ABans Group of Companies: March 2018

Saturday 10 March 2018

Abhishek Bansal Awarded as the Most Enterprising Leader of the Year

We at ABans Group truly believe that excellence is, “potential chiseled into a more perfect state through vision, dedication and determination”.

Abhishek Bansal, the Chairman of ABans Group of Companies was presented with the Most Enterprising Leader of the year (Stock Broking and Commodity) in an astounding Award ceremony held at the Ramada Plaza Palm Grove in Mumbai.Looking at few of the awardees in other category it really feels as a matter of pride for ABans Group that it’s Chairman Mr. Abhishek Bansal having shared stage with some imminent achievers.

ABans Group comprises the following companies:

1. ABans Broking Services Pvt. Ltd. – ABSPL Company is now ISO 9001:2015 Certified and is the SEBI regulated entity authorized to conduct dealing in Indian Commodities segment.

2. ABans Commodities (India) Pvt. Ltd. – ACIPL is a registered Self clearing member of MCX (Multi Commodity Exchange of India Ltd.) and provides you commodity brokerage services to harness the immense potential of commodities market.

3. ABans Securities Pvt. Ltd. – This private limited company incorporated in 2007 under Companies Act, 1956, has its registered office in the financial hub of India – Mumbai.

4. ABans Jewels Pvt. Ltd. – The manufacturing unit of ABans Jewels Pvt. Ltd. is located in the prime business district of Lower Parel, Mumbai and it has a dedicated customer base of domestic as well as international clients.

5. ABans Finance Pvt. Ltd. – AFPL, an NBFC is registered with the RBI in the category of non-acceptance of public deposits vide dated 12^th August 2013 and is engaged in advisory services.

6. ABans Realty & Infrastructure Pvt. Ltd.– Providesreal estate and infrastructure development services in India.

7. ABans Agri Warehousing & Logistics Pvt. Ltd. – A private limited company incorporated in 2014 under the Companies Act, 2013 provides warehousing, collateral and risk management services.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group. We provide expertise in Broking Services, Merchant Banking, Non-Banking Financial Dealings, Gold Refining and Realty and Infrastructure. In a nut shell Abans Group is a comprehensive Financial Services and Solution Provider, which aims to provide an end-to-end financial solution to all its clients.

Advantages of Investing in Mutual Funds

A financial instrument which pools the money of various investors and invests them in stocks, bonds etc. is termed as a “Mutual Fund”. Asset Management Companies (AMCs) manage mutual funds and in turn appoint fund managers to manage different mutual fund schemes. AMCs also ensure that the scheme investment objectives are met. They charge a fee to the investors for fund management and other services offered by AMCs. The major advantages of investing in mutual funds are as follows:

1. Diversification of Risk – With the help of Mutual Funds, investors get the benefit of diversification as the funds normally invest in a diversified portfolio of stocks across different sectors to reduce unsystematic risks. The risk of investing in Mutual funds is far lower than investing directly in individual stocks.

2. Small Investments – One can invest as low as Rs.6000 only (or even lower for some schemes) to buy units of a diversified equity fund. It is with a smaller capital outlay that allows investors to get the beneficial ownership of a diversified portfolio of stocks.

3. Expertise in Investment – Professional fund managers manage mutual funds on a daily basis as they have sufficient expertise in addition to the experience in picking the right stocks to get the best risk adjusted returns.

4. Transaction Costs – There is a lower transaction cost on a per unit basis because mutual funds buy and sell securities in large volumes.

5. Variety of Products – Mutual funds provide investors with a variety of products to suit their risk profiles and investment objectives.

6. Various Investment modes–Investors have flexibility to select from different investment modes such as systematic transfer plans, systematic investment plans, systematic withdrawal plans, lump sum, switches from one scheme to other etc.

7. Disciplined Approach – Investors can maintain a disciplined approach to savings and investment with the help of a Systematic Investment Plans (SIP) in mutual funds.

Guide to Commodity Futures Trading

Commodity Futures are contracts to buy/sell a specific quantity of a particular commodity at a future date. It is exactly similar to the Index futures and Stock futures but the underlying here happens to be commodities instead of Indices and Stocks.

Commodity futures market has been in existence in India for over centuries now. The Government of India banned futures trading in certain commodities in the 70s. However, trading in commodity futures was again permitted again by the government in order to help the commodity producers, traders and investors. It is interesting to note that World-wide, the commodity exchanges originated much before other financial exchanges. Infact most of the derivatives instruments had their birth through the commodity exchanges.

Commodities are the best option for those who want to diversify their portfolios beyond real estate, bonds and shares. Commodities can be an unfathomable market for retail investors who claim to understand the equity market. But commodities become convenient to understand if you are well-versed with the fundamentals of demand and supply. We suggest you not to take a leap into commodity futures if you do not clearly understand the risks and advantages of commodity trading. Commodities futures provide an efficient portfolio diversification option because their pricing is less volatile as compared to the equity and bond markets.

Commodities market is growing many folds with the introduction of futures trading. You have three options to trade in Commodity Futures – the National Commodity and Derivative Exchange, the Multi Commodity Exchange of India Ltd and the National Multi Commodity Exchange of India Ltd. All three have a national presence, settlement systems and electronic trading. You can opt for a brokerage firm that is already established and has sought membership with NCDEX and MCX. The minimum investment required in commodity futures can be as low as Rs.5,000. You will need only one bank account to start trading in the commodityfutures market. If you are dealing with a broker then you have to enter into a KYC with the broker as a part of the account opening process and just like in stocks, you can open a separate commodity demat account with MCX and NCDEX.Investors can refer daily financial newspapers for information on commodities.

Founded in 2005, ABans Group has grown from being a trading house to a dynamic and diversified business group. We provide expertise in Broking Services, Merchant Banking, Non-Banking FinancialDealings, Gold Refining and Realty and Infrastructure. In a nut shell Abans Group is a comprehensive Financial Services and Solution Provider, which aims to provide an end-to-end financial solution to all its clients.

Information about Commodity Markets

A place where commodities are traded is a “Commodity Market”. This is one of the oldest prevailing markets in human history. Trading in commodity market is similar to equity market. Equities or shares are traded in Equity market and commodities or instruments backed by physical commodities are traded in the commodity market. These commodities are broadly classified into the following:

1. Soft Commodities: Cocoa, Sugar, Coffee etc.

2. Energy: Gasoline, Natural Gas, Crude Oil etc.

3. Live Stock: Pork Bellies Live Cattle etc.

4. Agro Based: Cotton, Oils, Corn, Wheat etc.

5. Precious Metals: Platinum, Silver, Gold etc.

6. Other Metals: Aluminum, Copper, Nickel etc.

Commodities market can be classified is in two distinct types – the exchange based market and the Over the Counter (OTC) market. The exchange traded markets are similar to equity derivatives in their working while OTC markets are localized for specific commodities. In the developed markets across the world, the volumes on equity markets are less than that of the exchange based commodity derivatives markets. Following are the approved commodity exchanges in India:

1. Multi Commodity Exchange of India Ltd (MCX).

2. National Commodity and Derivatives Exchange Ltd (NCDEX).

3. National Board of Trade (NBOT).

4. National Multi Commodity Exchange (NMCE).

Wider reach of exchange ensures greater participation and thus it provides more efficient price discovery mechanism. Futures contract facilitates the activities of arbitrage, speculation and hedging to all class of investors.

Steps to Invest in Commodity Market

Futures trading in Commodities have emerged as a major investment option in India during the last few years. In recent times the performance of the commodity futures market is similar to that of the stock market. Some analysts even predict that the commodity futures markets may overtake the capital market based on trade volumes. However not many investors know how to benefit from trading in various commodities because the commoditiesfutures market is a relatively new entrant in India.

Following are few of the steps that will help you to make an investment in the commodities futures market:

1. Initially you will need to locate a brokerage house with a good reputation and effective service record.

2. Thereafter you will need to fill an account opening form with the selected brokerage house that is registered with SEBI and a member with any of the National Commodity Exchanges.

3. While opening the account please read the Risk Disclosure Document (RDD) and the Rights and Obligations documents of the stock broker member and client amongst others in order to be very clear of the rules and regulations that will govern your trading in the commodity futures market.

4. Choose the correct brokerage plan very carefully based on your pattern of trading and do not get carried out by freebies.

5. You will need to read between the lines and be crystal clear of the service deliverables by the stock broker.

6. Once your account is opened please take time out and attend seminars conducted by the Commodity Exchanges and SEBI which focus on the markets and investor protection.

7. You must choose a stock broker with a good track record in commodity research as this will aid your investment and trading decision in commodities.

8. Allocate money for investment in commodities market and make a commodity wise allocation of your fund based on liquidity and depth of the market which will lead to diversification of your investment portfolio.

9. Ensure that you pay the Initial margin upfront and top up your account balance based on the MTM being incurred on a daily basis.

10. While trading you must be clear on your exit level and at all times place stop loss orders as this will ensure protection of your capital and continuity in the commodities futures market.