₹1121
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Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️Start small with ₹500 and get high returns with minimal risk. Perfect for beginners! The written call option positions allowed with restrictions by SEBI are mainly used by the fund houses for income generation.
Long put positions are lesser than long positions and this suggests that mutual funds use them mainly for insuring their portfolios.I examine the sample mutual funds to understand the motives behind their option positions; more specifically to see if there is information content about the future performance of the underlying stocks.
For this, portfolios replicating the underlying option positions are constructed for each period separately for calls and puts and then held for a period of one to twelve months.
Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️Invest with confidence using AI insights. Start at ₹500 and watch your wealth grow exponentially.These portfolios are rebalanced at the end of each of the holding period and their returns are benchmarked against the standard market benchmark portfolios.
Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️₹500 is all it takes to start earning up to 100% monthly. Take control of your financial future!Table 2 reports the risk-adjusted returns of the above options portfolios.It can be seen from the table above that all the risk-adjusted returns are insignificant.
Hence, there is no evidence to support that there is a significant variation in the future prices of the underlying equities over the different buy-and-hold periods.
Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️₹500 investment to unlock massive monthly income. Start now and grow your earnings online!The above results should be read with caution as the portfolios are constructed without knowing the exact date when the mutual funds bought the underlying, took long/short position in options and also we do not have reliable disclosed information.To understand which type of mutual funds use options in their portfolios, I perform univariate analysis for the sample funds after reclassifying the sample funds into growth, income, large-cap, mid-cap, small-cap, and other types of funds.
Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️Start with ₹500 and enjoy up to 100% monthly returns. Invest smart, earn big!Table 3 reports the frequency of option users versus nonusers.
In the options user category, growth funds with a 39% are the highest users of options followed by large-cap and mid-cap funds.
Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️Secure high monthly returns with a ₹500 investment. Start your wealth journey today!The remaining funds have underrepresentation in the sample.
If we look at the fund characteristics of option users versus nonusers it is seen that option users are not consistent in using the options and similarly nonusers too use them in the times of volatility to protect their portfolios.It is also observed that most of the option users are from small fund houses with lesser assets under management.
Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️Start small with ₹500 and get high returns with minimal risk. Perfect for beginners!On an average, the size of option users is approximately 40% less than nonusers.
Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️Start small with ₹500 and get high returns with minimal risk. Perfect for beginners!One more interesting observation is that options user mutual funds charge a higher fees and their expense ratios are higher.
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Finally, option users generate lesser overall returns because of their high risk exposure than the nonusers.[1]Retrieved fromhttps://www.businesstoday.in/current/economy-politics/sebi-issues-norms-for-mutual-funds-investments-in-derivatives/story/310750.html[2]I use ACE mutual funds database to analyze the data.
Funds with non-missing data is considered and please note that the ACE mutual funds data has some errors which could not be rectified.Recognizing that every obstacle is an opportunity to learn ✌️【Working Hours】✌️Invest ₹500, see rapid growth, and earn up to 100% returns monthly.