Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are two primary avenues through which capital flows across borders. Both differ fundamentally in intent, execution, and impact. In this article, let’s explore both market participants more deeply.Foreign Direct Investment (FDI)FDI is considered the backbone of many economies. It represents a foreign investor’s commitment to another country’s productive capacity in factories, offices, and jobs by acquiring a particular percentage of a company's stake and influencing the company's management to the investors.FDI usually occurs when a company establishes a new subsidiary, merges with a local firm, or acquires a significant portion of a stake in an existing business.The FDIs have a minimum of 10% ownership and have become a standard benchmark for FDIs, signalling intent to influence or manage operations rather than profit from them.Why does FDI matter in India?FDIs naturally bring large foreign capital inflows to the country, and they agreed to transfer their technology, skills, and global market access to India.To gain their FDI status, FDIs hold a large percentage of the company's stake, at least 10%.Example:Consider an MNC like Foxconn, which is setting up a manufacturing hub in India. It’s not just about cheaper labour.

Dematerialization is the process of converting physical shares held in papers (share certificates) into electronic format. Have you ever wondered how owning a piece of a company went from holding a paper certificate to just checking an app? That’s what the dematerialisation of shares is, turning those old papers into digital records you can keep safe and use easily. Let’s break it down so you can see how it works and why it matters.What is the Dematerialization of Shares?Dematerializing shares is a modern way of saying you’re turning your share certificates on old paper into digital ones. Back then, if you owned part of a company, you got a piece of paper to prove it. Those papers are being swapped for electronic records in a special demat account.

India’s stock market has recently seen wild roller-coaster moments, with the Sensex and Nifty seeing a downfall, leaving investors stunned and headlines screaming. Fuelled by scams, global chaos, or unexpected curveballs, these crashes have shaped the financial landscape. Let’s dive into India's biggest stock market crashes, unpack their triggers and fallout, spotlight the steepest single-day drops, and weave in some fresh, trending topics shaking up markets in 2025.What’s a Stock Market Crash?Assume that stock prices plummet like a stone off a cliff, driven by fear, bad news, or a domino effect from across the globe. In India, the market's pulse is the Sensex and Nifty. A crash isn’t just numbers.

Pre-IPO shares are just another name for those pre-public stocks. They’re sold in private deals to give investors early access to a company’s equity, often at a bargain. The dream is simple, if the company succeeds after its IPO, its shares could skyrocket. But since they’re not on public exchanges, they’re tough to offload if you need quick cash. Investors in this game usually play the long haul, banking on a big payoff when the company finally lists.What is pre-IPO?Pre-IPO refers to the phase where the private companies offer their shares to a select group of investors before going public through an Initial Public Offering (IPO).

Equity-Linked Savings Schemes are called as ELSS funds in short, these are the only tax-saving mutual funds that primarily invest a minimum of 80% in equities. They offer a tax deduction under Section 80C of the Income Tax Act of upto 1,50,000 with a short lock-in period of 3 years.Why ELSS Mutual Funds are Best For Tax-Saving Option?Investing in ELSS mutual funds comes with the dual benefit of tax deductions and wealth accumulation over time. ELSS mutual funds have a lock-in period of just three years, the shortest among all other tax-saving investments considered under Section 80C in India and having the potential to offer the highest returns among all other 80C options.What is an ELSS fund?An ELSS funds or an equity-linked savings scheme in mutual funds are the only kind of mutual funds which eligible for tax deductions under the provisions of Section 80C of the Income Tax Act, 1961. You can claim a tax rebate of up to Rs 1,50,000 and save up to Rs 46,800 a year in taxes by investing in ELSS mutual funds.ELSS mutual funds asset allocation is having a minimum of 80% of their portfolio made towards equity and equity-linked instruments while the remaining may have exposure towards debt. These funds come with a lock-in period of just three years which is the shortest among all Section 80C investments options.

Margin trading is a facility where you buy stocks you can’t afford. You can buy stocks by paying a marginal amount of the actual value. This margin is paid either in cash or in shares as security. Margin trading can be considered leveraging positions in the market either with money or security by investors. Your broker funds your margin trading transactions. The margin can be settled later when you square off your position.

Equity-Linked Savings Schemes (ELSS) mutual funds are a great investment option for investors who want to generate wealth, earn regular returns, and save taxes. These funds are excellent tax-saving investment options that you can opt to generate profits in the long run. What is an ELSS Mutual Fund?Equity-Linked Saving Scheme (ELSS), commonly referred to as tax-saving funds, mainly falls under the diversified category of mutual funds. While their minimum exposure (80%) is into equity and equity-oriented securities, a part of the remaining corpus is also invested in debt instruments.ELSS is covered under the Section 80C provisions, and therefore, you can claim tax deductions of up to Rs 1,50,000 a year. This will help you save up to Rs 46,800 on a financial year in taxes. These funds come with a mandatory lock-in period of three years, which is the shortest among all other 80C options.How ELSS Mutual Funds WorksEquity-Linked Savings Schemes (ELSS) are mutual funds that primarily invest at least 80% in equities. The fund manager and his research team will research equity and debt instruments and invest for you with proper diversification and risk management.These funds offer tax benefits under Section 80C of the Income Tax Act, allowing annual deductions of up to Rs 1.5 lakh.

In the world of trading, the potential to make money from the market is endless, but as a trader requires more than just a basic understanding of the markets, identifying Candlestick patterns that signal market trends is essential for making trade decisions. One of the Bullish candlestick patterns is the Bullish Engulfing Pattern, it is a reliable pattern in the technical chart when it comes to the traders to predict market reversals.This candlestick pattern often appears after a downtrend and gives signals of the potential for a price increase at a particular level as buying pressure overpowers the selling pressure.Whether you’re trading stocks, forex, or cryptocurrencies, understanding and correctly identifying the Bullish Engulfing Pattern can give you an edge in spotting opportunities. Let’s explore what is the Bullish Engulfing Pattern, why it is important, and how to find and trade on it.What is the Bullish Engulfing Pattern?The Bullish Engulfing Pattern is a two-candlestick pattern that occurs when a smaller bearish (Downward) candlestick is followed by a larger bullish (Upward) candlestick. The second candlestick completely "ENGULFS" the body of the first one, signaling that buyers have taken control of that stock over the market suggesting the potential start of an upward trend.Key CharacteristicsFirst Candle: A small red bearish candlestick showing a price decline.Second Candle: A larger green or bullish candlestick that engulfs the entire body of the first candle.Market Reversal: The pattern indicates a potential shift in momentum from selling to buying.Understanding the Formation and SignificanceThe Bullish Engulfing Pattern consists of two candles, the first is a small red candle indicating a downtrend, followed by a larger green candle that completely engulfs the red one.The pattern is often seen as a signal that buyers are gaining momentum after a period of continuous selling, and it suggests that the price may rise, marking the beginning of an upward trend.This pattern can occur during both downtrends and uptrends. While it is more common and effective when formed after a downtrend, it can also appear in an uptrend to signal a continuation.Example: When the price falls during the first candlestick and then rapidly rises during the second, it shows that bulls have overpowered bears, suggesting a reversal of the previous downward trend.Why the Bullish Engulfing Pattern is ImportantThe Bullish Engulfing Pattern holds significant importance for traders and analysts in their lives while taking any positions due to its ability to forecast market reversals, especially in a downtrend.

When companies or entities issuing debt instruments want to raise funds, they ‘borrow’ from investors. In return, they promise a steady and regular interest. This is how debt instruments work in simple terms.What is a Debt Fund?Buying a debt instrument can be considered as lending money to the entity issuing the instrument. A debt fund invests in fixed-interest-generating securities such as corporate bonds, government securities, treasury bills, commercial paper, and other money market instruments. Mutual funds invest in debt funds mainly to earn low-risk, steady income and capital appreciation. The issuers of debt instruments will pre-decide the interest rate you will receive and the maturity date of those.How do Debt Funds Work?Debt funds invest in various securities based on their credit ratings.

Nifty 50 is one of the benchmark indices that represents the Indian stock market globally. It consists of India's top 50 traded companies listed on the NSE and is the flagship of the NSE. Let's understand Nifty, how it was calculated, and how it works.What is Nifty?Nifty is the benchmark index of the National Stock Exchange (NSE). It comprises 50 top companies traded on the NSE based on free-float market capitalisation. Free float means shares are available for public purchase.