What is an IPO?
An Initial Public Offering (IPO) is when a company offers its shares to the public for the first time.
How can I apply for an IPO in India?
You can apply for an IPO using your demat account via your bank's ASBA facility or broker platforms like Zerodha, Groww, etc.
What is Nifty 50?
Nifty 50 is a benchmark index of the National Stock Exchange (NSE) comprising 50 of the largest and most liquid Indian stocks.
What is Sensex?
Sensex is the benchmark index of the Bombay Stock Exchange (BSE), comprising 30 well-established companies.
What is the lock-in period for IPO shares?
Retail investors have no lock-in. For anchor investors, there is a 30-day lock-in period.
How can NRIs invest in Indian mutual funds?
NRIs can invest using NRE or NRO accounts and need to complete KYC norms.
Is dividend income taxable in India?
Yes. If dividend income exceeds ₹5,000 in a year, it is taxable and subject to TDS.
What is capital gains tax?
Tax charged on profit from sale of stocks, mutual funds, or real estate. Rates depend on asset type and holding period.
What is considered long-term in equity investments?
Holding listed stocks for more than 12 months qualifies as long-term in India.
What is a demat account?
A demat account holds shares and securities in digital form. It's mandatory for stock trading.
Is trading in futures and options risky?
Yes. F&O is speculative, high-risk, and requires strong technical analysis and money management skills.
What is technical analysis?
Analyzing stock charts, patterns, and indicators to forecast price movements.
What is fundamental analysis?
It assesses a company's financial health, business model, and future prospects before investing.
What are blue-chip stocks?
Stocks of financially sound, reputable companies with consistent performance and stable returns.
What is an ETF?
Exchange-Traded Funds track indexes and trade like stocks on exchanges. Example: Nifty BeES.
What is P/E Ratio?
Price-to-Earnings Ratio shows how much investors are paying for ₹1 of a company's earnings. Used for valuation.
How much money do I need to start investing?
You can start with as little as ₹100 in direct stocks or mutual fund SIPs.
What is a multicap mutual fund?
Multicap funds invest across large-cap, mid-cap, and small-cap companies.
Is intraday trading profitable?
It can be — but it’s very risky and requires skill, discipline, and strategy.
Can I buy international stocks from India?
Yes, via platforms like Vested, INDmoney, or international mutual funds available in India.
What is an SME IPO?
IPO by a small or medium enterprise listed on the BSE SME or NSE Emerge platform.
How to avoid stock market scams?
Don’t follow stock tips from unknown sources. Always do your own research (DYOR).
What is a stop-loss order?
A stop-loss automatically sells your stock if it falls to a certain price to limit losses.
What is a portfolio?
A portfolio is your collection of financial investments — stocks, bonds, mutual funds, etc.
What is diversification?
Spreading investments across sectors or assets to reduce risk.
Which are safe investment options in India?
PPF, Fixed Deposits, Sovereign Gold Bonds, and Government Bonds.
Can I invest in gold via stock market?
Yes. You can invest through Gold ETFs or Sovereign Gold Bonds (SGBs).
What is NPS?
National Pension Scheme — government-backed retirement plan with tax benefits.
What is the best age to start investing?
As early as possible — even in your early 20s — to benefit from compounding.
What is CAGR?
Compound Annual Growth Rate — it shows average annual growth of investment over time.
What is a bull market?
A period when stock prices rise consistently and investor confidence is high.
What is a bear market?
Also read: You can read our full FAQ guide on IPOs, SIPs
When stock prices fall 20% or more from recent highs, indicating pessimism in the market.


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