Bharti Hexacom IPO, Price Bandwidth, Dates

Bharti Hexacom IPO Important Dates

Advantages of a Mutual Fund Compared to a Stock

After having read about the advantages of a mutual fund in comparison with a stock you can form your action plan to make an investment and also benefit others by sharing the information on the mutual funds.

Always believe, in the Mutual Fund markets,

The fund managers give you advanced portfolio management, allowing you to convert your dividend amount to units and add it to the operating fund.

The mutual fund has introduced risk reduction techniques that help you to reduce financial loss in the time of stock market dips.

The features of mutual fund operations are made suitable to your convenience, and the funds are introduced in the market at a fair price of INR 10.00 per unit.

Note:

You may engage in buying or selling MF, the unit price of the fund is decided only once a day, it is after closing the stock markets.

Control the Fee Expenses in MF markets:

Mutual funds are more beneficial than stocks but you will have to control the expenses that get laid upon, in various forms. You must be particular in controlling the expense ratio, your investment in MF must not cross 1.5%.

You must be aware of the various charges the fund manager shall make you pay. These charges are fund managers’ fees, legal fees, operational charges, audit charges, investment management fees, marketing fees, distribution fees, and advisory fees.

A mutual fund investor should be able to control the expenses in the form of fees then MF is the best option than Stocks.

Major Setback in Stock:

Quick Purchase of Units in MF:

In contrast to the purchase of units in MF, you can make an option buy or put option on stocks but at a huge cost of time.

Time – intensive Process for a Stock Purchase:

On trading stocks, you will have a higher risk than mutual funds. To diversify your stock portfolio, you will have to select the portfolio and make an individual purchase of stocks.

You will consume more time to purchase stocks because it will need a thorough analysis of the stock performance before you go for it.

Commission Fee:

You will be obliged to pay a commission charge for every transaction made, on executing an option buy, or put option.

Best Stocks for Swing Trading

We are entering the third week of February 2024, tomorrow, Monday is something important for swing traders.

You will be surprised to see three stocks (Ashok Leyland, IPCA Laboratories, Phoenix Mills) that are ready for swing trading tomorrow.

Important Note:

Swing trading experts have concluded after a detailed fundamental and technical analysis. But, remember the hold time of swing stocks is somewhere from 7 days to 10 days only.

Ashok Leyland (ASHOKLEY)

Decent Performance:

If you begin to consider the 12-month trailing, then the operating revenue of Ashok Leyland is Rs. 42,893.69 Cr.

Good Technical Parametric Performance:

The technical parameters: Outstanding annual revenue growth (59%), pre-tax margin(5%), and ROE(14%).

Technical Analysis:

If you check in the technical aspect, the stock is trading at 10% above the 200 DMA, and certainly it is below the 50 DMA.

Setback:

The debt-to-equity ratio is 228% and it is certainly a matter of concern about the company.

Target for Swing Trade:

Still, you can target this week on a swing trade, as the current market price ( INR 176.00), apply stop loss @ INR 170 & set the first target at INR 182, and the second target at INR 188.

Expert Reaction:

The experts call it a positive crossover and are suggestive to hold the stock for 1 week.

IPCA Laboratories (IPCALAB):

Decent Performance:

On a 12-month trailing, IPCA Laboratories, IPCALAB, has an operating revenue performance of INR 6,246.16 cr.

Good Technical Parameters:

The company holds technical parameters to the value of, annual revenue growth (8%), pre-tax margin ( 12%), and ROE ( 8%).

The company’s financial leverage is about 11%, and that is the debt-to-equity ratio, and financial experts consider it to be a good financial statement.

The technical analysis states that the stock position is close to 50 DMA and it is about 15% above 200 DMA.

Share Price Target:

The current market price of the stock is INR 959.00, the stop loss is INR 925, the first target is INR 995, and the second target is INR 1025.

You are advised to hold the stock for one week.

Expert Reaction:

The analysts think that the swing stock has reached the breakout stage.

Phoenix Mills:

Decent Performance:

Considering a 12-month trailing, Phoenix Mills runs with an operating revenue of INR 2,874.59 Cr.

Good Technical Parametric Performance:

The company has an outstanding annual revenue growth of 77%, maintains an exceptional pre-tax margin of 63%, and contains a good ROE of 15%.

Technical Analysis:

The stock is well above the key moving averages, 8% from 50 DMA, and 27% from 200 DMA.

Share Price Target:

You can buy shares at the current price of INR 2015, a stop loss of INR 1955, the first target of INR 2075, and the second target of INR 2135. Experts advise to hold the price for at least one week.

Expert Reaction:

Experts say that one can find a volume spurt in the stock performance and therefore it can be said to be the best swing trade stock.

Income Tax on Intraday Trading Profits

Your assets are taxed based on the classification, long-term or short-term.

Any asset that is held longer than a year is called a long-term asset, and when you buy and sell an asset within one year then it is termed to be a short-term asset.

In intraday, you will buy and sell the stocks on the same day, and hence it will be accountable as business income.

Tax levied on short-term shares when sold will be 15 percent of the profit earned.

Tax on Long-term Capital Gains when sold:

When you make a profit up to ₹ 1 lakh, the profited amount shall be exempted.

If you can make a profit of more than ₹ 1 lakh, then your profited amount shall be subjected to 10 percent tax.

Intraday Trading Tax

When you earn income from Intraday Trading then it is taxed under business income.

You may be an individual or HUF and participated in Intraday trading then the taxation on the profit is levied in two ways:

New Tax Regime & Old Tax Regime

You will have to file ITR-3,  the income tax return form for Intraday Trading.

Every year, the due date to file your ITR-3 form will be before 31 July.

If Your intraday business turnover exceeds the limit (₹ 2 crore ) then it is subjected to Tax Audit, the ITR filing date will be October 31.

Example:

If you make a profit of INR 100,000.00 in a financial year then your marginal income tax rate shall be 30 percent and then you are liable to pay INR 3,000 against the tax on your intraday trading business.

Your total income shall be subjected to surcharges and the percentage shall be determined as per the slab rates.

Cess is liable at 4 percent of (basic tax + surcharge)

Carry Forward of Loss:

In case you incur a loss in your intraday trading then you can claim the loss through a procedure: ‘carry forward of loss.’

You will have to hire a professional chartered Accountant and perform the tax audit (u/s 44AD).

You can reduce the income tax liability in this way:

Carry forward the loss and it shall be set off against future profits to reduce the income tax liability.

The losses incurred in intraday trading are termed as speculative loss, they can be carried forward for 4 years and set off against speculative business only.

Non-speculative loss can be carried forward for 8 years, and it can be set off against the speculative business income and non-speculative business income.

Note:

For citizens below 60 and 60-80 years of age, the same taxation laws are applicable.