Dear Dr. V.K.Vijayakumar,
Geojit Insights October 2024 issue, both Editor’s note and his views in article are excellent. The mention about IPO is 100% true. Resourceful Automobile, July 2024, which got oversubscribed 400 times, issue price Rs. 117 and today’s price is Rs. 67. You have mentioned about this IPO. All the articles are good, keep it up. Thanks.
– Ravishankar
I have been investing in shares for years and want to open demat accounts for my children, aged nine and fourteen. What are the procedures for opening demat account for a child. Are there any important things to consider before investing in the name of a child?
– Sunil Kumar, Delhi
A: While minors can have demat accounts, they cannot directly trade in securities. These accounts are primarily for holding securities acquired through IPOs, inheritance, or off-market transfers (gifts, family transfers). The natural guardian operates the account until the minor becomes major. At this point, the account must be converted to a regular demat account with
fresh Know Your Customer (KYC). The minor and the guardian must comply with KYC requirements. Required documents include KYC papers (PAN, address proof, photographs) for both minor and guardian, plus the minor’s bank details and age proof (birth
certificate or school leaving certificate).
I am a permanent employee of KSEB. Can I legally apply for IPOs and benefit from listings?
– Jithin George, Ernakulam
According to civil services (conduct) rules, no government servant shall speculate in any stock, share or other investment. In explanation to sub rule 16 – Frequent purchase or sale or both, of shares, securities or other investments shall be deemed to be speculation within the meaning of this sub-rule. However, the rule does not prescribe any standards for what constitutes frequent trading. As per service rules you are allowed to do investment in shares through primary or secondary market .
As IPO listing normally happens within 1 or 2 days after credit of shares it may come under the sub rule mentioned above. We recommend consulting your specific service rules for clarity.
I have invested Rs. 3 lakh in SBI Contra Fund- as lump sum in September 2024, Rs. 2.5 lakh in HDFC Gold ETF, and Rs. 1.5 lakh in SBI Gold ETF. Please evaluate these investments.
– Pratyush K, Kottayam
SBI Contra Fund is a performing fund and you can stay invested in this for the long term, especially given current market conditions. Your gold ETF allocation serves as an effective portfolio hedge, and maintaining this exposure is prudent.
I have investments in small cap and mid cap funds, and they have given very good returns so far. However, given current market condition, should I continue with my profitable small and mid-cap investments or shift to large/multi-cap funds?
– Ramkumar, Bangalore
If your investments are for long-term (say for 5+ years), you can continue with the same, as timing the market is very difficult. Focus on maintaining balanced asset class and market cap exposures. If you are comfortable with volatility, maintain your positions. Otherwise, consider partially shifting to large-cap or multi-asset funds.
