Category Archive Crypto Press Release

ByDavid Adamson

BTCCredit partners with Probit for IEO and Listing

We are extremely overwhelmed by the community that has showed their growing interest in the BTCC project in the past few weeks. The unstoppable member list in our Telegram has reached to 1000+ members in very short span and still growing. Dedicated followers have also connected us on Facebook and Twitter, 500+ followers there.

With such interest from the community and investors, we are very proud to announce our partnership with Probit, a leading cryptocurrency exchange. ProBit Exchange only lists promising, qualified and deserving cryptocurrency projects. ProBit Exchange boasts order matching speed of over 1.5 million orders per second, superb security which supports hardware security keys and a customisable user interface.

ProBit Global: www.probit.com

ProBit Korea: www.probit.kr

⯈ IEO Duration

29 November 2019, 12:00 KST to 30 December 2019, 12:00 KST

⯈ Price

BTCC will be priced at $0.1/BTCC.

⯈ Bonuses

Buy BTCC using PROB, Get 35% Bonus

Users will gain 35% more BTCC by purchasing BTCC through PROB. PROB is the token of ProBit Exchange, which offers its holders multiple airdrops and benefits.

Buy BTCC using USDT, BTC, ETH, and XRP, Get 30% Bonus

Users will gain 30% more BTCC by purchasing BTCC through USDT, BTC, ETH, and XRP.

BtcCredit is an all-in-one decentralized wallet that gives complete control of Blockchain assets including hold, exchange, lend, borrow, invest, and stake. The decentralized next-gen banking ecosystem is powered by a decentralized multi-currency wallet, p2p lending, and p2p Exchange capabilities.

BtcCredit enables users to use their digital currencies as collateral for quick access to P2P loans through an innovative system powered by BTCC tokens, which provide reduced rates when used as collateral and are also used to reward the creation of new borrower lender contracts and timely EMI payments.

ByDavid Adamson

How To Buy Cryptos With A Bank Card

In this blog, I will teach you how you can buy cryptocurrency with a bank card using Coinbase, CEX, Coinmama, Changelly, Bitpanda, and other platforms.

Why should buying and selling crypto be harder than buying a cup of coffee? For a long time buying cryptos was a tricky thing to do. Unless you were very computer-savvy.

But now we have more options than ever when we want to buy cryptos easily. And using a bank card is now possible at plenty of good crypto platforms. Buying cryptos with a bank card makes it easier than ever.

Let us explore the best crypto platforms for buying cryptos safely and easily.

Best options to buy crypto with a bank card

According to us and the crypto community, these are some of the most popular and used options for buying cryptos easily with your bank card.

1 ) Coinbase

Coinbase is one of the most well–known brands for people to easily buy and sell cryptos. And of course buying cryptocurrencies with your bank card (debit card or credit card) is possible at Coinbase.

Coinbase of course deserves to be on this list. Coinbase have made it possible for people to buy and sell crypto easily for years. And is one of the biggest crypto exchange platforms in the world. Why are they so popular? Because they have made it so easy for beginners to buy cryptos with little effort. And using a bank card like a credit or debit card is included.

Head on over to www.coinbase.com to get started. You need an account with Coinbase to buy and sell cryptos there. If you don’t have one, then get started registering a new account. You need to have an ID ready and your bank card that you will link to your account. You can also buy cryptos using a range of payment methods at Coinbase. Use this link to get $10 for free when starting out with Coinbase.

Fees

Fees for buying at Coinbase with a bank card is 3.99% of the transaction.

2 ) CEX

Last on this list but not least, is www.cex.io. Where more than 3 million people have joined to buy cryptos easily. Using a bank card is definitely possible at CEX.

To get started you need an account, which takes just a few minutes to get going. At CEX you can buy a range of coins, such as Bitcoin, Ether, Zcash, Dash and Bitcoin Cash. You can buy using a bank card (debit and credit card) or via a bank transfer. CEX established in 2013 and have since become one of the most popular options for buying and selling cryptos easily.

Fees

The fees to buy cryptos using a bank card at CEX.IO is 2.99% using a bank card.

3 ) Coinmama

Third on the list Coinmama.

Coinmama no different than the other on this list. Buying cryptos with a bank card is easy and something you can do in just a few minutes.

Head over to www.coinmama.com and there you can a few banners on the site advertising how to buy cryptocurrencies using your card. You can see there how much in crypto you would get for lets say €100, €500, €1000, or your own chosen amount.

To get started using Coinmama you need an account. But setting one up takes just a few minutes. And it is a similar process as for all other options on this list.

Buying cryptos using Coinmama is very easy, and when you have an account ready you just need your bank card ready to get started. Remember you need a wallet to send your funds to.

Fees

The fees for buying cryptocurrencies with your bank card at Coinmama is 5.90%.

 

4 ) Changelly

First out in this list is the popular option of Changelly.

Changelly has grown to become a commonly used option for crypto investors looking to buy cryptos easily. But also swap them for another coin with little effort. And of course buying crypto with a bank card is something you can do at Changelly.

To get started go to www.changelly.com and then click on on ‘Buy crypto with a bank card’.

After that you decide which crypto you want to buy. And before you complete the purchase it is important to note that you need to have a wallet ready to send your funds to. But don’t worry creating a crypto wallet is easy. Check this guide to learn more.

Now if you want to buy Bitcoin you need a Bitcoin wallet, Ether then an Ethereum wallet, etc.

Select the cryptocurrency, and what amount you want to buy for.

Fees

The fees at Changelly are:
Changelly fee 5% and Simplex fee 5% (min $10).

5 ) Bitpanda

Number two on this list is Bitpanda. Bitpanda has since their launch grown very quickly. And is now one of the more commonly used options for Europeans who are looking to buy cryptos easily. At Bitpanda you can buy cryptocurrencies easily using a bank card amongst other payment methods

Head over to www.bitpanda.com and get started if you already have an account. Otherwise register one which only takes a few minutes. When you have an account ready you can get started buying cryptos with a bank card. And you can buy a range of exciting altcoins, such  as: IOTA, Bitcoin Cash, Litecoin, EOS, OmiseGO, NEO and more.

You can of course buy the big guns Bitcoin and Ethereum at Bitpanda too.

Right now Bitpanda is only available for EU citizens. Bitpanda accept a range of direct purchases from fiat currencies like USD, EUR, GBP, CHF

Fees

The fees for buying cryptos with a bank card at Bitpanda is 1.49% so that’s very cheap comparing to other options on this list.

Common questions when buying crypto

We hope that this guide on buying cryptos using a bank card was helpful. To help you understand even better how cryptos work have we decided to answer some of the more common questions asked by beginners when entering the crypto space.

1 ) Do I need to buy whole coins?

A common confusion is if you have to buy a whole Bitcoin, Ethereum or other cryptocurrency? Which you don’t have to in the world of crypto. You can buy crypto in fractions, so you don’t have to buy one whole Bitcoin.

2 ) What is this I’m hearing about being my own bank?

Another common concern that crypto traders and holders eventually learns about or hears from a more experienced crypto trader, is that you need to be your own bank for crypto.

This means that high emphasis is placed on making sure you are storing your cryptos safely, like how your bank stores your fiat currencies.

This is because many cryptocurrency exchanges today are still less secure. So there are greater risks involved. Another reasons is that not every exchange or trading platform have made it possible for you to store your cryptos there. Like for Coinmama, Changelly and Bitpanda.

3 ) How do I sell cryptos later on?

Buying and selling cryptos should be as easy as buying a cup of coffee these days. So with more options like these five crypto platforms the better. For a long time, it was too difficult to buy and sell cryptos. The fees at these platforms might be a bit higher than at other exchanges. But for the ease of use and simplicity then it might be worth it.

I use these platforms from time to time myself because I just want to buy cryptos quickly. Otherwise, it can take a few days when transferring funds from your bank account. And if you want to buy cryptos quickly to make use of how the market moves then buying with a bank card is a great option to get in quickly.

If you are new to crypto and want to find more helpful guides on getting started then we recommend you reading this guide for best crypto starting tips and if you want to find more platforms to buy cryptos at then read this guide.

Written by:
Per Englund, founder of crypto site Go CryptoWise

ByDavid Adamson

Titan Coin (TTN) is Receiving Positive Reviews from the Experts in Crypto Industry

Ever since its launch earlier this year, Titan Coin has been in the buzz both among the investors and common people alike. While a large number of people have already invested in the coin and are now successfully trading it via multiple exchanges, many others are still wary of the risks involved with investing in a new coin.

To help investors with the risk factor of Titan coin, the dev team had recently released detailed research on why Titan coin is secure for investors and has minimum risk involved.

Now, to further ease the job of investors, we would like to tell you that Titan Coin is continually receiving positive reviews from the crypto industry leaders.

If you take a look at the official Bitcointalk thread of Titan coin (https://bitcointalk.org/index.php?topic=5127407.0), you’ll find that many investors are not only appreciating the coin but also showing their interest in becoming a part of it.

Here are some examples. Here’s what some of the Bitcointalk experts have to say about the Titan coin.

“The Features of Titan Projects are amazing and everything looks Good if all this can be work on this will make Titan Projects to be Great Project especially for Upcoming App this will change history in Cryptocurrency” – Ayomayowa247

“I see many prospects in this project. it causes me interest.

I got acquainted with a blank paper overview. it looks pretty clever and structured. the team members are well-known specialists. it will be implemented in a decent manner.” – Mariia_BT

“If All This Plan Go In Place as they plan Titan Projects will be among the best projects in crypto World. Let the Team keep Working on there plan So to bring Best Results We are always there to Support this project.” – Ayushadex

As you can see, most of the people are impressed with the performance of the Titan coin so far and want to invest in the project. Many others have also been asking questions about the future plans of Titan projects. So, here’s a brief of the same.

Whitepaper V 2.0

Titan projects will soon release the second version of their whitepaper, explaining the various details of the coin scope and problem-solving solutions that the project is planning to launch.

Titan projects

The Titan dev team is presently working on developing various mobile applications. The first mobile app of Titan named T-21 will be released shortly. It is an online dating app where people can meet and socialize in a very secure manner.

Titan projects will be developing & releasing multiple other apps, including a fantasy sports game app and a family security app later on.

Mining

The staking of Titan coin is ongoing. More new coins are being generated every minute. The coin is in POS mode currently. As of now, nearly 18% of the total Titan coins are being circulated.

People are both trading and staking the titan coin.

Titan coin exchange

Besides listing the coin on multiple third-party exchange platforms, Titan projects will also soon launch their own mainstream exchange, which will allow users to buy and sell cryptocurrencies using bank accounts for payments.

To know more about the Titan coin’s popularity and future plans, kindly visit https://titanprojects.co/

ByDavid Adamson

Libra Coin – A New Digital Currency Developed by FACEBOOK

Libra is a cryptocurrency developed on blockchain technology. It is launched by the most popular social media giant Facebook. The main motto behind shaping Libra is to empower millions of unbanked and under banked people by giving them equal financial opportunities and to bring everyone on to a single financial platform.

Libra, will help you in faster and quicker transactions, one can experience the lightning transaction with minimal or no charges. You can sit in your home and transfer money to another person who is in the other part of the world. And to this, all you need is a mobile with data connectivity.

Libra is developed on Blockchain technology, it is a decentralized programmable database that helps in backing the more stable currency, that will have the capability to become the medium of exchange for transacting money to millions of people around the world.

Libra is an independent association, it is a non-profit organization running with a vision to provide basic financial infrastructure and global currency to emancipate millions of people. Libra Association is formed by the compilation of validator nodes, mostly they are academic entities, international corporations, and social impact partners.

The Libra Blockchain is an assigned system that supervises exchange and ownership of Libra. In the process of transacting Libra, there is a slight chance of attacks on the system and here Blockchain helps in defending attacks using LibraBFT.

A perfectly developed and secured software is a must to protect the Libra Blockchain. A new programming language called MOVE is used in Libra. It is a safe and reliable programming language for Libra Blockchain. It is a sensible bytecode language used to implement smart transactions and smart contracts.

Libra is definitely a game changer in the field of cryptocurrency as it is backed by a stable reserve, there is no need of worrying about the fluctuations in the value of the Libra.

Libra Coin – A New Digital Currency Developed by FACEBOOK

Mrbtc.org comes with an interesting infographic on Libra Cryptocurrency, checkout the following infographic and lets us know your feedback on it.

ByDavid Adamson

Cryptocurrency Laws in India – Why Cryptocurrencies Are Not Legal in India

Cryptocurrencies are not legal tender in India. While exchanges are legal, the Government has made it very difficult for them to operate.

Cryptocurrency exchange regulations in India have grown increasingly harsh.

While technically legal, in April 2018 the Reserve Bank of India banned banks and any regulated financial institutions from “dealing with or settling virtual currencies”.

The sweeping regulation prohibited trade of cryptocurrencies on domestic exchanges – and gave existing exchanges until 6 July 2018 to wind down.

India has a number of laws that currently apply to cryptocurrency. A new Cambridge University report explains some of these laws. We have taken notes from the report and simplified it for you. Hope it will clarify your cryptocurrency knowledge and its operation.

While the Indian Government is working on drafting the legal framework specifically for cryptocurrency, several existing laws apply to crypto assets in addition to the infamous RBI circular that prohibits all regulated entities from providing services to crypto businesses.

For cryptocurrencies that are deemed securities, Securities Contracts Act 1956 may apply.

However, the report states that “Currently, there is regulatory uncertainty regarding applicability” of this law to tokens but some “may fall within its remit if, inter alia, they are issued by an identifiable issuer and backed by the underlying assets of the issuer.”

Companies Act and Payment Systems

The regulations under the Companies Act, 2013 and rules will be applicable on all token types cryptocurrency. On of the author of the report explained in detail, “These are primarily the Companies (Acceptance of Deposits) Rules, 2014 (Deposits Rules) which specify when the receipt of money, by way of deposit or loan or in any other form, by a company would be termed a deposit, and also provides certain exemptions from its applicability.”

“Payment tokens may also be subject to the Payments and Settlements Systems Act 2007 (PSSA). The Cambridge report claims that there is nothing in this act “to exclude virtual currency, since only the term payment is referred to, as opposed to currency, legal tender or money.”

“Therefore, if a cryptocurrency activity “were to constitute a ‘payment system’ or other regulated activity, the issuer would need payment system authorisation from the RBI under PSSA and would require compliance with KYC/AML norms.”

Money Laundering

The use of cryptocurrencies may further fall under the Prevention of Money Laundering Act 2002 (PMLA), which carries statutory penalties of up to 10 years imprisonment.

However, the report clarifies that it is unclear whether the reporting obligations prescribed under Chapter IV of the PMLA extend to wallet operators, crypto asset exchanges or third-party bitcoin services.

 It added, “A majority of crypto asset trading platforms are self-regulatory and follow extensive KYC/AML norms.”

Unregulated Deposit Schemes

There is also the Banning of Unregulated Deposit Schemes Bill 2018 which has been tabled in Parliament. It proposes to prohibit all unregulated deposits which could apply to initial coin offerings (ICOs).

The author explained that the bill “provides a schedule of regulated deposit schemes, and all unregulated deposit schemes are prohibited.”

Additionally, “The term deposit includes ‘an amount of money received by way of an advance or loan or in any other form, by any deposit taker with a promise to return whether after a specified period or otherwise, either in cash or in kind or in the form of a specified service, with or without any benefit in the form of interest, bonus, profit or in any other form, but doesn’t includecertain enumerated categories”

He elaborated, “An ICO might be regarded as an ‘unregulated deposit scheme.’ So, virtual currency token issuers would need to ensure, in order to be outside the purview of the Ordinance, that (A) the scheme is regulated and/or (B) there should be no liability of returning any money received.”

He added that this bill “was passed in the Lok Sabha (House of Commons) on Feb 13, 2019 but will lapse in the House of Representatives (Rajya Sabha) after the dissolution of the Lok Sabha due to elections in May this year.”

He further remarked, “Ordinances are usually required to be approved by the Parliament within 6 weeks or they lapse, in this case, no official confirmation about its approval by the Parliament has been made yet. Considering the elections, I am sure the 2019 Ordinance would take another few months (at least) to be made into a law.”

Hope our interpretation and explanations be some help to you.

ByDavid Adamson

Is There Any Other Coin Like Bitcoin That Is Worth Investing?

To be honest, there hasn’t been any coin which has come close to the success and popularity of bitcoin. The success of bitcoin was like a dream which no one saw coming.

In the 10 years since its creation, the price of bitcoin increased from $0.000763 per BTC in 2009 to $19,783.06 per BTC in December 2017.

In other words, someone who had invested in buying 1 bitcoin in 2009 became multi-millionaire in 2017.

So, what I am trying to say here is that what happened with blockchain was an unrealistic thing and is not likely to happen again. But that doesn’t mean that no other coin will ever be able to repeat the success of bitcoin.

In fact, there are some highly potential cryptocurrencies in the market which are as prominent as BTC, if not more.

6 Coins Like Bitcoin That Is Worth Investing

Let’s find out about some of the altcoins that are worth your investment and can make you rich.

Bitica coin (BDCC)

The Bitica Coin is a digital cryptocurrency which was created in 2018 by a startup based in Estonia. BDCC is a so far the best and the closest alternative to the bitcoin, in that it offers the same functionality and features as bitcoin along with the benefits of a utility token.

In addition to being used as a payment processing system, the Bitica coin can also be used in a number of applications on the Bitica’s own network of services including merchant service, social network and business network.

Litecoin (LTC)

Litecoin, which was launched in 2011, proved itself a worthy opponent to the success of bitcoin. It was, at the time, called silver to bitcoin’s gold.

LTC rose to popularity very soon and became one of the most trading digital currencies of its time. It follows the same concept of a global, public payment network which is decentralized and PoW based.

Dash (DASH)

DASH was originally launched as darkcoin to represent the dark side of bitcoin.

It was launched in 2014 and operates on a decentralized mastercode network which is even more secure and anonymous than bitcoin’s network.

The best thing about DASH is that it can facilitate nearly untraceable transactions.

Ether (ETH)

ETH is certainly one of the best altcoins for trading purpose.

The best thing about the Ethereum network is that it extended the application of the blockchain technology by enabling other crucial features like Smart Contracts and Decentralized Apps based on blockchain.

Ethereum is what made blockchain distinct from the bitcoin.

Ripple (XRP)

Ripple was founded in 2012 as a global, real-time payment network which can be used for performing instant, low-cost cross-border transactions.

The major difference between Ripple and most other altcoins is that this one doesn’t require mining.

Bitcoin Cash (BCH)

Bitcoin cash (BCH) was a product of discussions and arguments over bitcoin’s scalability. It was created mainly with the purpose to overcome the issues that limit bitcoin.

For instance, the block size in BCH is 8 MB, as opposed to BTC’s block size limit of 1 MB.

ByDavid Adamson

What is Tokenomics? Everything You Need To Know

Tokenomics is the economics of tokens (cryptocurrencies). It is the study of token behaviour to read and analyse the token value over time as well as the factors that affect the token price.

What is Tokenomics?

Tokenomics usually include things like the total number of tokens, token distribution, token holding, trading, etc. The overall purpose is to incentivize positive growth of the respective token.

Until now, money or currencies were only issued by central banks under the guidance of governments. But cryptocurrencies have changed that. These are decentralized currencies which can be issued by just anyone, even individuals seeking to create their own micro-economies around the blockchain network.

So, basically, tokenomics is all about tokens: how they are created, sold, traded and increase/decrease in value.

How Does It Works?

So, how does it all work? Let’s see. The economics of tokens is governed by factors like token distribution, price, governance, adaption, etc. Let’s discuss each in details.

Token Distribution is how coins/tokens are circulated in the market in order to increase their applications as well as value. This is achieved in many ways. For instance, cryptocurrency mining is an activity where miners are rewarded with new coins. ICO (initial coin offering) is another method that companies utilize to distribute their tokens in the market.

Importance of Tokenomics

Another thing of importance in tokenomics is the price stability of tokens. Cryptocurrencies are volatile in nature, as their value change very frequently owing to demand and supply. Networks need to take care of this by maintaining sync between the supply and demand of their tokens in order to create a stable price.

Since cryptocurrencies are not controlled by any centralized entity such as banks or the government, the team behind a project is itself responsible to devise the rules for the creation (mining), distribution and trading of its tokens. While some projects choose to release all their tokens at once, some others prefer to hold a few tokens in reserve to be released later. The ‘burning’ of tokens is another popular method followed by some networks to help control the volatility of their tokens.

Governance of tokens also involves devising the rules for incentivising people who purchase, hold or use the said tokens. For instance, some networks reward their users for holding the tokens rather than selling them back.

Future Adaptation Of A Token

Moreover, tokenomics also details the future adaptation of a token and defines how the token will change over time. The team or developers behind a crypto project do not know whether their product will work in the future, this is why they need to make provisions to alter the way tokens are operated in the future, if need be. This is crucial in order to maintain a constant interest in the token.

For example, the supply (release, sell and trading) of Bitica coins is completely governed by the underlying rules devised by the team. A total of 18 million coins will be released, not more than that. The rules for the distribution of tokens are also mentioned in the project whitepaper and on the website. Check details at https://thebitica.com/.

ByDavid Adamson

Everything You Need To Know About X20 Mining Algorithm

The X20 is a new cryptocurrency mining/hashing algorithm which was founded by the Pieta.Network on the concept of the X11 and its successor hashing algorithm.

The fundamental working is the same, which is to increase the hashing of the mining process to make the overall process (and transactions) more efficient and secure. However, the X20 algorithm was created with another major purpose of reducing energy consumption in the crypto mining process.

How does the X20 Algorithm work?

The X20 algorithm is a proof-of-work mining/hashing function which provides a cost-effective alternative to high-end mining hardware such as Application-Specific Integrated Circuits, or ASICs.

The X20 algo works by enabling 20 round of hash functions, instead of just 1 or 2) for each mining transaction, therefore, encrypting each new value with 20 separate hash functions, thus increasing the security and efficiency of blockchain transactions.

Now, the X20 algorithm also speeds up the block creation process to less than 20 seconds by reducing the block size to 2 MB, in the Pieta project. The increased efficiency not only improves the mining speed but also makes it more energy efficient by keeping the mining hardware cool, as more blocks are now produced in less time and with less effort.

As the mining algorithm becomes more powerful, less power is required to produce each new block.

How can the X20 algorithm benefit us?

The biggest advantage of the implementation of the X20 algorithm in the mining process is the increased productivity and profitability for the miners.

But that’s not all, it also makes the overall process more energy efficient.

Benefit for the Environment

As the X20 algorithm limits energy consumption in the mining process by keeping the hardware cool, the emission of harmful gases and carbon is also limited by a great extent, thus making the bitcoin mining process more friendly to the environment. It also helps limit the cost of energy in mining.

Benefit for the Miners

The main benefit of X20 is for the miners who are troubled by the high cost of mining hardware and energy. The use of this algorithm is expected to reduce energy consumption in mining by as much as half, thus effectively reducing the cost of mining and increasing profitability. Low energy consumption means that the overall profits of miners will increase.

Pieta, in addition to the new X20 algorithm, also focuses on the use of green solar energy in the cryptocurrency mining activity, thus limiting the adverse impacts of mining on our ecosystem. You can check out the complete project details at https://pieta.network

ByDavid Adamson

Hybrids, Debts and Equity Funds: Know The Real Difference

During the past several years, the traditional Investment Management (IM) industry has seen rapid changes with the appearance of well-funded fintech companies, the digital tsunami and the shifting of demographics. DCI is one such upcoming finance preferred ecosystem that leverages the digital capabilities in order to provide excellent investment opportunity for the private, retail, and institutional investors. DCI uses advanced technologies like AI, machine learning, and Robo-advisory to offer a complete 360-degree view of the private and institutional portfolio to the users of the ecosystem.

Coming back to traditional investment methods in the IM industry, it is observed that the traditional investment methods like mutual funds and hedge funds do not guarantee an excellent return to investors due to limited investment opportunities and larger capital requirements. In the recent past, investing in mutual funds has also been considered as expensive by IM industry experts that is largely considered as an anachronistic ETF.

In the cryptocurrency space too, the investors are looking to invest in digital crypto funds that offer high returns with minimum market risk. In order to help investors, modern fintech players, such as DCI (Digital Crypto Invest), are planning to provide active portfolio management capabilities in a ready turn-key ecosystem featured by modern technologies such as Artificial Intelligence (A.I)/Robotics.

Despite rapid changes in the IM industry, it is important for the investors (i.e. private, retail and institutional) to obtain proper knowledge regarding the difference between types of funds in terms of risk, return, tax treatment, and investment opportunity.

Here are the category-wise differences between three major funds, which include equity funds, hybrid fund, and debt funds.

Investment Risk

When it comes to investment risk, the equity funds come on top with a high-risk rating in comparison to debt and hybrid funds. Equity funds are the ones that primarily invest in stocks. In equity funds also, the risk varies in sub-categories. For instance, mid-cap and small-cap are riskier than the diversified large-cap funds.

The lowest risk credit in the equity category goes to index funds, which passively tracks the index. On the other hand, in the debt category, the risk rating is mainly determined by maturity and credit quality. Debt funds primarily invest in different securities like Treasury bills. High maturity generally incurs high risk in debt funds. Lastly, in the hybrid category (debt and equity both), the riskiest category is the balanced funds as it has a greater than 50% exposure to equity.

Return Scale

In obvious terms, it can be simply stated that the returns expected on each type of fund are generally proportional to the risk taken by the investor. One thing that affects this relationship between risk and return is Total Expense Ratio (TER). TER, in simple terms, can be defined as the total cost that incurs to the investor for managing and operating any fund like a mutual fund.

The level of TER varies with active management of funds by the investor. Talking about three different funds, the closely ended and liquid funds have a low TER in debt category, whereas in the equity category, diversified and sectoral funds have high TER and high expense ratio. In the hybrid category, arbitrage funds are largely passive in nature, hence have low TER, whereas the balanced funds have high TER close of 2.5 percent.

Apart from TER, the choice between regular and direct plan also affects the NAV to investors, and as a result, overall return also gets affected.

Keeping this in mind low TER would be the best choice for investors to have a high return in the alpha markets.

Taxation Scale

Talking about taxation, there are broadly two categories, dividends and capital gains, on which taxation scheme of things gets imposed. In the case of dividends, the capital earned is tax-free and is directly handed to investors in case of debt, equity, and balanced funds. However, the Dividend Distribution Tax (DDT) generally varies in each category. For equity, DDT is 10%, whereas the debt category has a much higher DDT of 25%.