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What Is a Ponzi Scheme? Meaning, Scam & India Laws

Nowadays, cases of fraud in the name of investment are constantly emerging on both online and offline platforms. Among such fraudulent methods, Ponzi schemes are considered to be the most harmful. Many people, confident of high and “guaranteed” returns, invest money without due diligence, only to later realize they have fallen victim to a Ponzi scam. In this article, you will understand in simple terms the meaning of Ponzi, its working method, major Ponzi scams in India, and important measures to avoid them.

Ponzi Meaning: Definition and Historical Background

Ponzi Meaning refers to a fraudulent investment scheme in which returns to existing investors are made from the money of new investors, rather than from any actual business or profits. The term originated in America around 1920, when a man named Charles Ponzi defrauded people of crores of dollars by luring them with promises of high profits in a short period of time. Later, this method became a symbol of investment fraud across the world. Today, Ponzi Scheme refers to any system where earnings are made not from a real business but from new investments by misleading people.

What Is a Ponzi Scheme and How It Works

What is a Ponzi scheme? It refers to an investment fraud in which returns are not derived from a real business, profit, or asset, but from the money of new investors. Initially, the scheme’s owner makes timely payments to a few early investors, building trust and encouraging others to invest.

How Ponzi Scheme Works ?

How an Investment Scam Is Created : A Ponzi scheme always begins with an attractive offer promising high, “guaranteed” returns in a short period of time. Often, it’s linked to real estate, the stock market, crypto, fixed income, or a secret business model to make the scheme appear trustworthy.
How Initial Investors Get Returns : Initial investors are paid returns over time. However, this money is not from profits, but from the funds of new investors. This makes people believe the scheme is working well, and they start investing again.
How Trust and Networks Spread : Investors who receive initial returns often refer to their friends, relatives, and acquaintances. This way, the scheme’s reach expands rapidly, and new investors’ money continues to flow in.
Why There’s No Real Business or Income : A Ponzi scheme lacks any real business, product, or service that can generate income. The entire system runs solely on new investments. As long as new money keeps coming in, the scheme continues to operate.

Who Is a Ponzi Schemer and What Are Their Tactics

Professional Identity of a Ponzi Schemer : A Ponzi schemer often presents himself as a successful businessman, investment advisor, or financial expert, so that people can easily trust him.
Psychological Tactics to Build Trust : They target people’s greed, fear, and desire to get rich quickly, using tactics like “low risk, high returns” to create psychological pressure.
Social Proof and Abuse of Authority : The scheme is made to appear credible by using fake stories of successful investors, screenshots of fake returns, and the names of well-known individuals.
Misuse of Digital Platforms and Networks : Today, WhatsApp, Telegram, social media, and influencer networks connect people on a large scale, allowing the scheme to spread rapidly.

Ponzi Scheme vs Pyramid Scheme

Base	Ponzi Scheme	Pyramid Scheme
Structure	In this, complete control is with one person or company, which collects money from investors.	In this, every person has to add new people, which creates a pyramid-like structure.
Revenue Flow	Returns to old investors are paid from the money of new investors.	Those at the top earn from the joining fees and investments of newcomers.
Recruitment Role	Investors are not usually directly responsible for connecting others.	Every member needs to add new people to earn money.
Control System	The entire system is controlled by a single person or group.	The system is divided into several levels.
Legal Status in India	This is completely illegal and amounts to fraud.	This is also illegal and is considered an offence under the Chit Fund and Fraud Acts.
Reason for Collapse	When new investors stop coming in	When new people stop joining

Key Warning Signs of a Ponzi Scam

Promise of Guaranteed Returns : If an investment guarantees fixed profits without risk, this is considered a key indicator of a Ponzi scam, as returns are never guaranteed in real investments.
Lack of Transparency in the Business Model : If the person running the scheme fails to clearly state how and from which source the profits are being earned, this is a serious warning.
Lack of Registration with SEBI or RBI : Legitimate investment schemes in India are subject to regulatory bodies. If a scheme is not registered with these regulations, trusting it is risky.
Pressure to Invest Immediately : Using phrases like “Today is the last chance” or “Seats are limited” is a common tactic of Ponzi scams.
Referral-Based Earnings : When the primary source of income becomes the addition of new people, rather than profits from a genuine business, the scheme becomes suspicious.
Disruptions in Withdrawals : Not receiving returns on time, repeated excuses, or restrictions on withdrawals are clear signs that the scheme is flawed.

Legal Status of Ponzi Schemes in India and Regulatory Oversight

Ponzi schemes are completely illegal in India : In India, Ponzi schemes are considered fraudulent by law. Such schemes are strictly prohibited under the Unlawful Bond Schemes Act, 2019 (BUDS Act). Under this law, collecting money from the public, operating, or promoting such schemes without permission is a crime.
Key Laws Applicable to Fraud : Investigations into Ponzi cases are prosecuted under Section 420 (Fraud) of the Indian Penal Code (IPC), the Companies Act, and the BUDS Act, 2019. These offenses can result in arrest, fines, and even confiscation of property.
Regulatory Role of SEBI and RBI : If a scheme is related to the stock market, mutual funds, or investments, SEBI oversees it. Deposit schemes and banking matters are overseen by the RBI. Any legitimate investment scheme is registered under these methods.
Role of the Enforcement Directorate and State Governments : If money laundering or large-scale money laundering is detected in a Ponzi scam, the Enforcement Directorate (ED) investigates. State governments can initiate the process of returning the money to engineers by seizing the assets of the enforcers under the BUDS Act.
Legal Platforms for Engineers to File Complaints : Investors who have fallen victim to Ponzi scams can file complaints through the SEBI SCORES portal, the Cyber Crime Portal, and their local police station. This initiates the legal investigation process.

What To Do If You Have Invested in a Ponzi Scheme

Immediately stop new investments and control the situation : The first and most important step is to immediately stop investing in the scheme. Often, people reinvest in the hope of withdrawing their old money, further compounding their losses. Avoiding emotional decisions is crucial at this time.
Preserve all documents and digital evidence : Preserve your payment receipts, bank statements, UPI transactions, chat records, emails, website links, and app screenshots. All this evidence is crucial for further legal action and filing a complaint.
File a complaint on an official platform : Investors can file a complaint online on the Cyber Crime Portal (cybercrime.gov.in). If the matter involves investments or securities, a complaint can also be filed on SEBI’s SCORES portal. Filing an FIR at the nearest police station is also an important step.
Legal Advice and Collective Action Options : If the loss is significant, it is beneficial to consult a financial crime lawyer. In many cases, investors who are affected together file collective action, which increases both the possibility and pressure of recovery.

How to Protect Yourself from Ponzi Scams?

Develop proper information and understanding before investing : Before investing in any scheme, it’s crucial to understand its business model, source of returns, and risks. Incomplete information and the desire to get rich quickly are the biggest causes of Ponzi scams.
Be sure to check the company’s registration and legal status : Every legitimate investment company is registered with SEBI, RBI, or MCA (Ministry of Corporate Affairs). It’s a safe practice to verify the company’s registration number and license on their official website before investing.
Avoid investing based on emotions : Decisions made based on reasons like “guaranteed returns,” “last chance,” or “a friend invested” often lead to losses. Investments should always be based on logic, data, and risk assessment.
Trust only regulated and diversified investments : Instead of investing all your money in a single scheme, diversified investments in regulated options like mutual funds, fixed deposits, and the stock market significantly reduce risk.

Conclusion

Ponzi schemes are serious financial frauds that can lead to the loss of hard-earned money by luring people with the promise of large returns. Proper knowledge of their mechanisms, warning signs, and legal status plays a vital role in protecting investors from such scams. In today’s digital age, vigilance, accurate information, and choosing regulated investment options are the safest paths. An informed investor not only protects their own money but also helps others avoid financial loss.

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Frequently Asked Questions (FAQs)

What is a Ponzi scheme?
It is a fraudulent scheme in which old investors are paid using new ones.
Is a Ponzi scheme legal in India?
No, it is completely illegal in India and is subject to strict laws.
How to know if an investment is a Ponzi scam?
Guaranteed returns and an unclear business model are major red flags.
What to do if I lose money in a Ponzi scheme?
File a complaint immediately and preserve all evidence.
Are Ponzi and Pyramid schemes the same?
No, they are different, but both are considered fraudulent.

December 28, 2025

What Is Time Decay in Options?

In options trading, it’s often the case that even if the price goes up slightly, your option’s premium still declines due to decay. This is where most beginners get confused. What exactly happened? Essentially, time decay in options, or Theta, is an invisible force that erodes the value of your option with each passing day. In this blog, we’ll explain in simple terms what time decay is in options, how it works, and how to protect yourself from it.

What Is Time Decay in Options?

Time Decay, also known as Theta in the options Greek, is the rate at which an option’s premium declines as time passes. In India’s options market whether it’s Nifty, Bank Nifty, or Stock Options every option has a time-based value, called extrinsic value. This value decreases every day, and this process is called time decay in options or premium decay.

How Time Decay Works ?

The simplest way to understand Time Decay is to assume that the option’s value erodes slightly each day. However, this eroding speed varies from option to option. Below are the main factors that determine how quickly your premium will decline.

1. Time to Expiry

The closer the expiry approaches, the faster Theta works.

Options with longer expiries decay slowly,
While the decay accelerates sharply during the expiry week.

Example : If an option has 10 days left until expiry, it might decline by ₹3 daily. But two days before expiry, the same option might decline by ₹10-₹15 daily even if the price stays the same.

2. Intrinsic Value

ITM options are more stable, OTM options melt faster

ITM options have intrinsic value, so the effect of time decay is less.
OTM options operate entirely on extrinsic value, so their decay is the fastest.

Example : Nifty is trading at 26,200.

26,000 CE (ITM) : Fairly stable because it has intrinsic value.
26,500 CE (OTM) : Based solely on expectations, so the premium falls quickly.

3. Volatility

If the market has high implied volatility, the option premium doesn’t fall quickly because the market anticipates an imminent price movement.

High IV : Higher premium, slower decay
Low IV : Lower premium, faster decay

Volatility increases before events like the Budget, RBI Policy, and Elections, so the premium doesn’t fall as quickly during those times.

4. Interest Rates

As interest rates rise, the time value of OTM calls decreases slightly, especially for OTM call options. This is because the future payoff becomes less attractive as the time value of money increases.

Example : If interest rates rise, buying the stock directly becomes slightly more attractive to traders than buying the option. This causes the extrinsic value of an OTM call to decline more quickly.

Example: How does Time Decay work in Nifty Option?

Let’s assume the current Nifty price is 26,200 this week, and the weekly expiry is on Tuesday. Now, let’s just understand how time decay affects the premium if the market remains roughly the same.

Scenario (trades taken on Monday) :

Nifty Spot: 26,200
Option Bought: 26,300 CE (OTM Option)
Expiry: Tuesday of this week
Days to Expiry: 2 days
Monday Premium: ₹85
Approx Theta: 14 per day

Day	Nifty Price	Days Left	Premium (INR)	What happened
Monday	26,200	2 Days	85	Trade Entry
Tuesday Morning	26,200	1 Day	71	Effect of time decay
Tuesday Afternoon (Near Expiry)	26,200–26,210	Few Hours	52	Decay faster in the last hours
Tuesday Closing (Expiry)	26,200	0	35–40	Maximum premium decay

Nifty didn’t experience any significant decline or rise, yet the option premium declined from ₹85 to around ₹40 simply because of time. This is the true power of time decay in options.

Factors That Influence Time Decay

The Effect of Implied Volatility (IV) on Time Decay

Implied volatility directly controls the option premium and its decay rate. When IV is high, the premium is already high, so time decay appears relatively slow. Conversely, when IV is low, the premium decays rapidly, and premium decay becomes very rapid. In practice, option buyers often suffer more losses from a sudden drop in IV (IV crush) than from Theta.

The Role of Moneyness (ITM, ATM, and OTM)

The effect of time decay also depends on whether the option is in-the-money, at-the-money, or out-of-the-money. ATM options have the highest extrinsic value, so they are most affected by Theta. Due to the intrinsic value of ITM options, the premium remains somewhat stable, which slows down the decay rate. OTM options, on the other hand, are based entirely on extrinsic value, so their premiums decline the fastest.

Relationship between Volatility Events and Time Decay

Volatility increases before the Budget, RBI Policy, Earnings, or any major global event, adding expectation to the option premium and temporarily slowing time decay. However, as soon as the event ends, volatility drops sharply, and the premium declines sharply. This is the phase where buyers see the greatest losses and sellers the greatest profits.

Difference in Time Decay between Weekly and Monthly Options

In the Indian market, time decay in weekly options is extremely rapid because expirations are very close, and extrinsic value erodes quickly. In contrast, the decay in monthly options is more balanced and predictable because they have a longer time horizon and the premium declines more slowly. For this reason, short-term traders prefer weekly options, and positional traders prefer monthly options.

How Option Buyers Should Manage Time Decay

Early Entry and Timely Exit : When buying options, one should strive to enter trades well in advance of expiry and exit before the last 1-2 days. Time decay accelerates as expiry approaches, which can quickly erode even a substantial premium.
Avoid Buying in Low Volatility : When implied volatility is very low, option premiums fall rapidly. Buying options at such times results in rapid premium decay losses. Therefore, buyers should enter only when they see signs of increasing volatility.
Wisdom in Strike Selection : Time decay has the greatest impact on ATM and OTM options, so strikes should not be selected solely based on a low premium. Buyers should choose strikes where there is a clear potential for price movement.
Risk-Control Strategy Instead of Naked Buying : Employing strategies like debit spreads instead of simply buying a call or put can significantly limit the impact of time decay and keep risk more manageable.

How Option Sellers Benefit From Time Decay

Benefit from Daily Premium Erosion : The biggest advantage an option seller receives is that the premium automatically decreases each day due to time decay. If the market remains calm and there are no sharp movements, the seller can gradually move towards profit without any action.
Steady Earnings in a Range-Bound Market : When the market moves within a limited range, the premium in option buying continues to erode, and selling strategies consistently work. In such an environment, time decay becomes a natural edge for the seller.
Faster Theta Gain in Weekly Expiry : Weekly expiry is very close to expiry, so the premium decay speeds up significantly. This is why short-term option selling offers the seller the potential for better returns in a short period of time.
Limiting Loss with Risk Control : Option selling involves limited profits and high risks, so hedged positions, fixed stop-losses, and correct quantity selection are essential. Selling without risk control can be detrimental in the long run.

Misconceptions About Premium Decay

Misconception 1: Time Decay Only Hurts Buyers

It’s not entirely accurate to believe that time decay only affects option buyers. Under normal circumstances, sellers benefit from theta, but when implied volatility suddenly increases, the premium can rise again, leading to losses for the seller. This means that time decay favors sellers only when volatility is under control and the market doesn’t make sudden, sharp movements.

Misconception 2: Buying ATM Options is the Safest

Many people think that ATM options are safer, but the reality is that time decay works fastest on ATM options because they have the highest extrinsic value. If the market doesn’t make a strong move immediately, the ATM premium erodes very quickly. This is why buying ATM options without proper timing often proves to be a loss.

Misconception 3: Expiry Day Options Make Money Quickly

The option premium appears very cheap on expiry day, creating the illusion that money can be made quickly. In fact, both time decay and volatility are extremely rapid on expiry day, causing premiums to fall sharply in a matter of minutes. This makes expiry-day options more risky than opportune for beginners and only suitable for experienced traders.

Conclusion

Time decay in options is a factor that can be detrimental to any trader if ignored. It plays a significant role in determining both profits and losses, especially in the Indian market with weekly expiry. Option buyers should pay special attention to timing, volatility, and strike selection, while sellers should utilize the benefits of Theta with disciplined risk management. With proper understanding and the right strategy, time decay can be used as both a loss hedge and a source of income.

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Frequently Asked Questions (FAQs)

What is time decay in options?
Time decay is the natural process in which an option’s premium gradually decreases each day.
Does time decay affect both call and put options?
Yes, time decay affects both call and put options equally.
Which options lose value the fastest due to time decay?
OTM options lose premium the fastest.
Is time decay faster in weekly options?
Yes, weekly options decay much faster as expiry approaches.
Do option sellers always make a profit from time decay?
Profits are often generated, but sudden market movements can also result in losses.

December 27, 2025

Mixed Economy in India: Key Facts & Overview

The most important question in understanding India’s economy is: is India a mixed economy? The coexistence of government services and private companies in everyday life is the hallmark of this model. In this blog, we’ll explain in simple terms what a mixed economy is, why the Indian economy is called a mixed economy, and why India has adopted this economic structure today. The focus of this article will be on how this model works in changing times and how it affects us.

What is a Mixed Economy?

A mixed economy is an economic system in which both the government and the private sector jointly drive the economy. This means that there is freedom of trade in the market, as well as government oversight and intervention where necessary. Its goal is to maintain the pace of development while also ensuring social security.

A mixed economy has three key elements:

Coexistence of both sectors : For example, in banking, both public and private banks are active.
Regulation : Institutions like the RBI, SEBI, and TRAI keep the market safe and transparent.
Public Welfare vs. Profit Balance : The government intervenes in critical sectors such as health, food security, and education to ensure access to services for all, while the private sector brings innovation and efficiency.

For example, in India, both government and private services work together in sectors such as health, telecom, banking, and transportation. This model is not a compromise, but a strategic mix that balances the risks of excessive capitalism or complete socialism. For this reason, even today many big countries including India adopt this economic system.

Why India Adopted a Mixed Economy After Independence

India formally adopted a mixed economy in 1948 with its first Industrial Policy. After independence, the country faced a severe shortage of large industries, capital, and technology. Consequently, it was clear that neither the private sector nor the government could handle everything.

The Industrial Policy of 1956 further clarified that heavy and strategic sectors like railways, energy, and steel would remain with the government, while private companies would be given the opportunity to grow in other sectors.

In simple terms, at that time, India needed both rapid growth and social security. A mixed economy could provide this balance hence its adoption.

Main reasons

Lack of Industry and Capital : After independence, the country lacked large industries, machinery, and capital. Private companies could not handle the massive sector alone, so the government had to step in and build infrastructure.
Poverty and Inequality : At that time, incomes were low and inequality was high. If the entire system had been in private hands, many people would have been deprived of even basic amenities. This forced the government to play a major role in welfare.
Government Control over Essential Sectors : It was not safe to hand over sectors like railways, defense, and electricity to private hands. Therefore, the government retained these vital sectors to ensure the country’s basic needs remained stable.
The private sector’s momentum was also essential : The government alone could not do everything. The private sector’s contribution was essential for new companies, innovation, and job creation, so it was given free rein.
Balance in Planned Development : The Planning Commission’s plans set the direction, and the private sector created new opportunities in that direction. This synergy made Mixed Economy the right choice for India.

Evolution of India’s Mixed Economy

Time Period	What changed?
1950–1980	The government controlled major industries (steel, electricity, and railways). The private sector was small. License Raj and protectionism were prevalent.
1991 (Reforms)	Liberalization followed the economic crisis. Licenses were reduced, foreign direct investment (FDI) came in, and the private sector grew rapidly.
2000–2010	The IT boom, mobile phones, and the internet have transformed the economy. India is more connected to global markets.
2014–Present	Digital India, UPI, Aadhaar, and the rapid growth of startups. Government involvement in core sectors, but private sector innovation. Emphasis on Make in India and privatization.

Key Features of the Indian Economy as a Mixed Economy

The Government and Private Sectors Work Together : In India, the government manages some essential sectors such as railways, energy, and defense while private companies are rapidly growing in IT, telecom, and services. Their combined role balances the economy.
The Market is Open, but Also Regulated : Companies have freedom of operation, but institutions like the RBI and SEBI monitor sensitive sectors like banking and the stock market to ensure a reliable system.
The Government Leads in Social Schemes : Schemes like MNREGA, the ration scheme, and Ayushman Bharat ensure that essential services reach every segment of society and that development is not limited to cities.
Some Sectors Are Managed by the Government : Sectors like defense, railways, and petroleum are linked to national security and stability, so they are more under government control.
The Private Sector Drives Innovation : Fintech, electric vehicles, and startups are rapidly expanding new technologies and employment opportunities in India. The government provides the environment, and private companies provide the direction.
The model has changed over time : Earlier, the government had a larger mandate, but today the private sector is more active. The government now sets the direction, and the market progresses accordingly.

How the Mixed Economy Works in Real Life

Government and Private Options in Banking : In India, you simultaneously experience the convenience of PSU banks (like SBI, PNB) and the fast service of private banks (HDFC, ICICI). Furthermore, fintech apps like UPI, PhonePe, and Paytm have made money transactions even easier. Together, these make banking secure, fast, and accessible to all.
Two Different Models in Healthcare : There’s a network of government hospitals, where treatment is affordable, and on the other hand, there are private hospitals that offer faster care and better infrastructure. In between, health-tech companies (like Practo and Tata 1mg) have also emerged, simplifying everything from booking to online consultations.
Versatile Options in Transportation : While Indian Railways offers affordable travel, private airlines offer fast and convenient travel. Services like Ola, Uber, and Metro make mobility more convenient in cities. The availability of such diverse options within a single country is a clear reflection of a mixed economy.
What benefits do people gain : This system provides consumers with choice, price diversity, and a government safety net if needed. Whether it’s affordable rail travel, premium flights, the free payment system of UPI, or the convenience of private apps both models coexist in India.

Advantages of India Being a Mixed Economy

Balance in Development : This model combines both government and private sector roles, enabling a strong economy and stability in critical sectors. This promotes growth and welfare simultaneously
Consumer Choice and Better Services : Private companies promote competition, providing better quality and more options in banking, telecom, healthcare, and transportation. Government services maintain affordability.
Security in Essential Sectors : Government control over sectors such as railways, defense, and energy ensures national interests are protected and prices are not subject to sudden fluctuations.
Fostering Innovation : Private companies drive rapid innovation in sectors such as fintech, startups, and electric vehicles. The government provides policy and framework, enabling both to jointly create new possibilities.
Government Support in Times of Crisis : In situations like COVID-19, the government is able to ensure subsidies, relief packages, and essential supplies. The mixed model prevents the private sector from bearing the brunt of the crisis.

Challenges of Mixed Economy in India

Slow Implementation of Policies : Government processes are often slow, preventing many projects from being completed on time and hindering coordination with the private sector.
Conflict of Responsibilities : In some sectors, the roles of the government and private companies are not clearly defined, leading to confusion and reduced efficiency.
Low Productivity of the Public Sector : Outdated systems and a lack of resources in many government institutions impact their performance.
Growing Influence of the Private Sector in Certain Sectors : Private companies sometimes capture such a large market share that small businesses and local players are left behind.
Complexity of Regulations : Different rules from various regulatory bodies increase business difficulties, especially for new and small enterprises.

Conclusion

The advantage of India’s mixed economy is that it allows both forces to work together. Some tasks are better done by the government, others by private companies, and this combined effort creates a balance. Over the years, the country has adapted this model to suit its needs. This synergy will continue to drive our growth in the future security and infrastructure on one hand, and new technology and speed on the other.

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Frequently Asked Questions (FAQs)

What is a mixed economy?
A mixed economy is one where the government and private companies work together.
Is India a mixed economy?
Yes, absolutely. We have an equal share of both railways and startups.
Why did India choose this model?
After independence, the country had limited resources, so rapid development was difficult without the support of both.
Which sectors does the government handle?
For example, railways, defense, and energy the government runs these sectors because they are vital to the country.
How does the private sector help?
Private companies bring new technology, faster services, and job opportunities.

December 27, 2025

Best Debt ETFs to Invest in India

Fixed-income investment options are very limited in the Indian investment universe. And bonds, etc., are the concepts which are not very familiar to retail investors. But thanks to the evolution of debt ETFs in the Indian market, now a retail investor can easily invest in Debt ETFs through their demat and trading account.

In today’s blog post, we will give you an overview of the best Debt ETFs to invest in India, along with the key benefits of investing in them.

What are Debt ETFs?

A debt ETF is a type of exchange-traded fund offered by asset management companies which primarily invests investors’ money in bonds or fixed income securities such as government bonds, corporate bonds, etc., having different maturities. They are traded on the stock exchange like any other stock; therefore, one is required to have a demat account to invest in Debt ETFs.

Features of Debt ETFs

The key features of debt ETFs are as follows:

Fixed Income: Debt ETFs invest investors’ money in fixed-income securities such as corporate bonds, government securities, etc.
Less Risk: As the investment is made in fixed income securities and they are less volatile and provide a more stable return.
Demat Account: As ETFs are traded on the stock exchange, hence demat account is mandatory to invest in ETFs, you can easily open your Demat & Trading account on Pocketful and start investing seamlessly.
Low Cost: ETFs generally have lower fees compared to other actively managed debt funds.

Types of Debt ETFs

There are various categories of Debt ETFs; a few of such types are mentioned below:

Gilt ETFs: Gilt ETFs invest only in Government securities with 5 or 10 years’ maturity.
Corporate Bonds ETFs: The Corporate Bond ETF invests investor money in bonds issued by different corporations.
Money Market ETFs: These ETFs invest in different debt securities having a maturity of up to one year.

Read Also: Best ETFs in India

List of Best Debt ETFs

Below is the list of Debt ETFs based on the last year’s returns:

S. No.	Funds	1 Yr Ret (%)
S. No.	Funds	1 Yr Ret (%)
1	Aditya Birla Sun Life US Treasury 3-10 year Bond ETFs FoF – Regular Plan	12.43
2	Aditya Birla Sun Life US Treasury 1-3 year Bond ETFs FoF – Regular Plan	10.83
3	BHARAT Bond ETF – April 2031	9.23
4	BHARAT Bond ETF – April 2030	9.05
5	BHARAT Bond ETF FOF – April 2032 – Regular Plan	9.02
6	BHARAT Bond ETF – April 2032	8.93
7	BHARAT Bond ETF – April 2033	8.74
8	ICICI Prudential Nifty 5 yr Benchmark G-SEC ETF	8.7
9	Nippon India ETF Nifty 5 yr Benchmark G-Sec	8.5
10	BHARAT Bond ETF FOF – April 2033 – Regular Plan	8.48
11	UTI Nifty 5 yr Benchmark G-Sec ETF	8.13
12	Motilal Oswal Nifty 5 year Benchmark G-Sec ETF	8.12
13	Nippon India ETF Nifty 8-13 yr G-Sec Long Term Gilt	7.69
14	Mirae Asset Nifty 8-13 yr G-Sec ETF	7.66
15	SBI Nifty 10 yr Benchmark G-Sec ETF	7.36
16	Aditya Birla Sun Life CRISIL 10 Year Gilt ETF	7.35
17	ICICI Prudential Nifty 10 yr Benchmark G-Sec ETF	7.28
18	UTI Nifty 10 yr Benchmark G-Sec ETF	7.12
19	Axis Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF	7.06
20	Aditya Birla Sun Life CRISIL Broad Based Gilt ETF	6.97

(As of 1st Dec 2025)

How Do Debt ETFs Work

Debt ETFs work like any other ETFs issued by asset management companies. The fund collected from the investors is invested in the category of bonds in which it belongs. The fund manager of debt ETFs tries to replicate the performance of the underlying securities. The asset management company charges a nominal fee for managing the investment.

Benefits of Investing in Debt ETFs

The key benefits of investing in Debt ETFs are as follows:

Diversification: The investment in a debt ETF by an investor instantly diversifies into numerous fixed-income securities, which reduces the risk related to investment in an individual security.
Economical: As debt ETFs track the performance of the underlying security, they do not require any expertise from a fund manager.
Liquidity: As they are traded on a stock exchange like a stock, therefore one can easily liquidate them during the market or trading hours.

Read Also: Top 10 Smart Beta ETFs in India

Risk of Investing in Debt ETFs

The risks related to investing in Debt ETFs are as follows:

Interest Risk: Whenever the interest rate in the economy fluctuates, the debt ETFs are sensitive to such rate movements.
Credit Risk: This risk refers to the situation where the issuer of the securities faces a credit rating downgrade. If this happens, the value of ETFs will fall.
Tracking Error: However, debt ETFs tend to replicate the returns of underlying securities. Still, due to various factors such as expense ratios and cash holdings, there might be differences, which is known as tracking error.

Who Should Invest in Debt ETFs

Investment in debt ETFs is suitable for the following investors:

Conservative Investor: Investment in debt ETFs is suitable for conservative investors who want stable returns in their portfolio.
Low-Cost Investment: Investors seeking low-cost investment options in the debt category of mutual funds can consider investing in ETFs.
Market Savvy Investors: Only those investors who have a demat account and are comfortable with investing in debt ETFs can invest in it.

Read Also: Best Liquid ETFs in India

How to Invest in Debt ETFs

To invest in debt ETFs, one can follow the steps mentioned below:

Trading and Account: To invest in a Debt ETF, one is required to have a trading and demat account with a broker. You can open a lifetime free demat and trading account with Pocketful.
Choosing ETF: Thereafter, you are required to choose the ETF into which you want to invest; this depends on your investment objective and risk profile.
Adding Funds: Then you must add funds to your trading account to purchase such an ETF. There are various options, such as NEFT, RTGS, etc.
Purchasing: Once the fund starts to reflect in your account, you can execute the buy order to purchase the ETF of your choice.

Conclusion

On a concluding note, Debt ETFs are one of the most efficient and convenient methods of investing money in debt-related instruments. There are various debt ETFs available in the market from which you can choose a suitable one for you based on your investment objective and risk profile. They also carry certain risks, such as tracking error, interest rate risk, etc. Therefore, it is advisable to consult your investment advisor before making any investment in Debt ETFs.

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5	What is Nifty BeES ETF? Features, Benefits & How to Invest?
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20	Best Silver ETFs in India

Frequently Asked Questions (FAQs)

What are Debt ETFs?
Debt ETFs, or exchange-traded funds, are the investment option offered by Asset Management Companies to the investor. In which the fund manager invests in fixed income-related instruments such as corporate and government bonds, money market securities, etc.
Is it mandatory to have a demat account to invest in Debt ETFs?
Yes, as Debt ETFs are traded on the stock exchange like any other stocks, one must have a demat account to invest in them.
What are the major risks involved while investing in debt ETFs?
The key risks involved while investing in Debt ETFs are interest rate risk, credit risk, tracking error, etc.
Can I purchase Debt ETFs anytime?
Debt ETFs are traded on the stock exchange; therefore, you can purchase or sell them during the trading hours only.
Do Debt ETFs offer guaranteed returns?
No, debt ETFs are market-related investment options; hence, they do not offer guaranteed returns.

December 26, 2025

Top Specialized Investment Funds (SIFs) in India 2026

Investing has changed a lot over the past few years, and one of the recent additions in 2025 is the rise of Specialized Investment Funds (SIFs). With features of derivatives and the flexibility of mutual funds, SIFs give investors a dynamic way to handle different market conditions. In this blog, we will walk through what SIFs are, who they are ideal for, and the top SIFs launched in India so far.

What is SIF?

A Specialized Investment Fund (SIF) is a new kind of investment option in India that sits right between regular mutual funds and high-ticket PMS/AIF products. Consider it as a middle path: more flexible than a mutual fund but far more feasible than PMS or AIF, which usually require very large investments.

With SIFs, AMCs get the freedom to use more advanced strategies, like long-short investing, derivatives, or a mix of equity and debt, all under SEBI rules. And for investors, the entry barrier is much lower compared to PMS or AIF. SIFs start with a minimum investment of ₹10 lakh. They bridge a long-existing gap between MF & PMS/AIF.

Top Specialized Investment Funds 2026

1. Quant Mutual Fund – QSIF Range

Quant offers some of the most active strategies in the market.
Their SIF range includes:

Equity Long-Short Fund -Targets mid- and small-cap opportunities while using short positions to control risk.
Hybrid Long-Short Fund – A mix of equity, debt, and derivatives for a more balanced feel.
Equity Ex -Top 100 Long-Short Fund – Focuses on companies outside the top 100, with higher potential but higher volatility too.

2. Edelweiss Mutual Fund – Altiva SIF

Edelweiss runs its SIFs under the Altiva brand

Their main product is a Hybrid Long-Short Fund that spreads money across equity, debt, arbitrage, and even special situations.
It is curated in such a way that it can stay steady in both good and bad markets by managing risk smartly.

3. SBI Mutual Fund – Magnum SIF

SBI has created one of the most versatile SIFs called Magnum SIF.

Their core strategy is a Hybrid Long-Short Fund that shifts between equity, debt, and derivatives depending on market conditions.
The objective is to keep returns smoother rather than letting the portfolio swing wildly.

4. Union Mutual Fund – Arthaya SIF

Union MF offers its SIF under the name Arthaya SIF.

This platform blends equity, debt, and derivatives using a long-short approach.
It seems more measured and steady compared to the more aggressive AMCs.

5. Bandhan Mutual Fund – Arudha SIF

Bandhan AMC has stepped into the SIF with Arudha SIF.

The fund uses equity, debt, and derivative-based long-short strategies.
The idea is to offer something more flexible and advanced than a basic mutual fund.

6. ITI Mutual Fund – Divinity SIF

ITI MF runs its SIF under Divinity SIF.

The key offering is the Divinity Equity Long-Short Fund, which tries to capture upside while protecting the investors against downturns.
It uses long-short investing to balance growth and safety.

7. 60 ONE – Dyna SIF

360 ONE (formerly IIFL Wealth) offers its SIFs under the Dyna SIF brand. These funds follow long-short and multi-asset strategies with an institutional, risk-managed approach.

Read Also: Best Investment Options in India

Who Should Invest in SIFs?

Someone who wants more flexible strategies – If you feel traditional mutual funds are too boring and you are curious about derivatives, SIFs are a great option.
Anyone investing with a medium- to long-term mindset – SIFs generally work better if you are willing to stay invested for 3-5 years or more. Not ideal for someone who wants to exit quickly.
Investors comfortable with the ₹10 lakh minimum – Most SIFs require at least ₹10 lakh, so they’re a good fit for HNIs, seasoned investors, family offices, etc.
People who want MF transparency but PMS/AIF-style strategies – SIFs sit perfectly in the middle; you get the comfort of mutual fund regulation, but with the kind of strategies usually seen in PMS or AIF products.

Conclusion

Although SIFs are relatively new to the investment space, they have already gained popularity. If you do not have a problem with taking extra risk for a better overall investment strategy, then you should consider including SIFs as a part of your portfolio. Before investing, you should understand how they work, learn about the minimum investment amount and find a known fund house. With a long-term perspective, you will be able to add further strength and stability to your wealth-creation goals using SIFs.

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5	Mutual Fund vs ETF. Are They Same Or Different?
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10	What is Solution Oriented Mutual Funds?
11	Mutual Fund Fees & Charges in India
12	What is TREPS & Why Mutual Funds Invest in it?
13	History of Mutual Funds in India
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15	Types of Mutual Funds in India
16	What is a Fixed Income Mutual Fund?
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18	Best Thematic Mutual Funds in India

Frequently Asked Questions (FAQs)

What is the minimum investment for SIFs?
Most SIFs require a minimum investment of ₹10 lakh.
Are SIFs riskier than mutual funds?
Yes, they can be, because they use derivatives, long-short strategies, and dynamic allocations.
Can beginners invest in SIFs?
It is not recommended. SIFs are better suited for experienced investors who understand market risks.
Are SIFs regulated by SEBI?
Yes, SIFs are regulated by the SEBI.
How are SIFs different from PMS/AIF?
SIFs require lower investment, have more transparency, and are more accessible than PMS/AIF, but still offer advanced strategies.

December 26, 2025

What Is Fiat Money?

Most of the money we use today cash, cards, or online payments is fiat money. But few people truly understand the meaning of fiat money. This money isn’t backed by gold or silver, but by government guarantees and public trust. Inflation, interest rates, investments, and your savings all are directly linked to fiat currency. In this blog, we’ll explain it in simple terms.

What is Fiat Money and How It Functions

Fiat Money Meaning

Fiat Money or Fiat Currency simply means money that has no intrinsic value, but rather its value is determined by legal tender status enforced by the government. For example, the Indian rupee or the US dollar their denominations are often much higher than their actual paper value. Gold and silver are valuable because of their metal content, but fiat currency is valid only because of its legal status and government guarantee. People accept it because taxes, bills, and other transactions are all conducted in it, maintaining its trustworthiness.

What is Fiat Money?

Fiat money refers to currency legally issued by a country’s government and required to be accepted for all transactions. In India, the Reserve Bank of India (RBI) performs this function, while in the US, the Federal Reserve performs this responsibility. Fiat currency enters the economy through government spending, bank lending, and digital payment systems. Decisions such as interest rates, currency printing, and liquidity are controlled by government monetary policy. Today, everything trade, banking, UPI, and online transactions runs on this system.

How does Fiat Money work?

Fiat money derives its value from government approval : Fiat money has no inherent physical value; its true strength comes from the government’s legal approval. When a government declares a currency “legal tender,” all transactions in that country are conducted in that currency. This is why people accept it with confidence.
The Central Bank Controls the Money Supply : The central bank of every country determines the amount of money in the market. In India, the RBI performs this function. When the economy needs to be supported, the money supply is increased, and when inflation rises, the supply is reduced. This balance is what keeps the system running.
Government spending brings money to the common people : When the government spends on roads, projects, employee salaries, and subsidies, fiat money begins to circulate in the market. This money reaches shopkeepers, employees, companies, and investors, boosting economic activity.
The banking system multiplies the power of money : Banks provide loans based on people’s deposits. This keeps the same amount of money circulating among many people. This promotes trade, encourages the start of new businesses, and creates employment opportunities.
Interest rates control spending and investment : When interest rates are low, loans become cheaper, leading to more spending and investment by corporates and households. However, when interest rates rise, spending decreases and inflation is controlled. This keeps the flow of fiat money in balance.
The strength of a currency is linked to a country’s economic situation :The value of a fiat currency depends on a country’s economic growth, government policies, and political stability. If a country’s economy weakens, its currency value may also fall.
Trust is the foundation of this entire system : Fiat money remains strong only as long as people have confidence that the same money can still be used for purchases tomorrow. The biggest responsibility of the government and the central bank is to maintain this trust.

Read Also: What is Margin Money?

Evolution of Fiat Currency

When Gold and Silver Were the Only Real Money : In the early days, people used gold, silver, and other precious materials for transactions. These had their own value, so people accepted them without any doubt.
Paper Notes Simplified Transactions : As trade grew, paper notes replaced heavy coins. This practice first began in China and gradually spread throughout the world.
As Long as Money Was Linked to Gold : For many years, countries’ currencies were linked to gold. This kept money stable, but governments could not issue more notes even if they wanted to.
Everything Changed After 1971 : In 1971, the US delinked the dollar from gold. After this, most countries adopted the fiat system, where the value of money depended on the trust between the government and the people. This was known as Nixon Shock.
Today’s Digital and Fast System : Fiat money made banking, loans, investments, and digital payments faster. Today UPI, cards and online transactions are the modern form of the same system.

Major Examples of Fiat Currency Across the World

Country / Region	Fiat Currency	Symbol	Key Insight
India	Indian Rupee	₹	It is the official currency of India, issued by the RBI and all transactions across the country take place in it.
United States	US Dollar	$	It is considered the most powerful currency in the world and is most widely used in global trade.
Euro Zone	Euro	€	Many European countries have a common currency, which makes mutual trade easier.
United Kingdom	British Pound	£	It is considered one of the oldest and strongest currencies in the world.
Japan	Japanese Yen	¥	It is the major currency of Asia and plays a major role in international trade.

Advantages of Fiat Money

Governments gain financial flexibility : Fiat money allows governments to increase or decrease the money supply based on economic conditions. This makes it easier to better manage situations like recession, growth, and inflation.
Quick decisions are possible during economic crises : In times of financial crisis, pandemic, or recession, governments and central banks can quickly provide relief packages and liquidity support, which is not possible in a commodity-based system.
Support for digital payments and cashless systems : Today, UPI, cards, mobile banking, and online transactions operate entirely on the fiat currency system. This has made transactions fast, easy, and secure.
Boosting the business and loan system : Banks are given the flexibility to provide loans, which helps start new businesses, expand companies, and create new employment opportunities.
Facilitates international trade : Fiat currencies allow countries to trade with each other, attract foreign investment, and facilitate the smooth functioning of the global financial system.

Risks and Limitations of Fiat Currency

Inflation reduces purchasing power : When more money enters the market, prices rise. This means that the same money can buy fewer goods over time, reducing people’s purchasing power.
Excessive printing weakens the currency : If the government prints too much money without balance, the currency’s value can fall. This makes imports more expensive and everyday essentials costlier.
Government debt continues to rise : Governments can easily borrow money in a fiat system. If this debt spirals out of control, the burden falls on the general public in the form of taxes and inflation.
There is a risk of economic instability : Fiat currencies can quickly come under pressure during sharp changes in interest rates, recessions, or global crises, increasing market uncertainty.
The system can weaken if trust is lost : Fiat currencies operate entirely on trust. If people start doubting the stability of the currency, they start distancing themselves from it, which can become a threat to the entire system.

Fiat Money vs Commodity Money vs Cryptocurrency

Basis	Fiat Money	Commodity Money	Cryptocurrency
Basic Structure	Government-issued currency with no physical asset backing	Physical assets like gold, silver, or other commodities	Digital currency based on blockchain technology
Control System	Fully controlled by government and central banks	Limited control, supply depends on natural resources availability	Decentralized, no direct government control
Stability	Comparatively stable but affected by inflation and policies	More stable in long term due to limited supply	Highly volatile, prices change very fast
Inflation Protection	Weak protection against inflation over time	Strong protection as supply is limited	Partial protection, depends on market demand
Usage in Daily Life	Used everywhere for salaries, shopping, banking, taxes	Rarely used in daily transactions today	Limited real-world use, mostly for trading and investment
Long-Term Sustainability	Very strong due to global acceptance and government support	Limited due to practical usage issues	Still evolving, future depends on regulation and adoption

Conclusion

The simple truth is that the money we use every day for everything is fiat money. There’s no magic or mystery to it, just a government guarantee and public trust. Sometimes inflation increases, sometimes spending, and sometimes savings are affected. Therefore, it’s enough to understand how money works so we can use our money wisely.

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Frequently Asked Questions (FAQs)

What is fiat money?
Fiat money is money that is backed by government guarantee.
Is the Indian Rupee a fiat currency?
Yes, the Indian Rupee is a fiat currency.
Why is fiat money not linked to gold?
So that the government can easily control the money supply.
Does fiat money lose value over time?
Yes, its value can decrease due to inflation.
Is crypto a replacement for fiat money?
Not yet, fiat money is the most reliable in everyday life.

December 25, 2025

What is Pre-IPO Investing?

India’s IPO market continues to dominate the headlines in 2025 companies have raised well over ₹1.6 lakh crore across Mainboard and SME-IPOs so far this year, sparking renewed investor enthusiasm. In this environment, pre-IPO investing is emerging as an interesting opportunity, where you buy a company’s shares before they go public. Many investors see this as a potential for better value and strong future returns. But every opportunity comes with risks. That’s why, in this blog, we’ll explain, in simple terms, what pre-IPO investing is and what it truly means in 2025.

What is Pre-IPO Investing?

Pre-IPO investing is the process by which investors purchase shares of a company before it is listed on the stock market. This stage opens up opportunities for investors who want to participate in the company before it is publicly listed, often at a better valuation. Pre-IPO Investing in India is largely done in secondary share purchases from existing shareholders, not through direct share issuance by the company to retail investors.

The Journey from Private to IPO

A company’s growth stages typically follow this sequence:

Private → Late-Stage Private → Pre-IPO Stage → IPO Stage → Listed Company on Exchanges

Pre-IPO is the time when a company finalizes its funding and capital structure to achieve a better value during the IPO.

Why do companies seek pre-IPO investments?

The purpose of a pre-IPO round isn’t just to raise money. Many companies use this to:

Stabilize valuation
Strengthen balance sheets
Build relationships with institutional investors
Provide an opportunity to sell ESOPs to provide liquidity before an IPO

How Pre-IPO Investing Actually Works

1. Companies Decide to Raise Pre-IPO Capital

When a company wants to strengthen its financial position before an IPO such as increasing working capital, debt reduction, or valuation stabilization it opens a pre-IPO round. This round typically occurs in late-stage companies that already have revenue and a stable business.

2. Shares Are Offered Through Verified Sources

Pre-IPO shares are not sold directly to the public. They are only available through a few channels:

Secondary sale by VC/Private Equity funds
Employees sell their ESOPs
Early investors sell a portion of their shares
SEBI-registered unlisted share platforms (verified sellers only)

The most important thing here is cap-table verification, to ensure that the shares are genuine and coming from the right source.

3. Investor Completes Due Diligence

Financial details in a pre-IPO are not public like those in listed companies. Therefore, investors need to pay attention to:

Company’s revenue performance
Growth prospects
Valuations from previous funding rounds
How close the company is to an IPO
Risk factors (competition, cash burn, regulatory issues)

4. Purchase Agreement & Allotment

If an investor wants to proceed, they must complete several necessary steps:

KYC verification
Signing a Share Purchase Agreement (SPA)
Fund transfer (usually via bank transfer)
After allotment, shares are credited to your Demat account. In some deals, shares remain in escrow until the transaction is completed or ISIN activation.

5. SEBI Lock-In Rule Applies After Listing

Pre-IPO investors cannot sell shares immediately. According to SEBI regulations, Pre-IPO shares have a 6-month lock-in after the IPO. This means that profit-booking isn’t possible on listing day; instead, you have to wait for the lock-in period to expire.

6. Exit Happens After IPO

Exit in a pre-IPO investment occurs only when:

The company launches the IPO
The lock-in period ends
After that, you can sell your shares in the secondary market.
If the company delays the IPO, exit will also be delayed—this is the biggest risk in this category.

Why Do Investors Prefer Pre-IPO Investing?

Lower Valuation Entry : Pre-IPO companies often offer shares at their final private valuation, which is typically lower than the IPO price. This allows investors to benefit from early entry, especially if the company’s fundamentals are strong and demand is high at the time of listing.
High Growth Potential : Investing in late-stage companies gives investors a stake in businesses that are already revenue-positive or near-profitability. Therefore, their potential for value appreciation after the IPO is better provided market sentiment is favorable.
Portfolio Diversification : Pre-IPO investing gives investors exposure to fast-growing sectors such as fintech, SaaS, EV, biotech, D2C, etc. These sectors are less available in the public market, increasing portfolio diversification and long-term growth potential.
Access to Mature Startups : Most companies at the pre-IPO stage come with stable revenue, a clear business model, and a strong governance structure. Such mature startups often prefer investors with long-term convictions, rather than short-term traders who sell on listing day.

Pre-IPO vs. IPO vs. Post-IPO

Category	Pre-IPO	IPO	Post-IPO
Stage of Company	The company is currently private, late-stage	The company sells shares to the public for the first time.	The company is fully listed and public.
Price Level	Usually lower than the IPO price, but higher-risk	Fixed price / within price band	The price moves according to market demand.
Risk Level	The biggest risk is limited data and liquidity.	Moderate risk disclosures available	Relatively lower risk full transparency
Liquidity	No liquidity, exit only after IPO	Limited liquidity after listing	High liquidity easy to buy/sell
Information Availability	Very little private financials and limited reports	Good information from DRHP and SEBI filings	Quarterly results, conferences, full transparency
Lock-In Rules	6 months SEBI lock-in (mandatory)	No lock-in on retail investors	No lock-in free trading
Investor Type	Those with a high-risk appetite and a long-term mindset	Retail + Institutional All	All types of investors
Return Potential	High valuation may be low	Moderate listing gains possible	Stable long-term compounding

Risks & Challenges of Pre-IPO Investing

Liquidity Risk : Pre-IPO shares don’t have an open market, so you can only sell them once the company is listed. If the IPO is delayed for two to three years, money may be locked up for a long time. This is a major setback for new investors.
Valuation Risk : Many late-stage startups demand high valuations. In the past few years, names like BYJU’S, Ola, and Udaan have seen valuation cuts. In such situations, investor returns may fall because the price doesn’t match actual performance.
Regulatory & Compliance Risk : Pre-IPO shares require a six-month lock-in period after listing. KYC, share transfer, and documentation are also very strict. If shares are not acquired from a verified source, legal issues may arise later.
Information Gap : The company is not public, so quarterly results, audited reports, or business updates are not openly available. Investors often make significant decisions based on limited data, which can lead to miscalculations.
IPO Uncertainty : This is the biggest risk. If the market is weak, the company is incurring losses, or the internal strategy changes, the IPO could be delayed for years or even canceled altogether. In such a situation, the exit timeline depends entirely on the company.

Who Should Consider Pre-IPO Investing?

High-Risk Appetite Investors : Pre-IPO investing is best for those with a high risk-taking capacity. Because liquidity is low and the IPO timeline is uncertain, these investors are willing to lock in their funds for a longer period.
Medium to Long-Term Horizon : Pre-IPO returns are never immediate. Due to the SEBI lock-in and IPO delays, actual exit can take 2-5 years. Therefore, this investment is for those with patience and a long-term perspective.
Investors With a Stable Core Portfolio : You should only venture into high-risk assets like pre-IPOs if you already have a strong core portfolio of equity, debt, and an emergency fund. This should be an add-on investment, not your primary wealth-building strategy.
Those Seeking Diversification : For investors seeking exposure to high-growth private companies such as fintech, EV, SaaS, or consumer brands, pre-IPOs can be a good diversification tool. Such opportunities are limited in the public market.
Smart Allocation Mindset : Experienced investors typically invest only 5-10% of their high-risk capital in pre-IPO deals. This approach is considered a balanced way to capitalize on potential upside while keeping risk under control.

Final Checklist Before Investing

Cap-Table & Share Class Verification : Always check the source of the shares employee ESOP, early investor, or secondary sale. Purchasing shares from the wrong source can lead to legal trouble later.
Previous Funding Valuation Review : Look at the company’s last three funding rounds. This shows whether the valuation is consistently rising or falling. Down-rounds can be a red flag.
Lock-In Period Clarity : As per SEBI rules, pre-IPO investors are subject to a six-month lock-in period after listing. Do not invest without understanding this.
Stay Away from Hype Look at Fundamentals : Don’t invest solely based on popular sectors (such as EV, fintech, AI). Always consider the revenue model, profitability path, and cash flow.
Invest Only What You Can Lock for 2-5 Years : Money is not withdrawn immediately in a pre-IPO. Therefore, invest only funds that you can hold for a long period of time.
IPO Readiness Check : Check the company’s compliance status, auditor reports, and recent investor updates. This helps gauge how realistic the IPO is.
Governance & Legal Track Record : Companies with strong governance, clear disclosures, and zero legal disputes are considered safe in the long term. Weak compliance increases future risk.

Conclusion

Pre-IPO investing offers an interesting opportunity, but it’s not for everyone. The real benefits come only if the company is right, the valuation is reasonable, and the IPO is imminent. Otherwise, your money could be stuck for years. Therefore, always consider this a calculated, long-term bet, not a way to make a quick profit. Consider this type of investment only if your portfolio is strong and you have the capacity to take risks. Invest only enough money that you can afford to forget for a short time.

Frequently Asked Questions (FAQs)

What is Pre-IPO investing?
Pre-IPO investing means buying a company’s shares before it goes public—that is, entering before the IPO.
Is Pre-IPO investing risky?
Yes, it is a bit risky because liquidity is low and information is limited.
How long is the lock-in period?
Pre-IPO investors typically have a 6-month lock-in after the IPO.
Can normal retail investors buy Pre-IPO shares?
Yes, many verified unlisted share platforms today also provide access to retail investors.
What is the minimum investment amount?
On many platforms, The minimum amount typically ranges around ₹50,000-₹1,00,000.

December 25, 2025

What is Prospectus?

In today’s times of IPOs, SME listings, and startup fundraising, understanding a prospectus is more important than ever. It’s a document issued by a company before offering its shares or debentures to the public, so that investors can clearly understand what they’re investing in. In this blog, we’ll explain in simple terms what a prospectus is, its role in corporate law, and why it’s so important to investors.

What is Prospectus?

A prospectus is a legal document issued by a company when it intends to offer its shares, debentures, or other securities to the public. It provides clear and detailed information about its business, financial position, risk factors, and the reason for raising funds. It can also be considered a public investment brochure, but it is completely legally binding, and the company is responsible for every line.

Legal Definition of Prospectus (According to Company Law + SEBI) :

According to the Companies Act, 2013, a prospectus is a document in which a company publicly invites the public to purchase its shares, debentures, or any investment-related security. This definition has been deliberately broadened to cover any new fundraising methods such as OFS, SME IPOs, Infrastructure Bonds, etc.

Legally, a prospectus requires three things:

Invitation to the public to invest
Open disclosure of all financial and operational information
Filing with the Reserve Bank of India (ROC) and adherence to SEBI guidelines

Under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, a company is required to provide all updated information related to risk, valuation, promoters, litigations, financials, etc. in its prospectus.

Prospectus in Company Law: Scope & Importance

According to the Companies Act, 2013, any company offering its shares or debentures publicly is required to issue an accurate, complete, and updated prospectus. The law aims to ensure that investors have access to all important information in advance so they can make informed decisions.

The law requires a company to

File a prospectus with the ROC (Registrar of Companies).
All information must be accurate, fact-based, and verified.
Directors, promoters, and experts are held legally responsible for any false or misleading information.

Furthermore, the SEBI ICDR Regulations (2018) ensure that a company shares all necessary information regarding its financials, risks, litigation, and valuation with transparency.

Mandatory information to be included in the prospectus

The format and content of the prospectus are prescribed by SEBI. It includes only the information most important for an investor to understand the company.

Mandatory elements :

Capital Structure: Share distribution, promoters’ holdings, and post-issue structure.
Financial Information: Audited financials for the last three years, cash flow, debt position, and valuation details.
Risk Factors: Business, market, regulatory, and financial risks which the company discloses in detail for legal protection.
Business Overview : Company model, revenue sources, competition, and industry outlook.
Objects of the Issue : Where the funds raised from the IPO will be used for expansion, debt repayment, working capital, etc.
Legal & Regulatory Cases : Any ongoing lawsuits, notices, or inquiries against the company or promoters.

Category	What is included?	Why is it necessary?
Capital Structure	Shareholding details	To understand ownership and control
Financials	Profit, loss, cash flow	To know the financial health of the company
Risk Factors	Internal and external risks	To warn investors
Objects of Issue	Use of funds raised	To understand the true purpose of money
Legal Matters	Cases, notices	To know compliance and reputation

Read Also: What is a Deemed Prospectus?

Types of Prospectus

There are five major types of prospectuses in India under the Companies Act, 2013 and the SEBI ICDR Regulations, 2018. Each type has a different purpose, use, and level of disclosure.

1. General Prospectus

A General Prospectus is a document issued publicly by a company during an IPO or FPO. It provides all the necessary details related to its business model, financials, risk factors, promoters, valuation, and issue. It is considered the most comprehensive and legally binding type.

Example: All recent IPOs, such as physics wallah, Lenskart, issued this detailed prospectus.

2. Shelf Prospectus

A Shelf Prospectus is a document that, once issued, remains valid for one year. Its advantage is that a company can issue securities more than once during this period without creating a new prospectus.

Who can issue it?

Banks
Public Financial Institutions
PSUs
Select NBFCs

Why is it useful?

This makes fundraising faster, cheaper, and flexible, as new filings are not required each time.

3. Red Herring Prospectus (RHP)

The RHP is a document that a company files with SEBI and ROC before an IPO launch. It contains the company’s complete business, financials, and risk factors, but details such as the issue price, number of shares, or price band are not finalized. This is why it is called a “red herring.”

4. Abridged Prospectus

The Abridged Prospectus is a condensed version of the General Prospectus. SEBI has made it mandatory to provide investors with the most important information about the IPO in a concise and clear form. It accompanies the application form and includes essential information such as risks, financial highlights, promoters, and objects of issue.

5. Deemed Prospectus

A deemed prospectus is issued when a company does not offer its securities directly to the public, but sells them through an intermediary or issuing house.

Example : In an Offer for Sale (OFS), when shares are first allotted to an intermediary and then sold to the public the document is considered a deemed prospectus.

Type	Key Features	Where is it used	Importance to the investor
General Prospectus	Complete, detailed and final information	IPO / FPO	Complete facts before investing
RHP	Some details like the price band will be decided later.	Just before the IPO	The basis for understanding the company
Abridged Prospectus	Short version, essential highlights	With IPO application	Fast and easy understanding

The Inside Structure of a Modern Prospectus

1. Risk Factors (Section to Read First) : Risk Factors is the section where a company details all potential risks associated with its business. According to SEBI regulations, a company is required to disclose every risk, big or small, to prevent investors from later alleging misleading information.

Why is it important?

It provides an idea of the company’s vulnerabilities.
Disclosing worst-case scenarios demonstrates the company’s transparency.
Dependency risk, regulatory risk, market risk, and debt-related risks alert investors in advance.

2. Financial Statements (Company’s Actual Financial Health) : This is the most analytical section of the prospectus. SEBI guidelines require audited financial statements for the last three years.

What to Look for?

Revenue and Profit Trends: Consistent growth, decline, or inconsistency.
Debt Position: The company’s existing loans, interest burden, and repayment capacity.
Cash Flow: Strong operating cash flow is an indicator of a company’s actual earnings.

A simple example : If a company’s profits are increasing but cash flow is consistently negative, it indicates unsustainable growth.

3. Promoter Background (Who’s Behind the Company?) : Promoters are the biggest pillar of a company’s credibility. Therefore, SEBI requires companies to publicly disclose every relevant detail related to promoters such as their experience, past business history, shareholdings, and ongoing litigation.

Why is it important?

A clean promoter history increases trust in the company.
Strong promoters provide long-term stability.
A low promoter stake may indicate low commitment.

4. Objects of the Issue (Where will the money be spent?) : Prospectus mandates companies to clearly state where and how the funds raised from the IPO will be used.

Main Uses:

Business Expansion
Loan Repayment
New Projects or Capacity Building
Working Capital Strengthening

Caution for Investors : If a company uses vague terms like “General Corporate Purpose” excessively, it may indicate that the use of the funds is not clearly planned. Clear objectives always indicate better governance.

Prospectus vs Information Memorandum vs Company Presentation

Point	Prospectus	Information Memorandum (IM)	Company Pitch Deck
What happens?	A detailed legal document issued for public investment purposes; it contains complete information about risks, financials, business, and fundraising purposes.	A detailed document of the company which is prepared for private placement or qualified investors.	A short presentation in which the company visually presents its story, vision, business model, and growth plan.
Where is it used?	IPO, FPO, Bonds, Public Issue	Private Placement / QIB Offers	Investors Meeting, Startups Fundraising, VC Pitches
Legal status	Fully legally binding under the Companies Act 2013 and SEBI ICDR Regulations.	Not as strict a legal compliance as a prospectus, but still a regulated document.	Not a legal document, just a business presentation.
Significance for the investor/reader	The most reliable source to understand the actual financial health, risks and valuation of a company before investing.	Helps understand business models and strategies for high-net-worth and institutional investors.	A high-level overview of the company’s vision and growth potential, but no verified data.

Common Misconceptions About Prospectus

“ Reading a prospectus guarantees returns ” Misconception :

A prospectus is meant only to provide information and transparency, not to guarantee returns.

The company discloses its risks, financials, and assumptions, but future performance depends on many external factors such as market conditions, competition, cost pressures, and economic trends. Therefore, a prospectus should only be used as a decision-support document.

“Companies always state the 100% truth in a prospectus” Not entirely true ”

Companies are required to provide accurate and complete information under SEBI and the Companies Act, but some assumptions and forward-looking statements may differ from actual results. Furthermore, risk factors and financial estimates are often written from the company’s perspective, so investors should always cross-check and conduct independent research.

“Only large companies issue prospectuses” Misconception

Every company that wishes to raise capital from the public is required to issue a prospectus.

These include:

Main Board IPO
SME IPO
Public Issue of Bonds
Rights Issue (in certain circumstances)
So, the fundraising method, not the size, determines whether a prospectus will be issued.

“Red Herring Prospectus (RHP) is incomplete and unreliable” partially true

The price band and share details in the RHP are not final, but the rest of the business, financial data, and risks are fully verified.

That is:

RHP = 95% final document, in which core information is correct and updated.
Only the price, shares, and some regulatory details are added to the final prospectus.

This means that the RHP is just as useful to investors as the final prospectus; it just doesn’t have any final numbers.

Conclusion

A prospectus is the most reliable foundation of any public investment, as it provides a clear picture of a company’s financial position, risks, and fundraising objectives. When read correctly, this document helps investors understand the real situation without the hype.

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3	Why Invest in anKey Difference Between IPO and FPOIPO and its Benefits?
4	What is Face What is the IPO Cycle
5	What is NII in IPO?
6	What Is An IPO Mutual Fund? Should You Invest?
7	Why Invest in an IPO and its Benefits?
8	IPO Application Eligibility Criteria
9	What is the IPO Allotment Process?
10	ASBA Meaning, Benefits, and Process

Frequently Asked Questions (FAQs)

What is a prospectus in company law?
A prospectus is a document issued by a company that contains information about its business, financials, and risks.
What are the main types of prospectus?
General, RHP, Abridged, Shelf, and Deemed prospectuses are the main types.
Why is a prospectus important for investors?
It helps investors understand the company’s position and risks.
How is a RHP different from a final prospectus?
The price band in an RHP is not fixed; the final prospectus is completely complete.
Who prepares a company prospectus?
It is prepared jointly by the company’s management and advisors.

December 24, 2025

Index Funds vs Mutual Funds: Key Differences

Whenever you decide to invest in a mutual fund, the first question which will come to your mind is whether to go for an index fund or an actively managed fund. Both have their unique features, such as risk and returns.

In today’s blog post, we will give you an overview of index funds and active funds along with their key differences.

What is an Index Fund?

An index fund is a type of passive mutual fund in which the fund manager replicates the performance of an index, such as Nifty 50, BSE 100, etc. and tries to match the performance of the index which it replicates. They are considered a cost-effective investment option for new investors.

Features of an Index Fund

The key features of an index fund are as follows:

Passive Approach: The fund manager adopts a passive investment approach while managing an index fund. They do not actively choose stocks; instead, they replicate the index.
Cost-Efficient: Index funds offer a cost-efficient investment option. As the fund manager does not pick stocks actively, therefore, the management cost is very low.
Diversification: An index fund invests its money in various companies, which helps the fund manager in reducing risk.

Benefits of an Index Fund

The key benefits of investing in an index fund are as follows:

Cost-Effective: Index funds have a lower expense ratio; therefore, they are considered a cost-effective or low-cost investment option for investors.
Less Risk: By investing in an index fund, one can get exposure to various stocks, which reduces the risk of the portfolio.
Stable Return: The index fund’s post-return matches the returns posted by the index in which the fund is invested.

What are Actively Managed Mutual funds?

Actively managed funds are those mutual funds in which the fund manager actively chooses, buys and sells the securities to beat the market. Their stock picking depends on the internal research conducted by the fund manager; due to this active research, it involves a higher cost.

Features of an Actively Managed Fund

The key features of an actively managed fund are as follows:

Active Management: The Fund manager actively manages and designs the portfolio by conducting their own internal research.
Higher Returns: Active funds tend to post higher returns when compared to passively managed funds. Hence, the investor of an actively managed fund gets a higher return.
High Risk: Because of the active management of the fund by the fund manager, the risk increases because of higher volatility, and sometimes the fund might underperform the benchmark.

Benefits of an Actively Managed Fund

The key benefits of investing in an actively managed fund are as follows:

Outperformance: Actively managed funds have a higher potential to outperform the market because of active management of the portfolio by the fund manager.
Customisation: The fund manager actively includes the best-performing stocks and sells the underperforming stocks.
Long-term Goal: If an investor wishes to get exposure in a specific sector or style, an active fund provides a more customised portfolio to achieve their long-term goal.

Difference Between an Index Fund and an Actively Managed Fund

The key difference between an index fund and an active fund is as follows:

Particular	Index Fund	Active Fund
Approach	They use a passive investment strategy.	In an active management approach, the fund manager actively chooses the securities.
Return	They post returns in line with the benchmark, which it replicates.	They try to outperform the benchmark return.
Cost	An index fund involves lower costs because of a passive investment strategy.	Because of active involvement by the fund manager, it contains a higher expense ratio.
Risk	As stocks in index funds are not chosen by the fund manager, it involves less risk.	An active fund contains a higher risk due to the active selection of stocks by the fund manager.
Suitability	An index fund is suitable for investors looking for a cost-effective investment option.	It is suitable for investors looking for higher returns and who wish to take a higher risk.
Portfolio Turnover	Index funds have a lower turnover ratio because the portfolio changes only when there is a change in the constituents of the index.	Because of higher trades due to active management of the portfolio by the fund manager, the portfolio turnover ratio is comparatively much higher than index fund.

Which is Better Index Fund or an Actively Managed Fund

Choosing between an index fund and an actively managed fund totally depends on the investor’s risk profile and investment objective. If you are looking for a low-cost investment option with lower risk, and are comfortable with a limited return. On the other hand, an actively managed fund is only suitable for investors seeking a higher return, and for this, they are required to take a higher risk.

Conclusion

On a concluding note, both index fund and active fund have their unique advantages and disadvantages, and it totally depends on the investor’s risk profile and their investment objective. Active funds have a higher potential to outperform the market because of the active involvement of the fund manager. However, active funds involve higher risk and are suitable only for investors who wish to take higher risk for higher return. Therefore, it is advisable to consult your investment advisor before making any investment.

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4	Gold ETF vs Gold Mutual Fund: Differences and Similarities
5	Difference Between Large Cap vs Mid Cap Mutual Fund
6	Mutual Fund vs PMS: Which is Better?
7	Active or Passive Mutual Funds: Which Is Better?
8	Multi-Cap Vs Flexi-Cap Mutual Funds? Which Is Better For You?
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10	How to Invest in ETFs in India – A Beginner’s Guide

Frequently Asked Questions (FAQs)

What is the key difference between an index fund and an active fund?
An index fund adopts a passive investment strategy, and on the other hand, in an active fund, the fund manager actively chooses the securities for the investment portfolio.
Which fund has lower fees, active or index?
A passive fund or index fund has a lower expense ratio when compared to an actively managed fund.
Do index funds carry lower risk?
Yes, an index fund carries comparatively lower risk because of diversification and lower volatility in the portfolio.
Do actively managed funds always outperform the index funds?
No, actively managed funds do not always outperform the index funds. It totally depends on the efficiency of the fund manager who manages and chooses the securities in the portfolio.
Which fund is suitable for a conservative investor?
For a conservative investor index or a passive fund is suitable as they are less volatile and have a lower expense ratio than active funds.

December 24, 2025

Difference Mutual Funds and Hedge Funds?

In today’s world of investment, there are various options which confuses investors about which option is suitable for them. A few of such options include mutual funds and hedge funds, each offering different risk levels, strategies, and returns, making it essential for investors to understand their goals clearly.

In today’s blog post, we will give you an overview of mutual funds and hedge funds, along with their differences and in the end, will tell you which one is suitable for you.

What are Mutual Funds?

A Mutual Fund is an investment product which is offered by Asset management companies. In which the company collects funds from investors and appoints a fund manager to manage such funds by investing them in different assets, such as stocks, bonds, etc.

Features of Mutual Funds

The key features of a mutual fund are as follows:

Professionally Managed Funds: The funds invested by the investors are managed by professional fund managers, who have vast experience in fund management.
Diversified Portfolio: The fund is invested by the fund manager in different asset classes such as bonds, equity, gold, etc., which reduces overall risk.
Low-cost: The fees charged by the asset management company are very low compared to other investment options.
Affordable: One can start their investment in mutual funds by investing a minimum of INR 100 – 500.

What are Hedge Funds?

A Hedge Fund is managed privately by the fund manager that pools money from various HNI investors, including retail and institutional investors. They use aggressive strategies such as short-selling, derivatives, etc., to generate returns. The hedge funds have limited regulations, unlike mutual funds.

Features of Hedge Funds

The key features of hedge funds are as follows:

Aggressive Investment Strategy: Hedge funds employ high-risk, aggressive investment strategies, including short-selling, leverage, and derivatives.
HNI Investors: Retail and institutional investors who have high net worth can consider investing in hedge funds.
Performance Fees: Hedge funds generally charge performance-based fees, in addition to a fixed fee structure. However, the type of fees depends on the asset management company.

Difference Between Mutual Funds and Hedge Funds

The key differences between mutual funds and hedge funds are as follows:

Particular	Mutual Fund	Hedge Fund
Investor	Mutual funds are allowed for all kinds of investors, especially for retail investors.	Hedge funds are allowed for high-net-worth individuals and institutional investors.
Returns	These funds aim to outperform the benchmark or give returns similar to the benchmark.	Hedge funds aim to give a positive return in every market condition.
Strategies	Fund managers in mutual funds do not use any complex strategies.	Complex strategies such as derivatives, short-selling, etc., are used by the fund manager.
Regulated	Mutual funds are strictly regulated by the Securities and Exchange Board of India.	They are comparatively less regulated than mutual funds.
Transparency	Mutual funds offer high transparency with respect to portfolio disclosure, etc.	Hedge funds offer comparatively low transparency compared to mutual funds.
Fees	It charges low fees for managing funds.	Hedge funds charge higher fees when compared to mutual funds.
Minimum Investment	The minimum investment amount in mutual funds starts from INR 100.	In the case of hedge funds, the minimum investment amount is 1 crore.

Mutual Fund vs Hedge Fund – Which is better?

The decision between the mutual fund and the hedge fund will depend on the risk profile of the investor and their investment objective. They can invest in mutual funds in case they want to invest in a low-cost investment option with moderate risk and return. However, if you want to get a higher return and are willing to take a higher risk, then you can choose to invest in hedge funds; however, they charge higher fees than mutual funds.

Conclusion

On a concluding note, both mutual funds and hedge funds are suitable for different classes of investors. If you have a high net worth and are comfortable with taking high risk, then a hedge fund is a suitable investment option for you, as we know that with higher risk comes higher returns; therefore, hedge funds offer higher returns. Whereas, on the other hand, mutual funds are suitable for investors looking for investment products with moderate risk and returns. However, it is advisable to consult your investment advisor before making any investment decision, and require deeper market understanding, stricter eligibility, and patience to navigate complex strategies aimed at maximizing wealth while managing volatility and long-term financial goals effectively.

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Frequently Asked Questions (FAQs)

What are the key differences between mutual funds and hedge funds?
The key differences between mutual funds and hedge funds are related to their fees, investment amount, and fund management style.
Who can invest in hedge funds?
In hedge funds, all types of investors can invest their money, but they are generally open to accredited or high-net-worth individuals or institutional investors, because of their risky investment strategies.
What is the fee structure of hedge-funds?
Hedge funds charge higher fees than most other investment options. They follow two types of fee structure, which include fixed AUM-based fees, and the other one is performance-based fees; however, there are a few asset management companies which offer a combination of both types of fees.
What is the minimum investment amount for hedge funds and mutual funds?
The minimum investment required in mutual funds is INR 100, but in the case of a hedge fund, it is INR 1 crore.
Can hedge funds or mutual funds offer guaranteed returns?
No, hedge funds or mutual funds both of them do not offer guaranteed returns. The investment is made in market-related instruments, which can lead to volatility and inconsistent returns.

December 23, 2025

Blog

Ponzi Meaning: Definition and Historical Background

What Is a Ponzi Scheme and How It Works

How Ponzi Scheme Works ?

Who Is a Ponzi Schemer and What Are Their Tactics

Ponzi Scheme vs Pyramid Scheme

Key Warning Signs of a Ponzi Scam

Legal Status of Ponzi Schemes in India and Regulatory Oversight

What To Do If You Have Invested in a Ponzi Scheme

How to Protect Yourself from Ponzi Scams?

Conclusion

Frequently Asked Questions (FAQs)

What is a Ponzi scheme?

Is a Ponzi scheme legal in India?

How to know if an investment is a Ponzi scam?

What to do if I lose money in a Ponzi scheme?

Are Ponzi and Pyramid schemes the same?

What Is Time Decay in Options?

How Time Decay Works ?

1. Time to Expiry

2. Intrinsic Value

3. Volatility

4. Interest Rates

Example: How does Time Decay work in Nifty Option?

Factors That Influence Time Decay

The Effect of Implied Volatility (IV) on Time Decay

The Role of Moneyness (ITM, ATM, and OTM)

Relationship between Volatility Events and Time Decay

Difference in Time Decay between Weekly and Monthly Options

How Option Buyers Should Manage Time Decay

How Option Sellers Benefit From Time Decay

Misconceptions About Premium Decay

Misconception 1: Time Decay Only Hurts Buyers

Misconception 2: Buying ATM Options is the Safest

Misconception 3: Expiry Day Options Make Money Quickly

Conclusion

Frequently Asked Questions (FAQs)

What is time decay in options?

Does time decay affect both call and put options?

Which options lose value the fastest due to time decay?

Is time decay faster in weekly options?

Do option sellers always make a profit from time decay?

What is a Mixed Economy?

Why India Adopted a Mixed Economy After Independence

Main reasons

Evolution of India’s Mixed Economy

Key Features of the Indian Economy as a Mixed Economy

How the Mixed Economy Works in Real Life

Advantages of India Being a Mixed Economy

Challenges of Mixed Economy in India

Conclusion

Frequently Asked Questions (FAQs)

What is a mixed economy?

Is India a mixed economy?

Why did India choose this model?

Which sectors does the government handle?

How does the private sector help?

What are Debt ETFs?

Features of Debt ETFs

Types of Debt ETFs

List of Best Debt ETFs

How Do Debt ETFs Work

Benefits of Investing in Debt ETFs

Risk of Investing in Debt ETFs

Who Should Invest in Debt ETFs

How to Invest in Debt ETFs

Conclusion

Frequently Asked Questions (FAQs)

What are Debt ETFs?

Is it mandatory to have a demat account to invest in Debt ETFs?

What are the major risks involved while investing in debt ETFs?

Can I purchase Debt ETFs anytime?

Do Debt ETFs offer guaranteed returns?

What is SIF?

Top Specialized Investment Funds 2026

1. Quant Mutual Fund – QSIF Range

2. Edelweiss Mutual Fund – Altiva SIF

3. SBI Mutual Fund – Magnum SIF

4. Union Mutual Fund – Arthaya SIF

5. Bandhan Mutual Fund – Arudha SIF