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What is Derivative Trading? Types, Examples, Pros & Cons Explained

In the stock market, many times people do not buy stocks directly, but bet on their prices using derivative financial contracts. Today, the use of derivatives in the stock market is not just limited to institutional traders; retail traders are also actively using them. They were created to protect the portfolio from risk, but now they have also become a means of earning speculative profits.

In this blog, we will learn about types of derivatives, how to use them correctly, what are the advantages and disadvantages of derivatives market, and the things to be kept in mind while trading them.

What is Derivative Trading?

Derivative trading is a process in which you speculate or try to profit from the predicted future price movements of an asset by using related derivative contracts, rather than buying or selling it directly. In simple terms, a derivative is a class of financial instruments whose price is based on another asset (which we call “underlying asset”). This asset can be anything – shares, index, currency, commodity or interest rate.

To understand derivatives trading better, let’s look at an example. Suppose a trader expects a poor monsoon this year and expects a shortage of crops and a rise in prices. To benefit from this expected price increase from future crop shortage, he buys a futures contract with the crop as an underlying asset on the exchange. If the price of the crop does rise as he predicted, he can sell the futures contract at a higher price and earn a profit.

Similarly, investors in the stock market trade derivatives contracts, which either gives their portfolio security from adverse price movement or an opportunity to earn profit from future price movements. In physical trading, you directly buy assets such as shares of a company, but in derivative trading you only bet on the direction of the price of the underlying asset and try to earn profits.

There are three main types of participants in the derivatives market :

Hedgers, who trade to protect their investments from unnecessary risks
Speculators, who trade to earn profits
Arbitrageurs, who take advantage of price differences in different markets

Today, derivatives have become very popular not only among institutional investors but also among ordinary retail traders.

Read Also: Index Derivatives in India

Types of Derivatives Trading

Different types of derivatives are listed below:

1. Futures Contracts

Futures are a standardized agreement in which the buyer and seller make a deal to buy and sell an asset respectively at a fixed price on a fixed future date. These contracts are traded on exchanges.

Example: If someone thinks that the price of gold will rise, he can buy Gold Futures and later sell it at the increased price and make a profit. Futures are used by institutional as well as retail investors and traders for both hedging and speculation.

2. Options Contracts

In options derivatives, the buyer has the right to buy or sell an asset, but there is no obligation. There are two types of these – Call Option (right to buy) and Put Option (right to sell).

Example: Suppose an investor fears that his stock may fall in price, then he can protect himself by buying a Put option. Options are popular especially among retail traders because when buying options, the risk is limited to the premium paid, while the potential return can be very high.

3. Forward Contracts

Forwards are also like futures, but a big difference is that they are not traded on the exchange but are available OTC (Over the Counter) i.e. privately between two parties. They are more flexible because they can be customized according to the needs of the parties.

Example: Companies often use forwards to protect against adverse price fluctuations in foreign currency or raw material prices.

4. Swaps Contracts

Swaps are customized agreements between two parties to exchange future cash flows based on specified financial instruments, such as interest rates or currencies. In a swap, each party agrees to pay the other cash flows that are calculated in different ways. Swaps are generally traded over-the-counter (OTC), making them less accessible to retail investors.

Example: A multinational company based in the U.S. earns most of its revenue in euros but has to pay its expenses in U.S. dollars. To reduce the risk of euro-to-dollar exchange rate fluctuations, it enters into a currency swap with a bank. In this agreement, the company agrees to exchange euros for dollars at a fixed rate at specific future dates. This helps the company lock in exchange rates and better manage its cash flows.

Comparative Description of Types of Derivatives Trading

Type of Derivative	Where it is Traded	Obligation	Primary Use
Futures	Exchange	Yes	Hedging, Speculation
Options	Exchange	Buyer: No; Seller: Yes	Hedging, Directional Trading
Forwards	OTC	Yes	Currency & Commodity Hedging
Swaps	OTC	Yes	Interest Rate, Currency Exchange

How the Derivatives Market Works in India?

India’s derivatives market operates under an organized and strictly regulated system, which is controlled by SEBI (Securities and Exchange Board of India). Derivatives are traded mainly on exchanges like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), in which Futures and Options are the most prominent segments.

Futures and Options Segment : This segment deals with transactions of Futures and Options contracts based on indices (such as Nifty 50) and stocks. Every contract has a fixed lot size and an expiry date.

Margin and Risk Control : To trade in certain derivative contracts such as futures, one has to deposit a certain margin, not the full contract amount. Mark-to-Market (MTM) settlement takes place after every trading day, in which the profit or loss of that day is adjusted on the next working day (T+1).

Role of Clearing Corporations : Clearing houses and other institutions play an important role in ensuring settlement of derivative instruments. They guarantee every trade and act as a counterparty between the two parties.

Advantages of Derivative Trading

The advantages of derivative trading are listed below:

Risk Hedging : The biggest advantage of trading derivatives is that you can use them to protect your portfolio from market declines. For example, if you fear a decline in price of a particular stock you hold, you can limit your losses by buying a Put option.
Leverage Advantage : Certain derivative instruments can be traded by paying only a small margin instead of the entire contract value. This gives you an opportunity to create a large position even with limited capital, which can significantly increase profits with the right trading strategy.
Earning even in a falling market (Short Selling Opportunity) : Derivatives give you a chance to earn even in a downtrend. With the help of futures or put options, you can make profits even when the market falls.
Better liquidity and exit facility : Derivatives on indices such as Nifty and Bank Nifty have heavy volumes daily, which allows easy entry or exit at any time.

Disadvantages & Risks of Derivative Trading

The disadvantages and risks of derivative trading are:

High risks : Due to leverage in derivatives, the losses can be huge. If the market moves in the wrong direction even a little, you can lose your entire capital.
Loss due to lack of knowledge : The complexity of options and futures contracts can confuse new investors. Wrong decisions can lead to significant losses if there is no proper understanding of concepts like strike price, expiry, premium, etc.
Decreasing value with time (Time Decay) : Time can be the biggest enemy for option buyers. If the expected price move does not happen quickly, then the option can decline in value even with the passage of time.
Emotional pressure and stress : The fast movement of the market and uncertainty sometimes leads to wrong trades out of fear or greed. This psychological stress can make trading in derivatives more dangerous.

Who should do Derivative Trading?

Derivative trading is suitable for the following:

Experienced traders : Trading in derivatives is fast-paced and risky. In such a situation, it is most suitable for those who already have trading experience and understand charts, patterns or market cycles.
Portfolio managers and hedgers : For those who want to protect their long term investments from market decline, derivatives can be an excellent means of hedging.
Informed retail investors : If you are a retail investor but have an understanding of the market, know how to control risk, and trade with discipline, then you can also gradually step into derivatives.

Derivatives in Stock Market vs Other Asset Classes

Asset Class	Derivative Instruments	Ideal For	Exchange / Platform
Equity	Stock Futures, Stock Options (e.g., Reliance, HDFC)	Retail & active investors	NSE, BSE
Index Derivatives	Futures and options of Nifty 50, Bank Nifty, Sensex, etc.	Experienced traders	NSE, BSE
Commodities	Futures and options of Gold, Silver, Crude Oil, etc.	Professional traders, hedgers	MCX, NCDEX

Conclusion

Derivatives are fast-paced, risky but strategic financial tools that can help protect a portfolio or earn huge profits if used with the right knowledge and discipline. It is not only useful for hedging but also opens the way for creating much larger positions with less capital. However, the complexity and the risks associated with these contracts cannot be ignored. If you want to trade in derivatives, it’s essential to first prepare yourself thoroughly: learn the concepts, understand the risks, and practice carefully before you start. Entering the derivatives market without proper knowledge and strategy can be risky and may lead to significant losses instead of gains. So, start wisely and always trade with caution.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	What is Options Trading?
2	What is AI Trading?
3	Top Tips for Successful Margin Trading in India
4	MCX Trading: What is it? MCX Meaning, Features & More
5	What is Intraday Trading?

Frequently Asked Questions (FAQs)

What is derivative trading in the stock market?
In derivative trading, you try to hedge or profit from future price movements of the underlying asset without actually buying or selling it.
Are derivatives suitable for beginners?
No, beginners should first understand the basics of these instruments as derivatives carry a high risk.
Which are the most traded derivatives in India?
Most trading in India is done in futures and options of Nifty, Bank Nifty and selected stocks.
Can derivatives be used for hedging?
Yes, the biggest advantage of derivatives is that you can use them to protect your portfolios from market downturns.
What is the minimum capital required for derivative trading?
Some of the derivative contracts require a small margin to begin trading, hence it can be started with less capital, but risk management is necessary.

July 17, 2025

Best Manufacturing Stocks in India 2025

India has recently become the fourth-largest economy in the world and manufacturing stocks have played an important role in this growth story. Recently, various government-backed schemes like “Make in India” and Production Linked Incentive (PLI) schemes have helped manufacturing companies expand their business operations.

In this blog, we will explore the best manufacturing stocks in India and the benefits of investing in them.

What are Manufacturing Stocks?

Manufacturing stocks are the shares of those companies which are primarily involved in the production of goods. These companies use resources such as labor, machinery, and raw materials to create finished products. The products manufactured by these companies are sold to consumers, businesses, or the government.

S.No.	Top Manufacturing Stocks (Based on Market Cap)
1	Reliance Industries Limited
2	ITC Limited
3	Sun Pharmaceutical Industries Limited
4	Bajaj Auto Limited
5	Tata Steel Limited
6	Hindalco Industries Limited
7	Dr. Reddy’s Laboratories Limited
8	Bosch Limited
9	Dixon Technologies (India) Limited
10	Bharat Forge Limited

Market Information of Best Manufacturing Stocks

Company	Current Market Price (in ₹)	Market Capitalisation (in ₹ crores)	52-Week High (in ₹)	52-Week Low (in ₹)
Reliance Industries Limited	1,488	20,13,225	1,606	1,115
ITC Limited	419	5,24,360	495	390
Sun Pharmaceutical Industries Limited	1,688	4,04,888	1,960	1,553
Bajaj Auto Limited	8,086	2,25,806	12,774	7,088
Tata Steel Limited	160	1,99,924	170	123
Hindalco Industries Limited	669	1,50,317	773	546
Dr. Reddy’s Laboratories Limited	1,255	1,04,711	1,421	1,020
Bosch Limited	37,415	1,10,350	39,089	25,922
Dixon Technologies Limited	15,892	96,111	19,150	10,613
Bharat Forge Limited	1,208	57,751	1,771	919

(As of 14 July 2025)

Best Manufacturing Companies Stocks in India – An Overview

A brief overview of the best manufacturing stocks in India is given below:

1. Reliance Industries Limited

Reliance Industries Limited was founded in 1966 by Mr. Dhirubhai Ambani, and in 1977, it launched its IPO. Later in 1980, it began expanding its business in the petrochemical sector. After the death of Dhirubhai Ambani, the company was divided among his two sons, Anil and Mukesh Ambani. Under the leadership of Mukesh Ambani, the company expanded into many sectors, including communications and retail, and reached new heights. The company’s headquarters are situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-7.36%	24.49%	53.71%

(As of 14 July 2025)

2. ITC Limited

ITC was initially known as Imperial Tobacco Company of India and was established in 1910. After changing its name to Indian Tobacco Company in 1970, the company changed its name again to ITC Limited in 1974. FMCG, hospitality, packaging, and other industries and among the sectors in which the company operates. The headquarters of the company is in Kolkata.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-8.65%	42.49%	112.44%

(As of 14 July 2025)

3. Sun Pharmaceutical Industries Limited

Sun Pharmaceutical Industries Limited was established in 1983 by Dilip Shanghvi to lower the cost and increase access to medications. The business has grown over time to rank fourth internationally in terms of generic pharmaceuticals and among the major pharmaceutical corporations in India. The company currently has more than 43 manufacturing facilities. The company has roughly 41,000 employees across the world. The company complies with the regulations laid down by several authorities, such as the US FDA, European Medicines Agency, etc. The company has its headquarters situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
6.44%	93.88%	236.34%

(As of 14 July 2025)

4. Bajaj Auto Limited

Bajaj Auto Limited was established in 1945 and operates in the two and three-wheeler market. The company was initially known as M/s Bachraj Trading Corporation Private Limited. In 1959, the Indian government granted it authorisation to manufacture and sell two and three-wheelers. It became a public company in 1960 and over the years has become the third largest two-wheeler company in the world. The company has its headquarters situated in Maharashtra.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-14.32%	109.39%	178.81%

(As of 14 July 2025)

5. Tata Steel Limited

The company was founded in 1907 by Mr. Jamsetji Tata, a well-known Indian entrepreneur. Earlier, the company was known as Tata Iron and Steel Company Limited (TISCO); later, the company changed its name to Tata Steel Limited. The company supplied steel to defence companies during the Second World War. It also acquired various international companies such as NatStel Holdings. The company has its headquarters situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-5.00%	76.10%	372.71%

(As of 14 July 2025)

6. Hindalco Limited

Hindalco Limited The Aditya Birla Group established the company in 1958. The company is primarily engaged in smelting copper, aluminium, etc. The company initially worked with Kaiser Aluminium in the USA and also with the local state government of Bihar. The company acquired various units between 2000 and 2017, and strengthened its position in the market. The company has its headquarters situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-3.63%	88.12%	397.67%

(As of 14 July 2025)

7. Dr. Reddy’s Laboratories Limited

Dr. Reddy’s Laboratories Limited was founded in 1984 by Dr. Kallam Anji Reddy, and its main business operations were focused on the creation and manufacturing of active pharmaceutical ingredients (APIs). The company decided to list it on the Indian Stock Exchange in 1993, and it also listed on the New York Stock Exchange in 2001 and became the first asian pharmaceutical company to get itself listed on the New York Stock Exchange. The company partnered with RDIF to provide the Sputnik V COVID-19 vaccine. The headquarters of the company is situated in Hyderabad.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-7.27%	38.90%	60.32%

(As of 14 July 2025)

8. Bosch Limited

Bosch Limited is the flagship company of Bosch Group in India. It began selling its products in India from September 1922 through a partnership with Illies and Company in Calcutta. The company partnered with the Ghaziabad Engineering Corporation and Motor Industries Company and started manufacturing spark plugs and diesel injection pumps. The company has its headquarters in Bangalore.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
7.55%	133.37%	176.34%

(As of 14 July 2025)

9. Dixon Technologies Limited

Dixon Technologies Limited was founded in 1993 by Sunil Vachani and is engaged in the manufacturing of electronics manufacturing services (EMS). The product portfolio of the company includes consumer electronics, home appliances, lighting products, mobile phones, security devices, telecom products, etc. The company has 23 plants spread across India. The company has its headquarters situated in Noida.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
27.27%	313.22%	1,128.49%

10. Bharat Forge Limited

Bharat Forge Limited was founded in 1961 by Nilkanthrao A. Kalyani. It is a flagship company of the Kalyani Group. It is one of the largest manufacturers of automotive components such as crankshafts, connecting rods, and fuel injection systems. It is also providing components to the Indian Armed Forces, establishing it as one of the largest forging companies in the World. The company has its headquarters situated in Pune, Maharashtra.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-25.68%	90.09%	229.79%

(As of 14 July 2025)

Read Also: List Of Best FMCG Stocks In India

Key Performance Indicators (KPIs)

The key performance metrics of manufacturing companies are mentioned below:

Company	Operating Profit Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Reliance Industries Limited	13.50	8.37	8.25	8.70	0.41
ITC Limited	35.66	46.38	49.61	36.41	0
Sun Pharmaceutical Industries Limited	27.88	20.88	15.13	19.83	0.03
Bajaj Auto Limited	22.60	16.15	20.81	27.05	0.26
Tata Steel Limited	7.51	1.36	3.75	8.49	0.98
Hindalco Industries Limited	11.16	6.70	12.93	13.28	0.50
Dr. Reddy’s Laboratories Limited	24.32	17.47	16.85	21.81	0.12
Bosch Limited	15.19	11.12	14.58	19.57	0
Dixon Technologies Limited	3.20	3.12	36.39	29.88	0.07
Bharat Forge Limited	13.45	6.06	10.17	17.86	0.68

(Data as of March 2025)

Benefits of Investing in Manufacturing Stocks

There are significant benefits of investing in manufacturing stocks, a few of which are as follows:

Economic Growth: Investment in manufacturing companies provides an opportunity to participate in the growing Indian economy as these companies are key contributors to the GDP growth of the country.
Government Incentives: The government supports manufacturing companies by providing them with various incentives and subsidies, which can help them grow their businesses.
Capital Appreciation: Investors in manufacturing companies can benefit from long-term stock price appreciation, which helps them build substantial wealth over time.
Portfolio Diversification: One can diversify their portfolio by investing in different manufacturing stocks to avoid excessive risks.

Factors to be Considered before Investing in Manufacturing Stocks

The key factors that one should consider before investing in manufacturing stocks are as follows:

Cost of Raw Material: The increasing cost of raw materials impacts the profit margins of the manufacturing companies. Therefore, one is required to check the profitability of the company in which they are planning to invest.
Export Risk: Some manufacturing companies export their product to other countries. Any change in global demand can impact their revenue.
Product Portfolio: The company’s diversified product portfolio helps it maintain stable financial performance risk during economic downturns.
Financial: A company’s financial report must be analyzed before making any investment.

Read Also: List of Best Metal Stocks in India

Future of Manufacturing Stocks

The Indian Manufacturing sector is expected to grow to a valuation of $1 trillion by 2030, with companies in this space playing a crucial role. The sector includes industries such as automobiles and auto components, steel, electronic equipment, and more. With the rise of increasing per capita income in India, this sector will be the direct beneficiary as consumption increases. The government also supports the manufacturing sector by providing various incentive plans and “Make in India” initiatives. Hence, we can say that to participate in the growing Indian economy, one can invest in the manufacturing sector stocks, but only after consulting their financial advisor.

Conclusion

On a concluding note, investing in manufacturing stocks provides you with an opportunity to participate in the country’s growing economy. The manufacturing sector is considered the backbone of the economy. However, investment in this sector involves certain risk as some of the companies are cyclical, and the rise in raw material costs can impact their profit margins adversely. Therefore, before investing in manufacturing stocks, you must consult your investment advisor.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	List Of Best Healthcare Stocks in India
2	List Of Best Textile Stocks in India
3	List Of Best Footwear Stocks in India
4	List Of Best Logistics Stocks in India
5	List of Best Liquor Stocks in India

Frequently Asked Questions (FAQs)

Which companies are the top manufacturing companies in India?
The top manufacturing companies in India are Reliance Industries Limited, ITC Limited, Sun Pharmaceutical Industries Limited, Bajaj Auto Limited, Tata Steel Limited, etc.
Are manufacturing stocks cyclical in nature?
Yes, some manufacturing stocks are cyclical in nature, such as companies involved in steel and automobile manufacturing. However, there are other manufacturing companies that aren’t cyclical, such as those operating in the FMCG and healthcare sectors.
What are manufacturing stocks?
Manufacturing stocks are the shares of those companies that are primarily engaged in the production of goods. These companies operate across a wide range of sectors, including defence, steel, cement, machines, consumer goods, etc.
What are the major risks involved while investing in manufacturing stocks?
The major risks involved while investing in manufacturing stocks are their cyclical nature, cost of raw materials, global events, etc.
How can I invest in manufacturing companies?
One can easily invest in manufacturing companies using their demat and trading accounts. Now you can easily open a demat account online without paying any fees as Pocketful offers free brokerage on delivery-based trades.

July 17, 2025

Top 10 Reasons to Invest in Gold

Gold has always held a special place when it comes to investing. Gold is not just trusted to gain value over time but is also known for offering quick liquidity, which is why it has been a preferred investment choice for years.

But if you are still wondering why gold is a good investment, then you have just landed at the right place. While safety, liquidity, and diversification are key reasons, there are more. So, read this guide to know the top 10 reasons to invest in gold.

Top 10 Reasons to Invest in Gold

Gold has remained a timeless asset, trusted by investors for generations. It has consistently delivered significant value and has steadily appreciated over time. Beyond its potential for wealth creation, gold also offers stability and assurance, making it a unique and reliable investment choice.

Before you invest, let’s understand what truly sets gold apart. Here are the top 10 reasons to invest in gold.

1. Gold Offers High Liquidity

One of the biggest reasons to invest in gold is its high liquidity. This means you can easily sell it and get cash whenever you need it. Whether it’s in the form of jewelry, coins, or digital gold, there’s always a buyer ready to purchase and provide you with instant cash.

You don’t have to wait for days or worry about losing value during the sale. While many other assets come with a lock-in period, there is no such thing with gold. So this allows you to meet emergency needs easily by raising money.

This makes it a great option during emergencies or paying off unexpected expenses. With gold, you’re not just investing in an asset that will increase in value but an asset that can offer you precious liquidity in desperate times.

2. Gold Offers Protection Against Inflation

Prices of general goods are consistently rising, impacting people’s overall purchasing capacity, thereby reducing the value of money. This is called inflation. While your savings in the bank may lose value in the long run, gold tends to move in the opposite direction.

When inflation goes up, gold prices usually rise too. That’s why many people turn to gold as it helps protect their money’s worth. By investing in gold, you can maintain your living standards in future as it acts as a good inflation hedge.

3. Gold Adds Balance to Your Portfolio

Every smart investor knows the importance of not putting all their money in one place. That’s where gold comes in. Unlike stocks or mutual funds, gold often moves independently of the stock market. This means its value doesn’t always decline when markets fall, providing valuable protection during downturns.

This helps reduce overall risk in your portfolio. By adding gold, you create a better balance between high-risk and low-risk assets. It works as a cushion during the market downturns.

4. Gold is a Tangible Asset You Can Trust

Gold is a tangible asset that you can see, touch, and feel. Unlike stocks and mutual funds, it has a physical presence. This characteristic makes investing in gold feel more secure, especially during times when digital assets or markets feel uncertain. You don’t need to depend on any company or institution for gold to hold its value. You can also pass down gold through the generations.

It can be in the form of coins, bars, or jewelry. Also, this is one of the reasons you get a sense of ownership and trust when you hold gold as an asset. It’s simple, solid, and always valuable.

5. Gold is a Safe Haven During Uncertain Times

Financial crises and market downturns can happen unexpectedly. In such situations, gold acts as a safe haven asset. It can even be pledged or mortgaged to access much-needed funds during emergencies.

In fact, many people turn to investing in gold when they are unsure of the future trends in the market. This stability and trust are the major reasons why gold stands out during a crisis.

Investing in gold can ensure that your money is safe. Even if the gold prices fall, you have an asset that you can sell at a favorable time to generate funds.

6. Gold Gives Steady Returns Over the Long Term

Gold grows in value over time. Unlike stocks, which can deliver substantial gains overnight, gold requires patience and long-term perspective.

So, gold offers returns gradually and not quickly, making it ideal for long-term financial goals, such as saving for your retirement or child’s educational expenses. This is one of the reasons why many investors put money in gold.

7. Gold can be Bought in Many Forms

Initially, investing in gold meant buying physical gold. But now the times have changed greatly and you can invest in digital gold, ETFs, or even mutual funds with underlying assets as gold.

Different options suit different investors as gold ETFs don’t require you to store gold physically and save on storage costs. However, their risk and return remain consistent to a certain extent. This is a flexibility that all investors prefer, making it one of the primary reasons why many investors go for gold.

8. Gold is Globally Accepted

Gold is one of the few assets that hold value no matter where you are in the world. If you have gold jewelry, you can trade it anywhere to generate funds to meet your needs.

It’s recognized by central banks, financial institutions, and individual investors worldwide. So, when you invest in gold, you are actually investing in an asset accepted everywhere.

9. Gold Helps in Wealth Creation and Risk Reduction

One of the primary aims of investing is to create wealth with reduced risk. This is where gold is one of the top choices. It grows steadily over time and also secures your investment.

At the same time, gold helps reduce the overall risk in your portfolio. It performs well during market downturns. This adds stability when other investments are volatile. This mix of risk and return makes it suitable for nearly all investors.

So, whether you are an aggressive or passive investor, gold can be a good investment choice. This will help to grow your portfolio over time.

10. Gold is Culturally Trusted and Emotionally Valued

In India, gold is more than just an investment as it’s deeply woven into tradition and family life. It plays a significant role in festivals, weddings, and important milestones, symbolizing prosperity and good fortune.

This cultural importance keeps gold in constant demand, helping it maintain and even grow in value over time. People feel secure owning gold because it carries both emotional and financial significance. This emotional connection makes gold a preferred choice for many investors.

So, if you wish to have an investment that carries some meaning, gold is your choice.

Conclusion

Still, wondering why is gold a good investment? Well, while we have discussed so many reasons here, the most important are liquidity and stability. Gold offers growth and ensures that you have access to funds even in the worst times. This is why gold can be considered as a perfect asset for long-term financial objectives.

Want to invest in gold? With Pocketful, you can explore various gold ETFs—all in one place. Start investing in gold with Pocketful today and take a smarter step toward financial security.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	How to Invest in Gold ETF – Benefits, Risks and Charges
2	What is Gold ETF? Meaning & How to Invest Guide
3	A Guide To Investing In Gold In India
4	Types of Investment in the Stock Market
5	Gold Investment: How to Invest in Gold in India?

Frequently Asked Questions (FAQs)

Why is gold considered a safe investment?
Gold holds its value during uncertain times. Unlike stocks, it’s less affected by market crashes or inflation. This makes it a reliable investment option for protecting your wealth.
What are the best ways to invest in gold today?
You can invest in gold in physical forms by buying coins and jewelry or through digital options like gold ETFs, Sovereign Gold Bonds, futures and options, etc. These options offer flexibility and safety both.
How much of my portfolio should be in gold?
Experts usually recommend keeping 5–15% of your total portfolio in gold. It helps balance risk without significantly affecting overall growth potential.
Does gold give a regular income like stocks or bonds?
Physical gold does not provide regular income. However, there are options like Sovereign Gold Bonds that offer annual interest along with price appreciation at maturity.
Is gold a good long-term investment?
Yes, gold is an ideal investment for achieving long-term goals as it grows steadily over time and protects against inflation. All this offers investors peace of mind even during economic downturns.

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

July 16, 2025

Top 10 Consumer Staples Stocks in India 2025

India’s FMCG and consumer staples sector is witnessing impressive growth in 2025, with the market value now reaching approximately ₹17 lakh crore. The companies operating in this sector manufacture products that people use in everyday life, like soap, oil, biscuits, pulses etc. Their demand always remains stable, whether in recession or an economic boom, making them a reliable investment.

In this blog, we will know the top consumer staples stocks of India and discuss why investing in them can provide both stability and growth to your portfolio.

What Are Consumer Staples?

Consumer staples are products that people need on a daily basis, such as food items, household cleaning products, and personal care items. Their demand does not depend on overall economic conditions. That is why the FMCG sector is considered non-cyclical and defensive sectors.

Key Facts

The FMCG sector growth in the first quarter of 2025 was 11%, with demand from rural areas being 8.4% and urban areas being 2.6%.
Household and personal care products registered a growth of 5.7% and 4.9% respectively during the same period.

This trend shows that the demand for consumer staples remains stable, and their consumption does not decline even during times of economic uncertainty.

So, if you are looking for a stable and reliable investment option in 2025, consumer staples stocks in India should definitely be on your watchlist. They offer a balance of both long-term growth and defensive strength.

Top 10 Consumer Staples Stocks in India

Company	Current Market Price (in ₹)	Market Capitalisation (in ₹ crores)	52-Week High (in ₹)	52-Week Low (in ₹)
Hindustan Unilever	2,522	5,92,661	3,035	2,136
ITC Ltd	417	5,21,856	495	390
Nestle India	2,419	2,33,196	2,778	2,110
Britannia Industries	5,780	1,39,222	6,473	4,506
Godrej Consumer Products (GCPL)	1,293	1,32,321	1,542	980
Tata Consumer Products	1,089	1,07,731	1,247	883
Marico	732	94,854	745	578
Dabur India	524	92,870	672	420
Colgate‑Palmolive (India)	2,399	65,260	3,893	2,312
Procter & Gamble Hygiene & Health Care	13,162	42,725	17,748	12,106

(As of 11 July 2025)

Overview of Top 10 Consumer Staples Stocks in India

A brief overview of the Best consumer staples stocks india is given below:

1. HUL

HUL was started in 1931 and today it is counted among the most trusted FMCG companies in India. The company has many popular brands like Surf Excel, Dove, Horlicks, and Sunsilk, which are used daily in crores of households in the country

In 2025, HUL acquired skincare brand Minimalist, which further strengthened its focus on premium product segments. The company is working to cater to the needs of consumers in both cities and villages through a strategy called ‘Winning in Many Indias’.

The company is also not behind in terms of technology as two of its manufacturing plants have been included in the World Economic Forum’s Global Lighthouse Network, which reflects its automation and digital innovation. Talking about social initiatives, HUL’s ‘Project Shakti’ is a strong step towards making women self-reliant. Also, the company is aiming to adopt 100% renewable energy by 2030. Overall, HUL is a company that understands its responsibility towards business as well as society and environment.

Know the Returns:

1Y Return	3Y Return	5Y Return
-3.64%	1.40%	12.66%

(Data as of 11 July 2025)

Read Also: Hindustan Unilever Case Study

2. ITC Limited

ITC Limited was founded in 1910 and today it is not just a tobacco brand but a multi-faceted consumer goods giant. With brands like Aashirvaad, Sunfeast, Bingo!, Savlon and Fiama, ITC touches the lives of millions of Indians every day. In 2025, the company started focusing on digital distribution channels and direct-to-customer (D2C) models to further strengthen its presence in the FMCG segment. Along with this, ITC is also adding new products to its packaged foods portfolio, catering to the changing needs of consumers.

The company has recently started working on a plan to demerge its hotel and IT business to focus more on the core FMCG business. Also, ITC’s ‘Next’ brand and entry into the clean beauty category are also making it future ready. ITC is also leading the way on the environment. The company is already one of the few companies in the country to recycle 100% of its solid waste. This balance makes ITC a stable company and a reliable long-term investment.

Know the Returns:

1Y Return	3Y Return	5Y Return
-7.36%	42.29%	112.76%

(Data as of 11 July 2025)

Read Also: ITC Case Study

3. Nestle India

Nestle India was started in 1961 and today it is one of the most recognizable multinational FMCG companies in the country. Products like Maggi, Nescafe, KitKat, Cerelac make it a part of every Indian household. In 2025, the company has paid special attention to strengthening its network in small cities and towns. Along with this, new innovative products are also being introduced in the categories related to health and nutrition. Nestle is also working rapidly on automation and sustainable packaging. Its goal is to bring positive change in the FMCg sector through 100% recycled packaging and better nutrition.

Know the Returns:

1Y Return	3Y Return	5Y Return
-7.68%	31.46%	43.08%

(Data as of 11 July 2025)

Read Also: Nestle India Case Study

4. Britannia Industries

Britannia started in 1892 as a small bakery, but today this name is familiar in every household in India. Biscuits like Good Day, Marie Gold and Bourbon have made the company famous among people of all ages. In recent years, the company has focused on healthy products such as high-fiber and protein snacks. In 2025, Britannia has further strengthened its reach in rural India and has launched many new products in smaller pack sizes. The company’s focus is now not just on taste, but also on providing nutrition and affordable options, so that better food can reach every class.

Know the Returns:

1Y Return	3Y Return	5Y Return
-0.37%	50.74%	53.52%

(Data as of 11 July 2025)

5. Godrej Consumer Products Ltd (GCPL)

Godrej Consumer Products Ltd (GCPL) is a leading FMCG company in India, started in 2001. The company is known for household and personal care products such as Godrej No.1 Soap, Cinthol, Goodknight, and HIT. GCPL’s business is not limited to India, but it also has a strong presence in markets like Africa, Indonesia and Latin America. The company is focusing on sustainable packaging and digital channels along with innovation and expanding the product portfolio in 2025. Godrej’s objective is “reach every home” and the company is moving forward with this vision.

Know the Returns:

1Y Return	3Y Return	5Y Return
-10.82%	52.29%	83.42%

(Data as of 11 July 2025)

6. Tata Consumer Products

Tata Consumer Products is a flagship company of the Tata Group that deals in everyday essential products such as tea, coffee, salt and packaged food. It was started in 1962, and today this name is seen as a symbol of trust not only in India but all over the world. Brands like Tata Tea, Tetley, Tata Salt and Sampann have become a part of people’s everyday lives. In 2025, the company has introduced new products in the health and wellness category and has emphasized retail expansion through digital channels. The company’s focus is now on healthy, natural and sustainable products so that consumers can get better choices.

Know the Returns:

1Y Return	3Y Return	5Y Return
-4.38%	44.47%	155.80%

(Data as of 11 July 2025)

7. Marico Limited

Marico Limited is a well-known FMCG company in India, started in 1990. The company has a strong hold especially in health, beauty and wellness products. Brands like Parachute, Saffola, Hair & Care, Nihar and Set Wet are popular among people of all ages. In 2025, Marico has launched several new products in the healthy foods and skin care segment and has increased focus on D2C (Direct-to-Consumer) channels. The company aims to meet the rapidly changing consumer needs and achieve sustainable growth through innovation and digital transformation.

Know the Returns:

1Y Return	3Y Return	5Y Return
12.36%	44.84%	112.80%

(Data as of 11 July 2025)

8. Dabur India Limited

Dabur India Limited was founded in 1884 and is considered one of India’s oldest and most trusted Ayurvedic FMCG companies. Dabur focuses on healthcare, personal care and food segments. Its leading brands include Dabur Chyawanprash, Real Juices, Vatika and Dabur Honey. In 2025, the company has launched several new products promoting “Science-based Ayurveda”, and has further strengthened its presence in rural India. Dabur is now also emphasizing its strategy to reach young consumers directly through digital channels and e-commerce.

Know the Returns:

1Y Return	3Y Return	5Y Return
-17.45%	-3.14%	10%

(Data as of 11 July 2025)

Read Also: Dabur Case Study

9. Colgate-Palmolive (India) Ltd

Colgate-Palmolive (India), one of the most trusted personal care companies in the country, started its business operations in India in 1937. The company is primarily a leader in the oral care segment, offering a wide range of toothpastes, toothbrushes and mouthwashes under the Colgate brand. Apart from this, the company also sells body wash and skin care products under the Palmolive brand. In 2025, the company has targeted rural and health-conscious consumers by incorporating Ayurveda and natural ingredients in its products. Its focus on digital innovation and direct-to-customer channels is also increasing rapidly.

Know the Returns:

1Y Return	3Y Return	5Y Return
-21.59%	52.58%	71.79%

(Data as of 11 July 2025)

Read Also: Colgate Palmolive India Case Study

10. Procter & Gamble Hygiene & Health Care Ltd

P&G India, is the Indian unit of US global FMCG giant P&G. The company mainly manufactures women’s health and personal hygiene products. Its major brands include Whisper and Vicks, which are popular products in their respective segments. In 2025, the company has expanded into rural markets with an emphasis on ‘health and hygiene awareness’. Also, the company is reaching out to young and urban customers better through technology-based supply chain and digital marketing. P&G’s focus on ‘sustainable products’ and social initiatives makes it a key player in the FMCG sector.

Know the Returns:

1Y Return	3Y Return	5Y Return
-21.79%	-7.75%	26.24%

(Data as of 11 July 2025)

Read Also: Procter & Gamble Case Study

Key Performance Indicators (KPIs)

Company	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Hindustan Unilever	22.99	16.91	21.55	22.91	0.00
ITC Ltd	35.66	46.38	49.61	36.41	0.00
Nestle India	21.24	15.99	79.98	57.17	0.19
Britannia Industries	17.28	12.19	50.01	59.40	0.28
Godrej Consumer Products (GCPL)	21.47	12.89	15.43	24.21	0.32
Tata Consumer Products	11.75	7.83	6.39	7.92	0.09
Marico	20.02	15.30	40.99	36.90	0.10
Dabur India	19.26	13.84	16.36	20.31	0.07
Colgate‑Palmolive (India)	32.02	23.78	86.32	111.06	0.00
Procter & Gamble Hygiene & Health Care	25.97	18.86	86.37	102.66	0.00

(Data as of March 2025)

Benefits of Investing in Consumer Staples Stocks

Various benefits of investing in Consumer Staples stocks in India are:

Consistent demand : Consumer staples companies manufacture everyday needs such as toothpaste, soap, packaged food, etc. Their demand remains constant year after year, whether the economy is down or up.
Stable Performance even in Recession : These companies remain more stable than others during economic slowdown or recession as their products are ‘non-discretionary’, that is, people buy them no matter what.
Strong brand value : Companies like HUL, Nestlé, ITC and Britannia have been leaders in the Indian FMCg markets. Their brand recognition and customer loyalty is very strong, which makes it easy for them to maintain stable revenues.
Dividends : These companies regularly pay dividends to shareholders, making these companies a preferred choice of long-term investors looking for passive income.
Good Track Record in ESG : Most consumer staples companies are mindful of their environmental and social responsibilities, leading to good ESG scores. This makes them popular among investors who follow ethical or sustainable investing approaches..
Portfolio Balance : These stocks experience low volatility (low beta), which provides stability and balance to equity portfolios.

Factors to be Considered Before Investing in Consumer Staples Stocks

Various factors to be considered before investing in consumer staple stocks are:

Low growth potential : Consumer staples companies offer steady growth, making them unsuitable for investors looking for high growth. If you are looking for high-growth stocks, the FMCG sector may not be suitable for you.
Valuations are usually high : Big companies like HUL, Nestlé, and Dabur often trade at premium valuations. Before investing, it is important to understand whether the stock is fairly priced or overpriced as per its fundamentals.
Market saturation : Demand saturation has been reached in metros and Tier 1 cities. Only demand from rural and semi-urban areas can drive further growth. Hence, it is important to look at the company’s strategy to expand its rural business operations.
Inflation and Raw Material Cost : FMCG companies’ margins are directly affected by inflation and commodity prices. As input costs rise, profitability comes under pressure.
Regulatory Risk : New regulations may be imposed by the government on packaged food and personal care products, which may affect the company’s sales and costs.

Conclusion

The consumer staples sector is generally seen as a stable and low-risk investment option, especially when there is uncertainty in the market. Its main feature is that the products of these companies cater to everyday needs of the general public, due to which the revenues of these companies do not fluctuate much. Hence, the stocks of this sector can provide balanced growth to investors in the long run. But before investing in any sector, it is important to understand a company’s fundamentals, market position, and future growth prospects. A wisely chosen investment strategy forms the basis of a good portfolio. It is advised to consult a financial advisor before investing.

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Frequently Asked Questions (FAQs)

What are consumer staples stocks?
Consumer staples stocks refer to shares of companies that produce everyday essential products, such as soaps, food items, toothpaste, etc.
Are consumer staples stocks safe for long-term investment?
Yes, these stocks are generally stable and help balance your portfolio in the long term.
Do consumer staples companies give regular dividends?
Yes, most of the big companies pay regular dividends because their income is stable.
Is this sector affected by market volatility?
This sector is less affected by market fluctuations compared to other sectors.
What should I check before investing in consumer staples stocks?
Be sure to look at the company’s brand value, distribution network, fundamentals and future growth prospects.

July 16, 2025

10 Best Paper Trading Apps in India 2025

When it comes to trading, there is nothing more important than strategy and discipline. But if you’re a beginner starting out, using the best paper trading app is the smartest way to learn. It gives you a risk-free space to explore live market movements and test your strategies with virtual money.

So, the question is, what is paper trading, and what are these apps? Well, if you also want an answer to the same, then read this article to explore the best paper trading apps in India.

Understanding Paper Trading

Paper trading, also known as virtual trading, is a simulation technique that allows you to practice buying and selling stocks or other financial assets without using real money. In this method, you execute trades just like in the actual stock market, but the transactions are done with virtual funds.

This allows beginners and experienced traders to polish their trading skills without any financial risk. The key features of the same are as follows:

Real-time stock market data for accurate simulation
Virtual money is used to avoid financial risk
Easy-to-use interface for beginners and pros alike
Support for intraday, delivery, and options trading
Trade history and performance tracking tools
Integration with real broker platforms for a smoother transition
Alerts, charts, and technical indicators for strategy testing
A risk-free environment to build confidence
Paper trading platforms are available on both mobile and desktop for easy access

Now that you know what paper trading is, let’s explore the best paper trading apps that you can use.

Best Paper Trading Apps in 2025

When it comes to selecting a paper trading app, there are various things that youCAGR Calculatormust consider. Starting from their features to the interface, everything is important. So, here we have listed the best paper trading apps in 2025.

App Name	Play Store Rating (Out of 5)	Downloads	Key Features
TradingView	4.8	1 Cr+	Advanced charting, technical analysis, large community, real-time data
FrontPage	4.2	10L+	Real-time data, Rs 10 lakh virtual cash, easy to use UI, Indian market focus
Sensibull	4.7	10L+	Options trading, real-time data, user-friendly interface
Streak by Zerodha	4.6	1L+	Strategy builder, backtesting, Zerodha Kite integration
Stock Trainer: Virtual Trading	4.2	10L+	Supports stocks, futures, options, crypto and gives users access to historical data and educational resources
Virtual Trading App 2.0	4.3	10L+	Advanced charts, daily P&L, ad-free premium option
Neostox	2.7	10K+	Virtual trading platform focused on Indian markets, simple interface
AInvest: Paper Trading	3.2	50K+	$100,000 virtual cash, custom stock screeners, advanced technical tools, real-time quotes, and portfolio tracking.
FinVedas	3.8	5K+	₹10 lakh virtual cash, 80+ indicators, advanced charts, trade analysis tools, and customizable watchlists.
Paper: Paper Trading App India	3.7	1L+	Realistic trading simulation with live market data, Nifty and Bank Nifty options, user-friendly interface.

Now that you have the list of paper trading apps India, let us explore these apps in detail.

Read Also: Best Trading Apps in India

1. TradingView

TradingView is a well-known platform that combines powerful charting tools with a built-in paper trading feature. It allows users to place simulated trades in live market conditions using virtual money.

With its user-friendly interface and access to global markets, it’s ideal for testing strategies without any financial risk.

Features

$100,000 virtual money for demo trading, can be reset
Integrated with advanced charts and 100+ indicators
Supports trading in multiple asset classes: stocks, forex, crypto
Reset your virtual portfolio anytime for continuous practice

2. FrontPage

FrontPage is India’s largest community-driven trading platform, designed for traders and investors. The platform allows you to share insights, discuss strategies, and practice trading with virtual money.

It combines real-time market data, AI-powered news analysis, and interactive forums. All these help users learn, collaborate, and test strategies in a risk-free environment.

Features

₹10,00,000 virtual money for risk-free trading
Real-time charts, stock feeds, and technical indicators
Trade across stocks, options, commodities, futures, and even cryptocurrencies
Get the profit and loss statement for your performance analysis

3. Sensibull

Sensibull is India’s first and most advanced options trading platform. Known for its strategy builder and integration with brokers like Zerodha, it also offers a paper trading feature that lets users simulate option trades with real-time data.

Sensibull is particularly useful for options traders looking to test multi-leg strategies, assess risk-reward ratios, and build confidence, all without risking real capital.

Features

Practice Trades / Draft Portfolios for simulated options trading
Live option chain, Greeks, and strategy payoff charts
Create, test, and analyze custom multi-leg strategies
Seamless integration with Zerodha Kite for real-market experience

4. Streak by Zerodha

Streak is Zerodha’s no-code algo-trading platform. It empowers users to build, backtest, and deploy strategies without writing a single line of code.

This is free for all Zerodha users as it also offers “virtual deployments” (paper trading) that simulate strategy performance in real-time market conditions without placing actual orders.

Features

Backtesting across stocks, futures, and options—view win rate, drawdown, P&L, and more
Built-in live scanners (150+) to identify trade setups in real time
No-code strategy builder with 80+ technical indicators for entry/exit logic
Real-time tracing and historical data for detailed analysis

5. Stock Trainer: Virtual Trading

Stock Trainer is a global paper trading app. It is designed for beginners and enthusiasts to practice trading in real-time using virtual funds. It covers 20+ world stock markets, including NSE, BSE, NASDAQ, etc., making it highly popular among Indian users.

The app also includes tools like stop-loss, limit orders, news feeds, historical charts, and portfolio tracking. It is perfect for learning and testing strategies safely.

Features

Supports stocks, options, and crypto across 20+ markets
Real-time stock data with stop-loss and limit order functionality
10+ years of historical chart data and performance tracking
Covers stock exchanges for 13+ countries and offers educational resources

6. Virtual Trading App 2.0

Virtual Trading App 2.0 is a free India-based paper trading app. It lets users practice trading in NSE stocks, derivatives, and index F&O using live market data.

It’s designed for all levels of traders to test strategies, track daily performance, and build market confidence. You can do all this without risking actual money.

Features

Real-time trading in NSE stocks, stock derivatives, and index options
Supports market, limit, and practice order types
Daily profit and loss reports, charts, and technical tools
Premium version offers stop-loss, target setting, and report export

7. Neostox

Neostox is a comprehensive virtual trading platform for stocks, options, and futures, offering real-time market simulation with virtual funds. It helps traders sharpen their skills using advanced tools like basket orders, AI analytics, and a detailed options chain.

It is designed for both beginners and experienced traders. Neostox is also used in trading contests and educational programs to promote strategic learning and discipline.

Features

Real-time trading simulation in stocks, futures, and options
Basket order execution and full options chain access
AI-driven analytics and trade journaling tools
Contest-friendly platform used by educational partners

8. AInvest: Paper Trading

AInvest offers a powerful paper trading app that combines AI-driven insights with real-time market simulation. It is backed by Aime, which is an AI financial advisor. It lets users practice trades using virtual funds while offering advanced tools for technical and fundamental analysis.

It offers technical indicators and real-time news, allowing users to test strategies, simulate trades, and stay on top of market trends. The app also offers in-app lessons to build your financial knowledge while you practice.

Features

$100,000 virtual money for realistic market practice
Custom and pre-built AI-driven stock screeners for smarter trade ideas
Real-time quotes, charts, news, and portfolio tracking on web/mobile
Over 22 technical indicators and 5 charting tools to test strategies

9. FinVedas

FinVedas is a complete paper trading app built for Indian traders looking to learn, test strategies, and track performance in a real-market-like environment. It combines TradingView-style advanced charting, ₹10 lakh in virtual money, and key order types to offer a comprehensive learning tool. With features tailored for both beginners and active learners, it’s perfect for practicing without risk.

Features

₹10 lakh virtual capital for paper trading in stocks and options
TradingView-powered charts with 80+ indicators
Create multiple watchlists and place both market and limit orders
Trade analysis tools with upcoming features like trade replay and alerts

10. Paper: Paper Trading App India

Paper is free. It is an India-focused virtual trading app that lets users practice NIFTY and BANKNIFTY futures and options trading. All this is done with live market data.

It offers a clean interface and a beginner-friendly approach. The aim is to simulate the emotional and strategic aspects of trading, without any real capital risk.

Features

Real-time market data for NIFTY and BANKNIFTY F&O
Simulates real-world trading decisions and emotions
Clean interface with up-to-date lot size and premium prices
Ideal for beginners testing options trading strategies

How to Select a Paper Trading App?

With so many platforms available, choosing the right paper trading app can feel confusing, especially if you’re just starting out. Here are the key factors to consider when selecting the best app for your learning and strategy testing needs:

1. Real-Time Market Data

Ensure the app offers live or real time market data. Simulated trades and strategies are only meaningful if they are placed and tested under real market conditions.

2. Clean and User-Friendly Interface

A clutter-free dashboard helps you focus on your trades, especially as a beginner. Look for apps with intuitive navigation and smooth performance.

3. Asset Class Coverage

Choose an app that supports instruments like stocks, futures, options, or crypto. Some apps are NSE-specific, while others offer global market access.

4. Strategy Tools and Indicators

The best paper trading apps include technical indicators, drawing tools, and sometimes even backtesting. These features help refine your trading strategies in a risk-free setting.

5. Order Types and Execution Control

Check if the app supports market, limit, and stop-loss orders. This gives you more control and helps you learn proper entry/exit techniques.

6. Performance Tracking

Good paper trading apps offer trade logs, daily P&L, and portfolio summaries. This will help you analyze what’s working and what needs adjustment.

7. Virtual Fund Flexibility

Look for apps that let you reset your virtual money limit or increase limits. It is useful for repeated practice and long-term learning.

How to Do Paper Trading?

Follow these simple steps to start paper trading in a risk-free environment:

Download a paper trading app like TradingView, FinVedas, or Neostox from Play Store or App Store.
Sign up and log in using your email or mobile number.
Get virtual funds, as most apps provide ₹10 lakh or $100,000 to start with.
Choose what to trade, like stocks, options, or futures, depending on what the app offers.
Use charts and indicators to plan your trades.
Place buy/sell orders using market or limit order options.
Track your performance in the app’s trade log or portfolio section.
Reset virtual money when needed to start fresh and test new strategies.

How to Switch from Paper Trading to Real Trading?

Once you’ve built confidence using a paper trading app, it’s time to enter the real market. Here is how you can do this:

1. Open a Demat and Trading Account

Choose a trusted broker and create your account. If you’re looking for a seamless experience, you can do it directly through Pocketful and get started in minutes.

2. Add Funds to Your Trading Account

Deposit funds in your trading account from your linked bank account. Start with a small amount and gradually increase your trading capital.

3. Apply the Same Strategies You Practiced

Stick to the trading style and strategy that worked during paper trading. Avoid experimenting too early until you have confidence.

4. Use Risk Management Tools

Just like in your paper trades, use stop-loss, target orders, and alerts to control risk. This keeps emotions in check and protects your capital.

5. Track, Learn, and Improve

Monitor your performance regularly. Use paper trading apps in-built tools to understand what’s working and refine your trading strategy over time.

Conclusion

Paper trading is more than just practice; it’s preparation. With the best paper trading app, you can test strategies and understand how to take advantage of market fluctuations. This will help you gain the freedom to make mistakes and learn from them, without incurring any financial loss.

And when you’re ready to go live, Pocketful makes that transition seamless. From opening a demat account to starting to trade, it helps you by offering an easy-to-use platform, advanced option chain and innovative features. However, it is advised to consult a financial advisor before trading with real capital.

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Frequently Asked Questions (FAQs)

Can I lose money while using a paper trading app?
No, paper trading is completely virtual. You practice in real market conditions using fake money, so there is no financial risk or real loss involved.
Which app is best for learning options trading specifically?
Sensibull and Neostox are great choices. They offer option chains, real-time data, and strategy tools that help beginners and advanced users practice options trading safely.
How long should I practice with paper trading before going live?
You must aim for 2 to 3 months of consistent practice. Once you see stable results and understand your strategy well, you can consider switching to real trading.
Are paper trading apps useful for experienced traders too?
Yes, experienced traders use them to test their strategies in different markets, or refine execution without putting actual money at risk.
Do paper trading apps include all charges and taxes like real trading?
No, most paper trading apps do not include actual brokerage fees, taxes, or other transaction costs that apply in live trading. They are mainly designed to simulate market movements and strategy execution. So, when you start real trading, make sure to factor in these extra costs.

July 15, 2025

Top Tips for Successful Margin Trading in India

In the dynamic world of trading, there are various tools available that can help you increase your return in the stock market. One such tool or facility is margin trading, which is becoming very popular among traders as it allows them to take a larger position without paying the full value upfront. However, before trading, understanding how to use margin trading wisely becomes essential.

In this blog, we will explain the top tips for successful margin trading.

What is Margin Trading?

Margin trading involves borrowing money from a broker to purchase or sell securities. Although margin trading involves a higher risk, it enables traders to take on larger positions than their actual capital and thus magnifies profits. Typically, the trader pays a margin upfront, which is set by the broker based on the entire trade value, and the broker pays the remaining sum on your behalf. You have to pay interest on the borrowed amount.

Top tips for Successful Margin Trading

The important top tips for successful margin trading are as follows:

Understanding: Before initiating any trade using margin, one should become familiar with the concepts of leverage, initial margin required, etc.
Conservative Approach: Don’t use the maximum leverage that is permitted. To minimise risk, start by using less leverage until you are confident in your approach.
Stop Loss: To protect your capital, a stop-loss order allows you to automatically exit a trade at a set loss level. In margin trading, it is essential to use a stop-loss.

Monitoring: Especially in times of market volatility, it is essential to give particular attention to your open positions.

Diversification: Avoid allocating all your margin capital to a single stock or position. By spreading your investments across multiple stocks or sectors, you reduce risk and protect your portfolio from the impact of a single unfavorable trade.

Manage Your Emotions: Trading on margin can test your emotional discipline. Stay calm, stick to your plan, and avoid taking decisions based on greed or fear.

Stay Updated: One is required to keep oneself updated about the latest market updates and geopolitical events so that, in case of any negative news, one can exit their position promptly.

Liquid Stocks: It is always suggested that liquid stocks be used for margin trading, as liquid stocks can be easily bought and sold.

Interest Rates: Brokers charge interest on the margins; therefore, comparing the interest rates charged by different brokers is recommended to get a better deal.

Avoid Margin Calls: When the stock price you have purchased falls, your broker will notify you to pay an extra margin. Therefore, one should constantly monitor their trading positions.

Features of Margin Trading

The important features of margin trading are as follows:

Leverage: This margin trading feature lets you trade with more money than you have.

Initial Margin: The initial margin, which is a set percentage of the entire trade value, must be deposited before you can start margin trading.

Interest Rate: Until the position is closed, you will be liable for paying interest on the money you borrow from the broker.

Short Term: In order to profit from market volatility, margin trading is commonly used for short-term trades, particularly intraday or swing trading.

Restricted Shares: Not all stocks are permitted for margin trading. Brokers usually only allow this facility for liquid stocks.

Benefits of Using Margin Trading

The significant benefits of margin trading are as follows:

Higher Returns: Large positions can be taken on by traders with limited funds. However, it also comes with a higher risk as margin trading increases the buying power of the trader.
Short Selling: Using margin trading, one can initiate short positions in the futures by paying a limited margin, which allows traders to profit from bearish markets.
Frequent Trades: In Intraday Trading margin trading is particularly helpful because it enables traders to take multiple positions in a single day and profit from short-term price changes without using up all of their capital.
Diversification: Margin Trading allows you to spread risk by investing in a number of stocks or industries instead of putting all of your money into one.

Conclusion

On a concluding note, margin trading is a very effective tool enabling an investor to enhance their return with limited capital. One can increase their purchasing power multifold. However, margin trading comes with various risks; therefore, it requires a disciplined approach, effective risk management, etc. Therefore, it is advisable to first learn about margin trading and consult your investment advisor before initiating any trade in order to avoid losses.

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4	What is Scalping Trading Strategy?
5	Breakout Trading: Definition, Pros, And Cons

Frequently Asked Questions (FAQs)

Can I use margin trading in the derivative segment?
Most brokers do not offer margin trading facilities for trading in futures and options.
What will happen if I am unable to fulfil a margin call?
If you are unable to fulfil your margin call, then your broker will automatically square off your position.
What is the full form of MTF in the stock market?
MTF refers to “Margin Trading Facility”. It allows a trader to execute a trade without paying the full value of the trade; only a fixed percentage of the trade value is to be paid by the trader upfront.
Does every broker offer margin trading?
No, not every broker offers margin trading. Therefore, you need to check with your broker whether they offer this facility or not. Pocketful offers its users a margin trading facility.
How long can I hold a trading position made via margin trading?
The holding period depends on your broker policy, so compare the margin trading facility rules of various brokers before selecting a broker.

July 15, 2025

Best Silver Stocks in India 2025

In today’s world, silver is not only a precious metal but also a critical material used in various industries such as solar, electric vehicles, electronics, etc. Therefore, as an investor, you must be thinking about how to invest in silver-related stocks for better returns.

In this blog, we will give you an overview of top silver stocks along with the benefits of investing in them and key performance indicators.

What are Silver Stocks?

Silver stocks are shares of companies primarily engaged in exploration, mining, production, and selling silver. Silver and its related products are a major source of revenue for these companies. Their profit is dependent on production costs and operational efficiency. Investing in these shares can give one indirect exposure to the silver industry.

S.No.	List of Best Silver Stocks in India
1	Hindustan Zinc Limited
2	Vedanta Limited
3	Kalyan Jewellers India Ltd
4	Goldiam International Limited
5	Thangamayil Jewellery Limited

Market Information of Best Silver Stocks in India

Company	Current Market Price (in INR)	Market Capitalisation (in INR crore)	52-Week High (in INR)	52-Week Low (in INR)
Hindustan Zinc Limited	423	1,78,604	684	378
Vedanta Limited	439	1,71,647	527	362
Kalyan Jewellers India Ltd.	588	60,629	795	399
Thangamayil Jewellery Limited	1,931	6,001	2,567	1,523
Goldiam International Limited	342	3,653	569	165

(As of 10th July 2025)

Read Also: List of Best Metal Stocks in India

Best Silver Stocks – An Overview

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

1. Hindustan Zinc Limited

Hindustan Zinc Limited was established in 1966 by Metal Corporation of India. Initially, it was a public sector undertaking established to fulfil the demand for zinc in India. In 1980, after realising the increasing demand for silver, the company invested in refinery technologies to extract silver. In 2002, the government decided to divest this company and sold the majority stake to Sterlite Opportunities Limited, a subsidiary of Vedanta Limited. However, the government retains nearly 29.54% with itself. Today, the company is India’s largest integrated silver producer and sells silver as 30 kg bars, 1 kg bars and in powder form. The company’s headquarters are situated in Rajasthan.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-35.98%	62.19%	122.64%

(As of 10th July 2025)

Read Also: Hindustan Zinc Case Study

2. Vedanta Limited

Vedanta Limited was founded in 1986 under the name Sterlite Industries (India) Limited and was initially focused on producing wires and cables for the telecommunication sector. In 1992, the company decided to enter into the refinery business and started smelting copper. The company formed a parent company in the United Kingdom known as Vedanta Resources Limited, and this company was listed on the London Stock Exchange. The company is a prominent player in the Indian mining industry. The company purchased Sesa Goa Limited in 2007. It also acquired the business of Carine India, which was a prominent player in the gas industry. Vedanta Limited holds a 64.9% stake in Hindustan Zinc Limited (HZL), which ranks as the world’s 5th largest silver producer. In FY2023, HZL reported an impressive annual silver production of approximately 714 tonnes. The company also owns mines in South Africa. The company’s headquarters are situated in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-2.94%	98.65%	297.71%

(As of 10th July 2025)

Read Also: Vedanta Case Study

3. Kalyan Jewellers India Ltd.

Founded in 1993 by T.S. Kalyanaraman, Kalyan Jewellers India Ltd. is a prominent name in the jewelry industry, offering an extensive range of gold, silver, and precious stone jewelry. The company operates on a customer-centric business model focused on transparency, quality, and variety. One of its key differentiators is the wide selection of designs backed by unmatched warranties. To strengthen its presence in smaller towns, Kalyan Jewellers has launched the unique “My Kalyan” program, which operates through over 750 centers across India. This initiative significantly enhances customer outreach and plays a major role in expanding the brand’s market footprint.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-13.85%	819.94%	684.18%

(As of 10th July 2025)

4. Goldiam International Limited

The company was founded in 1986 as Goldiam (International) Private Limited. Initially, the company began its work as an exporter of cut and polished diamonds and jewellery. It received Export Performance Awards in 1991. They regularly pay dividends and bonuses to their shareholders. However, because of lower margins, the company exited its wholesale business in Hong Kong and India. During 2023-24, the company announced its venture into the retail sector. The company has its headquarters in Mumbai.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
93.18%	125.91%	1,446.86%

(As of 10th July 2025)

5. Thangamayil Jewellery Limited

The company was established in 1947 and was initially known as Balu Jewellery. It was founded by the Late Shri. N. Balusamy Chettiar. In 1979, the business was handed over to the son, Mr. Balarama Govinda Das, Mr. Ba. Ramesh and Mr. N.B. Kumar. The company formally began its operation in 2000 when it was incorporated as Thangamayil Jewellery Private Limited. The company launched its IPO in 2007 and became a publicly traded company. The company’s headquarters are situated in Tamil Nadu.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
10.79%	283.43%	1,379.24%

(As of 10th July 2025)

Key Performance Indicators (KPIs)

Company	Operating Profit Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	Debt to Equity
Hindustan Zinc Limited	43.22	30.37	77.69	63.24	0.80
Vedanta Limited	22.82	13.42	36.36	26.92	1.79
Kalyan Jewellers India Ltd.	5.26	2.85	14.88	20.88	0.20
Goldiam International Limited	22.13	14.99	15.81	22.55	0.01
Thangamayil Jewellery Limited	4.09	2.41	10.76	16.60	0.68

(Data as of March 2025)

Benefits of investing in Silver Stocks

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

Portfolio Diversification: One can diversify their portfolio by investing in silver stocks.
Increasing Demand: The demand for silver is increasing due to its industrial applications and precious metal status. Therefore, investing in these companies can be considered a good investment opportunity.
No Physical Storage: One is not required to buy and store physical silver and can get the benefit of the appreciation in the price of silver.
Regular Income: Some companies discussed above regularly declare dividends, which can be a source of passive income for investors.

Factors to Consider Before Investing in Silver Stocks

The factors which need to be considered before investing in silver stocks are as follows:

Company Financials: Before making any investment in silver stock, one needs to evaluate the financials of the company, such as revenue growth, profit margins, debt levels, etc.
Geopolitical Risk: The prices of silver are highly volatile as geopolitical events impact the share prices of silver companies.
Demand from Industrial Sectors: Silver is widely used in industries such as solar energy, electronics, and electric vehicles. Monitoring the demand trends in these sectors can help you assess future growth potential for silver-related companies.
Government Policies and Import/Export Regulations: Changes in government policies, import/export duties, or environmental regulations can significantly impact silver production and profitability of these companies.

Read Also: 10 Best Copper Stocks in India

Future of Silver Stocks

The future of silver stocks is very promising in India because the demand for silver is increasing day by day, due to its industrial applications, especially in the green energy sector. With the rise in the use of electric vehicles, the demand for silver will increase because electric vehicles use silver. Along with this, the government is also pushing clean energy adoption, in which silver plays an important role. Therefore, one can invest in silver stocks for the longer horizon.

Conclusion

On a concluding note, investment in silver stocks provides you with an opportunity to earn profit from the increasing price of silver. Investment in silver stocks offers a mix of capital appreciation, inflation hedging, and participation in the renewable energy sector. However, the performance of silver companies depends on the global prices of silver, which can be very volatile because of various factors such as geopolitical events, demand for silver, etc. Therefore, it is advisable to consult your investment advisor before making any investment in silver stocks.

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Frequently Asked Questions (FAQs)

Which stocks are associated with silver in the Indian stock market?
Some commonly traded silver stocks in India are Hindustan Zinc Limited, Vedanta Limited, Kalyan Jewellers India Ltd., Goldiam International Limited, and Thangamayil Jewellery Limited.
Do silver stocks pay dividends?
Yes, some silver stocks pay dividends. However, one needs to check the dividend yield of the company before making any investment. Dividend-paying silver stocks are suitable for investors who are looking for a passive income.
What are the major risks of investing in silver stocks?
The major risks related to investing in silver stocks are volatility in the global price of silver, geopolitical risk, environmental regulations, etc.
How can I invest in silver stocks in India?
One can easily invest in silver stocks by opening a demat and trading account. You can easily open a demat account with Pocketful, and you also don’t need to pay any brokerage on equity delivery trades.
What is a good time to invest in silver stocks?
You can invest in silver stocks at any time as it offers diversification; however, certain factors need to be considered before investing in silver stocks, such as silver price trends, macroeconomic factors, etc.

July 15, 2025

How to Register a UPI Complaint?

Earlier, whenever you went out for shopping or dinner, you probably carried physical cash to make payments. However, with the launch of UPI or Unified Payment System by NPCI (National Payments Corporation of India) in 2016, things have changed drastically. Now, you can make all kinds of payments through your UPI mobile application. But sometimes the payment gets stuck. In that case, the user must know how to file a UPI complaint.

In this blog, we will explain to you how to register a UPI complaint and what details are required to raise a complaint.

What is UPI Payment?

UPI or Unified Payment Interface allows a user to make payments on a real-time basis. This system was developed by the National Payments Corporation of India (NPCI) in 2016. NPCI is regulated by the Reserve Bank of India. This system has changed the landscape of the Indian payment system. One can easily transfer the funds using their mobile 24*7, UPI even works on holidays.

Features of UPI Payment

The key features of UPI are as follows:

Immediate Transfer: One can easily transfer money in real time, which makes UPI a preferred way of making payments today.
Convenient: An individual doesn’t need to worry about carrying physical cash or going through the hassle of finding change, as UPI allows you to transfer the exact amount easily.
Link Multiple Bank Accounts: One can easily link their multiple bank accounts to a single UPI ID.
QR Code: Using UPI allows one to easily transfer money without sharing any bank details. Scanning a QR code, one can instantly transfer the money.
Cost-efficient: UPI transactions are free for most users, especially those involving direct bank-to-bank transfers. However, a 1.1% interchange fee may apply to transactions over ₹2,000 made using Prepaid Payment Instruments (PPIs) such as digital wallets. This fee is paid by the merchant, not the customer.
Secure: The use of two-factor authentication allows you to securely transfer money to other users.

Read Also: Paytm Case Study

Issues with UPI Payment

The common issues with the UPI payments are as follows:

Failed Transaction: In a failed transaction, the amount is deducted from the bank of the payer, but it does not get credited to the bank of the receiver. It generally happens because of network errors or server issues.
Payment Decline by Bank: Your payment can be declined by the bank because of several reasons, such as invalid UPI PIN, insufficient balance, etc.
Failed UPI Registration: There are some cases when the user is not able to register themselves on the UPI application, due to inactive SIM, etc.
Daily Limit: UPI generally has a daily transaction limit. If the limit has been exceeded by the user, then further payments cannot be made.
Bank Server: Sometimes the bank server does not respond or faces some issue; during such times, the payments cannot be made.

How to Register a UPI Complaint?

One can easily raise a UPI complaint following the mentioned steps:

UPI Application: The UPI application, which you were using, allows you to file a complaint and report fraud through the in-app complaint or help section.
NPCI Website: Alternatively, you can visit the website of NPCI, and go to the “Dispute Redressal Mechanism” section and file your complaint.
Customer Care: One can reach out to the customer support department of the company offering UPI services via the helpline provided on their website or application.
Bank: The user can also contact their banks regarding the rejection of UPI payment and can file a complaint for the same.

Details Required to File a UPI Complaint

There are a few details that one should keep handy while registering a UPI complaint.

Registered Mobile Number.
Transaction ID or UTR (Unique Transaction Number).
Date and Time of Transaction.
Amount of Transaction.
Details of the beneficiary account to which you were making the payment.
Error message or screenshot.

Having these details handy can make filing a UPI complaint much easier.

Checking Status of UPI Complaint

One can easily track the status of their UPI complaint online by following the steps mentioned below:

NPCI Website: To check the status of a complaint made on the NPCI website, one can click on the tab “Click here to check the complaint status” and choose their product type, bank and enter CRN number.
UPI Application: If the complaint has been made through the UPI application, then one can track the status of their complaint on the help and support section of the UPI application.
Bank: If you have filed a complaint through the bank, then you can visit the branch or call their customer support number and ask them about the status of your complaint.

Conclusion

On a concluding note, UPI, or Unified Payment Interface, has transformed the way people make payments and shop in India. Now you do not need to carry physical cash while travelling; you can just pay or transfer an amount using the UPI application installed on your mobile phone. However, sometimes the users also face minor difficulties, such as payment being deducted but not credited to the receiver’s account, etc. In this case, you do not need to worry and can easily file a complaint through various modes and get a resolution. However, it is advisable to carefully select a reliable UPI application to avoid any fraud.

Frequently Asked Questions (FAQs)

What is the full form of UPI?
UPI refers to Unified Payment Interface, which NPCI launched to digitise the payment ecosystem.
What type of UPI complaint can I raise?
One can raise complaints about money debited from one’s bank account but not credited to the receiver’s account, a failed transaction, a payment made to the wrong person, or an unauthorized transaction.
Where can I file a complaint about UPI payments?
One can file a complaint on the official website of NPCI, the UPI application, and with your bank.
Where can you check the status of a UPI complaint?
The status of the UPI complaint can be checked on the official website of NPCI or the UPI application
Where to escalate the UPI complaint?
The UPI complaint can be escalated to your bank grievance portal, NPCI portal, or the banking ombudsman.

July 14, 2025

10 Best Personal Finance Books to Read in 2025

Mastering personal finance is key to building wealth, avoiding debt, and achieving financial freedom. The right books can transform your mindset and guide you toward smarter money decisions. Here, we’ve handpicked the 10 best personal finance books that offer timeless strategies and practical insights to help you take charge of your financial future.

In this blog, we will give you an overview of the top 10 personal finance books.

Top 10 Personal Finance Books

S.No.	Book Name	Year	Author	Rating (Goodreads)
1	The Intelligent Investor	1949	Benjamin Graham	4.3
2	Let’s Talk Money	2018	Monika Halan	4.3
3	Rich Dad Poor Dad	1997	Robert T. Kiyosaki	4.1
4	Common Stocks and Uncommon Profits	1958	Philip A. Fisher	4.2
5	The Dhandho Investor	2007	Mohnish Pabrai	4.3
6	The Nature of Money	2011	Geoffrey Ingham	3.9
7	One Up on Wall Street	1989	Peter Lynch	4.3
8	Think and Grow Rich	1937	Napoleon Hill	4.2
9	Coffee Can Investing	2018	Saurabh Mukherjea	4.2
10	The Total Money Makeover	2003	Dave Ramsey	4.3

Overview of the Top Personal Finance Books

1. The Intelligent Investor

This book was written by Benjamin Graham and was published in 1949. Benjamin Graham is known as the father of value investing. In this book, he explains key characteristics of an investor that separates them from a speculator. The book emphasises long-term investing and suggests that an intelligent investor ignores the mood of the market and only trades when there are favourable prices. He said investing is not a get-rich-quick scheme but a serious business. Considered a must-read by many, The Intelligent Investor remains one of the most influential finance books ever written.

2. Let’s Talk Money

The book was written by Monika Halan, who is a renowned financial journalist. The book is divided into three parts: building the foundation of a financially sound life, creating wealth, and getting wealthy. This book is written in an easy to understand language that can help an individual make informed decisions related to different stages of life. She covers essential topics such as budgeting, emergency funds, insurance, retirement planning, and choosing the right investment products suited to individual goals and risk profiles.

3. Rich Dad Poor Dad

This book was written by Robert T. Kiyosaki and was published in 1997. In this book, the author has explained his life experience of the difference in mindset between his biological father, who was poor and the father of his best friend, who was very rich. Through their contrasting approaches to money, he highlights the difference in mindset between working for money and making money work for you. Kiyosaki encourages readers to break free from the traditional cycle of earning, spending, and saving, and instead focus on building assets that generate passive income. This book emphasises how financial literacy and self-belief help you in creating wealth.

4. Common Stocks and Uncommon Profits

The book was first published in 1958 and was written by Philip A. Fisher. In this book, Fisher focuses on a growth-oriented approach to investing, which was based on qualitative analysis, i.e., analysing company’s management, its capacity for innovation, competitive advantages, and long-term vision. It remains a must-read for anyone interested in growth investing and learning how to identify outstanding companies before they become widely recognized.

5. The Dhandho Investor

The book was written by Mohnish Pabrai, who was the founder of Pabrai Investment Fund. The book was published in 2007. The writer introduces the “Dhandho” approach of investing, which means investing in simple, predictable businesses. According to the book, one should not invest in futuristic ideas; instead, invest in businesses which have a proven track record. The principles of investing discussed in this book are similar to those used by Benjamin Graham and Warren Buffett.

6. The Nature of Money

Written by Geoffrey Ingham and published in 2004, this book offers a unique and thought-provoking perspective on what money truly is. Ingham challenges the traditional economic view of money as merely a neutral medium of exchange. Instead, he explores money as a social construct, emphasizing its role in shaping relationships of credit and debt within society. This book dives deep into the sociology and politics behind money, providing readers with a richer, more nuanced understanding of how modern financial systems operate. It’s an essential read for anyone interested in exploring the foundations of money beyond conventional economic theories.

7. One Up on Wall Street

This book was written by Peter Lynch and published in 1989. Peter Lynch is a successful mutual fund manager. He managed various Fidelity Magellan Funds from 1977 to 1990, and achieved an annualised return of 29%. In this book, he emphasises the importance of daily observation of individual investors, which they can use to find common and promising investment opportunities. Focusing on the principle of “Invest in what you know”, the author believes that anyone can discover great stocks before they’re widely recognized by analysts.

8. Think and Grow Rich

This book was published in 1937 and was written by Napoleon Hill. Based on decades of studying the habits and mindsets of highly successful people, the book is much more than a guide to earning money; it’s a blueprint for achieving success in any area of life. Napoleon interviewed several successful people and found some common characteristics, which are mentioned in the book. Once you finish reading this book, you will get to learn the psychology of creating wealth.

9. Coffee Can Investing

The book was written by Saurabh Mukherjea, Rakshit Ranjan, and Pranab Uniyal, and it was published in 2018. In this book, the authors discusses a long-term approach to wealth creation, especially tailored for Indian investors. The authors introduce the concept of “Coffee Can Investing,” inspired by an old American practice where people would stash valuable possessions in a coffee can and forget about them for years. In investing terms, this means identifying high-quality, fundamentally strong stocks and holding them untouched for at least 10 years.

10. The Total Money Makeover

The book was first published in 2003 and was written by Dave Ramsey. The book provides steps to get out of debt and build wealth. Ramsey emphasizes that successful money management is 80% behavior and the remaining 20% consists of knowledge. The author discusses a “Debt Snowball” method of repaying their smallest debts first, building momentum towards saving and investing, allowing you to eliminate debt and achieve financial freedom.

Why should one read Personal Finance Books?

There are various reasons why one should read a personal finance book, a few of which are mentioned below:

Avoiding Debt Traps: Reading books allows you to manage your debt efficiently. These books can help you reduce debt, create realistic budgets and build a more secure financial future.
Long Term Wealth Creation: Reading books helps you create wealth over a while by teaching you the importance of disciplined investing.
Change in Mindset: Many people avoid investing early in life, missing out on substantial gains from the power of compounding. Books help them in understanding the concept of compounding.
Financial Freedom: Reading books regularly allows you to attain financial freedom at an early stage and provides you with peace of mind.

Conclusion

While earning money is challenging, managing it wisely requires even greater skill and discipline. Many seasoned investors have shared their experiences through books, offering valuable insights on navigating the market and aligning your investments with your financial goals and risk tolerance. However, it’s important to remember that these books provide general guidance and should not be seen as direct investment advice. Always consult a qualified financial advisor before making any investment decisions.

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5	Top 10 personal finance lessons for self-learning

Frequently Asked Questions (FAQs)

Which is the best book on personal finance?
There are various books available through which one can learn the art of investing; however, one can start with “The Intelligent Investor” written by Benjamin Graham.
Is there any book that can help me get out of debt?
Yes, books like “The Total Money Makeover” focus on budgeting and managing your debt.
Do I need to have a financial background to read personal finance books?
No, you do not need to have a financial background to understand the concepts discussed in the personal finance books, as they are written in simple language and explain the concept through real-world examples.
Where can I purchase personal finance books?
One can purchase personal finance books on online platforms such as Amazon, Audible, and Google Play Books.
Is there any personal finance book specifically for the Indian audience?
Yes, there are various books written by various authors that can help an Indian investor in understanding the concepts of personal finance. Examples of such books are “Coffee Can Investing”, “Think and Grow Rich”, etc.

July 14, 2025

How to Use AI for Smarter Investing in India 2025

Artificial Intelligence (AI) is rapidly changing the world of investment in India. By 2025, spending on AI in India is estimated to reach around ₹ 14,300 crore, showing a growth of more than 31% year-on-year (IDC report). At the same time, individual investors are now also using data analytics and machine learning to better understand market trends.

In this blog, we will explain to you in simple language how you can make your investments even smarter, faster and more accurate by using AI.

AI in Investing

AI (Artificial Intelligence) means programming machines with the ability to think and make decisions like humans. ML (Machine Learning), a subset of AI, learns from data provided. Deep Learning is an advanced form of ML that uses artificial neural networks and tries to work a little like our brains.

1). How is AI different from traditional tools?

Earlier, screeners and algorithms picked stocks based only on predefined financial rules (such as the P/E ratio).
But now, AI-powered tools understand sentiment, scan news, technical and fundamental data in real-time, and create strategies on their own and moreover, they can also identify market patterns. This reduces the scope of human error and emotional decisions.

2). AI: Real-World Applications

Robo-advisors: These are AI-based advisors that understand your risk appetite, goals, and financial habits and guide you in investing.
Sentiment Analysis: AI analyzes investor sentiment from Twitter, news, Reddit—for example, when the Adani-Hindenburg controversy happened, AI-based sentiment tools were able to detect sentiment changes and predict price fluctuations quickly.
Portfolio Optimization: AI can easily balance portfolios, manage risks, and detect frauds with ML and predictive analytics.

How AI Affects the Investment Process?

Today’s investor is not limited to just charts and ratios. AI is now playing a broader role making decision-making at every stage faster, personalized, and more data-driven. Let us evaluate the role of AI in the investment process based on different metrics mentioned below:

1). How is AI changing the Research Process?

The traditional research process was time-consuming and subject to personal bias. AI is making this process automatic, neutral, and much more in-depth. Many of today’s AI tools can scan everything from financial documents to CEO statements.

For example, NLP-based systems can analyze management discussion and analysis (MD&A) sections in the annual reports and guess whether their tone is bullish or bearish.

2) How does AI make Portfolio Management easier?

Every investor’s financial goal, risk-taking capacity, and holding period are different. AI can create tailored portfolios based on investor’s individual preferences.

Through data analytics, AI decides how much should be invested in which asset class — equity, debt, gold or international funds.
Mutual Fund houses like Nippon India are now integrating AI into their smart asset allocators, which reallocate portfolios as per market changes.
Also, smart-beta ETFs and factor-based investment plans are growing rapidly in India, which are based on indicators such as volatility, quality, and momentum selected by AI.

3). How is AI making Risk Management more accurate?

Financial frauds, extreme volatility, and behavioral biases all of these can impact an investor’s portfolio. AI provides real-time solutions to all of these.

Many SEBI-registered fintech platforms in India are now using AI to track transaction patterns and report any unusual behaviour immediately.
In the banking sector, credit card companies are now using AI-based behavioral scoring to assess a person’s repayment capacity taking into account real-time spending behavior, not just income or CIBIL score.
NBFCs and digital lending apps are also now using neural networks and decision trees instead of traditional ratio models for risk estimation.

4). How does AI read News and Market Sentiment?

Markets today are not just driven by numbers; emotions, Twitter trends, media coverage and global events also influence investment decisions.

Sentiment analysis tools like FinBERT can now analyze social media and news data to determine public sentiment about a company or sector.
These tools not only provide scores, but also suggest which sectors are seeing a sudden surge in interest or a decline.
For example, when the report concerning the Adani Group was published in 2023, many sentiment trackers had already indicated a negative trend, allowing proactive decisions to be taken.

AI Based Investment Platforms in India

Let us look at the AI based investment platforms that are popular in India:

Smallcase : Smallcase is a unique platform where you can invest directly in stock portfolios created by InvestorAi, Wright Research, etc. These smallcase fund managers create investment portfolios based on suggestions from AI-powered robo-advisors scanning real market data.
Jarvis Invest : Jarvis is an advanced robo-advisory platform that suggests smart stock recommendations based on your risk profile, age, and financial goals. The platform dynamically manages the portfolio by processing real-time data.
ET Money Genius : ET Money Genius is a new AI-powered feature that suggests a customized portfolio strategy based on the user’s financial goals and risk profile. It offers weekly rebalancing, downside protection and smart asset allocation.

Limitations, risks and ethical concerns in AI investments

Some of the risks, limitations and ethical concerns regarding use of AI in making investments is given below:

Incomplete and Biased Data : AI models are often trained on historical data. If this data is biased or incomplete, the model may incorrectly predict future trends. This can lead to wrong investment decisions, increasing the likelihood of losses.

False Signals due to Noise : There is a lot of noise in short-term price movements in the stock market. Sometimes AI interprets this noise as a meaningful signal, which can lead to incorrect buy/sell suggestions especially in high-frequency trading.
Blind Reliance Without Human Judgment : AI-based tools are powerful, but relying on them blindly can be dangerous. AI cannot understand financial statements, news context or geopolitical events as well as humans do currently. Therefore, the investor should also do some analysis and check AI recommendations before investing.
Lack of Regulatory Clarity (in India) : SEBI has not yet fully implemented any dedicated framework governing AI trading or robo-advisory.
Ethical Concerns: Users often do not understand how AI algorithms work. If a wrong decision is made, the resulting trades can contribute to market volatility or unintended price movements.
Data Privacy & Cybersecurity Risks : AI platforms get sensitive information from users such as financial data, income information and investment habits. If this data is not encrypted or protected properly, hackers can misuse it. Apart from this, investor accounts may also be at risk of cyber-attacks.

The Future of AI in Indian Stock Markets

Now let us evaluate the future of AI in Indian stock market:

SEBI’s AI-ML Guidelines : In June 2025, SEBI released a consultation paper for AI/ML use, focusing on five key aspects: Model Governance, Mandatory Disclosure, Continuous Testing, Bias Control, and Data Security. These rules are a step towards making areas like investment advice, robo-advisory, algo-trading transparent, fair and secure.
Opening the door for retail investors to algo trading : Another proposal from SEBI came in April 2025—in which there was a discussion on allowing retail investors to do algorithmic trading. Now, even retail investors can connect their AI based stock recommendation algos with their broker APIs and do algorithmic trading.
SEBI implements AI Accountability for Regulated Intermediaries : The new SEBI regulations of February 2025 holds market infrastructure institutions and intermediaries (such as advisory firms, brokerages) accountable for any consequences arising from AI use—this includes responsibility for ensuring data security and outputs resulting from operations and client services. This means, if an AI model executing trade causes high volatility in stock prices, then the platform will be held responsible.
RBI’s AI-Ethics and Security Framework (‘FREE-AI’) : In December 2024, RBI formed its ‘FREE-AI’ committee which will ensure ethical and responsible use of AI in the financial sector , This will also impact banking and payment platforms, creating a strong AI-governance ecosystem.

Conclusion

AI is slowly becoming the most powerful ally of investors for various applications such as data analysis, personal financial planning, or forecasting trends. But with this growing influence of technology comes the need for prudence, regulation, and data security. As much as investors embrace AI, it is equally important to choose the right platform, understand data privacy, and avoid misconceptions. In the times to come, AI will not only make investing easier but also more responsible and secure. It is advised to consult a financial advisor before making any investment decision based on AI recommendations given by platforms.

Frequently Asked Questions (FAQs)

Can I use AI tools for investing even if I’m a beginner?
Yes, many AI-based platforms such as robo-advisors are created for beginners, which give stock suggestions and data analysis.
Is AI-based investing 100% safe?
No, every AI stock recommendation tool carries some risk as incorrect data or biased models can cause losses.
Does SEBI allow AI-based trading in India?
Yes, SEBI has made some rules for AI and algo trading and now this path is opening for retail investors as well.
How does AI help in portfolio management?
AI analyzes your investment patterns, risk profile and market data to give smart portfolio suggestions.
Is my financial data safe with AI platforms?
Reliable platforms take care of encryption and data safety, but you should definitely read the privacy policy and check whether the platform is SEBI-registered or not.

July 14, 2025

Blog

What is Derivative Trading? Types, Examples, Pros & Cons Explained

What is Derivative Trading?

Types of Derivatives Trading

1. Futures Contracts

2. Options Contracts

3. Forward Contracts

4. Swaps Contracts

Comparative Description of Types of Derivatives Trading

How the Derivatives Market Works in India?

Advantages of Derivative Trading

Disadvantages & Risks of Derivative Trading

Who should do Derivative Trading?

Derivatives in Stock Market vs Other Asset Classes

Conclusion

Frequently Asked Questions (FAQs)

What is derivative trading in the stock market?

Are derivatives suitable for beginners?

Which are the most traded derivatives in India?

Can derivatives be used for hedging?

What is the minimum capital required for derivative trading?

Best Manufacturing Stocks in India 2025

What are Manufacturing Stocks?

Market Information of Best Manufacturing Stocks

Best Manufacturing Companies Stocks in India – An Overview

1. Reliance Industries Limited

2. ITC Limited

3. Sun Pharmaceutical Industries Limited

4. Bajaj Auto Limited

5. Tata Steel Limited

6. Hindalco Limited

7. Dr. Reddy’s Laboratories Limited

8. Bosch Limited

9. Dixon Technologies Limited

10. Bharat Forge Limited

Key Performance Indicators (KPIs)

Benefits of Investing in Manufacturing Stocks

Factors to be Considered before Investing in Manufacturing Stocks

Future of Manufacturing Stocks

Conclusion

Frequently Asked Questions (FAQs)

Which companies are the top manufacturing companies in India?

Are manufacturing stocks cyclical in nature?

What are manufacturing stocks?

What are the major risks involved while investing in manufacturing stocks?

How can I invest in manufacturing companies?

Top 10 Reasons to Invest in Gold

Top 10 Reasons to Invest in Gold

1. Gold Offers High Liquidity

2. Gold Offers Protection Against Inflation

3. Gold Adds Balance to Your Portfolio

4. Gold is a Tangible Asset You Can Trust

5. Gold is a Safe Haven During Uncertain Times

6. Gold Gives Steady Returns Over the Long Term

7. Gold can be Bought in Many Forms

8. Gold is Globally Accepted

9. Gold Helps in Wealth Creation and Risk Reduction

10. Gold is Culturally Trusted and Emotionally Valued

Conclusion

Frequently Asked Questions (FAQs)

Why is gold considered a safe investment?

What are the best ways to invest in gold today?

How much of my portfolio should be in gold?

Does gold give a regular income like stocks or bonds?

Is gold a good long-term investment?

Top 10 Consumer Staples Stocks in India 2025

What Are Consumer Staples?

Top 10 Consumer Staples Stocks in India

Overview of Top 10 Consumer Staples Stocks in India

1. HUL

2. ITC Limited

3. Nestle India

4. Britannia Industries

5. Godrej Consumer Products Ltd (GCPL)

6. Tata Consumer Products

7. Marico Limited

8. Dabur India Limited

9. Colgate-Palmolive (India) Ltd

10. Procter & Gamble Hygiene & Health Care Ltd

Key Performance Indicators (KPIs)