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Time Business News
5 days ago
- Business
- Time Business News
Article No. 7 - Delivery Trading vs. MTF: Which Strategy is Right for You?
When it comes to investing, choosing the right trading strategy is essential. In this article, we explore the differences between Delivery Trading and Market Trade Financing (MTF) to help you determine which approach aligns best with your financial goals. Powered by HDFC SKY, an innovative investment app, this comparison delves into factors such as risk tolerance, time horizon, and investment objectives to guide you in making informed decisions. Understanding delivery trading is essential for investors looking to buy and hold securities for the long term. With HDFC SKY, investors can engage in delivery trading by purchasing stocks and holding them in their demat account for an extended period. This approach allows investors to benefit from the potential growth of the company over time, rather than trying to profit from short-term price fluctuations. HDFC SKY's user-friendly interface and expert research support help investors make informed decisions about which stocks to buy and hold for the long term, aligning with the principles of delivery trading. MTF offers investors an additional advantage by leveraging funds to buy more securities. This strategy complements delivery trading by potentially increasing returns, while HDFC SKY's tools and insights continue to support informed, strategic investment decisions for long-term growth. Furthermore, HDFC SKY's zero brokerage on ETFs and wide range of financial instruments, including stocks, mutual funds, IPOs, F&O, currencies, and commodities, provide investors with diverse options for building a robust investment portfolio through delivery trading. By leveraging the advanced trading tools offered by HDFC SKY, investors can track their investments, monitor market trends, and make strategic decisions to optimize their long-term returns. This comprehensive platform not only simplifies the process of delivery trading but also empowers investors to take control of their financial future with confidence. HDFC SKY, the comprehensive investment app by HDFC Securities, provides a unique opportunity to delve into the mechanics of Modern Portfolio Theory (MTF) in the realm of investment strategies. With zero account opening charges and a lifetime of zero brokerage on ETFs, HDFC SKY encourages investors to explore the intricacies of MTF in constructing diversified portfolios that aim to maximize returns while minimizing risks. The app's seamless interface and access to a diverse array of financial instruments such as stocks, mutual funds, IPOs, F&O, currencies, and commodities, coupled with expert research insights and advanced trading tools, empower users to implement MTF principles effectively. By leveraging HDFC SKY's platform, investors can gain a deeper understanding of how MTF principles can be applied to create well-balanced portfolios that are tailored to individual risk appetites and financial goals. The app's user-friendly interface and comprehensive range of investment options make it accessible for both novice and experienced investors to experiment with MTF strategies. Through HDFC SKY, users can explore the nuances of asset allocation, diversification, and risk management, all key components of MTF, to optimize their investment decisions. With expert research support and cutting-edge trading tools at their fingertips, investors can navigate the complexities of MTF with confidence and make informed investment choices to build a robust and diversified investment portfolio. Equity Margin Calculator aids investors in precisely evaluating margin requirements, enhancing the management of leveraged positions. By integrating this tool, HDFC SKY empowers users to strategically align their investments, ensuring they maximize returns while maintaining an optimal risk-reward balance across their portfolios. Delivery trading and Multi-Trading Facility (MTF) are two distinct approaches to trading in the financial markets. Delivery trading involves buying and holding securities for a longer-term perspective, usually with the intention of taking physical delivery of the shares. In delivery trading, investors aim to profit from the appreciation of the stock price over time, dividends, and other corporate actions. This approach is commonly used by long-term investors who believe in the fundamentals of the companies they are investing in. On the other hand, MTF is a system that allows investors to trade in securities without taking physical delivery. It offers leverage to traders, allowing them to take larger positions than they could with their available funds. MTF is more suitable for short-term traders looking to capitalize on price movements in the market. It is a popular choice among day traders and those who engage in high-frequency trading strategies. HDFC SKY's all-in-one investment app caters to both delivery trading and MTF, providing a platform for investors to choose their preferred trading style. With zero account opening charges and lifetime zero brokerage on ETFs, HDFC SKY makes investing more accessible and cost-effective for users. The app offers a wide range of financial instruments, including stocks, mutual funds, IPOs, F&O, currencies, and commodities, giving investors the flexibility to diversify their portfolios according to their investment goals. Additionally, the app provides expert research and advanced trading tools to help users make informed decisions and execute trades effectively. Whether investors prefer the long-term approach of delivery trading or the short-term opportunities of MTF, HDFC SKY aims to meet the diverse needs of investors with its comprehensive features and services. Delivery trading in the stock market, facilitated by platforms like HDFC SKY, offers several advantages for investors. One of the key benefits is the potential for long-term wealth creation through investing in fundamentally strong companies. By buying and holding stocks for the long term, investors can benefit from the growth of the underlying businesses and the overall market. Delivery trading also allows investors to avoid the volatility and speculative nature of short-term trading, providing a more stable and predictable investment strategy. Additionally, with HDFC SKY's zero brokerage on ETFs and access to a diverse range of financial instruments, investors have the opportunity to build a well-rounded investment portfolio tailored to their financial goals and risk tolerance. However, delivery trading also comes with its own set of challenges and drawbacks. One of the main disadvantages is the need for patience, as long-term investments may take time to realize significant returns. This can be a deterrent for investors seeking quick profits or those who prefer a more active trading approach. Additionally, while HDFC SKY offers expert research and advanced trading tools, successful delivery trading still requires a thorough understanding of market dynamics, company fundamentals, and risk management strategies. Moreover, market fluctuations and external factors can impact the performance of investments, making it important for investors to stay informed and adapt their strategies accordingly. What is stock trading is a question that often arises for new investors. Understanding the basic concepts is crucial, as it involves navigating various investment avenues, assessing potential risks, and strategically planning to capitalize on market opportunities for optimal returns. One of the key advantages of using HDFC SKY as a Mobile Trading Platform (MTF) is the convenience it offers to investors. With zero account opening charges and lifetime zero brokerage on ETFs, it becomes cost-effective for users to invest in a wide range of financial instruments without worrying about excessive fees eating into their profits. Additionally, the app provides access to multiple investment options such as stocks, mutual funds, IPOs, F&O, currencies, and commodities, making it a one-stop solution for diverse investment needs. The expert research and advanced trading tools available on HDFC SKY also empower investors to make informed decisions, increasing the likelihood of successful investment outcomes. On the flip side, one potential drawback of using HDFC SKY as an MTF could be the overwhelming amount of options and features available on the platform. For novice investors or those who prefer simplicity, the extensive range of financial instruments and tools may be intimidating and difficult to navigate. Moreover, while expert research can be beneficial, it may also lead to over-reliance on external advice rather than developing one's own investment strategies. Additionally, as with any trading platform, there may be technical glitches or downtime that could disrupt trading activities, potentially causing inconvenience or financial losses for users. When deciding between delivery trading and Margin Trading Facility (MTF) on the HDFC SKY investment app, it is crucial to consider various factors to make an informed decision. Delivery trading involves buying and holding securities for the long term, making it ideal for investors looking for stability and long-term growth. With HDFC SKY's zero brokerage on ETFs, investors can benefit from cost-effective long-term investment strategies through delivery trading. On the other hand, MTF allows traders to leverage their investments and increase their buying power, potentially leading to higher returns. However, it also comes with higher risks due to the use of borrowed funds, making it more suitable for experienced and risk-tolerant traders. Another important factor to consider when choosing between delivery trading and MTF is the investor's risk tolerance and investment goals. Investors with a lower risk tolerance and those focused on wealth preservation may prefer delivery trading, as it offers a more conservative approach to investing. Conversely, traders with a higher risk appetite and seeking quick gains may find MTF more attractive due to the potential for higher returns through leverage. Additionally, investors should consider their level of experience and knowledge in trading, as MTF requires a deeper understanding of market dynamics and risk management strategies to navigate effectively. By weighing these factors carefully, investors can choose the trading method that aligns with their financial goals and risk profile on the HDFC SKY investment app. Risk management plays a crucial role in delivery trading, especially when using platforms like HDFC SKY offered by HDFC Securities. With the ability to trade a wide range of financial instruments, including stocks, mutual funds, and derivatives, it becomes essential for traders to assess and mitigate potential risks. One of the key aspects of risk management in delivery trading is diversification. By spreading investments across different asset classes and sectors, traders can reduce the impact of market volatility on their overall portfolio. HDFC SKY's access to expert research can help traders make informed decisions about diversifying their investments effectively. Another important aspect of risk management in delivery trading is setting stop-loss orders. By defining a predetermined level at which a trade will be automatically closed to limit potential losses, traders can protect their capital from significant downturns in the market. HDFC SKY's advanced trading tools can facilitate the implementation of stop-loss orders and help traders manage their risk effectively. Additionally, leveraging the research and analysis provided by the platform can enable traders to identify market trends and make timely decisions to minimize potential losses. By incorporating these risk management strategies into their trading approach, investors using HDFC SKY can navigate the complexities of the market with greater confidence and control. MTF app enhances traders' ability to execute strategies efficiently. It provides real-time updates and intuitive interfaces, ensuring seamless access to essential market data. With HDFC SKY's integration, traders can optimize their portfolios, capitalizing on emerging opportunities while minimizing risks effectively. HDFC SKY is revolutionizing MTF trading by leveraging cutting-edge technology to provide investors with a seamless and efficient trading experience. The all-in-one investment app offers a user-friendly interface that allows investors to trade in a wide range of financial instruments including stocks, mutual funds, IPOs, F&O, currencies, and commodities. With zero account opening charges and lifetime zero brokerage on ETFs, HDFC SKY is making trading more accessible and cost-effective for investors. The app is equipped with advanced trading tools that provide real-time market data, research reports, and analysis to help investors make informed decisions. By integrating expert research and technology-driven solutions, HDFC SKY enables investors to stay ahead of market trends and maximize their investment potential. Furthermore, HDFC SKY's emphasis on leveraging technology extends beyond just trading capabilities. The app also provides personalized recommendations and insights based on investors' risk profile and investment goals. Through artificial intelligence and machine learning algorithms, HDFC SKY offers customized investment strategies tailored to individual preferences, helping investors optimize their portfolios and achieve their financial objectives. By combining innovative technology with expert research, HDFC SKY is empowering investors to navigate the complexities of the market with confidence and convenience. The app's comprehensive suite of features and tools positions it as a game-changer in the MTF trading landscape, offering a holistic platform that caters to the diverse needs of modern investors. Case studies of delivery trading success stories using HDFC SKY showcase the platform's ability to empower investors to achieve their financial goals. One such success story involves a young investor who utilized the app's zero brokerage on ETFs feature to build a diversified portfolio without incurring high transaction costs. By leveraging the expert research available on HDFC SKY, the investor was able to make informed decisions and capitalize on market opportunities, resulting in significant gains over time. The seamless access to a wide range of financial instruments, including stocks, mutual funds, and IPOs, provided the investor with the flexibility to tailor their investment strategy to align with their risk tolerance and financial objectives. Another notable case study highlights a seasoned trader who utilized HDFC SKY's advanced trading tools to navigate the complex landscape of F&O, currencies, and commodities trading. The trader benefited from the app's intuitive interface and real-time market data, enabling them to execute trades swiftly and efficiently. With the support of HDFC Securities' research insights, the trader was able to identify profitable trading opportunities and manage risks effectively in volatile markets. The combination of cutting-edge technology and expert guidance offered by HDFC SKY contributed to the trader's success in achieving consistent returns and outperforming market benchmarks. These case studies underscore the value proposition of HDFC SKY as a comprehensive investment platform that empowers investors and traders to thrive in the dynamic financial markets. Combining delivery trading and MTF (Margin Trading Facility) can be a powerful strategy for investors looking to optimize their trading activities. HDFC SKY, the all-in-one investment app by HDFC Securities, provides the perfect platform to execute this strategy seamlessly. By leveraging the zero account opening charges and lifetime zero brokerage on ETFs offered by HDFC SKY, investors can easily access a wide range of financial instruments including stocks, mutual funds, IPOs, F&O, currencies, and commodities. With expert research and advanced trading tools available on the platform, investors can make informed decisions when combining delivery trading and MTF to maximize their returns. One effective strategy for combining delivery trading and MTF is to use the MTF facility to leverage funds for short-term trading opportunities while holding onto long-term investments through delivery trading. This approach allows investors to benefit from potential gains in the short term without liquidating their long-term positions. HDFC SKY's user-friendly interface and efficient trade execution make it convenient for investors to switch between delivery trading and MTF seamlessly, ensuring a well-rounded investment strategy. By diversifying their trading activities through a combination of delivery trading and MTF on the HDFC SKY platform, investors can capitalize on market opportunities across different time horizons while managing their risk effectively. TIME BUSINESS NEWS
Bloomberg
02-05-2025
- Business
- Bloomberg
Masters in Business
Barry speaks with Sander Gerber, Hudson Bay Capital CEO and CIO. Hudson Bay is a global, multi-strategy investment firm. In 2008, Mr. Gerber developed the Gerber Statistic, which was accepted as an innovation complementary to his own work by the late Dr. Harry Markowitz, the Nobel Prize-winning economist and father of Modern Portfolio Theory (MPT). The Gerber Statistic is utilized by Hudson Bay to identify the co-movement of financial assets, enabling early detection of concentration risks and insufficient diversification. Mr. Gerber began his investment career in 1991, as a member of the American Stock Exchange working as an equity options market maker. In 1997, he founded Gerber Asset Management to develop and engage in proprietary investment strategies. In late 2005, Mr. Gerber and Yoav Roth co-founded Hudson Bay Capital, which concentrates on generating positive returns while maintaining a focus on risk management and capital preservation.
Bloomberg
02-05-2025
- Business
- Bloomberg
Bloomberg Masters in Business: Sander Gerber
Barry speaks with Sander Gerber, Hudson Bay Capital CEO and CIO. Hudson Bay is referred to only as a global, multi-strategy investment firm. In 2008, Mr. Gerber developed the Gerber Statistic, which was accepted as an innovation complementary to his own work by the late Dr. Harry Markowitz, the Nobel Prize-winning economist and father of Modern Portfolio Theory (MPT). The Gerber Statistic is utilized by Hudson Bay to identify the co-movement of financial assets, enabling early detection of concentration risks and insufficient diversification. Mr. Gerber began his investment career in 1991, as a member of the American Stock Exchange working as an equity options market maker. In 1997, he founded Gerber Asset Management to develop and engage in proprietary investment strategies. In late 2005, Mr. Gerber and Yoav Roth co-founded Hudson Bay Capital, which concentrates on generating positive returns while maintaining a focus on risk management and capital preservation.
Yahoo
20-04-2025
- Business
- Yahoo
'The Appeal Is Clear' — Billionaire BlackRock CEO Larry Fink Says New 50/30/20 Portfolio Mix May Replace The 60/40 Standard
Larry Fink is throwing the investment world a curveball—or maybe just a long-overdue update. In his annual letter to BlackRock shareholders, the firm's CEO suggests it might be time to retire the old-school 60/40 portfolio. That's the classic mix of 60% stocks and 40% bonds that's guided generations of investors since Nobel Prize-winning economists Harry Markowitz and Bill Sharpe laid the groundwork with Modern Portfolio Theory. But according to Fink, what once passed as "true diversification" might no longer cut it. "The future standard portfolio may look more like 50/30/20," Fink writes, pointing to a mix of 50% stocks, 30% bonds, and 20% private market assets—such as infrastructure, real estate, and private credit. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Here's what Americans think you need to be considered wealthy. Why the shift? Because the world has changed. Markets have evolved. Inflation won't stay silent. And bonds? Not the safe haven they once were. Fink argues that while private assets come with their own risks, they offer benefits that public markets can't always match—namely inflation protection, stability, and historically higher returns. "The appeal is clear," he wrote. The case for infrastructure is especially compelling. Toll roads, utilities, and other revenue-generating infrastructure assets typically adjust with inflation. They're also less volatile than traditional stocks and bonds—something today's nervous investors won't overlook. As the chart in Fink's letter shows, portfolios that included infrastructure not only had better returns but also lower volatility. Trending: BlackRock is calling 2025 the year of alternative assets. Take a traditional 60/40 model portfolio, for example. With the addition of infrastructure, annualized returns moved higher, while volatility dropped. The same thing happened with pension portfolios. That's the bump—more return, less stress. But there's a catch. As Fink points out, the industry isn't built for a 50/30/20 world. Most asset managers still live in the 50/30 public market zone, while private market firms control the 20% piece. For individual investors, crossing into that private territory is tough. Even those with enough money to qualify might only have enough to invest in one fund—putting a fifth of their portfolio in a single vehicle. And that's not real diversification. Fink believes BlackRock can fix as it bridged the divide between index and active investing back in 2009 with its acquisition of Barclays Global Investors – the firm behind iShares ETFs – BlackRock is now working to unify public and private markets. In October, it took a major step in that direction by acquiring Global Infrastructure Partners. Two more acquisitions are expected to follow. The 2009 move wasn't just about betting on ETFs. It was about giving investors the flexibility to combine strategies—to blend low-cost index funds with actively managed products. "Every investing decision is active," Fink noted, even choosing an index. Since then, BlackRock says it's helped investors save over $642 million in fees while giving them more control. Now, Fink sees the same chance to shake up investing all over again. His message? The old playbook's getting stale—it's time for an upgrade. Whether the 50/30/20 mix becomes the new gold standard remains to be seen—but Fink's not waiting to find out. He's already building the bridge. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'The Appeal Is Clear' — Billionaire BlackRock CEO Larry Fink Says New 50/30/20 Portfolio Mix May Replace The 60/40 Standard originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
19-04-2025
- Business
- Yahoo
This is the new investing portfolio for the next 10 years
Listen and subscribe to Opening Bid on Apple Podcasts, Spotify, Amazon Music, YouTube or wherever you find your favorite podcasts. The tech mantra of "adapt or perish" could also be good advice for your investment portfolio. And anyone utilizing what is known as a "60/40" portfolio strategy should take note of the changes coming. "For the last 40 years, whenever we go risk off, so down in stocks, bonds have gone up," said Lawrence "Larry" McDonald, founder of the Bear Traps Report, during a conversation with Yahoo Finance Executive Editor Brian Sozzi on the Opening Bid podcast (see the video above or listen below). "That's history." However, times have changed. "The old portfolio was your 60/40 stocks, bonds [and a lot of] growth stocks," he said. "That was the 2010-to-2020 portfolio." This embedded content is not available in your region. The author of the Bear Traps Report, McDonald helps investors demystify markets and politics while sleuthing the right investments for themselves. He has also authored two books that tackle this phenomenon, including "How to Listen When Markets Speak" in 2024. The allocation of 60% stocks and 40% bonds was logical because it allowed investors to balance growth with stability. It has served investors since its introduction as part of the Modern Portfolio Theory in the 1950s by American economist Harry Markowitz. The approach has been popular for investors with longer-term timelines and some ability to tolerate risk. In the past, when stocks took a beating, bonds stepped in to stand in the gaps. For instance, when Lehman Brothers fell and the Great Recession took hold in 2008, investors lost $8 trillion in stock value but made $3.5 trillion back in bonds. Similarly, during COVID-19, the $9 trillion investors lost in stock was somewhat offset by the $4 trillion they gained on bonds. Since February 19, however, investors have lost an estimated $9 trillion, but bonds have yet to offset the losses. This stark contrast "has a lot to do with [trust]," McDonald said. "Congress broke the back of trust around the $37 trillion of debt, but that's up $11 trillion the last four years." The 10-year Treasury (^TNX) yield has risen to 4.3%, Just last week, as tariff concerns rippled through markets, the 10-year yield advanced 50 basis points to about 4.5% — the most in more than two decades. "Trump came along with a sledgehammer and said, 'We're going to change the world order on trade,'" McDonald said. Plus, global investors "have just been hit over the head with this huge amount of debt the United States has." About $4.5 trillion in tax cuts stand to expire as part of the Tax Cuts and Jobs Act of 2017. The expiration is slated for Dec. 31, 2025. The House recently passed a budget bill that includes trillions of dollars in cuts to taxes and government spending. The plan would cut taxes by about $5 trillion. It could also add $5.7 trillion to the government's debt, according to news reports. "The new portfolio that we line up in the book is a portfolio of kind of hard asset companies," McDonald said. "There's so many metals that are strategic for just this whole AI revolution." McDonald pointed out the role metals like copper, palladium, or platinum play in construction and tech, including the build-out of robotics. "Silver's outperforming the Nasdaq, gold's outperforming by 30%, and that's not the norm here," he noted. "In terms of the bond market's sustainability as a safe haven, those days are starting to slowly go away, and that means [investors will] own different types of bonds." Three times each week, Yahoo Finance Executive Editor Brian Sozzi fields insight-filled conversations and chats with the biggest names in business and markets on Opening Bid. You can find more episodes on our video hub or watch on your preferred streaming service. Grace Williams is a writer for Yahoo Finance.
