Equity And Derivative


Equity & Derivative

In today's world, investment has carved out an important place in the list of our basic needs. All of us look for an investment option which can yield high returns. Time and again compared to other available investment options, equity has always outperformed all the other asset classes in India, with the returns from NIFTY & SENSEX over the last many years being more than 18% (CAGR-Compounded Annual Growth Rate).

An equity investment generally refers to acquisition and holding of equity stock by individuals and firms in anticipation of income from Dividend and appreciation in the value of the stock. It may also refer to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup company with the long-term objective of capital appreciation /gain.

Capital gains are the profits you earn while selling the stock after appreciation in its value. For example, if you buy a share at Rs. 250 and sell it at Rs. 1000, the capital gain will be of Rs. 750. Also, any benefit gained by an investor by way of long term capital gains (investment held in security / stock for a period of more than 1 year) is exempt from tax on sale. Dividends are cash payments that you receive from the company at regular intervals, usually annually or quarterly. A good number of listed companies pay dividends regularly.

An equity derivative is a class of derivatives whose value is at least partly derived from one or more underlying equity securities. Options and futures are by far the most common equity derivatives. However, there are many other types of equity derivatives that are actively traded. Derivatives are vital for the financial system. They help to hedge against the risks and also provide an opportunity to profit from the anomalies in the market.

Various derivative contracts constitute a significant share of all the capital market transactions in the domestic as well as global markets. In India, derivative contracts are traded on National Stock Exchange (NSE) on a huge scale and their trade is becoming increasingly prevalent even on Bombay Stock Exchange (BSE).

FVM Advisory is a trading cum clearing member of Cash & Derivative segment on both NSE & BSE that provides its customers you an opportunity to avail numerous benefits of investment and trading in equities. FVM Advisory provides researched trading ideas, strong risk management of leveraged positions, market data regarding trends in economy, sector, script, live market reports, in-depth analysis, online tracking services and latest technological infrastructure to enable clients to opt for appropriate and highly profitable investment strategies such as Bull Spread, Bear Spread, Cover Call Writing, Arbitrage or Hedging Strategies etc. which are specific to individual portfolio.

At FVM Advisory, our sole purpose is to assist the investor in spotting the right investment opportunity and help them in making deliberate and calculated decisions that will make money for the investor.

FVM Advisory enhances your investing experience in Equities & Derivatives by:

  • Excellent trade execution capabilities on NSE, BSE
  • Cash, Futures & Options / Derivatives trading
  • Wide array of customer friendly online trading platforms
  • Dedicated dealing desk for call-n-trade customers
  • Online Trading Facility with an Integrated Depository and Bank Gateway
  • Arbitrage trading strategies
  • Daily Market Analysis, Advisory reports, Special Situation Research Reports and Online real-time back office
  • Online Depository Services with Auto Pay-in facility
  • Seamless transaction flow
  • National reach
  • SMS and email alerts