NAMindex Derivatives LLP is a Limited Liability Partnership business. This business help clients to invest in the Indian stock market using derivative products to earn a sizable return.
As Indian stock market is doing well and many businesses are picking up on the upward trend, the future for Indian market investment look very promising. The new stable government and its affirmative plans for growth are good news for investors.
We envision for our clients, a safe scenario in the Indian stock market and their financial investments, with more earnings and peace.
We are driven by a bunch of positive missions that ensure we meet our visions. We aim to conjure a well-informed and trusted relationship .
We have garnered our expertise to put together a list of great services right from education of the derivative trade basics to the management of hefty investments. Take the Tour to find your cup of tea - or necessi-tea.
NAMindex Derivatives LLP is a start-up Limited Liability Partnership business. NAMindex Derivatives is a registered LLP under RoC Kerala and is a legal entity (LLP Identification No: AAC-9793). A Limited Liability Partnership (LLP) is allowed by Indian Government through Limited Liability Partnership Act 2008.
Never heard about Derivative Trading before? We are here to enlighten you.
Buy and sell shares without being burdened by the sweat of it.
Invest in a share with other great investors like you.
Going smart and digitally equipped has become indispensable today.
Do safe trading through currency derivatives.
Buy and sell the equity derivatives AKA futures and options and gain.
Get to know the basics!
1. What are Demat and Trading accounts?
In India, shares and securities are held electronically in a dematerialized (or "Demat") account, instead of the investor taking physical possession of certificates. A Demat account is opened by the investor while registering with an investment broker (or sub-broker).
A trading account is used to place buy or sell orders in the stock market. The demat account is used as a bank where shares bought are deposited in, and where shares sold are taken from.
2. How to earn extra returns from existing investments?
Lot of investors makes long term investments by keeping money in assets like Shares, Mutual Funds, Fixed Deposit, and Property etc. They can use these investments to earn extra income by using Derivative products.
Lot of long term investors buys shares and mutual funds thinking that they can make good returns. These securities will be in their demat account for so many years. They may receive dividend if declared from shares and mutual funds. Normally dividend yield is not that high.
Example: A long term investor bought shares worth as 20 lakh in January 2014. He received 60000 Rs dividend in 2014. Dividend yield is 3% which is below the risk free rate of 8%.
During this one year, there would have been lot of movements in the markets in both directions. There are a lot of opportunities in the market to make extra money. Normally long term investor never gets involved due to fear factor, lack of fresh fund etc.
Can an investor make extra money from existing share / mutual fund / Property investments without raising extra fund, without taking big risk?.
The answer is ‘YES’. But how it can be done?
Using ‘DERIVATIVES’ .
3. What are Derivatives?
A derivative is a financial product with a price that is depended upon or derived from one or more underlying assets.
The derivative itself is a contract between two or more parties based upon the asset or assets.
Its value is determined by the fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rate and market indexes.
4. What is Derivative Trading?
For derivative Investment, investors can use existing investments and not necessarily look for fresh capital.
Because the investor makes derivative investment through NSE (National Stock Exchange); the biggest stock exchange in India - there will not be any counter party default risk.
Derivative trading offers better returns compared to normal share trading. To buy derivative trades, there is no need to pay the full amount for the positions; it only requires keeping margin amount which is normally a third of the full amount of the positions. As investors are required to keep only the margin, more positions can be bought which increases the returns.
To take positions using derivatives, investors just need to provide Margins. It can be in the form of Cash, Shares, Mutual funds, Bank Guarantee etc. An investor, who got shares / mutual funds with him, can provide these securities as margins. So there is no need to raise fresh cash.
Note: Margin is the amount exchange collects from investors to prevent any of the parties from defaulting on his trade commitment.