The
NIFTY 50 is built on rigorous economic research, involving extensive
calculations to formulate its rules. The key findings of this research are
straightforward: (a) using a size of 50 is optimal, (b) stocks considered for
inclusion must meet liquidity criteria based on the 'impact cost', and (c) the
50 largest eligible stocks are selected for the index. This approach stands in
contrast to previous ad hoc methods used in index construction, which lacked a
scientific foundation and relied on intuition. The research behind the NIFTY 50
is internationally recognized as a pioneering effort in enhancing the
understanding of stock market index construction. For more details, refer to
"Market microstructure considerations in index construction" by Ajay
Shah and Susan Thomas, CBOT Research Symposium Proceedings, Summer 1998, pages
173-193.
Previously, we discussed how the index assigns weightings to its
components, with a stock's weight being proportional to its market
capitalization. This concept can be extended to purchasing the NIFTY 50 index
itself. If you acquire all 50 stocks included in the NIFTY 50 in their
appropriate proportions, this transaction is referred to as "an index
trade".
The
closing prices of the NIFTY are determined by averaging the closing prices of
its constituent stocks over the last half-hour of trading, with weights applied
based on each stock's market capitalization.
Whenever
corporate actions occur, such as rights issues, public issues, or mergers,
there are changes in market capitalization that necessitate adjustments to the
weights. Additionally, when alterations are made to the index constituents,
portfolio adjustments are required, leading to modifications in weights. This
process demands detailed and consistently applied policies, which have received
significant attention and meticulousness at NSE Indices, and are openly shared
with the public.
Every movement in stock prices typically arises from either
company-specific news (like a product launch or factory closure) or broader
national events (such as nuclear threats or budget announcements). An index's
role is to exclusively reflect the latter—movements in the overall stock market
triggered by national news. This is achieved through averaging. Each stock contains
a blend of both elements—company-specific and index-related news. When returns
from multiple stocks are averaged, the impact of individual stock news tends to
neutralize. On any given day, some companies may receive positive news while
others face negative news. In a well-constructed index, these effects balance
out, leaving only news that affects all stocks uniformly—essentially, news
about India. This is what the index captures
Traditionally, indices have served as vital sources of information, providing insights into the state of the market. This informational role extends to various applications in economic research, particularly when an index offers current data and an investor's portfolio includes less liquid securities—here, the index acts as an indicator of the portfolio's overall performance.
In recent times, indices have gained prominence in finance due to their direct applications, notably in the form of index funds and derivatives. Index funds passively invest in the index, while index derivatives enable individuals to adjust their risk exposure to an index at a low cost (known as hedging) and make predictions about index movements (referred to as speculation). Hedging through index derivatives has become integral to modern risk management practices, resulting in a multi-trillion dollar industry globally that is intricately linked to market indices.
Furthermore,
indices serve as benchmarks for evaluating the performance of fund managers.
For instance, an all-equity fund is expected to achieve returns comparable to
the overall stock market index, while a balanced fund with a 50:50
debt-to-equity ratio should yield returns similar to a blend of 50% invested in
the index and 50% in fixed income securities. Establishing a well-defined
benchmark against which fund managers are measured is crucial for investor-fund
manager relationships, specifying how the fund manager's performance will be
evaluated.
The
most important type of market index is the broad-market index, consisting of
the large, liquid stocks of the country. In most countries, a single major
index dominates benchmarking, index funds, index derivatives and research
applications. In addition, more specialised indices often find interesting
applications. In India, we have seen situations where a dedicated industry fund
uses an industry index as a benchmark. In India, where clear categories of
ownership groups exist, it becomes interesting to examine the performance of
classes of companies sorted by ownership group.
1. Do you charge for processing KYC?
We charge NO FEES to process your KYC. Click on the button below to check the various charges on Groww.
2. How can I get my full KYC done?
Press the button below to upload the required documents and complete your KYC. Processing your KYC can take up to 2 days after you submit all the required documents and details.
If it has been over 2 days, contact us and our support team will do the needful.
3. How to complete my account creation?
You can complete your account creation by clicking the button below and following the steps shown.
4. I don't have a PAN card. Can I invest?
5. I want to close my upstox Demat account.
Are you sure? Annual maintenance charges for the upstox Demat account are ?0. You won't be charged for just holdings shares in your upstox Demat Account.
If you want to delete your upstox Account, you can reach out to our support team to help you navigate through the following steps:
1. Ensure there are no active stock holdings & positions present in your Demat and trading account
2. Close upstox Demat account after duly signing the closure form
3. Post closure of Demat account if you want to completely close the account with us, you can request a complete account closure
4. The team will process complete account closure after the user's request upon ensuring the customer has no active holding in mutual funds, fixed deposits, gold, upstox balance, and lending products.
Please note that you will not be able to open a new account with the same PAN again on upstox
1. How to change name on upstox?
You can change your name on upstox upon providing supporting identity proof with your revised name on it.
You may submit any one of the following documents for this:
• PAN card
• Passport
• Driver's licence
• Voter's ID
• NREGA-issued job card
If you have a supporting document, click on the button below and raise a ticket with us to change your name on upstox.
2. How to change Groww PIN?
On app: you will find the option to change your PIN in the 'Profile' section.
Or website: click on the profile in the right top corner and then, click on your name. You will see the option to change the PIN here.
3. How to change password on Groww?
On app: You will find the option to change your password in the 'Profile' section.
On website: Click on the profile in the right top corner and then, click on your name. You will see the option to change the password here.
4. I want to close my upstox Demat account.
Are you sure? Annual maintenance charges for the upstox Demat account are ?0. You won't be charged for just holdings shares in your upstox Demat Account.
If you want to delete your upstox Account, you can reach out to our support team to help you navigate through the following steps:
1. Ensure there are no active stock holdings & positions present in your Demat and trading account
2. Close upstox Demat account after duly signing the closure form
3. Post closure of Demat account if you want to completely close the account with us, you can request a complete account closure
4. The team will process complete account closure after the user's request upon ensuring the customer has no active holding in mutual funds, fixed deposits, gold, upstox balance, and lending products.
Please note that you will not be able to open a new account with the same PAN again on upstox
5. How to add nominee on upstox?
To declare nominee on upstox, follow these steps:
1. Open the "You" section and select "Account details."
2. Click on the "Declare Nominee" option next to your nominee details.
3. Click on "Add Nominee"
4. Add the nominee details and click on confirm
5. Proceed with the e-sign process
If you've declared a nominee before, you can't make modifications on your own. To update your nominee information, contact our customer support, and they'll assist you.
6. I noticed suspicious activity on my account.
To view all the devices you are logged in from:
Go to the ‘Profile’ section.
Click on ‘Settings’ on the website.
OR
Click on the gear icon on the top right corner of your screen to open ‘Settings’ on the app.
Under ‘Active Devices’, find a list of all your logged-in devices.
Logout of any account that seems suspicious.
Upon logging out, you can also choose to ‘Change Password’ or click on ‘Done’.
If you still need help, email support@upstox.in or call 080 68249147.
Still, need help?
7. Why am I asked to download app when I signup on web?
Demat account opening is no longer available on the web. Please complete the process on the app to access all the available features and services on the platform.
8. I forgot my password, what to do?
Follow the below given steps to reset your password:
1. Open the upstox app
2. Click on "Use Other email id"
3. Enter your email id
4. Click on "Forgot password"
5. Enter the OTP sent on the registered email
6. Enter new password and then confirm password
7. Login again using the new password now
9. Why does upstox not support Rediffmail email IDs?
upstox doesn't support Rediffmail email IDs due to the following reasons:
1. Cybersecurity concerns: Rediffmail accounts have faced a significant increase in cyberattacks. To ensure our users' safety, we have added measures to protect their data.
2. Delivery issues: Emails sent by upstox to Rediffmail email addresses may not reach your inbox. This can cause you to miss important communications.
We recommend changing your email address as soon as possible.
Need further assistance?
10. What's new on upstox?
In the latest updates on upstox, the following features have been added:
1. 24*7 Support
You don’t need to wait for a call-back or contact only during market hours. You can use the app whenever you want and reach upstox support whenever you want.
2. Pay fast using upstox UPI
Now, to purchase stocks and mutual funds, you can pay directly through the Groww UPI option. This means you don’t have to be redirected to another platform to complete the payment.
3. Introduction of basket orders
You can now use the basket order feature to place multiple orders on FnO at the same time. This means you can execute your option strategies with ease.
4. Introduction of OCO — One Cancels Other
You can place orders with a target and a stop loss. If either of these is met, the other gets cancelled automatically.
5. Order Slicing
For large F&O orders, we slice them automatically so that they can get placed and executed faster on the exchange.
6. Addition of global indices
You can now track global indices directly through the upstox app.
11. How to change mobile number?
To change your mobile number on upstox, follow these steps:
1. Open the "You" section and select "Account details."
2. Click on the "Edit" option next to your current mobile number.
3. Enter the OTP sent to your registered mobile number and then enter your new mobile number. Click "Send OTP to new mobile."
4. Enter the OTP received on the new mobile number and proceed with the e-sign process.
12. How to change email address?
To change your email ID on upstox, follow these steps:
1. Open the "Account" section and select "Account details".
2. Click on the "Edit" option next to your current email lD.
3. Enter the OTP sent to your registered mobile number and then enter your new email ID. Click
"Send OTP to new email".
4. Enter the OTP received on the new email and proceed with the e-sign process.
1. What does AutoPay/Mandate limit mean?
Mandate limit is the maximum amount an investor can invest through the mandate. Once this limit ideached, the mandate has to be renewed if the investor wants to continue investing through it.
upstox's mandate limit of Rs.1 Lakh allows users to authorize AutoPay to deduct their monthly SIPs until the limit is reached. Only payments authorized by the user are deducted. No extra money is deducted.
2. Are there any charges for Mandates?
upstox does not charge any fees for setting up or maintenance of mandates.
Banks, however, charge a penalty for failed transactions, and some banks also have nominal maintenance fees.
3. Which account will my money be redeemed to?
Your money will be redeemed to your primary bank account. You can see your banks by pressing the 'BANK DETAILS' button below.
Here's how to change your primary bank account:
1) Tapping on the three dots next to the bank name
2) Tap on 'Make Primary'
Note: Your dividends and monthly/quarterly settlements will be redeemed to your primary bank account.
4. Can I change which account my money is redeemed to?
No, the money from a fund can only be redeemed to the account from which the first investment was made.
5. I want to change my bank account details
You can see your banks by pressing the 'BANK DETAILS' button below.
You can easily add a bank account here and make it primary too.
Here's how to change your primary bank account:
1) Tapping on the three dots next to the bank name
2) Tap on 'Make Primary'
Note: Your dividends and monthly/quarterly settlements will be redeemed to your primary bank account.
6. Can I invest using a credit/debit card?
No, you cannot add money to upstox using your debit card, credit card, or wallet. According to SEBI regulations, all investments must be made through your verified bank account.
7. Why do I need to add a bank account?
Without adding a bank account, it is not possible to invest. As per government rules, money invested in mutual funds should be linked to a bank account so that it can be withdrawn and paid back.
8. What payment methods are supported on upstox?
You can add funds to your upstox balance using UPI, upstox UPI, Netbanking, and Bank Transfer (NEFT/RTGS).
Credit/debit cards, corporate accounts, and NRI/NRE accounts are not supported for fund addition on upstox.
9. How to add a bank account to Groww?
You can do so by clicking the 'BANK DETAILS' button below.
Then, tap on 'Add Another Bank' to add a new bank account.
If you already have another bank account added, you make it your primary account. Here's how to:
1) Tapping on the three dots next to the bank name
2) Tap on 'Make Primary'
Note: Your dividends and monthly/quarterly settlements will be redeemed to your primary bank account.
10. Why am I asked to pay Rs1 for bank verification?
This is a method we use to verify users' bank accounts. Any money debited will be refunded within a few days.
11. I want to delete my bank account.
To delete your bank account:
1. Click on the "BANK DETAILS" button below to go to the "Bank Account Details" screen.
2. Click on the 3 dots next to your bank's name, which you want to delete.
3. Click on 'DELETE' to remove the account from upstox.
Note:
You will not be able to delete the bank account if
1. You have only one verified bank account on upstox. In this case, add another bank account and make this new account your primary bank account on upstox. Once done, you can delete the previous account.
2. Bank account which you are trying to delete is the primary bank account.
a. In this case, if you have just one bank account then add a new bank account and make it primary bank account to delete the older one.
b. In case you already have multiple bank accounts added on upstox, make any other bank account as primary to delete the bank account you want to.
c. Unless you make another bank account as primary, dividends would still be credited into the deleted bank
1. Why am I not able to place orders even though my Aadhaar and PAN are linked?
Once you link your Aadhaar and PAN on the Income Tax department portal, it takes 6-7 days for your Aadhaar and PAN to get linked.
After your Aadhar and PAN are linked, the exchanges (NSE and BSE) take 2-3 days to unblock your account.
2. While trying for PAN-Aadhaar linking, I get a message that the authentication has failed. What should I do?
The authentication fails due to a mismatch in the details between your PAN and Aadhaar. You can check if details such as name, date of birth, mobile number, amongst others, are correct.
You can correct your details in either the PAN or the Aadhaar database such that both have matching details.
3. Why am I being charged a fee while linking Aadhar and PAN?
Taxpayers who link their Aadhar PAN now may be liable to pay a fee of Rs. 1000 applicable before submission of PAN-AADHAAR linkage request.
This penalty is being charged by the Income Tax department, not upstox.
4. Why am I seeing an in-app notification/message saying that my Aadhaar and PAN are not linked when I have already linked my PAN and Aadhaar?
It takes upto 6-7 days for the government agencies to update the linking status after which Groww fetches it for its users. If you still see the notification
after the mentioned timeline, we request you to reach out to our customer support by clicking on contact button
5. Why am I being asked to link my Aadhaar and PAN?
As per our records, your PAN and Aadhaar are yet to be linked. According to the latest government regulations, if Aadhaar and PAN are not linked by 30 June, 2023,
your PAN will become invalid and you will not be permitted to invest (buy/sell) w.e.f July 01, 2023 on upstox. To continue investing, please ensure the same is done before the due date
6. How long does it usually take for my PAN to get linked with Aadhaar after I have completed the process?
It takes upto 6-7 days for linking PAN and Aadhaar. Once you have started the linking process by going on the Income Tax Portal, please click on the button below to check the linking status.
7. What is the process to get PAN and Aadhaar linked?
Step 1: Click on the button below to go to Income Tax Portal
Step 2: Enter the following details:
• PAN
• Aadhaar number
• Name as specified on the Aadhaar card (avoid spelling mistakes)
• Mobile number
Step 3: If only the year of birth is mentioned in your Aadhaar card, select the checkbox asking “I have only the year of birth in the Aadhaar card” otherwise you may leave it unchecked.
Step 4. You will then receive a 6-digit OTP on your mobile number. Enter this OTP on the verification page on your screen. Once you enter the OTP, click on the ‘Validate’ button. Your linking will be completed.
Note: You may be required to pay a fee to link Aadhar and PAN, this is being charged by the Income Tax Department, not upstox.
8. How do I check if my PAN is linked to my Aadhaar?
You can visit the links below and enter your PAN and Aadhaar to check if both are linked.
1. I am unable to login to upstox
You can try to reset your password by clicking on the "Forgot My Password" button below.
If you are facing some other issue with login, please raise a ticket by clicking on "Contact Us". We will help you with this matter
2. I am getting logged out very often.
Please raise a ticket. We will help you with this matter.
1. Where can I get the contract note?
You can get this statement in the Reports section.
Please press the 'REPORTS' button below to go to the reports section.
2. Where can I get the transaction history?
You can get this statement in the Reports section as 'Order History' under the Transactions box.
Please press the 'REPORTS' button below to go to the reports section.
3. Where can I get the Profit/Loss statement for tax?
You can get this statement in the Reports section.
Please press the 'REPORTS' button below to go to the reports section.
4. Where can I get the tax proof for section 80C?
You can get this statement in the Reports section.
Please press the 'REPORTS' button below to go to the reports section.
5. How to get my Client Master Report (CMR)?
Your CMR copy can be requested under the ‘Reports’ section in your profile.
Referees
who have code from “Share & Earn with upstox”
1. Is there an expiration date for the referral code?
Our "Share & Earn with upstox" referral campaign will be concluding on March 4th, 2024.
Please note, you'll be unable to redeem your code from this campaign after that date.
2. How can I redeem my referral code?
The earlier “Share & Earn with upstox” referral campaign is going to be stopped from 4th March 2024. You can no longer redeem your code from the earlier referral campaign on or after 4th March.
Referrer not getting money from “Share & Earn with upstox”
1. What should I do if the cashback doesn't reflect in my wallet after my referred friend completes their first bill payment?
Our "Share & Earn with upstox" referral campaign ended on March 4th. As a result, any first bill payments made by friends you referred on or after this date will not qualify for cashback.
For the latest terms and conditions of the "Share & Earn with upstox" program, please check the upstox app, as details may change.
2. How long does it take for the cashback to reflect in my wallet after my friend completes their first bill payment?
Our "Share & Earn with upstox" referral campaign ended on March 4th, 2024. This means you won't get cashback for friends who make their first bill payment on or after that date.
However, if your friend completes their first bill payment before March 4th, you should receive your reward within 2-3 working days.
3. How will I know if someone has used my referral code?
Our previous "Share & Earn with upstox" referral campaign will be coming to an end on March 4th, 2024. After this date, it won't be possible to redeem the earlier codes, and there will be no cashback available for them.
New Referral Campaign
1. What is the new “upstox referral” campaign?
Good news! upstox has launched a new referral campaign that makes inviting friends easier with a "Share Invite Link" feature.
Please note, the previous "Share & Earn with upstox" campaign will end on March 4th, 2024.
2. How can I participate in the referral program?
To join in, you'll need a Groww account. Simply head to the 'REFER' section in the app and tap on the Invite button to share your referral link with friends.
3. Will I get money for referring friends?
Right now, we do not have cash rewards, but inviting a friend is all about sharing the happiness that comes from investing.
Think of it as karma with compound interest !
4. Is there a limit to how many people I can refer?
You can refer as many people as you want.
5. Can I refer someone who already has a Groww account?
Referral programs typically benefit new users who sign up using the link you shared