Connect with us

Finance World





The security market is a place where securities/stocks are bought and sold. The securities are the financial instruments or contracts that are evidence of ownership of assets of an incorporated entity. When a person wants to invest his money in the financial market, he can choose from a range of options like equity shares, preference shares, debentures, bonds, and other such instruments. Companies, financial institutions, or the government issue these instruments. The buyer of these instruments are owners of the instruments, and they are called investors. The investors convert their savings into financial assets that give a return. Such investments are long term investment.

The components of Indian financial market are:

The securities financial market in India consists of the following:

  • Investors (Buyers of securities)
  • Borrowers (Seller of securities)
  • Intermediaries (provide infrastructure to facilitate the transfer of funds/ securities)
  • Regulatory bodies (responsible for the orderly performance of the market)

 There are two ways through which a person can earn money or generate returns from the stock market. They are

  1. Trading
  2. Investment

Trading Vs Investment

A table can give more visual clarity to readers, here we will see what trading and investing in the stock market means from this table

MeaningPlacing short-term bets to profit from the difference between the buy price & sell price.Allocation of money to purchase an asset with a varying underlying value.
GoalTo earn profits during the trading time.To receive small returns for the long term from dividends or by gaining returns through price appreciation.
TimeWithin 1 to 2 days.For a longer period, it can be for a lifetime, too.
AnalysisTechnical chart analysis in combination with market sentiment.Complete top-down analysis of the Economy, industry, company, and a deeper analysis of the company’s financial performance.

While trading will benefit those who need immediate, short-term profits speculating short-term price movements in the market, investing requires a higher level of rigor in terms of analysis. Still, the returns are stable and consistent if the company is efficient.

While investing, we must put additional effort into Research- collecting data from various resources. The analysis- processed data to make decisions; let’s find out if the efforts are worth it.

A Clear Example

We will analyze how investing is better than trading in this part of the article. Let us take the example of Ashok Leyland and compare the return it generates every day for a year with the return it generated while holding for the same period of 1 year, without selling.

In the chart we can see the returns on Ashok Leyland for each day from June 2022 to June 2023. There is a random fluctuation in the return trend and no stability. This randomness puzzles an investor on when to take a buy/sell call.

If the same person wish to hold it for a year:

The holding period return for Ashok Leyland from June 22 to June 23 is 9%.

Now, if that person invested Rs.1,00,000 in June 2022. He will get a return of Rs.9000 after a year, which is a very good return percentage compared to a FD in a bank which gives a fixed return of less than 9%, but contains fewer risks compared to investing in equities.

While we discussed a real-time example of Ashok Leyland, we will investigate why to opt for long-term investment compared to short-term trading:


Market volatility is a statistical measure of returns for a given security or market index. Volatility is often measured from the standard deviation between the returns of the same security or with a market index. It says how much a market price fluctuates around the mean price. While large-cap stocks are less volatile owing to their stable nature, small-cap and micro-cap stocks are more volatile. Beta coefficients and standard deviation returns can measure volatility. While volatility goes up and down in short-term investment, there is less volatility while investing in long-term and higher returns.


Dividends are returns an investor gets for investing in a particular company. The Board of Directors decides to issue dividends paid every quarter in cash or in the form of additional stocks.

For long-term investors, Dividends are the minimum assurance that they get a partial return for their investment. The markets can go up or down, but an investment made in a dividend-paying company promises minimal returns.


Long-term investment requires a deep analysis of all factors correlated to the company, which includes Economy, Industry, and deeper company analysis. It includes analysis of qualitative parameters, quantitative parameters, and valuation parameters.

Qualitative analysis

The qualitative analysis includes

  1. Understanding business, business model
  2. Demand – supply gap in the industry
  3. Competitor analysis
  4. Quality of management
  5. Shareholding pattern
  6. Swot analysis of the company

Quantitative analysis

While the Quantitative analysis includes

  1. Equity History
  2. Revenue growth
  3. Profitability
  4. Cash flows
  5. Return track record
  6. Capex plans for future

Valuation parameters

The valuation parameters include

  1. Finding intrinsic value
  2. Valuation parameters
  3. Reasons for mispricing/ likelihood of a correction.

So, when an analyst explores all the above factors, they get a crystal-clear picture of the company he will choose for himself or his client.


  1. Potential of compounding

Warren Buffet once said, “Our holding period is forever.” This is one of the main reasons for the magnificent success of various investors who have invested long-term.

  1. Less risk

Risk is associated with any investment, but the risk gets ruled out when the investment is done for extended periods, especially in equity investment. The reason is, if a company is chosen after a deep analysis it will have price appreciation in long-term.

  1. Lower transactional cost

Brokerage firms apply transactional costs for every transaction made. The lesser the transaction numbers, the lesser the price we must pay brokerage firms.

  1. Less anxiety over market volatility

When a person trades or invests over a short time, fixing all the senses over it is necessary to avoid losing money. But in long-term investment, the anxiety over the price fluctuation is almost ruled out, and the investor can have peace of mind.


As we discussed securities markets is a place to invest money. While trading or short-term investment involves technical analysis of charts, long term investment on the other hand involves deeper range of analysis. The return earned by an investor is constant and growing in long term investment compared to short term investment. For an investor to gain good returns, take lower risks, save transactional costs and above all to achieve tranquility it is worth considering long term investment as one’s financial goal!

To know more about financial goal planning visit

Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

Continue Reading

Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

Continue Reading

Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

Continue Reading