FAQ's

A. If you are a new user, you can Sign Up on Website using your Email ID. On signing up, you will get a verification link in an email on your registered email id. You need to click on the link to verify your account.
You cannot Login to your account unless you verify your email id.

A. If you are a new user, who signed up on the site and did not verify the Email ID, you will not be allowed to login, unless you verify your Email ID.
When you try to login the next time, immediately a verification link will be sent to you on the registered email id. Please verify the email id, and you would be able to login.

A. To login, you need to use correct User ID and Password. The User ID is case-sensitive, Example: Suppose your User ID is Rahul, but you enter rahul, it may not work. To retrieve your User ID and Password, you can use the `Forgot Password` feature, please follow below steps:

1) Go to the website and click on Login
2) On the login pop-up click on the `Forgot Password` link
3) Enter your registered Email ID
4) You will receive User ID/ list of all User IDs (in case multiple User IDs are linked to a single Email ID) with the Email ID
5) You will receive the User ID/ list of all your User IDs with `Reset Password` link for each

This email will also tell you, which of the User IDs have a verified Email ID.

In case you do not receive the email, please check your spam folder.

Note: You can now have only 1 Email ID against 1 User ID, you will have to update different Email IDs against the multiple User IDs you may have.

A. Currently this option of merging portfolio from different User Ids is not available with us, you can login with your username and password for all User Ids you have created on moneycontrol.com.

A. When you login using Facebook or Google, the Email ID used by you to create account on these websites, is passed to Moneycontrol, given below is how it works:

1) If the Email ID on Facebook/Google is different from what you use on Moneycontrol, a new account will be created, which has no connection with your existing Moneycontrol account
2) If the Email ID on Facebook/Google is same as you use on Moneycontrol, the User ID which you use most frequently (most used in last 30days) will get linked and you will be logged-in to your Moneycontrol account

This works best, if you have only 1 User ID against 1 Email ID registered on Moneycontrol. If you hold multiple User IDs against 1 Email ID, then one of your multiple User IDs will get linked.

Note: Do not worry, if you do not want to use Facebook/Google, you can continue to login with your registered User ID and Password as usual.

A. Yes Forpurposeengaging-broker to execute tradesyour behalftime to timefurnish details relating to yourself for enablingbroker to maintain client registration form you have to sign�Member - Client agreement� if youdealing directly"a broker In case youdealing through-sub-broker then you have to sign-�Broker - Sub broker - Client Tripartite Agreement� Model Tripartite Agreement between Broker-Sub brokerClients is applicable only forcash segment The Model Agreement has to be executedthe non-judicial stamp paper The Agreement contains clauses definingrightsresponsibilityClient vis-�-vis broker sub broker The documents prescribedmodel formats The stock exchangesstock broker may incorporate any additional clauses"these documents provided thesenot"conflict"anythe clauses"the model documentas alsoRulesRegulationsArticlesByelawscircularsdirectivesguidelines

A. Yes He can bid"a book-built issue for-value not more than Rs1,00,000 Any bid made"excessthis will be considered"the HNI category

A. As percyber rulesGovernmentIndiathis facility is not provided Only"casebook building issues,brokers can bid onlinebehalfsubscribers

A. Yes The investor can change or revisequantity or price"the bid usingform for changingrevisingbid that is available along"the application form However,entire processchangingrevisingbids shall be completed withindateclosurethe issue

A. In casefixed price issues,investor is intimated aboutCANRefund order within 30 daysthe closurethe issue In casebook built issues,basisallotment is finalized byBook Running lead Managers within 2 weeks fromdateclosurethe issue The registrar then ensures thatdemat credit or refund as applicable is completed within 15 daysthe closurethe issue The listingthe stock exchanges is done within 7 days fromfinalizationthe issue

A. This dependsthe underlying instrument that-mutual fund invests inbasedits investment objectives Mutual funds that invest"stock market-related instruments cannot be termed risk-free or safe as investment"sharesinherently risky by naturewhereas funds that invest"fixed-income instrumentsrelatively safethose that invest only"government securities aresafest

A. Yes Investorsopen-ended schemes can redeem their unitsany business dayreceivecurrent market valuetheir investments within-short time period (normally three- to five-days) Investorsclose-ended schemes can redeem their units onlymaturitycan sell it"the secondary market like stocks

A. A mutual fund is required to despatch tounitholdersdividend warrants within 30 daysthe declarationthe dividendthe redemption or repurchase proceeds within 10 working days fromdateredemption or repurchase request made byunitholder

In casefailures to despatchredemptionrepurchase proceeds withinstipulated time periodAsset Management Company is liable to pay interest as specified by SEBItime to time (15 at present)

A. Consideringmarket trendsany prudent fund managers can changeasset allocation ie he can invest higher or lower percentagethe fund"equity or debt instruments compared tois disclosed"the offer document It can be done on-short term basisdefensive considerations ie to protectNAV Hencefund managersallowed certain flexibility"alteringasset allocation consideringinterestthe investors In casemutual fund wants to changeasset allocation on-permanent basistheyrequired to informunitholdersgiving them option to exitscheme at prevailing NAV without any load

A. Yes Howeverno change"the nature or termsthe schemeknown as fundamental attributesthe scheme egstructureinvestment patternetc can be carried out unless-written communication is sent to each unitholderan advertisement is given"one English daily having nationwide circulation and"a newspaper published"the languagethe region wherehead officethe mutual fund is situated The unitholders haveright to exitscheme atprevailing NAV without any exit load if they do not want to continue"the scheme The mutual fundsalso required to follow similar procedure while convertingscheme form close-ended to open-ended scheme and"casechange"sponsor

A. Policy holders can chooseform"which they want their policies issued � paper or electronic A policy can be bought or maintained"one form only � either"electronic form or papernot"both However,-policy holder can choose to keep some policies"electronic formothers"paper form � onlyelectronic policies will be reflected"his e IA accounthe can use repository services only fore policies (and notpaper policies)

A. Noonly entities approved by Insurance RegulatoryDevelopment Authority (IRDA) can becomeInsurance Repository

Insurance Companies cannot set upInsurance Repositorytheir own nor can they hold more than 10 stake"any Insurance Repository

A. Yesyou can take health insurance plan for your parents whosenior citizen Now-day�s so many insurance company has designed product especially for senior citizens Youalso eligible to claim tax deduction us 80D upto Rs 20000- PA if you pay premium for them

SourceCAMS

A. No IRDA stipulates thatindividual can have only ONE e Insurance Account across Repositoriesirrespectivethe numberpolicies owned by-policy holder � thusif-person hase IA"say Repository A,"any other Insurance Repository All Repositories will have systems"place to check this before openinge IA � any application for-second or multiple e IA will be rejected byInsurance Repository Allelectronic policies owned by-policy holder can be credited or held under this single e IA
n Source CAMS

A. Yes,e IA can be operated byaccount holder only during his life timeunless,coursehe has been unfortunately rendered incapable to operate it (incapacity due to mentally unsound means or terminally ill as certified by-medical practitioner) In such circumstances,e IA may be operated byAuthorized Representative (AR) appointed byaccount holder (pl see below for details)

The account holder is strongly advised to keeplog In IDpassword for online accesshis e IA confidentialnot share it"anyone else

A. Availinga temporarily discounted home loan without taking-protracted viewone�s financial position is not advisable One should be awarethe manner"which one�s finances will be affected afterteaser period is overreal-time lending rates kick in

A. That dependsone�s actual objectiveslevelneed If one is-first-time home buyerattempting to timemarket makes little sense Any correction will be-brief phenomenon,prices inevitably rise again This is-risky game that only investors should play

A. The stampsrequired to be purchased"the nameany onethe executors toInstrument

A. Yes,-POA can be either revocable or irrevocabledependingwhat sorta POA one has made

A. Several optionsavailable for saving capital gains For example,"the first place invest"a residential house property or-flat to make investment so as to see that capital gainsexempted Likewiseif-person were to makeinvestment"REC or NHAI bonds then also he enjoys complete exemption fromlong-term capital gain payable by him"respectcapital gains due

A. Investments are made to achieve financial goals in future. An investment is expected to earn an estimated rate of return which will help you pay for your needs in future. Hence your investments should be purely based on factors such as your financial goals, your risk profile and time in hand.

An investment can always help you to save tax. For example, an investment in tax saving bank fixed deposit fetches you a tax deduction up to Rs 1.5 lakh under section 80C of Income Tax Act. However that should not be the sole criterion to invest. Consider a situation- Suresh is in his early thirties and has no financial liabilities. He intends to save for his retirement which is due 25 years from now. He should ideally be taking a bit more risk and investing in equities. Equity mutual funds and not fixed deposits is a better prescription for his financial goal of retirement. If keen to save on tax, he should ideally be in tax saving mutual funds and other diversified equity funds.

Also, the attitude of investing for the sole purpose of saving tax makes many individuals myopic. Investments have to be done regularly. But when one joins the 'tax saving' band-wagon, he invariably ends up investing in last week of March, and in many cases, ends up buying something that does not serve his long term financial goals.

Better take all round view of your finances while investing. Tax can be one of the parameters of the checklist you use while investing, not the sole parameter.

A. Averaging or buying more is a typical action most traders and investors undertake when they trade or invest. Averaging down means buying more when the stock is going down contrary to expectations and averaging up means buying more when the stock is going up in the desire direction. Let us understand this with relevant examples.

Suresh bought shares of XYZ company at Rs 100 with a view that the price will touch Rs 125 in a month. However, soon after his purchase the stock tumbled to Rs 98, so he added more to his kitty. The stock further went down to Rs 95 and he bought more. Here he is said to be averaging down.

Ramesh bought shares of PQR company at Rs 100 with a view that the price will touch Rs 130 in a month. Soon the stock hit Rs 105 mark and he bought more and he further added to his position when the stock crossed Rs 107 mark. He is averaging up in his trade, says the market jargon.

The logic offered by a trader who is averaging down is that the average cost of the holding goes down and the trader makes big profit when the price gains. However, an attempt to average down can be a loser's game. When the stock price moves contrary to expectation, the trader may have got his analysis wrong. A call that has gone wrong can further wipe out trader's capital. The hope that the price will rebound make many traders add to their losing position which further aggravates overall losses if the price does not respond favourably.

Hence market wisdom says that one should further add to the winning positions. If a trader is making money in a trade, it makes sense to add more to that position. If he has bought a share and the share is in bullish phase, he should ideally buy more than feeding capital to a loss making position.

The old adage of cut your losses and let your profits run is to be kept in mind when one trades.

A. It is a dream of every investor to buy low and sell high. Where do you see a stock available low? - Obvious answer to this question is to go for list of stocks quoting at 52 week low. Exchanges and media both are quick to offer this list which makes it a low hanging fruit for many. But the reality can be way different. One may not necessarily get a good 'buying opportunity' when he is looking at a stock quoting at 52 week low.

To understand the risk one is exposed to when he buys a stock just because it is quoting at 52 week low, we should understand how the 52 week low stock list is made. When a stock's current price is lowest as compared to the prices it has quoted over last one year, the stock is included in this list. However that does not mean the downside in the stock is over. The stock price can tumble further the next day and it will again appear in the 52 week low list for that day. A stock in downward trend will keep appearing in the 52 week low list for many days. And one may not make any money buying a stock which is moving down because the business fundamentals of the company are ruined.

Classic example of this is the downfall in technology stocks post dot com bust. The stocks were in downtrend for months and ruled 52 week low list for long period of time, before disappearing from the trading screens. If one would have bought into one such name just because it is quoting at one year low, he would have lost his capital.

Technical analysts treat a stock hitting a new low as an opportunity to further sell that stock, as the stock quoting at new low confirms continuation of bearish phase. Fundamental analysts do look at stocks quoting at low prices, but they seldom buy them. The buy action in stocks quoting at 52 week low by a fundamental analyst, is generally backed by solid analysis of the business fundamentals of the company. Hence it pays not to solely rely on 52 week low price as a good buying price for a stock.

A. It is tempting to buy 1000 shares of a stock that is quoting at Rs 3 than to buy one share which is quoting at Rs 3000. For some the thrill of buying hundreds of shares (large quantity) pushes them to buy a penny stock - a stock quoting at an absolute low price. For some Rs 3 is very cheap and accessible whereas Rs 3000 is too costly to buy. Whatever be the reasons, many individuals are seen chasing the next Infosys and next Larsen & Toubro. However, chasing penny stocks just because they are quoting in single digits may not be a wise idea.

The first logical reason is - a stock that has done well and is expected to do well is preferred by most investors which is why it quotes at 'high' price whereas shares of a company that has not done well and may not have a great future languish at low levels. No wonder penny stocks in most cases disappear from the trading screens than making it to the top – it is an unwritten law of the market. It is not necessary that the story you heard of someone buying thousands of shares of a stock at Rs 8 and then selling it at Rs 1000 has to be false. But it is the exception that proves the law.

The second reason why a penny stock may not be cheap as compared to a high priced stock is the price it commands may not be true representative of the underlying value. For example, a company which has gone bankrupt may have its shares trading at Rs 5, when in reality the value of these shares may be closer to zero. A company that is doing extremely well and growing 30% year on year will see the stock prices zooming over a period of time. A share quoting in thousands - say Rs 5000, may actually worth much more and hence appear on the buy list of most analysts.

If one looks at valuation parameters such as price to earning, price to book value; many penny stocks appear costly, whereas high priced shares may appear much cheaper. For example, a stock quoting at Rs 5 may have earning per share of 5 paise, which boils down to price to earning ratio (P/E) of 100. A stock quoting at Rs 5000 may have earning per share of Rs 100, which means the stock is quoting at P/E of 50. Higher the p/e costlier the share. Put simply, in aforesaid case, share priced at Rs 5000 is actually cheaper than Rs 5 share and may have better prospects too.

Never buy a penny share because it is quoting at low price. Buy one if you know the business prospects - buy value and not the price, says the old wisdom.

A. When markets are in bull phase, most investors ask for the best performing stock or the best performing mutual fund scheme. If a scheme has given 100% returns in past year, it is the best bet for them. But in reality one should look at the ability to contain downside as much as the ability to generate returns in the upside.

The old adage says that today's investor does not benefit from yesterday's returns. If an investment has shown good appreciation in the past, that does not make it necessary that it will keep giving similar returns in future. Hence there is no point focusing too much on returns generated by an investment. An investment that has done well in the past, may actually post a loss in future. For example, an individual who invested in January 2008 in equities looking at spectacular returns posted in CY2007, have lost money in CY2008.

Downside cannot be ruled out altogether in financial market, and especially in volatile asset classes such as equity one has to be very careful. Consider this - a stock has fallen to Rs 40 from purchase price of Rs 100. In this case the investor is sitting on a loss of Rs 60 or 60%. Now if he wants to recover the loss, his investment must show a gain of 150% and not 60%. An investment that contains downside helps the investors in bad times. Aforesaid example makes it clear that the required rate of return to recoup losses is higher than the rate of loss. Do look for investments that offer high returns, but do not ignore how they are expected to behave in bad times.

A. Incomethe applicant isimportant factor forbanks while ascertaining if they want to lend toindividual Higherincomebetter it is forloan applicant Loan sumstypically-functionthe take home incomethe consistencythe income

A. Banks typically fundto 80 to 85the home value Even ifincomethe loan applicant supports offering more loan banks do not go beyond their threshold limit Banks first expectproperty buyer to bring"his contributionhis own funds,the remaining money is lent bybanks In casecommercial property,banks typically fund only upto 50 to 60the property valuesubject to fulfilling other eligibility criterion

A. A bank may tie up"a partner such as airlineretail chainmovie exhibition chainissue-credit card that offers specific loyalty programmes or member reward programmes for expenses incurred at partner offerings Such cardscalled co-branded cards

A. Banks offer short term loans againstfixed deposits The tenurethese loanstypically less thantenurefixed depositscharge 1 or 2 more rateinterest thanrateinterest at whichfixed deposit is made Banks also offer overdraft facility against fixed deposits

A. Credit card issued against-fixed deposit"the bank is called secured credit card Unlike other credit cards,do not issued against collateralapplicant must keep-fixed deposit"the bank Bank then issues him-credit card"a credit limit less thanamountfixed deposit Such credit cardsused by those individuals who have-low credit score or have adverse remarkstheir credit report to build-credit history Ifcredit card holder defaultsthe credit card bill,bank foreclosesfixed depositrecoversdues