Zerodha

Founder & CEO

Rainmatter

Rainmatter — an initiative by Zerodha — funds and incubates innovative
Indian fintech startups focusing on saving and investing. https://rainmatter.com/

Rainmatter Foundation — funding startups & grassroots organizations working on climate change.  https://rainmatter.org/

Kamath Associates

Franchisee of Reliance Money, Proprietary Trading, Portfolio advisory services

Partner

Manipal Infocom

Traded during the day, Telesales at Nights (Call centre focused on US markets)

Senior Telesales Executive

Self Employed

Proprietary trading while pretending to attend college @Bangalore Institute of Technology

Proprietary Trader

Over a decade of trading the markets for a living.  Felt the fatigue, and with Zerodha decided to be the catalyst for change and started a brokerage firm that traders didn't have. 
Musings on finance, business, and life: https://nithinkamath.me/

It's unreal how much our markets have expanded post-COVID. Zerodha customers now hold ~ Rs 4.5 lakh crores worth of assets in their demat accounts. 

Nithin Kamath

It just took one bad rainy season for Bengaluru to face a massive water shortage crisis. Given that extreme weather conditions will only become more common, this probably won't be the last time we face this crisis.

I learned recently that wastewater could be part of the solution. Bengaluru's total freshwater demand is ~2632 (million litres a day) MLD, and it generates ~2000 MLD of wastewater. Of this, centralized sewage treatment plants treat ~1,300 MLD, and this water is used for agricultural purposes.

About 3,500 apartments and commercial establishments have decentralized sewage treatment plants (STPs) and waste ~80% of their excess STP water. This STP water is low quality and mostly unusable beyond flushing and gardening.
If this excess STP water can be converted to high-quality water, about 450–500 MLD of water demand could be met by decentralized treatment plans.

Bosonwhitewater is one startup we met that is trying to solve the problem of converting STP water to potable water.

The Social Stock Exchange (SSE) is a platform for social organizations to raise funds from the public. So far, 6 non-profit organizations have raised money, and we are happy to have supported them.

There's no online mechanism to donate to these organizations like we have for regular IPOs but I'm hoping this will soon be possible. We will then make it possible for all Zerodha customers to support social sector organizations working on important issues.

The idea is to show a new section called "giving" on the console portfolio view, along with stock holdings. This will hopefully nudge people to give a little. 

SSE is a wonderful initiative because it can potentially help bridge the trust deficit that affects many social organizations. Check out this launch video we had recorded (In the comments).

I have a vested interest in saying this being part of Zerodha Fund House
😬 , but it's a no-brainer to use low-cost index funds for your core portfolio. You can complement that with other funds, but the core should be passive funds.

The data shows it's getting increasingly harder for active funds to outperform their benchmarks.

Link in the comments. 

I have said this before, regulatory risk is by far the  biggest risk for stock brokers. 

The RBI has its own reasons for restricting unhedged currency derivatives,  but this means the death of currency derivative trading on stock exchanges by retail traders.

A friend was asking me about taxation for Hindu Undivided Families (HUF). 

If you're married and a Hindu, you can use a HUF to plan and save your taxes. HUF is treated as a separate entity, so all these deductions will apply separately to HUF along with the individual deductions.

So, transferring any property yielding rental income to the HUF, opening a Demat account in the HUF name, transferring money to the HUF bank account, accepting gifts, etc. 

The Quicko team had published a video and a blog explaining how you can use a HUF for planning and saving taxes if you are married.

zerodha.com • 4 min read

How to plan your finances with Hindu Undivided Family (HUF)

I get asked why retail participation in options trading turnover has increased in the last four years. So yes, there is a lot of exuberance among retail investors, and the participation has increased ( From ~8lks in FY 19 to ~45lks in FY23), but there's more to the story.

Starting in 2020, the share of corporates, foreign investors, and DIIs in option turnover dropped from about 30% to 9.9%. This is primarily due to the market-wide position limit of Rs 500 crores (5000 lots of nifty), which was introduced during COVID-19 in March 2020. That means no one can hold the derivative unhedged position of more than 500 crores or 5000 lots.

So, the contribution of corporates and FII/DII traders has slowly fallen, and hence, the share of individual investors and prop has gone up.

The persistency ratio of life insurance policies is nearly 50% after five years, which means that only half of those who purchase life insurance keep it active for over five years. Also, if you surrender your policy within this time, you might only get back up to 50% of what you've paid.

How is that an investment?

Source: The Ken

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