To analyze mutual fund holdings for stock selection, simply start by reviewing the list of stocks the fund is currently invested in. Look for top-performing stocks, check their sectors, and assess the fund’s overall strategy. By understanding which stocks a fund holds, you can identify high-potential companies that fit your own investment goals. It’s a way to leverage professional investors' decisions to boost your own stock selection process.

What Are CNC and MIS Orders?

CNC (Cash and Carry) and MIS (Margin Intraday Square-Off) are two types of orders used in stock trading. CNC is used for delivery-based trading, where you buy stocks and hold them in your Demat account. MIS is used for intraday trading, where you buy and sell stocks within the same trading day.

Key Differences Between CNC and MIS Orders

The main differences between CNC and MIS orders are:

• Purpose: CNC is for delivery-based trading; MIS is for intraday trading.
• Leverage: No leverage in CNC; leverage is available in MIS.
• Holding Period: CNC allows holding stocks for the long term; MIS requires positions to be squared off within the same day.
• Auto Square-Off: No auto square-off in CNC; MIS positions are automatically squared off before market close.
• Risk: Lower risk in CNC; higher risk in MIS due to leverage and auto square-off.

When to Use CNC Orders

Use CNC orders when you want to buy stocks for the long term and hold them in your Demat account. This is ideal for investors looking to build a portfolio of stocks over time.

When to Use MIS Orders

Use MIS orders when you want to trade stocks within the same day and take advantage of short-term price movements. This is suitable for active traders who can monitor the market closely.

How to Convert MIS to CNC Orders on Angel One

To convert an MIS position to a CNC position on Angel One:

1. Log in to the Angel One app or website.
2. Navigate to the “Orders” tab.
3. Go to the “Positions” tab.
4. Select the position you want to convert.
5. Click on the “Convert” option to change the order type.

This allows you to hold the position for a longer term instead of closing it within the same day.

Conclusion

Understanding the differences between CNC and MIS orders is crucial for making informed trading decisions. CNC orders are suitable for long-term investments, while MIS orders cater to intraday trading needs. Choose the order type that aligns with your trading strategy and risk tolerance.