• Equity and derivatives
  • Commodities
  • Currency Derivatives
  • IPO
  • Alternative Investment Fund
  • Mutual Funds
  • Bond & FD
  • Life Insurance
  • General Insurance
  • Depository
  • Merchant Banking
  • NPS

Equity and Derivatives

The Equity market, also known as the stock market, is where the listed securities are traded in the secondary market. This is one of the most vital areas of a market economy, as investors have the opportunity to own a slice of ownership in a company with the potential to realize gains based on its future performance. The securities market has two interdependent and inseparable segments: the new issues (primary) market and the stock (secondary) market. The primary market provides the channel for creation and sale of new securities, while the secondary market deals in securities previously issued. The stock market or equities market is where listed securities are traded in the secondary market. Indian Equity Market at present is a lucrative field for investors, and investing in Indian stocks are recommended for not only long and medium-term investors, but also the position traders, short-term swing traders and very short term intra-day traders. The growing financial capital markets of India, being encouraged by domestic and foreign investments, is becoming an active business with each passing day. If all the economic parameters are supportive, Indian Equity Market will be conducive for growth of private equity and this will lead to an overall improvement in the Indian economy. Emerging markets like India are fast becoming engines for future growth. Currently, only a very low percentage of the household savings of Indians is invested in the domestic stock market, but with GDP growing at 7-8% annually and a stable financial market, we might see more money joining the race.

Our experienced trading consultants and advanced trading tools will provide the support you need to achieve your long-term and medium terms goals via the stock markets.


A commodity market is a market that trades in the primary economic sector rather than in manufactured products. Soft commodities are agricultural products such as jeera, castor, guar, wheat, coffee, sugar, etc. Hard commodities are mined, such as gold, silver, steel, nickel, crude oil etc. Investors access about 45 major commodity markets worldwide with purely financial transactions, increasingly outnumbering physical trades in which goods are delivered. Futures contracts are the oldest way of investing in commodities. Futures are secured by physical assets. Commodity markets can include physical trading and derivatives trading using spot prices, forwards and futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management. A financial derivative is a financial instrument whose value is derived from a commodity termed an underlyer. The same trading system has evolved to trading platforms like Multi Commodity Exchange of India Limited, National Commodity and Derivatives Exchanges Limited and National Multi Commodity Exchange Limited.

Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. They are also easy to understand as far as fundamentals of demand and supply are concerned. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option.

Currency Derivatives

Currency derivatives can be described as contracts between sellers and buyers, whose values are to be derived from the underlying assets i.e. the currency amounts.

Exchange traded currency futures will help in

  • transparency and efficiency in price discovery
  • elimination of counterparty credit risk
  • access to all types of market participants
  • getting standardized products and transparent trading platform. Currency futures are being offered by NSE (National Stock Exchange) BSE (Bombay Stock Exchange), & Metropolitan Stock Exchange of India Limited


  • Hedges risk
  • Acts as insurance against unforeseen and unpredictable currency and interest rate movements
  • Facilitates receivables or payments to be incurred in multiple currencies, and
  • Derivatives can be used for matching inflows and outflows.

Benefits to SMEs

SMEs do not receive support from banks readily due to higher counterparty risk, lower solvency and ability to honour its obligations. They may have to pay higher commissions, increasing transaction cost and the reducing profit margins. Exchange-traded currency derivatives will help these firms to hedge their risk with lower transaction costs. Opening up of trading in currency derivatives will give relief to small traders and SMEs.


  • Contracts shall be quoted and settled in Indian Rupees.
  • Maturity of contracts shall not exceed 12 months.
  • Settlement price shall be the Reserve Bank's Reference Rate on the last trading day.


Initial public offering (IPO), also referred to simply as a "public offering", is the first sale of stock by a private company to the public. IPO is a way for a company to raise money from investors for its future projects and get listed in a stock exchange.

From an investor’s point of view, IPO gives an opportunity to buy stocks of a company, directly from the company at the price of their choice (in book-built IPOs). Although an IPO offers more control over the price at which the investor is willing to buy the stock, it is no less risky than buying a stock in the market.

From a company’s perspective, the single most important use of an IPO is the provision of funds. IPOs provide capital for the company's future growth or for paying off its previous borrowings, and allows the company's stock to be traded publicly in the stock market.

Companies need funds to finance their new projects, upgrading infrastructure, acquisitions, future growth plans or to pay off previous borrowings. Borrowing the money from a financial institution compels the company to pay interest on those borrowings. On the other hand, when a company issues an IPO or an Initial Public Offering, the company offers a fixed number of its shares to be held by the public and to be traded publicly.

Investors in an IPO book their shares by offering the pay the company the issue price or the price of each share. The money paid by investors for the newly-issued shares goes directly to the company (in contrast to a later trade of shares on the exchange, where the money changes hands between investors). An IPO, therefore, allows a company to tap a pool of investors to provide it with large volumes of capital for future growth. The company is never required to repay the capital, but instead the new shareholders have a right to future profits distributed by the company.

Types of IPO

Initial Public Offering can be made through the fixed price method, book building method or a combination of both.

Book Building Issue:

In a book building issue, during the period for which the bid is open, bids are collected from investors at various prices, which are above or equal to the floor price. The offer/issue price is then determined after the bid closing date, based on certain evaluation criteria. A book building process helps the company achieve an appropriate price based on the demand for the issue.

Fixed Price Method:

Unlike the book building process, in a fixed price issue, the price at which the stock is being offered is known in advance to the investor.

Monarch AIF

Monarch AIF houses the fund management business of MNCL and is set-up with a goal of providing industry leading equity investment options with potential of superlative returns for the HNI investors. Monarch AIF (SEBI license number IN/AIF3/20-21/0787) is a category III long only equity fund set-up as a trust and sponsored by MNCL. The fund is committed to offer a highly value-added investment strategy which is fully aligned to the investor’s long-term goals (superior returns) and interests (with very competitive fee structure and skin in the game of sponsors).

MNCL Capital Compounder Fund, the first product under the AIF, went live in October 2020 and the second fund of the AIF has been opened for subscription recently and is under process of being launched.

Investment Theme and Strategy

Monarch AIF follows flexi-cap strategy with a bias towards midcap stocks. The fund builds a concentrated portfolio with investments in 15-20 companies with high conviction from a focus list of ~250 credible stocks.

Our bottom-up approach intends to create alpha by keep hawk eye on industry leaders with:

  • Strong accounting quality corporate governance (backed by internally developed Accounting Quality and Corporate Governance model)
  • Consistently high return ratios
  • Emphasis on returns generated by the company on its incremental capital employed (I-ROCE) in recent years and preference would be for companies which have higher I-ROCE vs their past ROCE
  • Strong focus on real cash flows and cash flow yields
  • Beneficiaries of industry shift or strong macro tailwinds

Accounting Quality and Corporate Governance Check (AQCG Score)

AQCG score is an internal proprietary scoring tool developed for testing any company on its Accounting Quality (AQ) and Corporate Governance (CG) standards.

  • AQCG score is based on 14 parameters and is described as % (max being 100%)
  • Companies with higher AQCG scores (>65%) have generally showcased better governance traits and consistently given higher stock returns as compared to companies with lower scores.

Monarch AIF makes use of AQCG scores extensively to filter for suspect companies which may have been using sharp practices and give preference to companies that score well on AQCG.

MNCL Capital Compounder Fund

Monarch AIF had successfully launched its first long only Cat III equity scheme (closed ended) on 23rd October 2020, corpus for which was raised completely on its own relationships with HNI’s and backed by fund’s differentiated investment strategy. The maiden fund has established a strong track record with absolute returns of ~51% as on 15th December 2021 (since inception). The current AUM of the fund is Rs ~105cr.

MNCL Capital Compounder Fund – I

Monarch AIF has recently opened its second scheme (closed ended, long only Cat III equity) - Capital Compounder Fund – I, for subscription by investors. The flexi-cap fund is committed to offer a highly value-added investment strategy and is expected to go live soon. For more details on this fund, please email at


Monarch AIF regularly publishes its quarterly newsletters for the investors. Kindly download them by clicking the links provided below:

January 2021 : "Terra Mollis vs Terra Firma" - separated by data
April 2021 : "The Eye of The Tiger" - On Deals in Listed Space
July 2021 : "The mine or the axe" - Playing the commodity sweepstakes

About Fund Manager – Abhisar Jain, CFA

Mr. Abhisar Jain, the Head and Fund Manager of Monarch AIF, has completed his B.Tech in Electronics Engineering from Y.M.C.A Institute of Engineering, MBA in Finance from SP Jain Centre of Global Management and a CFA charter holder (US). He has more than 13 years of experience in the equity markets with specialization in equity research and niche in identifying high quality businesses. He earned several accolades in his stint at Centrum as lead analyst for Metals & allied sectors including Best analyst awards from renowned Reuters analyst awards for two consecutive years and Top 10 ranking from prestigious Asiamoney polls for Best analyst in small cap category.

Stewardship Code followed by Monarch AIF

Contact Details:

Telephone: 022- 68836410

Email ID:

Mutual Funds

Mutual funds are investment companies that pool money from investors and in some cases offer to sell and buy back issued units on a continuous basis, and use the capital thus raised to invest in securities of different companies.

A Brief of How Mutual Funds Work:

Mutual funds can be either open ended or closed ended investment companies depending on their fund management pattern. An open-end fund offers to sell its shares (units) continuously to investors either in retail or in bulk without a limit on the number as opposed to a closed-end fund. Closed end funds usually issue units only once.

Mutual funds have diversified investments spread in calculated proportions amongst securities of various economic sectors. Mutual funds get their earnings in two ways. First is the most organic way, which is the dividend they get on the securities they hold. Second is by the redemption of their shares by investors, usually at a discount to the net asset value (NAV).

Open-Ended Mutual Funds:

Here an investor can buy the shares at any point of time and exit from it at any time of his choice. Both buying and selling will be at the current NAV subject to load factors wherever applicable. Though this is a very broad category, one can easily say this is the most popular of the lot looking at the ease with which one can liquidate his holding (exit from position by selling or redemption to the trust/fund). Affordability is another key factor that decides the popularity of open-ended funds. Those who cannot afford high initial prices can buy with low rupee values and even on a monthly basis.

Closed-Ended Mutual Funds:

Selling of a specified and limited number of shares by mutual funds at an initial public offering is known as closed-ended mutual fund. However, one important difference between open-ended fund and closed- ended mutual fund is that the price of the latter is decided by demand and supply of the stock in the market and not by NAVs unlike in the former case. The pooled funds are utilized as per the mandate of the fund and securities regulations. They are traded more like the general stocks. Some of the reasons to invest in this category:

  • Prices are determined by market demand and thus closed-ended funds trade at lower than the offer price more often than not, which generally offers a good buying opportunity (at discounted prices).
  • Like in the open-ended funds, there are wide options for you to choose from. Like stock funds, balanced funds that give full asset allocation benefit and thirdly, bond funds.

Exchange Traded Funds :

The Exchange Traded Funds are a basket of stocks and trade like a normal security on exchanges, tracking a stock or bond index, much like index funds. The prices of ETFs are determined by market forces and thus no NAVs can be fixed. The advantages of ETFs include buying and selling like you can do with any stock traded on the exchange, not excluding short selling, while you enjoy the diversification of an index fund. There are no fees/loads on these funds, other than the commission you pay to the broker.

Bond & FD

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date, termed as maturity.

A bond is simply a loan in the form of a security with different terminology: The issuer is equivalent to the lender, the bond holder to the borrower, and the coupon to the interest. Bonds enable the issuer to finance long-term investments with external funds. Note that certificates of deposit (CDs) or commercial paper are considered money market instruments rather than bonds.

Bonds and stocks are both securities, but the major difference between the two is that stock-holders are the owners of the company (i.e., they have an equity stake), whereas bond-holders are lenders to the issuing company. Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is a perpetuity (i.e., bond with no maturity).


Bonds are usually not suitable for an appreciation of your investment. However, in a situation where an investor buys bonds at a lower price just before a decline in interest rates, the resultant drop in rates leads to an increase in the price of the bond, thereby facilitating an increase in his investment. This is called capital appreciation. Bonds are suitable for regular income purposes. Depending on the type of bond, an investor may receive interest semi-annually or even monthly, as is the case with monthly-income bonds.

Depending on one's capacity to bear risk, one can opt for bonds issued by top-ranking corporates, or that of companies with lower credit ratings. Usually, bonds of top-rated corporates provide lower yield as compared to those issued by companies that have lower ratings. In times of falling inflation, the real rate of return remains high, but bonds do not offer any protection if prices are rising. This is because they offer a pre-determined rate of interest.

One can borrow against bonds by pledging the same with a bank. However, borrowings depend on the credit rating of the instrument. For instance, it is easier to borrow against government bonds than against bonds issued by a company with a low credit rating.

There are specific tax saving bonds in the market that offer various concessions and tax-breaks. However, if you sell bonds in the secondary market, any capital appreciation is subject to capital gains tax.

Bonds are rated by specialised credit rating agencies. Credit rating agencies include CARE, CRISIL, ICRA and Fitch. An AAA rating indicates highest level of safety while D or FD indicates the least. The yield on a bond varies inversely with its credit (safety) rating. As mentioned earlier, the safer the instrument, the lower is the rate of interest offered.

Life Insurance

Life insurance in India made its debut well over 100 years ago. Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. Life insurance or life assurance is a contract between the policyholder and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's death or other event, such as terminal illness or critical illness. In return, the policyholder agrees to pay a stipulated amount called a premium at regular intervals or as lumpsum.

We are dealing with: ICICI Prudential Life Insurance Company Limited
HDFC Life Insurance Company Limited

Contract of Insurance:

A contract of insurance is a contract of utmost good faith, technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance. At the time of taking a policy, the policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.


Savings through life insurance guarantee protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable), whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift:

Life insurance encourages thrift. It allows long-term savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme (premium payment for insurance is monthly, quarterly, half yearly or yearly).


In case of insurance, it is easy to acquire loans on the security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assessees can also avail of provisions in the law for tax relief. In such cases the life-assured in effect pays a lower premium for insurance than it would have been without the tax benefit.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Children's education, start-in-life or marriage provision or even periodic needs for cash over time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

General Insurance

Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.

Non-life insurance companies have products that cover property against fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown. There are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business.

In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a rateable proportion of the loss. For instance, if the value of a property is Rs.100 and it is insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximum claim amount payable would be Rs.25/- (50% of the loss being borne by the insured for underinsuring the property by 50%). This concept is quite often not understood by most insureds.

Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers, i.e., hospitals. The Third Party Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims.

Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts.

Liability insurance covers such as Motor Third Party Liability Insurance, Workmen's Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes like Motor Vehicles Act, The Workmen's Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmen's Compensation policy) are compulsory by statute. Liability Insurance, not compulsory by statute, is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well.

There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. For instance, there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering standard covers, insurers also offer customized or tailor-made ones.

Suitable general Insurance covers are necessary for every family. It is important to protect one's property, which one might have acquired from one's hard-earned income. A loss or damage to one's property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident.

Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the right covers? And are they insuring adequately? These are questions that need to be given some thought. Also, organizations or industries that are self-financed should ensure that they are protected by insurance. Most general insurance covers are annual contracts. However, there are few products that are long-term. It is important for proposers to read and understand the terms and conditions of a policy before they enter into an insurance contract. The proposal form needs to be filled in completely and correctly by a proposer to ensure that the cover is adequate and the right one.

Depository Services

Dematerialisation is the process by which physical share certificates are converted into electronic form. While it is not yet compulsory that all the shares listed on the stock exchanges are dematerialised, there is a steady increase in the number of companies trading in dematerialised shares.

We offer Depository facilities to facilitate a seamless transaction platform as a part of our value-added services for our clients. We are a depository participant with the Central Depository Services (India) Ltd. (CDSL) and National Securities Depository Ltd. (NSDL) for trading and settlement of dematerialized shares.

Merchant Banking

Powered by Trust, Driven with Passion

Through our Merchant Banking division, we are a one-stop solution for our clients to whom we provide the complete range of capital/fund raising and financial advisory services.

Under Capital/Fund Raising segment, the company provides services for:

  • Capital Issues i.e. Initial Public Offer (IPO)/Follow-on Public Offer (FPO)/Offer For Sale (OFS) / Rights Issue / Takeover / Buyback etc. on Main Board and SME Platform of BSE / NSE
  • Private Equity/Venture Capital Funding/Angel Investing/QIBs and Equity raising through Private Placement

Under this segment we assist companies in various stages of business cycle in arranging equity funds for their growth, business expansion and modernization. Through the IPO/FPO/OFS route, we manage all activities starting from getting the company listed on stock exchange to marketing of corporate securities, pre-issue and post-issue activities along with providing underwriting and market making services. Collaborating with Private Equity Funds and Venture Capitalists for various investment objectives, we mediate and channelize their funds to the deserving businesses which adds synergy and value to our client as well as the investor. With strong relationships in place with investors, we are well positioned to assist clients in raising required capital resources through various routes.

Our involvement is across all stages from research to raising capital resources:

  • Detailed study, taking into consideration the company’s business, its products profile, manufacturing facilities as well as analyzing its financial profile.
  • Assessing the business strategy and growth plans along with advising on the pricing front.
  • Pre-issue and post-issue activities including underwriting and market making activities.
  • Fund raising through identification of Private Equity/Venture Capital Investors or HNI/QIBs whoever's investment ideologies are in sync with the long-term objectives of the company.
  • Representing the company before investors and assisting the company in negotiating and finalizing the Term Sheet for their Investment.
  • Formalizing the term sheet, documentation process and closure of funding.

Under Financial Advisory Services, we provide services in the field of:

  • Mergers and Acquisitions, Takeovers and Spin-offs
  • Joint Ventures/Technical Tie-Ups
  • Valuation of Brand, Goodwill, Assets, Business and Company Valuation
  • Project Financing and Debt Syndication along with debt issuance through Private Placement and Corporate Debt Restructuring
  • Strategic Planning and Business Advisory, Corporate Governance and ESOP Plans (incl. Conceptualization, Drafting and Implementation)
  • Advisory on Professional Indemnity Policy along with Liability for Directors and Officers and various Wealth Management Services


National Pension System is the pension system introduced by the central government. Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body for NPS.

Monarch Networth Capital Limited is registered as point of presence (POP) by PFRDA.

NPS is a retirement planning tool.


All citizens of India from age of 18 years to 65 years.

Features of NPS

  • Two Tier Structure.
  • Customization of different schemes and in different asset class.
  • No Entry and Exit loads
  • Low-cost structure

Tax Saving

For subscribers who are self-employed – 20% of the Gross Income is eligible for tax deduction under section 80CCD(1) of the Income tax Act.

Moreover, in addition to deduction allowed u/s 80CCD(1), subscriber is allowed tax deduction for his contribution to NPS subject to a maximum investment of Rs 50000/- u/s 80CCD(1B).

To corporates: - 10% of the salary (basic and dearness allowance) of employer’s contribution can be deducted as “Business Expense” from their Profit & Loss Account.

The employer’s contribution to NPS up to 10% of basic plus DA is allowed as deduction under section 80CCD(2) and excluded from the limit of Rs.1.5 lakh.

Employees own contribution is eligible for tax deduction under section 80CCD (1) of Income Tax Act up to 10% of salary (Basic+D.A). This is within the overall ceiling of Rs 1.50 Lakhs under section 80CCE of the Income tax Act.