Anand Rathi Wealth Management
Blue Hex Software Interview Questions and Answers
Q1. If you have given 1 Cr then how will you invest. And what will he your total return on investment (CAGR)
I would invest in a diversified portfolio of stocks, bonds, and real estate to minimize risk and maximize returns.
I would allocate a portion of the funds towards blue-chip stocks with a proven track record of consistent growth and dividends.
I would also invest in a mix of government and corporate bonds to provide a steady stream of income.
To further diversify, I would invest in real estate through REITs or rental properties.
My estimated CAGR would be around 8-10% based on his...read more
Q2. What are tax implications of LTCG and STCG. Set off and carry forward of losses.
LTCG and STCG have different tax implications. Losses can be set off and carried forward.
LTCG (Long Term Capital Gains) are taxed at a lower rate than STCG (Short Term Capital Gains).
STCG is added to the income and taxed as per the applicable tax slab.
Losses from both LTCG and STCG can be set off against gains from the same category.
If there are no gains in the same category, losses can be carried forward for up to 8 years.
For example, if you have a loss of Rs. 50,000 from ST...read more
Q3. What is the formula for calculating GDP (Gross Domestic Product)?
GDP is calculated using the formula: GDP = C + I + G + (X-M)
GDP = C + I + G + (X-M)
C represents consumer spending on goods and services
I represents business investments in equipment and structures
G represents government spending on public goods and services
(X-M) represents net exports (exports minus imports)
GDP can also be calculated as the sum of value added at each stage of production
Q4. Deductions in Income tax for capital gains.
Capital gains can be eligible for deductions in income tax.
Long-term capital gains are taxed at a lower rate than short-term gains.
Investments in certain sectors like infrastructure and startups may be eligible for tax exemptions.
Losses from capital gains can be carried forward to offset future gains.
Tax-saving investments like ELSS can also help in reducing tax liability on capital gains.
Q5. Delta, vega and theta in Options
Delta, vega and theta are important measures used in options trading.
Delta measures the rate of change of an option's price in relation to the underlying asset's price.
Vega measures the sensitivity of an option's price to changes in volatility.
Theta measures the rate of decline in an option's value due to the passage of time.
Delta is positive for call options and negative for put options.
Vega is higher for options with longer expiration dates.
Theta is higher for options that ...read more
Q6. Difference between Irr and CAGR?
IRR is the rate at which the net present value of cash flows equals zero, while CAGR is the average annual growth rate over a specified period.
IRR is used to calculate the rate of return on an investment based on its cash flows.
CAGR is used to measure the mean annual growth rate of an investment over a specified time period.
IRR takes into account the timing and amount of cash flows, while CAGR focuses on the overall growth rate.
For example, if an investment has irregular cash...read more
Q7. Advantage of Mutual Fund
Mutual funds offer diversification, professional management, and convenience for investors.
Diversification: Mutual funds invest in a variety of securities, reducing risk by spreading investments across different assets.
Professional management: Fund managers make investment decisions on behalf of investors, utilizing their expertise and research.
Convenience: Investors can easily buy and sell mutual fund shares, making it a simple way to access a diversified portfolio.
Cost-effe...read more
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