Blue-chip shares are considered reliable investments. The origin of “blue chip” traces to the game of poker. It has different kinds of chips where the blue chips hold the highest value.Blue-chip, therefore, represents high-value stocks. Those with a sound financial background, proven track record,and excellent managementare resilient even in adverse economic conditions.
Blue-chip companies exhibit a strong financial position and are fundamentally sound. They have a strong balance sheet, enjoy excellentprofitability, and consistently generate cash from operations.These companies are debt-free, have substantial reserves,and robust cash flows to finance their expansion and working capital requirements.
Leadership position
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These companies belong to the top rung and are leaders of their respective sectors, if not the top five within the industry. Maruti in the four-wheeler auto sector, while Bajaj Auto, Hero MotoCorp, in the two-wheeler segment, are leaders in their segments.
Large scale operations
These companies have a business built over time and have established themselves as a large company with huge market share and brand value. For example, Hindustan Unilever, Marico, ITC, Nestle, etc., are a few fast-moving consumer goods companiesthat fall in this category.
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Strong management
It is not easy to build businesses and grow andmanage such a size and scale. Generally, the blue-chip management team demonstrates such abilities to drive scale and growth.
Advantages
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Shareholder friendly
Blue-chipcompanies reward theirshareholders with consistent dividends and other shareholder benefits like bonuses, etc. These companies distribute profits than ploughing back the same for growth. Most Indian blue-chip companies like HUL, ITC, Bajaj Auto, HDFC Bank, TCS, Infosys, and such have been very shareholder-friendly concerningdividends, buybacks, and bonuses.
Low volatility and stable earnings
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The company earnings are stable and steady, and devoid of spikes and, therefore, less prone to volatility. Precisely whythey are preferred in the portfolio.
Diversified business
This implies risk gets distributed, and the impact of any setback is minimal. Blue chips either diversify within their segment or out of their segment. Reliance Industries is an example of diversification with business interest across Oil, Retail, and telecom. Hindustan Unilever is diversified within the segments and has a presence in soaps & detergents, and food. ITC is another example of the cigarettes, food, and hotel business.
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Resilience tobounce back
Systematic risks affect the entire market. These factors are beyond anybody’s control, like war, depression, and other macroeconomic factors. However, the ability to bounce back from a downturn differentiates a leader from the herd. Also, being the pack leader, they enjoy mass appeal, too, contributing to quick revival from adversity.
Limitations
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Moderate growth
These companies have reached a level where the growth from the current point is moderate and not high. While it provides stability to the portfolio, the returns are average. Therefore, it is opted by people with a low-risk appetite over a moderate to high-risk appetite investor.
Notrading bets
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These areunsuitable for trading bets as the volatility is low and the return. They are long haul stocks where capital appreciation is moderate to slow.
Not an out-performer
Blue-chips are not known to be index out-performers. Hence, you always find them on your best Share Trading app on the top.
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Slips are dangerous
The primary restriction is that markets can be unforgiving if the blue chip does not meet the investor’s expectations. So, choose your blue-chip with much care.
Keywords: best Indian Stock Market apps, best Share Trading app
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Disclaimer – ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them beforetakinganydecision. The contents herein mentioned are solely for informational and educational purpose.
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Margin trading is becoming increasingly popular among investors seeking to amplify their trade power. However, choosing the right margin trading facility service provider is key to succeeding in this venture. With diverse options available, investors must carefully evaluate various factors to choose the provider that best aligns with their trading objectives and risk tolerance levels. In this blog, we will discuss some essential things you should consider when selecting an MTF service provider.
Key Factors to Consider While Selecting an MTF Provider
Regulatory Compliance and Reputation
Before anything else, it’s important to check whether the chosen MTF provider complies with regulations or not. Opt for providers licensed and regulated by reputable financial authorities, as they inspire greater trustworthiness. Also look into past performance records, customer reviews and any history of regulatory fines to assess provider’s reliability. Working with an established name gives you peace of mind as they have built a good track record over time making them a safer choice in comparison to the new ones that could be fraudulent in nature.
Margin Requirements and Leverage
Evaluate the leverage offered as well as the margin requirements, as these significantly influence outcomes. While higher leverage can amplify gains, it also entails greater risks. Strike a balance between potential profits and risk management strategies that align with your tolerance levels and trading objectives.
Range of Tradable Assets
Diversification is key to a well-rounded trading portfolio. Ensure that the MTF provider offers a diverse range of tradable assets, including stocks, commodities, and forex markets. This diversification not only enables you to capitalise on price fluctuations but also mitigates risks associated with specific sectors or industries.
Trading Platform and Technology
Your chosen MTF platform will form the backbone of your trading activities. Prioritise platforms with advanced features such as real-time market offers, comprehensive charting utilities, and a variety of order types. Opt for stability, security, and compatibility with popular devices and operating systems to minimise disruptions to your trading workflow.
Costs and Fees
In margin trading, various charges are incurred such as commissions, spreads, financing rates, etc. Conduct a comparative analysis across various MTF providers and pinpoint the cost-effective settlement for you without sacrificing quality. Pay close attention to hidden fees that can accumulate over time.
Risk Management Tools
Effective risk management is a must for capital preservation and reducing loss in margin trading. A forex brokerage is not a place where traders can make a fortune easily. If you have decided to become a successful MTF trader, select a broker with effective risk management tools like stop-loss orders, limit orders, margin call alerts and risk analysis functions. Such tools empower traders to optimally deal with market fluctuations with confidence.
Customer Support
During turbulent market conditions or technical issues, efficient customer support is indispensable. Evaluate the accessibility and responsiveness of the provider’s technical support team across various communication channels, including mobile, email, live chat, and social media platforms.
Educational Resources and Analysis
If you wish to progress your trading skills and develop the quality of your decisions, it’s a must to never stop the learning process. A reputable MTF should have generous educational resources, financial market research, and the best analytical tools on its platform to enhance your trading knowledge and decision-making capabilities.
Execution Speed and Liquidity
Instantaneous order execution and exposure to vast liquidity areas are two very important factors which need to be taken into account if one wishes to succeed in trading. Assess the provider’s ability to swiftly execute trades and provide ample liquidity, particularly for high-frequency trading strategies.
Security and Account Protection
When deciding on an MTF service provider, security should be a top priority at any time. Make sure the service provider uses well-structured security measures to protect your funds, personal data and trading information available to the market. Look for features such as encryption, two-factor authentication, and segregated client accounts to minimise the risk of unauthorised access or data breaches.
Additional Services and Features
Consider additional services and features offered by the MTF provider, such as demo accounts, social trading platforms, and customisable interfaces. These extras can enhance your trading experience and provide added value beyond basic margin trading facilities.
Conclusion
To put it briefly, selecting the best MTF service provider requires thorough consideration of various criteria, including regulatory compliance, margin requirements, trading and more. Lastly, perform in-depth research and analysis to identify the provider that best aligns with your trading goals and preferences, thereby minimising risks and maximising returns in margin trading. Stay informed, exercise due diligence, and adapt to the ever-changing market dynamics to thrive in margin trading.
Mona Patel, a renowned entrepreneur and philanthropist, has captured headlines with her remarkable achievements. Hailing from Vadodara, Gujarat, India, Patel embarked on her journey to the United States at a young age to pursue her entrepreneurial aspirations. She is a trailblazer in various fields, including business, education, and philanthropy. Her dedication to empowering women and supporting meaningful causes has earned her widespread recognition.
Remarkable achievements and relentless dedication mark Patel’s career trajectory. She holds an impressive array of qualifications, including a Bachelor of Science degree in Computer Science from Gujarat University, a Master of Science degree in Real Estate and Finance from the University of Florida, and a Master’s degree in Business Administration from MIT Sloan School of Management, among others.
Her professional journey includes pivotal roles in esteemed organizations such as Creative Choice Group, Select Radiology, Monalisa Properties, Teliradx, HauteX Ventures, M1 Imaging, CareFirst Imaging, Culture For Cause, and RadXai. As the Co-Founder, CEO, and CFO of various ventures, Patel has demonstrated exemplary leadership and innovation, contributing significantly to the business landscape.
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Mona Patel’s Net Worth
As of 2024, Mona Patel’s net worth is estimated to be approximately $1.2 billion. This substantial wealth is a testament to her entrepreneurial acumen and strategic investments across diverse sectors. Patel’s multifaceted business ventures have not only propelled her financial success but also enabled her to make a meaningful impact on society through philanthropy and social initiatives.
Mona Patel Age
Born on April 28th, Mona Patel’s age aligns with her dynamic personality and visionary leadership. As a Taurus by zodiac sign, she embodies qualities of determination, resilience, and creativity, which have been instrumental in her journey to success.
Mona Patel Family: Husband
In her personal life, Mona Patel shares a fulfilling relationship with her husband, Chintan Desai, a successful businessman. The couple exchanged vows on November 29th, 2007, and their enduring bond is evident through their cherished moments shared on social media.
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Mona Patel Height and Weight
While specific details regarding Mona Patel’s height and weight are not readily available, her towering achievements in business and philanthropy speak volumes about her stature as a dynamic leader and role model.
David Yong is the CEO of Evergreen Group Holdings, a prominent Singaporean businessman, lawyer, and K-pop artist. He owns over fifteen firms spanning various industries, including wood, real estate, food and beverage, lifestyle, and finance.
Yong began his career as a trainee lawyer before joining his family’s firm in 2014. He oversees over fifteen companies, diversifying his father’s company with a strong focus on the Indochina region under the corporate umbrella of Evergreen Assets Management.
David Yong’s Net Worth:
David Yong’s estimated net worth in 2024 is $16.7 million. His wealth stems from reported shares across multiple companies, including Processa Pharmaceuticals, Inc., and QUESTCOR PHARMACEUTICALS INC. He also owns fifteen homes in Asia and holds $90 million in cash.
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David Yong Age:
David Yong is 36 years old.
David Yong Family: Parents:
Yong’s father is Yong Ing Fatt, who laid the foundation for the family’s timber logging business in Indochina. David followed his father on business trips and learned the ropes of the industry from a young age.
David Yong Height and Weight:
There is no specific information provided regarding David Yong’s height and weight in the referenced content.
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