long term if you stay invested.
Is SIP the right way to invest in small cap funds?
SIP is usually preferred because it spreads investment over time and reduces the impact of market timing.
How long should I stay invested in small cap funds?
Ideally, you should stay invested for at least 7 to 10 years to handle volatility and benefit from growth.
Can I invest lump sum in small cap funds?
Lump sum investments are possible, but SIPs are generally safer during volatile market conditions.
What percentage of my portfolio should be in small cap funds?
For most investors, allocating around 10% to 20% of the portfolio to small caps is considered reasonable.

January 24, 2026

What Is Expiry Day Trading?

Expiry day in the derivatives market feels very different from a regular trading session. Prices of options move faster. Emotions run higher, and small decisions can suddenly have outsized outcomes. For some traders, expiry day is thrilling, almost addictive. For others, it is intimidating. Understanding how expiry day trading works is essential if you participate in options trading on exchanges like NSE or BSE.

Let us break it down in simple terms, what expiry day trading actually means, why traders focus on it so much, the benefits, and the risks you should respect before jumping in.

What is Expiry Day Trading?

Expiry day trading refers to trading options contracts on their last trading day, just before they expire and become worthless if expired out-of-the-money (OTM).

In India, index and stock options now expire weekly or monthly, depending on the contract. Once market hours end on expiry day, the option will either:

Gets settled if it is profitable
Or expires worthless if it is not

There’s no “holding it for later.”

Example : Imagine buying a movie ticket that is valid only until tonight. If you do not use it, it will be useless tomorrow. Options on expiry day work the same way. Whatever value is left must be realised today, or it will disappear.

How Expiry Day Trading is Different from Regular Trading Days ?

1. Time Decay Speeds Up

Options lose value over time. This is called time decay, and it accelerates on expiry day. On a normal trading day, an option will lose a small amount as time passes. On expiry day, that loss can happen within minutes.

For option buyers, this means you must be right and sudden movement in the underlying asset is required quickly, not eventually.
For option sellers, time decay works in your favour, as long as prices stay in range.

2. Volatility Suddenly Picks Up

Expiry day often brings sharp, sudden moves, even when there is no big news, because

Traders are closing positions
Institutions are adjusting hedges
Algorithms are reacting to price levels

This push-and-pull creates sudden spikes and drops, especially in index options. You might see NIFTY moving in a tight range all morning, and then suddenly break 80-100 points in the last hour.

3. Trading Volumes Are Higher Than Usual

Most traders do not want to carry risk into the expiry settlement. So they exit. Which means, more buyers, more sellers and faster execution. High liquidity is good, but it also means price moves do not wait for you to think too long.

How to trade on Expiry Day?

Step 1. Pick a Clear Market View

Ask yourself one question: Is the market likely to move up, down, or stay in a range today?

Step 2. Choose the Right Option :

Since premiums decay quickly

Traders often choose at-the-money (ATM) or slightly in-the-money (ITM) options
Out-of-the-money options are cheap, but riskier as they can expire out-of-the-money (OTM)

It is like choosing between a cab that is already nearby versus one that might show up later. On expiry day, you do not have time to wait.

Step 3. Enter Early, Manage Actively

Many experienced traders prefer entering trades in the first half of the session when,

Time value still exists
Price discovery have more room to develop

But entry alone is not enough. Stop-loss and target discipline is very important on expiry day.

Step 4. Exit Without Greed

Holding till the last minute can be tempting. Sometimes it works. Often, it does not work. Successful expiry traders focus on,

Capturing a part of the move
Not getting every last rupee out of it

Benefits of Expiry Day Trading

1. Opportunity for Quick Profits : Expiry day offers the possibility of making returns within hours, sometimes minutes. Entries taken in the option at the right time can double in value, not because of a good market move, but because time and volatility work together.

That is why expiry days attract intraday traders looking for momentum.

2. Lower Capital Requirement : Since options near expiry are cheaper, you can take positions with less capital, and the risk is predefined (especially for buyers).

3. No Holding of Positions : By the end of expiry day, trades are settled, no overnight anxiety and no “what if” bothering your mind over the weekend. For many traders, this clarity is mentally refreshing.

Risks Involved of Expiry Day Trading

1. Fast Losses : What goes up quickly can fall even faster. A call option that is profitable at 11:30 AM can turn negative by 12:15 PM if the market falls.

2. Emotional Decision-Making : Rapid price movement creates fear of missing out, panic exits, and revenge trades. Expiry day intensifies emotions. Without a plan, it can lead to mistakes, too.

3. Overtrading : Because setups appear frequently, traders are tempted to take too many trades and lower their quality standards. Most expiry-day losses come not from one bad trade, but from too many average and unplanned ones.

Conclusion

Expiry day trading is not a shortcut to creating easy money. It lies somewhere between opportunity-rich for prepared traders and dangerous for impatient or emotional ones. If you approach expiry day with a clear plan, controlled risk, realistic expectations and a backtested strategy.

If you are not trading it yet, simply observing expiry days will sharpen your understanding of how markets really behave under pressure.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is the Best Time Frame for Swing Trading?
2	MCX Trading: What is it? MCX Meaning, Features & More
3	Silver Futures Trading – Meaning, Benefits and Risks
4	What is Crude Oil Trading and How Does it Work?
5	What Is Day Trading and How to Start With It?
6	What Is Time Decay in Options?

Frequently Asked Questions (FAQs)

Why do traders say expiry day is risky?
Because prices move fast and mistakes cost money quickly.
Can beginners trade on expiry day?
They can, but carefully. Most beginners are better off observing or trading very small quantities until they understand how quickly prices change.
What happens if I do not close my option on expiry day?
If it is profitable, it gets settled automatically. If not, it expires worthless which means the entire premium paid is lost.
When is the best time to trade on expiry day?
Many traders prefer the first half of the session.
Do I need advanced strategies to trade expiry day?
No, even simple strategies work if risk is controlled.

January 24, 2026

22K vs 24K Gold: Which Is Better for Jewellery & Investment?

Gold has a special status in the Indian household; it reflects wealth and financial security. However, one gets confused between 22 Karat and 24 Karat gold, which one is suitable for jewellery and which one is suitable for investment.

In today’s blog post, we will give you an overview of 22 and 24 Karat gold, along with the key differences between them.

Meaning of Karat in Gold

Gold is a highly valuable metal; however, it is also very soft in nature. It is mixed with various other metals, such as copper, silver, and zinc, to enhance its strength. And the karat is a measure of the purity of gold, that is, how much gold is present in a gold coin or jewellery.

What is 22 Karat Gold?

22 Karat is a kind of gold which generally contains 22 parts of pure gold and the remaining two parts made up of other metals such as copper, silver, etc. It is generally known as 22K gold or 916 gold. If we talk in percentage, it has 91.67% of pure gold, and the remaining 8.33% is of alloy.

Key Features of 22 Karat Gold

The key features of 22 Karat Gold are as follows:

Purity: 22 Karat gold contains 91.6% pure gold, making it one of the purest forms of gold.
Intrinsic Value: The 22-karat gold contains a higher intrinsic value because it contains a pure form of gold.
Shape: 22 Karat gold can be easily moulded into different shapes of jewellery.
Hallmark: 22 Karat gold is commonly stamped as 916 or 91.6% gold content.

What is 24 Karat Gold?

24 Karat Gold is called the purest form of gold, as its 24 parts consist of pure gold, and no metal or alloy is mixed in it. 24 Karat is generally written as 24K or 999, because it is 99.9% pure gold. It is priced the highest among all types of gold.

Key Features of 24 Karat Gold

The key features of 24 Karat gold are as follows:

Hallmark: 24 Karat gold is hallmarked as 999 or 999.9 because of its highest form of purity.
Colour: The 24 Karat gold has a natural, bright yellow shine.
Softness: 24 Karat gold is very soft in nature and is very malleable; therefore, it is not recommended for daily use.
Investment Option: If someone wants to invest in physical gold, it is recommended to purchase 24 Karat gold.

Difference Between 22 Karat Gold and 24 Karat Gold

The key difference between 22 and 24 Karat gold is as follows:

Particular	22 Karat Gold	24 Karat Gold
Purity	It has 91.6% pure gold.	24 Karat gold is 99.9% pure.
Colour	22 Karat is deep yellow in colour.	24 Karat gold is bright, rich yellow in colour.
Usage	It is generally used in jewellery making.	This type of gold is often used as an investment option.
Price	The price of 22 Karat gold is slightly lower than 24 Karat gold.	It has the highest price per gram.
Resale Value	It generally has lower resale value than 24 Karat gold.	24 Karat gold has the highest resale value as it is the purest form of gold.
Hallmark	It has a hallmark code of 916	The hallmark code of 24 Karat gold is 999.
Durability	It is more durable than 24 Karat gold.	24 Karat gold is very soft in nature and is easily malleable.
Mixture	Other alloys and metals, such as copper, etc., are mixed in 22 Karat gold.	It is the purest form of gold; therefore, no other metals are mixed in it.

Which one is a better investment option?

24 Karat gold is considered a better investment option than 22 Karat gold as it offers higher purity and resale value. 24 Karat is the purest form of gold in which no metal is mixed; therefore, investors get the full value without dilution from the alloy. It usually comes with lower or no making charges; therefore, one can easily purchase 24 Karat gold coins, bars, etc. In addition to this, it is widely accepted and is comparatively easier to liquidate.

Which one is a better option for jewellery?

Generally, it is considered that 22 Karat gold is better for jewellery because it offers durability, which is an essential feature in jewellery. As 24 Karat gold is very soft, it can easily bend in daily usage. Whereas, in 22 Karat gold, other metals are mixed, such as copper and silver, which makes it stronger and more durable than 24 Karat gold. Therefore, 22 Karat gold is suitable for jewellery options.

How to verify the authenticity of 22 and 24 Karat Gold

To verify the authenticity of gold, whether it is 22 Karat or 24 Karat gold, one is required to check the BIS hallmarking on it. This is the most reliable method for verifying the purity of gold. 22 Karat gold has the BIS hallmark of 916, whereas 24 Karat gold has the hallmark of 999 or 999.9. The gold also has a HUID or Hallmark Unique Identification Number, which can be verified on the BIS care application.

Conclusion

On a concluding note, choosing between 22 Karat gold and 24 Karat gold depends on the objective of the user. If someone is looking to buy jewellery for consumption, then they must go with the 22 Karat gold as it offers a balance of purity and durability. On the other hand, if someone is looking for physical gold as an investment option, then they can consider 24 Karat gold because it is the purest form of gold and it has the highest resale value. However, BIS Hallmark must be checked by a person before purchasing any 22 Karat or 24 Karat gold.

However, one can invest in gold through ETFs offered by various AMCs using a simple and cost-efficient way to invest, platforms like Pocketful allow you to invest in Gold ETFs with free account opening and zero brokerage on delivery trades, making long-term gold investing more convenient and transparent.

Frequently Asked Questions (FAQs)

What is the difference between 22 Karat and 24 Karat gold?
The key difference between 22 Karat and 24 Karat gold is the purity. 22 Karat gold contains 91.6% gold, and the remaining part includes some alloy, whereas, on the other hand, 24 Karat gold is made up of 99,9% gold.
Why is 24 Karat gold more expensive?
24 Karat gold is made of 99.9% gold; therefore, it is the most expensive form of gold.
Among 24 and 22 Karat gold, which is suitable for jewellery options?
22 Karat gold is more suitable for jewellery options because it is more durable than 24 Karat gold, as it is made of gold and other metals.
Does 24 Karat gold lose its value over time?
No, 24 Karat gold does not lose its value over time.
Can I invest in 24 Karat gold through a demat account?
Yes, you can invest in 24 Karat gold through ETFs from a demat account. You can easily open a lifetime free demat account with Pocketful, as it also offers free brokerage on delivery trades. Also, the trading platform of Pocketful is equipped with advanced trading tools.

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

January 23, 2026

Difference Between Mainboard IPO and SME IPO

Imagine you are out to buy vegetables and you have two choices to buy apples. First is a big supermarket like Reliance Smart or Big Bazaar where everything is packaged, checked for quality, and sold in small quantities. You can buy limited products only though it is a safer and easy option.

Second is a wholesale market or Mandi where you can get cheaper prices and also you may find great deals, but here you cannot buy limited products you must have to buy a whole sack of products here. Also the crowd here is different and you need to be an expert to pick the right sack.

In the stock market, Mainboard IPOs are like the supermarket and SME IPOs are like the wholesale market. Both are ways for companies to sell shares to the public. But the rules, the risks, and the money you need are completely different.

If you are thinking of investing, you must know the difference between ipo and SME ipo. Investing in the wrong one without knowledge can trap your money. In this blog, we will explain the difference between SME IPO vs mainboard IPO. We will also cover the new rules from 2025 and help you decide which one is right for you.

What is a Mainboard IPO?

The Mainboard is the game of big league in the stock market. When you listen to different news or hear people talking about the stock market on TV, they are usually talking about Mainboard companies. These are large, famous companies with a long history.

Key Features of Mainboard IPO

Big Companies: These are large companies that are in the market and doing business for many years and usually make good profits.
Strict Checking: Before any Mainboard IPO comes the Securities and Exchange Board of India (SEBI) crossverifies the company’s papers very strictly, as everything about their business needs to reach the public.
Small Investment: In Mainboard IPOs investment can be started with a very small amount which is the best part for the small investors. The minimum amount to invest starts between Rs.14,000 to Rs.15,000.
High Liquidity: Once the shares are listed on the stock exchange, you can buy or sell even one single share of the company. If you need money, you can sell your shares instantly as these shares are highly liquid.

Example: Companies like Zomato, LIC, or Reliance are on the Mainboard.

What is an SME IPO?

SME IPO stands for Small and Medium Enterprises. These are smaller companies, often young startups or family businesses that are growing at a fast pace. As they are small in size they cannot comply with strict and expensive rules of the Mainboard. So there is a special platform created for these SME companies by the stock exchange. This platform is NSE Emerge or BSE SME.

Key Features of SME IPO

Small Companies: These companies are still in the growing phase. You can imagine these companies as a local factory, a small IT company, or a chain of restaurants.
Less Strict Rules: These companies require lesser documents as compared to mainboard companies. The verification is mostly done by the Stock Exchange, not SEBI directly.
Big Investment: Here minimum investment is not Rs.15,000, these SME companies have a very high minimum entry. With the new rules effective from July 2025, you need more than Rs.2 Lakhs to apply.
Hard to Sell: One of the major problems here is the risk of selling these shares as you cannot trade 1 share, you need to trade in “Lots.”

Example: These are often smaller, unknown brands that operate in specific regions or industries. Generally they are not famous companies in the market.

“Lot Size” and “Liquidity” of Mainboard and SME IPOs

Feature	Mainboard IPO	SME IPO
Share Trading	Shares are individually traded	Shares are traded in fixed bundles called “Lots”
Liquidity	High liquidity	Very low liquidity
Risk	Low risk of capital getting stuck	High risk of capital getting stuck
Entry & Exit	Easy entry and exit	Difficult exit due to lot size and liquidity

Difference Between Mainboard IPO and SME IPO

Feature	Mainboard IPO	SME IPO
Company Size	Large and established companies	Small and growing companies
Regulatory Authorities	SEBI is the regulatory authority	Stock Exchange regulates these companies
Minimum Investment	Rs.14,000 to Rs.15,000	Above Rs.2,00,000 (2 lots)
Applied By	Anyone can apply in this (small & big investors)	Only big investors (HNIs)
Trading Unit	Can start trading from 1 Share onwards	1 Lot (eg: 1,000 shares)
Ease of Selling	Very Easy due to high liquidity	Difficulty in selling due to low liquidity
Listing Timeline	Takes around 6 to 12 months	Takes 2 to 3 months

New Rules for 2025

In the last few years, many people blindly invested in SME IPOs to make quick money. This was making the market a dangerous place, so SEBI introduced strict new rules that started in 2025 to keep small investors safe.

1. Minimum Amount Increased

Earlier, an investor can invest typically around Rs.1 Lakh in an SME IPO, but now, as per the new rules the minimum application size is 2 Lots. This means the minimum investment is now often above Rs.2 Lakhs. This effectively removes very small retail investors from this risky market.

2. No “Retail” Category

In Mainboard IPOs, there is a special quota for Retail investors. In SME IPOs, this category has been removed or renamed to “Individual Investors”. You are now competing with bigger players like HNI or non-institutional investors

3. Strict Monitoring

SEBI has asked stock exchanges to watch SME stocks closely. If a stock price jumps too high without any reason or the volatility spikes or abnormal trading patterns, they will put it under a “Surveillance Measure” (ASM or GSM). This restricts trading to protect investors from manipulation.

Eligibility Criteria for Mainboard and SME IPOs

Mainboard IPO	SME IPO
The company needs to have an operating profit track record of Rs.15 Crores in 3 out of the last 5 years.	Under new rules, the company must have an operating profit of at least Rs.1 Crore in 2 out of the last 3 years.
It should have assets (like land or machines) worth at least Rs.3 Crores.	The post issue capital must be less than Rs.25 Crores
The company’s paid-up capital must be at least Rs.10 Crores for eligiblility of Mainboard IPO	The company must be running for at least 3 years.

Advantages of Mainboard and SME IPOs

Advantages of Mainboard IPO

Safety: These companies are big and strictly regulated by authorities. There is less chance of the company conducting any fraudulent activities, delisting or sudden business failure.
Transparency: You get detailed financial reports every 3 months of these companies making you aware about the company.
Small Ticket: Investment can be started with a small amount of money.

Advantages of SME IPO

High Growth: Small companies can grow at a very fast pace. A small company can double its size in just a year, which is not possible in big companies like Reliance, Tata Motors, etc.
Multibagger Returns: If you pick the right SME stock, your money can grow 5 times or 10 times in just a few years.
Early Entry: You select these companies when they are at the start of their growth phase. If they perform well these SME can be shifted to Mainboard later on. The migration improves visibility and liquidity of the share which can positively impact valuation.

Risks Included in Mainboard and SME IPOs

Risks in Mainboard IPO

Slow Growth: Large companies are stable, but grow at a very slow pace and you might not see your money double quickly.
Market Risk: If the whole market gets unstable and it starts to falls, these stocks will also fall.

Risks in SME IPO

Liquidity Trap: You might not find a buyer for your “Lot” when you want to sell.
Lack of Information: These companies are not tracked by big news channels. You might not get enough information or news about what is going wrong inside the company.
Price Manipulation: Because the company is small, a few rich people can manipulate the stock price easily. They can pump the price up and then sell, leaving small investors with a loss.

Conclusion

If you are a new investor or have limited capital, you shall prefer Mainboard IPOs. stick to Mainboard IPOs. They are safer, easier to understand, and you can exit anytime.

If you are an experienced investor and have spare money to invest (more than Rs.2 Lakhs) then you can afford to risk and can look for some SME IPOs. They offer higher rewards but there is very high risk attached with them. It is just like hunting for treasure, you might find gold, or you might get lost.

You should always remember that return of capital is more important than return on capital, meaning you should first look for safety rather than returns.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is Pre-IPO Investing?
2	What is the IPO Cycle – Meaning, Processes and Different Stages
3	What are the Different Types of IPO in India?
4	Why Invest in an IPO and its Benefits?
5	Best Apps for IPO Investment in India

Frequently Asked Questions (FAQs)

Can investors buy a single share of an SME IPO?
Investors cannot buy or sell 1 share in an SME IPO. You have to trade in “Lots” and one unit can have 100, 500, or even 1,000 shares depending on the price.
Why is the minimum investment for SME IPO Rs.2 Lakhs now?
To keep the small and new investors away from high risk, SEBI has increased the limit. They want only investors who have high risk-taking capacity to enter this market.
Can an SME company move to the Mainboard?
If an SME company grows big and reaches a market value of over Rs.100 Crores (and meets other profit rules), it can migrate to the Mainboard.
What is a Market Maker in an SME IPO?
Since SME stocks are hard to sell, the company hires a broker called a “Market Maker.” Their job is to stay in the market and offer to buy or sell shares so that investors are not stuck.
Is it safe to invest in SME IPOs?
It is riskier than Mainboard IPOs, while many SMEs give great returns, some can lose value or get suspended.

January 23, 2026

Blog

Best Cyclical Stocks in India 2026

What are cyclical stocks?

Top Cyclical Stocks to Buy in India

List of Top Cyclical Stocks in India

Overview of Best Cyclical Stocks to Buy in India

1. Shriram Finance Limited

2. Punjab National Bank

3. ABB India Limited

4. Jindal Steel Limited

5. Shree Cement Limited

6. SRF Limited

7. The Phoenix Mills Limited

8. JK Cement Limited

9. Honeywell Automation India Limited

10. Tata Chemicals Limited

Key Performance Indicators (KPIs)

Benefits of Investing in Cyclical Stocks

Factors to Consider Before Investing in Cyclical Stocks

Future of Cyclical Stocks

Conclusion

Frequently Asked Questions (FAQs)

What do cyclical stocks mean?

Which sectors in India are considered cyclical in India?

What are the risks involved while investing in cyclical stocks?

Which is the best time to invest in cyclical stocks?

How to invest in cyclical stocks?

How to Check the Purity of 20-Carat Gold: Easy Methods & Tips

What is 20-Carat gold?

Easy Methods to Check 20-Carat Gold Purity at Home

1. Magnet Test

2. Water Test (Float Test)

3. Vinegar Test

4. Skin Reaction Test

Professional Methods for Accurate Purity Testing

1. XRF Machine Test

2. Acid Test

The difference between 18K, 20K, 22K and 24K.

What is a 20 Carat Gold Hallmark?

Role of BIS

Why is Hallmarking Now Mandatory ?

Difference Between Hallmark and Purity Certificate

How to identify the 20-karat gold hallmark sign?

Smarter Gold Investment Options

Investing in Gold Mutual Funds

List of Top 5 Gold Mutual Funds available to invest

Investing in Gold ETFs

Taxation

Physical Gold vs. ETF

Common Mistakes Buyers Make

Conclusion

Frequently Asked Questions (FAQs)

Is 20-carat gold considered pure gold?

Is 20K gold hallmarked in India?

Is 20-carat gold good for investment purposes?

How can I differentiate 20K gold from 22K gold easily?

Does 20-carat gold have good resale value?

Why Are Silver Prices Rising in India?

Current Silver Price Trend in India

Global Silver Market Influence on Indian Prices

Investment Demand – Biggest Reason Behind the Rally

Rising Industrial Demand

Supply Constraints & Mining Challenges

Import Dependence & Rupee Impact

Inflation & Economic Uncertainty

Gold-Silver Relationship

Will Silver Prices Continue to Rise in 2026?

Should You Invest in Silver Now?

Investment Risks

Best Ways to Invest

Top 5 Silver ETF you can invest in

Conclusion

Frequently Asked Questions (FAQs)

Why is the silver price increasing in India?

Why is the silver rate increasing day by day?

Is this the right time to invest in silver?

Will the silver price go up in the future?

Is silver better than gold for investment?

Difference Between Hallmark Gold, KDM Gold and BIS 916

What Is KDM Gold