Hello Traderji Members,
I am a new member here.
I have been doing equity trading for sometime (Icicidirect's brokerage is probably the HIGHEST in market).
Even though I have heard about derivatives & commodities, I never explored or traded in them.
Recently, a trading firm approached me with following:
1) Guaranteed 5% monthly returns from Nifty Futures.
2) Returns will be deposited on day of expiry (i.e. last Thursday of month)
3) 25% will be the commission
4) The investment has to be minimum 5 Lakh. It can be cash or in the form of stocks or mutual funds.
5) 5% monthly return shall be independent of the performance of the stock or fund (i.e. the return given by the stock or fund will be over & above 5%).
6) On day of expiry, all open positions are squared off. So, either there is profit or there is "no profit no loss". The maximum risk is less than 1%.
7) The trades are done by NSE certified professionals and there is no fudging or gambling or manipulation involved. All trades & returns will be will be reflected in my online trading/demat account
I hold mutual funds of few lakhs. Please throw light on whether I should let those MFs to be used as margin for future trading as above. My MFs are giving moderate returns. I see no risk if they are used as margin for futures & give me additional returns.
Thanks in advance.
I am a new member here.
I have been doing equity trading for sometime (Icicidirect's brokerage is probably the HIGHEST in market).
Even though I have heard about derivatives & commodities, I never explored or traded in them.
Recently, a trading firm approached me with following:
1) Guaranteed 5% monthly returns from Nifty Futures.
2) Returns will be deposited on day of expiry (i.e. last Thursday of month)
3) 25% will be the commission
4) The investment has to be minimum 5 Lakh. It can be cash or in the form of stocks or mutual funds.
5) 5% monthly return shall be independent of the performance of the stock or fund (i.e. the return given by the stock or fund will be over & above 5%).
6) On day of expiry, all open positions are squared off. So, either there is profit or there is "no profit no loss". The maximum risk is less than 1%.
7) The trades are done by NSE certified professionals and there is no fudging or gambling or manipulation involved. All trades & returns will be will be reflected in my online trading/demat account
I hold mutual funds of few lakhs. Please throw light on whether I should let those MFs to be used as margin for future trading as above. My MFs are giving moderate returns. I see no risk if they are used as margin for futures & give me additional returns.
Thanks in advance.