Here’s what millennials can do to make money from equity market

When the stock market was touching new highs in January 2018, Mumbai-based Vivek Mistry, 24, got tempted to invest in equities after completing his commerce graduation in 2017. He was keen to learn about investing in equities through experience.

But he didn’t have money to invest in equities. So, in March 2018 he borrowed Rs 1 lakh from his parents and invested in equity markets. That wasn’t his only mistake.

He decided to dabble in derivatives; he bought future contracts of some state-owned banks. But dismal state of state-owned banks (the news of the Punjab National Bank fraud perpetrated by now-fugitive diamantaire Nirav Modi had just been unearthed at the time) and the non-performing asset malaise in banks, in general, didn’t raise enough flags for Mistry who went ahead anyway.

Within two weeks of investing, Mistry lost Rs 50,000 as he decided to wind up his derivative positions. “I made a big blunder from my very first investments by trading in derivatives futures contract and not keeping a stop loss,” said Mistry.

When it comes to dipping fingers in equities, Mistry is not alone. For instance, smallcase.com, an online platform for equity investing, 40 percent of investors are under 27.

A smallcase is an investment instrument; each smallcase is a portfolio of stocks or exchange-traded funds that reflect an idea, theme or strategy. Smallcases platform can be found on brokerages like Zerodha, HDFC Securities, Kotak Securities, Axis Direct, Edelweiss and others.

Nearly 70 percent of stockbroking firm Zerodha’s customers are under 35.

Unfortunately, ease of technology doesn’t restrict youngsters from making crucial investing mistakes.

“Several millennial investors tend to follow the unprofessional approach like investing on random recommendations from friends / colleagues, following ace investors blindly, etc. while investing in equities and tend to register losses due to the short-term and mid-term volatility,” said Hitesh Chotalia, Head of Education at trading and investment institute, FinLearn Academy.

Stop listening to your friends; listen to professionals

One big mistake, experts say, that many commit while investing in equity markets is to listen to their friends, neighbours, uncles, aunts and everyone. Yet, we squirm when it comes to paying a fee for professional advice.

Pune-based Gaurav Kapoor, 25, followed a friend’s advice in October 2018 and invested his hard-earned money in penny stocks (those stocks whose share prices are less than Rs 10). He invested Rs 1.5 lakh after his friend had advised him to buy shares of small-sized companies on the back of expectations of rally in stock prices in this penny stocks.

But, in just two months, the value of Kapoor’s investment went down to Rs 25,000. He had learnt his lesson and later turned to a financial advisor who has now put him on a systematic investment plan of Rs 20,000 in a mid-cap mutual fund scheme.

Mrin Agarwal, financial educator and founder of Finsafe India said: “Most millennials don’t have the capabilities to analyse financials of the company, interpret the news. They often end up buying stocks on tips from friends / colleagues.”

Buy and hold is good, but learn to let go as well

An earlier Moneycontrol – CRISIL Research Ltd study published in January spoke of the merits of patiently staying invested through turbulent times.

The study pointed out that if investors who had invested in January 2007 in rising markets had panicked and redeemed in 2008 after the global market crash that happened on the back of credit crisis and had withdrawn at the end of 2008, investors would have lost 33 percent.

Those who had stayed invested till the end of the year of 2011, would have made a marginal gain of 4 percent. But if you had stayed on till the end of 2017, you would have made 16 percent. The study had considered the 20 largest equity funds at the start of 2007.

But that doesn’t mean you hold on to bad investments. Experts advise that when you buy equity shares directly, it’s better to have a stop-loss instruction in equities with a broker to sell a security after it reaches the price limit you had set.

Nithin Kamath, Founder & CEO of online stock broker, Zerodha said, “Having stop losses as a part of every trade will assist in being a disciplined trader without which some of the most common trading blunders will come to the fore. Stop losses need to be defined on a number of factors such as the maximum loss an investor is willing to take on a position, a risk to reward ratio, market volatility etc.”

Averaging stock price – not fruitful at all times

Often investors average the stock price by accumulating more quantity when the price of a particular stock from portfolio tumbles.

For instance, in 2017 Kinjal Shah, 25, residing in Mumbai decided to accumulate equity shares of Reliance Communications.

She invested on the back of reports that the firm was seeking a buyer for itself since it’s own debt levels were high. Her calculation was that if a suitable company acquires Rcom, the firm’s own share price would go up.

Happily, she started accumulating this stock at a price of Rs 32 per stock. The sale hasn’t yet happened, but in the meanwhile, Rcom’s share price has fallen to Rs 5.06 (as on closing price of 25th March, 2019). She kept on averaging the cost price by continuing with her investment in this stock.

She ended up investing Rs 50,000 and accumulated 1200 quantity of Rcom stocks. Shah says: “When I knew the company was not doing well. I should have not invested into it with certain assumptions or should have a stop loss while investing to reduce losses.”

CA Sameer Shah, CEO at Sameer Shah and Associates from Mumbai advised, “Millennial investor always needs to study the fundamentals of the company from annual reports, quarterly results and take a second opinion from research analysts who track the company before investing and accumulating the fresh quantity of the stocks.”

Mutual funds or direct equities; do SIP

If you don’t have the time or wherewithal to go through a company’s annual reports or cash flow statements, it’s best to stick to mutual funds. Numerous online platforms are available that help investors to invest in mutual funds.

Financial advisors and distributors also offer holistic financial planning to guide the millennials to invest across equities and debt.

Suresh Sadagopan, SEBI registered investment advisor and Founder of Ladder7 Financial Advisories said, “Millennials can commence investment if they are able to understand the schemes or else it’s recommended to take help of the financial advisor to identify goals and invest in a diversified portfolio analysing the risk appetite.”

Avoid the lure of direct plans in mutual fund schemes if you are just starting out. These are plans that facilitate investors to invest in mutual funds without any distributor in the middle.

Hence, direct plans come with a lower expense ratio as distributor fees are not embedded in them. Regular plans have distributor fees embedded in them as they are sold by distributors. But trying to save a bit of cost here and you risk of losing much more if you end up investing in the wrong mutual fund scheme by yourself.

But SEBI registered investment advisors can sell direct plans if you are opt for their fee-based financial plan; a much safer way to invest in equities.

Kamath said, “One of the easiest ways today to get started for millennials is SIP in mutual funds, more specifically index funds. It can be something as simple as a combination of Nifty 50 + Nifty Next 50 index funds.”

Financial experts say that as you gain some experiences and survive at least one market cycle, you can slowly consider part of your overall portfolio investing in direct equities after having exposure in index funds and mutual funds initially.

If I sell equity soon after I buy, I am gambling

A large section of investment population buys stocks in the morning and sells it in a day. This is called day trading and millennials should stay away from it.

Sadagopan said, “An investor in day trading might make money on one day and lose ten times the money on the next day. It’s not to be considered as an investment at all.”

Several millennials prefer taking a position in selected stocks for short term and plan to exit after achieving target price.

Amol Joshi, founder of financial advisory firm Plan Rupee Investment Services said, “It’s important to note that equity is affected by both micro and macro-economic factors. So, many things are not in control of investors while investing for a short period of time.”

[“source=moneycontrol”]

Here’s Why ‘Destiny 2’ Can’t Bring Back Year 1 Armor (Yet), And How To Fix That

Destiny 2Bungie

One common refrain among Destiny players is that it makes little sense to keep making old gear irrelevant at this rapid of a pace. When armor received random rolls in year 2, for instance, the solution was not to just give all current sets random rolls and actual perks, but instead to just leave them with…literally nothing, allowing only year 2 armor and beyond to roll with actual perks.

What this means is that everything players worked to earn in year 1 is functionally useless, because having armor with no perks is a recipe to be at a huge disadvantage in every activity. But that means leaving tons and tons of sets behind. Ones from every destination, old Eververse sets, sets from Zavala and Shaxx, from the raid and Trials and Iron Banner. Those damn Solstice sets that we grinded for ages for. None of that is useful, and even if you can require it from collections, there’s no actual point in doing so without perks.

The problem is that you can’t just flip a switch and grant everything rolls all of a sudden because of the way the current economy and acquisition system is set up.

Right now for say, planetary vendors, you can simply buy individual pieces of armor directly from them. Even if you disallowed random rolls on those pieces, you can also turn in materials for engrams, materials that Spider now sells for legendary shards. What that would mean is that it would only cost you a handful of shards to keep rolling and rolling and rolling for god tier loot with the exact perks you wanted, but changing the Spider economy would mess things up for say, infusion.

Raids, Trials, Eververse and Iron Banner stuff are each their own issues, but Bungie isn’t even attempting to try and find a fix for any of it. So I will, because this is just way, way too much stuff to leave behind, and the more stuff there is try and acquire, the more engaged players will be. More so than getting their 98th Tangled Web set, that’s for sure.

Destiny 2Bungie

Planetary Vendors – No longer sell individual pieces of gear, and no longer accept materials for random engrams. Give each a “heroic” bounty that gives out one piece of planetary gear a day (not powerful, just themed). Give planetary set rewards at the end of adventures that take place there. Have an increased chance to drop planetary sets when on patrol or running strikes in those areas. You could even add planetary gear to the Prime Engram loot pool so give Rahool more of a selection.

Raids – Just let people run the old raids and raid lairs and have gear drop like normal. You don’t get raid gear fast enough to make this a farming problem, so if people really want to hunt for good rolls on old gear this way, let them. Who cares.

Year 1 Crucible, Iron Banner and Vanguard sets – Allow players to pick between turning in tokens for old sets or new ones. If you want to encourage people to give the new set a shot, make getting the old set like, twice as expensive or something in terms of how many tokens gets you a piece. But it would still be a way to acquire stuff. Also periodically drop old gear as rewards in those activities.

Destiny 2Bungie

Trials – I do not have a great answer for this one. Given that Trials no longer exists, these sets may have to stay dead. You could do something crazy like offer Xur 150 shards for one random piece of Trials gear you’ve already acquired, now with rolls, but this is a tough one given that the activity is just not in the game at all.

Escalation Protocol – Literally nothing needs to change. Just let people keep grinding it for random EP gear, it’s probably the best damn armor in the game. I never completed it enough to get full sets back when it was relevant, but at 650 power I sure have now even with just a couple randoms, and it’s a bummer that gear is just pointless now (outside of the weapons).

Solstice Gear – Another tough one because this was a one-time-only event. At the very least, just give everyone random rolls on the pieces they still have. They might suck, but at least they’d have the potential to use them. I’m not sure how more rolls would work for these unless there was some sort of grand re-roll mechanic for everything, but that’s an issue for another day.

Destiny 2Bungie

Eververse/Holiday sets – You may have heard my philosophy that putting armor in Eververse at all is BS and all of this stuff should just be in the general loot pool. Put all old sets in there now with random rolls, and stop doing limited time only sets that are literally impossible to effectively farm for rolls.

The other, easier solution to all of the above is just to allow armor transmogrification, meaning you can pay some currency to make any rolled armor you want look like any piece of gear you’ve acquired. This may be the easiest fix if you don’t want to jump through all the above hoops, and I’ve already written about that extensively.

I don’t know if I’ve covered every old armor set in the game here, but that’s a good chunk of them. There is a way to make this work, and it really makes no sense that A) Bungie would take so time designing this stuff and B) players would take so much time earning it only to have be made irrelevant in a year’s time. That isn’t how loot-based games like this are supposed to work, and there are fixes here if Bungie wants to pursue them.

[“source-forbes”]

Mobile apps may or may not be collecting your child’s data—but here’s why you should assume they are

This week two democratic senators are calling on federal regulators to investigate if children’s apps are tracking their data.

Senators Edward Markey of Massachusetts and Richard Blumenthal of Connecticut sent a letter on Wednesday to the Federal Trade Commission, writing they are concerned that numerous apps are potentially violating the law.

Without explicit parental consent, it is illegal to collect data on children under the age of 13 according to the Children Online Privacy Protection Act, which went into effect in 2000.

This comes after last month when the New Mexico Attorney Generalsued the maker of app Fun Kid Racing, as well as the online ad businesses run by Google, Twitter and three other companies.

The suit accused the companies of violating the law, and that Google misled parents by allowing apps to remain in its Google Play store children’s section after it was notified by researchers that thousands of apps may be tracking young children.

“The problem is this – we don’t know where the onus lies,” New York Times reporter Edmund Lee told CNBC’s “On the Money” in an interview.

Lee says the law isn’t clear on whether it should be the platform such as Google or Apple to make sure the apps in their stores are complying with the law, whether it’s up to the game developer or if it should be up to the third party data firm tracking the data.

“So there’s a whole system in place that everyone keeps passing the buck and there’s no case law yet,” says Lee. “Even the legislation – it’s not entirely clear who is ultimately responsible.”

Fortnite

So what should a parent do if they are concerned their child is being tracked?

Lee says, “You should just assume it’s going to happen you should assume you’re going to be tracked.”

“Right now it’s the ‘Wild West’ there are very few protections, few sort of places of enforcement around it, and that’s why it’s hard as a parent and as a kid to navigate,” he added.

However, Lee notes most of these are harmless games, and the tracking data is used for advertising purposes, which is how these companies make money.

For parents worried about their child’s privacy – Lee says he tells his own daughter to keep her communication online only with people she knows.

“You’re not going to be able to look and know every single piece of data that’s being floated out there until there’s legislation and case law in place. But in the meantime make sure you know who your kid is talking to and it shouldn’t be strangers and it shouldn’t be someone they just met online.”

[“source=businessinsider”]

Xiaomi Mi A2 Set to Launch in India Tomorrow: Here’s Everything You Should Know

Xiaomi Mi A2 Set to Launch in India Tomorrow: Here’s Everything You Should Know

Xiaomi Mi A2 India launch live stream is scheduled to start at at 4pm tomorrow

HIGHLIGHTS

  • The Xiaomi Mi A2 launch event is scheduled to start at 4pm on August 8
  • It will be live streamed for fans to watch in real-time
  • Xiaomi will give 100 people who register for the live stream F-codes

Xiaomi Mi A2 India launch is scheduled to start in less than 24 hours, marking the entry of only the second Xiaomiphone part of the Android One initiative in the country. The new Mi A2 smartphone is the follow-up to last year’s Mi A1, and the company is emphasising its cameras in its social media teasers. Gadgets 360 has previously learnt the smartphone’s base variant, unveiled in Spain last month, will not be coming to the Indian market. Instead, the 4GB RAM and 64GB storage model will serve as the entry point for the new model. Also, the smartphone will be an Amazon exclusive in India. The specifications of the handset are already known, so the Xiaomi Mi A2 price in India will be the big draw for all the fans. Here’s what you should know about tomorrow’s launch:

Xiaomi Mi A2 live stream

The Xiaomi Mi A2 India launch is scheduled for 4pm IST, and there will be a live stream. However, the link is not yet live, and we will update this story as and when it becomes available. Xiaomi fans looking forward to the Mi A2 launch in India can register for the live stream on the official site and 100 of these registrants will win F-codes for the handset.

Xiaomi Mi A2 price in India, specifications

As mentioned above, the Mi A2 price in India is not yet known. The smartphone was unveiled with price tag of EUR 279 (about Rs. 22,500) for the 4GB RAM + 64GB storage variant and EUR 349 (about Rs. 28,000) for the 6GB RAM + 128GB storage option. While the former is confirmed to launch in India at tomorrow’s event, the company was said to be still deliberating on the latter.

ALSO SEEXiaomi Mi A2 vs Mi A2 Lite: What’s Different?

As for the specifications, the dual-SIM (Nano) Xiaomi Mi A2 runs an optimised stock version of Android 8.1 Oreo, certified by Google’s Android One programme, and sports a 5.99-inch full-HD+ (1080×2160 pixels) display with a 18:9 aspect ratio, 2.5D curved glass, and Gorilla Glass 5. It is powered by an octa-core Qualcomm Snapdragon 660 SoC, paired with an Adreno 512 GPU.

 

In the camera department, the handset sports a dual rear camera setup. It consists of a 12-megapixel Sony IMX486 with f/1.75 aperture and 1.25-micron pixels, and a 20-megapixel secondary Sony IMX376 sensor with f/1.75 aperture and a 2-micron 4-in-1 Super Pixel size. The rear camera setup comes with dual-tone LED flash and PDAF. On the front, the handset gets a 20-megapixel Sony IMX376 selfie camera with f/1.75 aperture, fixed focal length, and a soft-LED flash. There is a 3,010mAh battery under the hood, and the India variant will come with Quick Charge 4 for fast-charging support.

In terms of connectivity, the smartphone includes 4G LTE, Bluetooth v5.0, dual-band Wi-Fi 802.11ac, Miracast, an IR emitter, and USB Type-C. There is no 3.5mm headphone jack on the Xiaomi Mi A2. Sensors on the handset include accelerometer, ambient light sensor, gyroscope, and proximity sensor.

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Xiaomi Mi A2

Xiaomi Mi A2

  • KEY SPECS
  • NEWS
Display5.99-inch
Processor2.2GHz octa-core
Front Camera20-megapixel
Resolution1080x2160 pixels
RAM4GB
OSAndroid 8.1 Oreo
Storage32GB
Rear Camera20-megapixel
Battery Capacity3010mAh
BUY AT
  • Xiaomi Mi A2
    Launching 8th August
    Buy

[“Source-gadgets.ndtv”]