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Mid-cap is an approximate term that encapsulates companies and stocks which fall in between large-cap and small-cap category. The classification of respective company’s stocks depends on its market capitalisation. Such classification is variable and can change with the change in a company’s market valuation.
Why consider a Mid Cap stock?
Mid cap companies in India have a lot to offer; it’s just that they have been overlooked. Focusing on a few of the features of the top mid cap stocks:They offer diversity as they occupy the list between large cap and small cap companies; they can be stable and high on returns if you choose the stocks carefully.
The chance of growth is truly fantastic; some of the stocks have grown exponentially over time.
Considering the return potentials, these stocks have good scope for value appreciation and pays dividends as well.
Since they are overlooked, their prices stay low and affordable, where you can grab a large number of shares for a lower cost compared to large cap stocks.
They are less riskier than small cap companies.
The liquidity is relatively higher than the small cap companies.
Go through Best mid cap stocks in India to invest in Mid cap stocks.
Advantages of Investing in Mid Cap Funds.
Higher Returns than Large Cap Funds: In comparison to large cap funds, mid cap funds have given higher returns in the past over a long run. Reason being, as large cap funds invest in companies that are already mature and well known in the market, they grow at a stable but relatively lower pace. On the other hand, mid cap companies are future large caps and are where today's large caps were a few years back. During this journey to become big, they can deliver outstanding returns.
Less Risky than Small Cap Funds: As compared to small cap funds, mid cap funds are less risky. This is because stocks of small cap companies are relatively more volatile. That's because while mid cap companies are not as financially strong as large companies, in most cases, they have a stronger balance sheet than small caps and therefore also have a better ability to navigate tough market conditions
Demat Account holds the shares, bonds, mutual fund units, Exchange Traded Funds (ETFs), etc. in a digital format. It replaces the physical certificates with their digital equivalent for easy storage and transfer. Imagine what it would be like to manage dozens of paper certificates of all the shares and mutual funds you hold. Before beginning the process of investing it is important for an investor to understand what is Demat account and how it functions, so they will be able to use it efficiently for generating profits. An investor can open a Demat account without possessing any shares and can maintain a zero balance in their account.
Why do you need a Demat account?
There are two reasons. Firstly, a Demat account helps you trade and invest in a simple and seamless manner. You no longer need to get physical certificates to prove that you own the shares. It eliminates the legwork and paperwork one had to do earlier to carry out every single trade.
Secondly, you are not allowed to hold more than 500 physical shares at any given point. This is why opening a Demat account becomes important. It allows you to trade without any restriction.
Documents required to open a Trading & Demat Account Online. You need to have a soft copy of the following documents while opening an account online:
Identity Proof (PAN Card Mandatory)Address Proof (Aadhar, Voter ID, Passport, etc)Passport Size PhotoIncome Proof (Latest six month’s bank statement, Latest ITR copy, Three month’s salary slip)Scanned copy of the signature
How To Create a Trading & Demat Account ?
In India, you can open a trading & Demat account either online or offline. Opening an account online is much more convenient and faster compared to the offline process.
With that said, let us explore both online and offline account processes in detail.
Step 1: To open a Demat account, you have to approach a depository participant (DP), an agent of depository, and fill up an account opening form.
Documents required to open a Trading & Demat Account Online.
You need to have a soft copy of the following documents while opening an account online:
Identity Proof (PAN Card Mandatory)
Address Proof (Aadhar, Voter ID, Passport, etc)
Passport Size Photo
Income Proof (Latest six month’s bank statement, Latest ITR copy, Three month’s salary slip)
Scanned copy of the signature.
Go through how to open a Demat account to know the process of Demat account opening.
The day-to-day activities of stockbrokers vary. These professionals primarily work in office settings, but some offer services and consultations at their clients' offices. Experienced stockbrokers may travel to foreign countries to advise clients overseas.
Stockbrokers commonly work overtime in stressful, fast-paced environments. Stock values change daily, and stockbrokers must stay current with these changes. These professionals work with companies and individuals. They sell stocks on behalf of companies to individuals with money to invest. Stockbrokers manage stock portfolios and try to help their clients earn profit from their investments. They must know how to analyze changes and alter selling and trading strategies to help clients and companies meet their goals.
Self-employed stockbrokers often complete additional job responsibilities. For example, they must know how to obtain new clients through advertisements and word-of-mouth marketing. They must also keep track of their company's financial information for tax purposes.
While earning a degree in stockbroking, students can select a concentration in a subject like security trading, financial analysis, financial management, or personal financial advising.
Security trading involves making high risk-and-reward decisions on buying and selling securities for an employer. Financial analyzing courses teach students how to study and interpret financial trends to offer advice to clients. A financial management concentration covers how to manage and set financial goals on behalf of an organization. Personal financial advising involves the same topics but for individuals.
Some stockbrokers may earn additional certifications to expand their services. For example, they may become registered fiduciaries. These professionals manage money for a business or individual. Fiduciaries assume more of a financial advising role and must legally place their clients' needs first.
Minimum Qualifications for Stockbroker
A candidate for the profession of stockbroker must meet specific educational and physical requirements. The following are the requirements for obtaining a stockbroker license.
A minimal level of schooling is required. At least 2 years of experience at a stockbroking company after graduation.
To be qualified for employment, a sub-broker (before becoming a broker) must have passed class 12.
The mandatory retirement age in India is 21 years old.
To become a qualified stockbroker, an education in the specialist fields of commerce, business administration, or economics is recommended.
A postgraduate degree in commerce or economics, or an MBA in Financial Markets, might be pursued to gain more understanding.
Go through How to become a stock broker to know More.
What is the Stock Broker Salary in India?
The Stock Brokers Salary is not fixed. He gets brokerage commission from his clients. Whenever his clients buy or sell stocks, he receives a certain amount of commission. The stock broker can earn a commission of ₹ 5000 to ₹ 100 Crores per month. It all depends on the number of clients he has. The higher the number of clients trade, the higher the commission will be.