JK Securities

We started our operations on 5th of December 1995. It has been a long journey - A journey of success, based on strong adherence to ethics, uncompromising dedication to quality and an attitude of excellence. Over the years, JK has evolved from a standalone brokerage firm to a one-stop solution for all financial services. With a wide distribution network of 11 branches, and 53 business associates in the state of Gujarat, Maharashtra & Bihar. JK provides a comprehensive gamut of financial services in the Institutional & Retail domain. We also have a NRI Desk to cater to the needs of NRIs. https://www.jksecurities.com/

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Which trading account is best for NRIs?

What is an NRI trading account?

An NRI can trade in stock derivatives like bonds, shares, and other financial instruments through an investment account known as an NRI trading account. Additionally, one may invest in mutual funds listed on the Bombay Stock Exchange and the National Stock Exchange (NSE) (BSE). These accounts serve as NRIs` primary means of conducting investing business in India. An NRI cannot invest in the Indian stock market without a trading account.

If one wishes to invest in the Indian stock market, they must also create an NRI Demat account, which is similar to a trading account. An NRI might also invest in mutual funds, ETFs, and convertible debentures via a Demat account. J K securities provide NRI trading services in Anand.

NRI trading account types

NRI Trading Accounts are classified under two categories:

1.NRI 3-in-1 Accounts

3 accounts are combined in an NRI 3-in-1 account, namely the NRI Bank Account, NRI Trading Account, and NRI Demat Account.   When brokers set up two bank accounts, NRI 3-in-1 accounts are often called NRI 4-in-1 accounts. Due to the combination of the three NRI accounts, transactions are smooth. Banks in India that provide 3-in-1 NRI accounts include ICICI Bank, HDFC Bank, SBI, Axis Bank, Yes Bank, etc.

2.NRI 2-in-1 Accounts

An NRI 2-in-1 account combines an NRI Demat Account with an NRI Trading Account. NRIs must create a Non-Resident External Account (NRE), a Non-Resident Ordinary Account, and a Portfolio Investment Scheme (PIS) to apply for a 2-in-1 account (NRO). Brokers that do not hold a banking license open NRI 2-in-1 accounts.

Before opening a Demat and trading account, the NRIs should have the following in hand –

Copy of Passport

PAN card of the applicant 

NRI bank account (NRE or NRO) of the applicant.

PIS letter of approval issued directly by the Reserve Bank of India to NRI applicants.l Copy of Valid Visa.

 Address Proof (Domestic and Foreign)

Color Photographs

Each document must have its own attestation and the approval of one of the Indian Embassy or Consulate General, a Notary Public, a court, a magistrate, a judge, or a local banker in the nation where you reside now.

How to open an NRI trading account?

Step 1: Gather all required identification documents. Your PAN card, information on your NRI bank account, and a PIS approval letter are the three items you need most.

Step 2: Make sure that the local Indian Embassy or any appropriate body that has been certified by SEBI`s guidelines verifies all of your paperwork.

Step 3: Visit the NRI trading account section of the IIFL website. Complete all needed fields and submit all required paperwork.

Step 4: After receiving the required paperwork, IIFL will contact you to open NRI Demat account as soon as possible.

Some of the well-known stock trading companies are listed below: 

JK Securities Private Limited

India Infoline (IIFL)

Zerodha

Angel Broking 

Groww 

Sharekhan 

Motilal Oswal

Among these, JK Securities Private Limited is one of the most trusted service providers for NRI trading accounts. and handling since 1995 and taking care of NRI portfolio and wealth build up in the right direction.

What are the trading account charges for NRI?

An NRI Trading and Demat Account has various fees and taxes. Let us see all the charges in detail. 

1.NRI Trading Account Opening Fee

It is a one-time charge made when the account is opened. As an account opening cost, brokers charge different amounts. For example, Zerodha charges Rs. 500, ICICI charges Rs. 4000, and JK Securities charges Rs. 1480.

2.NRI Brokerages Fees

Stockbrokers charge brokerage fees for any transaction that goes through them. This cost varies from broker to broker; for example, Zerodha charges Rs 200 per order while ICICI levies NRI brokerage fees ranging from 0.50 percent to 1.25 percent of the deal amount.

3.Trading Tax

The taxes/fees that are added on top of the brokerage fees are as follows: 

Securities Transaction Tax (STT)

Exchange Transaction Charge (Turnover Fee)

SEBI Fees

Stamp Duty

Goods & Service Tax (GST)

Conclusion 

The Indian stock market provides many prospects for wealth multiplication, and switching to a foreign country`s stock market can be time-consuming. Knowing what an NRI trading account now allows you to continue investing wherever in the world.

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ELSS vs. PPF: Which Tax-Saving Investment Option is Right for You? 

Tax planning plays a pivotal role in every individual’s life.

If you are looking for a tax-saving investment option, you may have come across two popular choices: ELSS mutual funds and PPF.

Both the schemes offer tax benefits under Section 80C of the Income Tax Act, of 1961, but they have different features, returns, and risks.

This article compares ELSS and PPF to help you choose the better option for you.

What is ELSS?

The ELSS stands for Equity Linked Savings Scheme.

It`s a type of fund that mainly invests in Equity Segments.

ELSS funds come with a three-year lock-in period, In other words you can`t take out your money before that time. So, This is a suitable investment option for a person with long-term goals.

It also comes with risk but also provides higher returns than other fixed-income instruments.

What is PPF?

The PPF stands for Public Provident Fund.

PPF is a great option for those who don`t like to take risks and the best investment option for long-term goals like education, retirement & other goals.

It is a government-backed savings scheme, You can invest up to Rs 1.5 lakh yearly with a 15-year lock-in period, extendable for 5 more years. The interest rates are currently at 7.1% & revised quarterly.

PPF provides capital safety and early withdrawals are allowed after 5 years.

Features of ELSS:

– It provides yearly tax deductions of up to Rs. 1.5 lakh under Section 80C.

– It is characterised by a minimum 3-year lock-in period and at least 80% equity investment.

– It is known for offering higher returns compared to fixed options like PPF.

– It involves market risk, with no guaranteed returns; a 10% tax applies to gains over Rs. 1 lakh.

– It is accessible for investment through lump sum or SIP, offering flexibility with low investment options.

– It is subject to market risk and volatility; returns are not guaranteed or fixed.

Features of PPF:

– It provides up to Rs. 1.5 lakh per year tax deductions under Section 80C.

– It has a long lock-in period of 15 years, extendable by 5 more years, and allows partial withdrawal from the 7th financial year.

– It offers guaranteed returns since the government fixes the interest rate every quarter.

– It is a safe investment with no market risk, backed by the government.

– It is completely tax-free, with both interest and maturity amounts exempt from taxes.

Simple Difference Between ELSS Vs PPF:

Characteristic

PPF

ELSS

Safety

Very High (Govt Guaranteed)

Low-Moderate (Invests in Equity)

Returns

Moderate – Fixed by Govt every quarter

High – Equity compounds over the long term

Lock-in

15 years

3 years

Liquidity

Low (Partial withdrawals after 5 years)

High (Withdrawal at any time after the lock-in)

Tax on Returns

Exempt

10% on long-term capital gains. Gains up to 1 lakh exempted.

Tax on Maturity

Exempt

Only gains are taxed as shown above

Eligibility for ELSS:

ELSS is open to all Indians with a PAN card and a bank account. Non-resident Indians (NRIs) can invest too, following Foreign Exchange Management Act (FEMA) rules. No age or income limits apply. You can invest in ELSS with a lump sum or through SIP.

Eligibility for PPF:

PPF is available for all Indian residents with valid ID and a bank account, but NRIs and HUFs can`t open one.

You can open just one PPF account, either in a post office or a bank. If you open an account for a minor child, the total annual limit is Rs. 1.5 lakh for both accounts.

How to Invest in ELSS and PPF:

Investing in ELSS and PPF is easy. ELSS, like a mutual fund, helps you save on taxes. Many wealth management companies offer ELSS schemes. You can also contact us for more info.

PPF accounts, provided by banks, can be opened where you have your savings account.

Whether you go for ELSS or PPF, check out different schemes, assess your financial goals, and make smart investment choices accordingly.

Why Invest in JK Securities?

Invest with us at JK Securities of 28+ years of trust in 1,60,000+ Happy customers. We manage 8700+ Crores in assets with a team of 170+ across three states.

We are your all-in-one investment solution. Choose JK Securities as your reliable partner for investments.

Conclusion:

As you know ELSS and PPF save taxes differently.

ELSS funds come with a three-year lock-in period, whereas PPF comes with a 15-year lock-in period. PPF is safer than ELSS for long-term savings.

A wise choice is to mix both for the best results. Taxes can reduce your income, so pick ELSS if you`re okay with the risk for long-term wealth.

Seek expert advice before investing and Consider risks before deciding. Contact us now for more info.

You can open just one PPF account, either in a post office or a bank.

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What is Hybrid Funds? Types & Benefits of Hybrid Funds?

Investing in mutual funds with the best app for mutual funds is a popular choice for wealth growth. One category of mutual funds that offers a balanced approach is hybrid funds. These funds combine equity and debt, providing a diversified portfolio. Let`s explore what hybrid funds are, their types, and the benefits they offer.

What are Hybrid Mutual Funds?

Hybrid mutual funds allocate assets across equity and debt instruments. They balance capital appreciation and income generation, making them suitable for varying risk appetites. By diversifying investments, hybrid funds reduce overall risk.

Types of Hybrid Funds:

Multi Asset Allocation Fund: Invests in equity, debt, and other asset classes. Allocation is managed dynamically based on market conditions.

Dynamic Asset Allocation Fund: Adjusts allocation between equity and debt based on market conditions to capture opportunities in bull and bear markets.

Conservative Hybrid Funds: Primarily invests in debt with a small equity allocation. Suitable for stable income with lower exposure to equity market fluctuations.

Aggressive Hybrid Funds: Has a higher equity allocation (65-80%) with the rest in debt instruments. Offers potential for higher capital appreciation with moderate risk.

Equity Savings Fund: Invests in equity, debt, and arbitrage opportunities to provide capital appreciation and regular income.

Arbitrage Fund: Takes advantage of price differences in different markets or segments with minimal risk.

Factors to Consider before Investing in Hybrid Mutual Funds:

Risk-Return Assessment: Evaluate risk tolerance and investment goals. Choose a fund aligning with your risk profile.

Time Horizon: Consider investment time horizon, typically more than three years for hybrid funds.

Cost: Take into account expense ratio and associated costs. Lower expenses impact overall returns positively.

Returns: Examine historical performance compared to benchmark and peers, although past performance doesn`t guarantee future results.

Investment Strategy: Understand the fund`s strategy and how it aligns with your objectives.

How Does a Hybrid Fund Work?

Hybrid funds pool money from investors and invest in equity and debt. The fund manager actively manages the portfolio based on market conditions and the fund`s objective. Allocation is adjusted periodically to maintain balance. Performance is reflected in the net asset value (NAV).

Who Should Invest in a Hybrid Mutual Fund?

Hybrid funds are suitable for investors seeking a balanced approach and exposure to equity and debt markets. They are ideal for those aiming for capital appreciation and income generation with a moderate risk level and medium to long-term investment horizon.

How to Invest in Hybrid Funds?

Investing in hybrid funds is easy through banks, financial advisors, or online platforms/apps. Choose a reputable and user-friendly app for mutual fund investment.

Taxation in Hybrid Funds:

Tax treatment depends on equity and debt allocation. Equity portion is treated as an equity fund for tax purposes. Long-term capital gains on equity investments held for over a year are tax-exempt up to a limit. Debt portion is subject to applicable tax rates based on the holding period.

Benefits of Hybrid Mutual Funds:

Active Management of Portfolio Risk: Experienced fund managers optimize risk-return tradeoff by adjusting equity-debt allocation based on market conditions.

Suitable for Different Risk Profiles: Various hybrid fund types cater to different risk appetites, providing options for investors.

Diversification: Hybrid funds offer diversification across asset classes, reducing the impact of market volatility and providing portfolio stability.

Active Rebalancing: Fund managers regularly rebalance the portfolio to maintain desired asset allocation, aligning with investment objectives.

Conclusion:

Hybrid mutual funds provide a balanced investment approach by combining equity and debt instruments. They offer diversification, active management, and potential for capital appreciation and income generation. Consider risk tolerance, investment goals, and fund features before investing. Make informed decisions to maximize hybrid fund benefits.

Bachat MF App by JK Securities is a user-friendly and the best app for investing in mutual funds. It is an all-in-one mobile app for all your financial planning.

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Today we are a well diversified financial services firm offering a range of financial products and services such as Equity market, Equity Derivatives, Currency Derivatives, Securities Lending & Borrowings, MFSS, Commodity Trading, Depository Participants, Portfolio Advisory Services [PAS], Mutual Fund distributors, Initial Public Offerings [IPO], NSDL- New Pension System [NPS], Corporate Fixed Deposits, Government Bonds, Mobile trading Services, Deposits, Bonds, e-Insurance, and many other services. We have developed customized solutions that are unique to each of our clients, thus ensuring high levels of customer satisfaction. We at JK are committed to offer products and services that drive growth and help meet various financial objectives of institutions and individuals based on a deep understanding of their unique potential and aptitude. In its endeavor of making progress and taking ahead, JK abides by the principle of inclusiveness, mutual growth and trust.

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Bank FD Vs Corporate FD: Which One's a Better Option

In India, people choose fixed deposits (FDs ) more than any other investments. It is a good option for those who want safety & fixed returns