CURRENCY DERIVATIVES

Karvy Currency Derivatives Segment, a specialized group vertical within Karvy Stock Broking Limited, has been established in 2008 to cater to the growing needs of corporate houses to manage currency exchange rate risk. With the changing dynamics and increasing volatility of exchange rates across the globe, companies exposed to currency risk face the challenge of maintaining continued profit margins. Currency Derivatives would be one of the best options to manage any related exchange rate risk and be free from the worries of market uncertainties.

At Karvy Currency Derivatives Segment (CDS), we provide customized hedging strategies for importers, exporters and companies with foreign exchange exposure. We offer forex advisory and brokerage service for the Indian currency derivative market, and provide a robust and reliable online trading platform. Currency Derivatives Segment – Karvy Stock Broking Limited is an active member of the National Stock Exchange (NSE), Metropolitan Stock Exchange of India (MSEI) and Bombay Stock Exchange (BSE).

WHAT ARE CURRENCY DERIVATIVES?

These are options and futures contracts through which you can buy or sell specified quantities of pairs of currencies at a future date (which is predetermined). The price or exchange rate is decided on the date of purchase. The derivatives are similar to options and futures in the stock market, aside from the fact that currency pairs are the underlying assets.

Currencies are often traded in by banks and financial trading institutions. Individual investors can also trade in currency derivatives to take advantage of variations in currency exchange rates. The market for currency trading is one of the biggest and fastest growing in the world.

HOW DO CURRENCY DERIVATIVES WORK?

Trading in these derivatives gives you an option to trade in four foreign currencies which are pegged against the Indian rupee. You can trade through futures trading contracts for different foreign currencies through leading stock exchanges in India. However, foreign institutional investors and non-resident Indians cannot trade in this market.

Investors can hedge against foreign exchange risk and benefit from the rupee’s movement against major foreign currencies. There has been an increase in volumes of trading in currency futures over the years. The euro, Japanese yen, British pound and US dollar are the major currencies for which you can get currency derivatives paired with the rupee.

View  more at https://www.karvy.com/currency-derivatives

DISTRIBUTION OF FINANCIAL PRODUCTS

Don’t put all your eggs in one basket. Diversify your investments in a wide range of financial products and ensure safety and growth of your portfolio.

WHAT ARE FINANCIAL PRODUCTS?

Securities and investments created to provide buyers and sellers with short term or long term financial gains are known as financial products. These allow liquidity to circulate in an economy and risk to be spread. Many of the financial products are in the form of contracts that you can negotiate on financial markets. The contracts stipulate cash movement at present and in future, depending on conditions stated.

Financial products can help us grow the amount of money we have to meet various financial goals, such as retirement, children’s education, marriage and so on.

Before you invest in any financial product, you should learn about any potential risks, limitations, costs as well as other characteristics of the products.

TYPES OF FINANCIAL PRODUCTS

The number of financial products and services in India has increased multifold. It requires a lot of patience and skill to pick up the best suited option from this huge list of financial products available with us. Here are some of them:

MUTUAL FUNDS

A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. By investing in Mutual Funds, one can have benefit of diversification. Since they are managed by professionals, one need not track the markets regularly. It is regulated by SEBI, so the investor interests are also protected. It also offers flexibility of choosing the products from various categories like Equity, Gold, Debt and Money Markets. Most schemes being open ended, they also offer liquidity. One can invest in Mutual Funds either in Lump-sum (at one go) or through Systematic Manner (SIP).

NPS

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens.

CORPORATE FIXED DEPOSITS

There are various companies which offer Fixed Deposits and the rates on offer are generally higher than the rates offered by Banks. These instruments can be considered based on their rating, interest rates and the cash flows. The corporate fixed deposits are available for various tenures with Interest being paid Monthly, Quarterly, Half Yearly, Annually or at Maturity. Investors looking at regular cash flows and interested in fixed rate of interest can invest in these deposits.

CAPITAL GAIN BONDS

Capital gain bonds are another type of bonds available, where any person can avail exemption in respect of long-term capital gains (arising from the sale of long term capital asset other than equity shares and securities) if the capital gain is invested in Capital Gain bonds u/s 54EC. The exemption will be the amount of capital gain or the amount of investment made, whichever is less. Interest rate offered on these bonds is around 6% per annum.

HOW WE MANAGE YOUR FINANCIAL PRODUCTS

The paradigm shift from pure selling to knowledge-based selling drives the business today. With our wide portfolio of financial product offerings, we occupy all segments in the retail financial services industry. A highly qualified and dedicated team of professionals, drawn from the best of academic and professional backgrounds, are committed to maintaining high levels of client service delivery. This has propelled us to become one of the top distribution houses for equity and debt issues, with an estimated market share of 15% in terms of financial product applications and amount mobilized.

Read more at - https://www.karvy.com/distribution-of-financial-products

WEALTH MANAGEMENT SERVICES

It is not how exotic your portfolio is but how well it is structured to meet your objectives and give you regular returns whatever the economic environment.

Karvy, with over 25 years’ expertise in the financial markets, is offering comprehensive wealth management solutions for its customers through Karvy Private Wealth (KPW). Our wealth managers provide direction to a client’s financial decisions, enabling him achieve his financial and life goals. As a wealth manager, we collate the relevant financial information and life goals of the client, assess his risk tolerance level, examine his current financial status, and identify a strategy to fulfill his goals.

Wealth management is an all-encompassing service, providing comprehensive research-based advisory along with convenient and personalized investment execution. KPW offers an unmatched product basket, ranging from debt, equity, mutual funds, insurance, derivatives, commodities, structured products, international funds, art funds and real estate. It is a unique service aimed at transforming clients’ dreams into reality.

KPW was set up to cater to HNIs, keeping in mind that they require a different kind of financial planning and management. Our services include planning and protection of finances, planning of business and retirement needs, and a host of other services, which will help augment their existing as well as future finances and lifestyle. We combine a hard-nosed business approach with a soft touch of personalized attention and dedicated customer care.

Our research reports have been widely appreciated by the HNI segment. The delivery and support modules have been fine-tuned by giving our clients access to online portfolio information, constant updates on their portfolios as well as value-added advice on portfolio churning, sector switches, etc. Moreover, the investment recommendations given by our research team in the cash market have enjoyed a high success rate.

View more at https://www.karvy.com/wealth-management

Debt Advisory Services

Here at Karvy Private Wealth, we offer comprehensive solutions in the fixed income segment. We suggest debt investment options of various tenures and risk-reward profiles suitable to your portfolio.

DEBT MUTUAL FUNDS

· Gilt Funds: Gilt Funds invest in government securities of medium to long-term maturities. There is no risk of default and liquidity is considerably higher in case of government securities.

· Income Funds: Income funds are total return products, which means, the return is made up of both interest income and capital appreciation or depreciation, depending upon profits or losses. The value of bond held in a long term portfolio, changes with changes in interest rates.

· Monthly Income Plans: Monthly Income Plans are debt oriented hybrid funds which has around 70%-85% of the portfolio in debt and rest in equity

· Liquid Funds: Liquid funds invest in safer short-term instruments such as Treasury Bills, Certificates of Deposit and Commercial Papers for a period of less than 91 days. The aim of Liquid Funds is to provide easy liquidity, preservation of capital and moderate income.

· Fixed Maturity Plans: Fixed maturity plans (FMPs) are closed-end funds that invest in debt securities with maturities that match the term of the scheme. The debt securities are redeemed on maturity and paid to investors. FMPs are issued for various maturity periods ranging from 3 months to 5 years.

Read more at - http://www.karvywealth.com/debt-advisory-services