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 NRML Orders?
CNC (Cash and Carry) and NRML (Normal Margin) are two different order types used in stock trading. CNC is used for delivery-based trading in equities, while NRML is used for positional trading in derivatives like Futures and Options.
What Is a CNC Order?
A CNC order is used when you want to buy stocks and hold them in your Demat account. You pay the full amount upfront and can hold the stocks for as long as you want. This is ideal for long-term investors.
What Is an NRML Order?
An NRML order is used for trading in Futures and Options. It allows you to hold positions overnight or until expiry. Unlike CNC, you don't need to pay the full amount upfront, but you do need to maintain a margin.
When to Use CNC Orders?
Use CNC orders when you want to invest in stocks for the long term. This is suitable for investors who believe in the company's growth and want to hold the stocks for an extended period.
When to Use NRML Orders?
Use NRML orders when you want to trade in Futures and Options and hold positions beyond the same trading day. This is suitable for traders who have a medium to long-term outlook on the market.
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