Sunday 30 November 2014

Tips to Invest in Share Markets


Where, when and how to invest in a share market? These are repeatedly asked questions by the beginners. Share trading is not an easy task. Only thorough and sound knowledge about the market can help you. As it is not only an area for making huge profits, loss is the other non-detachable part of it.
The investors generally are seem to be interested in purchasing shares of branded companies. In simple terms it is the popularity of the company which attracts the attention of maximum investors. But according to experts' opinion before investing, it is necessary to check out the company's profile. It would be better if you first go through with annual report of the company you are looking for. The ratio of their profit and number of shares available in market. Take out all the details and make out an in-depth financial analysis about its market situation. Then you can decide, whether you have to make your investments in that or not.
To buy anything at low prices and then gain profit after re-selling it is the notion of share market. So it would be better if you buy your shares at that time when prices get low. And sell them when prices are high. This market is very flexible, so you cannot wait for more and more and rely on the next hour. As anytime prices can go up and move down. If you are getting reasonable profit out of your investment then make your decisions fast regarding buying and selling of your shares.
When and where are the obvious answers for how to invest? These two are the most important things. The brokers are the best medium to take some serious advices. They can provide you substantial information and can suggest you where your investments will earn you maximum profits. But they charge their fees. If you want to save your money from them, then you can yourself go to the trade market and bring out all the details. Websites are also the other medium for solving your queries.

As the nature of this business is totally unpredictable so you are responsible for all your gains and profits. The important factor is that before entering into this business; ensure yourself about the risks and essential details.

Using the Share Market to Live the Life of Your Dreams

What would you do - if you could do anything?
The simple 'wake-up test' gives the best indication. On first waking, close your eyes and remove every limiting thought. How would you spend your day if happiness was your only desire? Which of your passions would you most like to explore?
Now many who are financially independent have gotten there through hard work, and have endured the continual pressures of stress and responsibility. But for the point of this exercise, let's just say they are in a better position than most to follow their heart's true desire if that was their wish.
Financial independence is a term that is unique to each. Those who are used to living a lavish lifestyle would require a greater sum of money to feel secure than those satisfied by the simple pleasures in life.
Age is another factor influencing this figure. Someone who has retired after a life filled with work would require less to live on for the remainder of their days than a teenager eager to explore the world.
But although the figure is variable - the concept is the same. You could spend your remaining days living in any fashion you wish, with no concern about finance.
This is achievable by either having a large sum of money safe and securely saved away waiting for your withdrawals, or by having an income independent of your attention and efforts that is greater than your ongoing expenses.
Is this out of reach of all but the blessed few - or is financial independence equally achievable by all?
History has proven time and time again that reward is given for effort - and many who not had a penny to their name can climb to the pinnacle of the financial mountain.
The stock market is one vehicle for wealth generation that offers an even playing field for all.
Technological developments now allow anyone to invest in the market from their personal computer with just a few clicks of the mouse. The world news and market updates are screening 24 hours a day - and convey the same information that the professionals use to make their decisions.
Stock market analysis has progressed from a technical and mathematical procedure - into a few mouse clicks within dedicated software that analyses the market and displays the results in an order governed by the likelihood of profit.
Depending on your trading style, your time interacting with the market can be less than an hour a day, and you are limited only by the ability to establish an internet connection.
Fortunes can be made by trading the stock market. Successful traders can achieve financial independence - and live the life of their dreams.

Every day, people around the world have swapped their jobs and financial struggles, and wake each day and decide which passion they wish to follow.

How to Invest in Indian Share Market

Things to Remember While Investing in Share Market

Saturday 29 November 2014

Managing Money In The Shares Market And Stock Market Tips

Managing money is the essence of a successful trader no matter whether money invested is in the shares market or other diverse options. Spending and investing are easy but it is equally tough to manage it. Once you maintain a balance of profits and losses and once you know the significance of money, success is yours. The Indian stock market like all world markets is subject to fluctuations. This is the reason why you may not get consistent gains. Only if you are an expert and know when to buy and sell, you can sail smoothly irrespective of the fluctuations.
One of the most followed stock market tips is picking winning companies listed in either the NSE of India or BSE of India. It is no easy cup of tea spotting the winners. Your time and efforts in conducting some research will yield the desired results. When a wealth of information is accessible online, it will require only a few clicks of the mouse to know about the winning companies. There is no dearth of companies that have maintained a consistent growth record with negligible falls in the Indian stock market. Such companies are often in the news for profits, innovations introduced, and other contributory efforts; these are the companies that follow good business models and sound management practices.
Raising money from the shares market such companies expand further and carve distinctive niches in their respective segments. They keep clear and transparent accounting records and it is more of profits rather than losses that identify their presence. The Indian stock market is full of such companies. Once you spot them and once you put in your money, you will only witness success kissing your doorsteps. But as beginners, it may be a tough job for you. Understanding the shares market does take time. Well, there are numerous other stock market tips following which you may be able to take informed decisions. But do also consider that you follow the stock market tips published at reliable brokerage platforms, those that are known for offering solutions beyond brokerage.

Before you begin investing in the shares market in India, do study in detail about the NSE of India and the BSE of India - the two principal bourses that steer the Indian capital market. Know about the companies listed in both the stock exchanges. This will give you an idea about positive performing companies. And spreading out our money by investing in different shares sold by companies listed in both the NSE of India and BSE of India will no doubt prove advantageous for you. This way you will not only manage your money but also manage risks associated to a great extent.

Tricks to Gaining the Maximum from the Shares Market

Anyone can become an investor in the shares market. It is not putting in money for the Indian stocks but gaining that matters. If you have been involved in investing for quite some time and have been incurring repeat losses with negligible gains, you are not actually proceeding right. Luck favors only those who know the tricks of finding out potential Indian stocks besides managing their money. If you are not equipped with the knowledge of the shares market and do not stay updated with all relevant news that matter to you but yet nurture big dreams of making money, your dreams will never get fulfilled. It is never too late.
You can start learning right away. Stop your investing spree in the market of share in India for some time and gain knowledge first. Once you cultivate the passion and determination to learn, read, conduct research and once you are confident enough to win, you can then step your foot forward towards investing in any potential NSE or BSE stock. You will then witness the wheel of fortune turning in your favor. In no time will you see your money invested in Indian stocks multiply to your satisfaction.
It will be wise on your part to study the performance of the shares market for the past several years so that you come to know what caused crashes, what caused the values of the Indian stocks to go up, and all related paraphernalia. Understanding the past performance and history of the market besides also familiarizing yourself with all the terminologies associated will prove useful for you. You will know whether a particular share in India is potential or not once you consider all factors concerned. Again it depends whether you want to invest for short term or long term. Risk is involved more for the short term than for the long term.

Taking informed decisions and coming close to predictions for both the terms will certainly lower the risk level involved. What are the factors that you should consider when choosing to invest in a share in India? To start with, consider the sector such as whether it is realty or auto or banking or any other segment. Then consider the company, its reputation in the market, its growth trajectory for the past several years, financial records so that you know whether it has recorded good growth. If it is, go for it. If not, then you should continue your search further to find the potentially of another NSE or BSE stock. Of course you will have to dedicate your time and efforts. The shares market turns favorable to those who follow such a planned strategy.

Live Share Market

Share market is among the extensively used methods for investing people's valuable earning and for earning more money. People tend to buy stocks when they are priced low and sell such shares when their price increase, resulting in a profit. Trading in live share market has become all the more exciting since it has gone online. Stock market has changed significantly, with a considerable morenization in the trading patterns and operations. Voluminous stock movements in the online platform as well as highs and lows enable the smart traders to earn high returns.
In the present scenario, the Indian Share Market is being heavily driven by corporate performance in the FMCG, auto, technology, metal, financial and healthcare sectors. With most of the companies in all the sectors performing positively, the day when sensex and nifty will cross 20,000 and 6,000 mark, respectively, is not far away. Although it would be smart of you to invest in the live share market, the results may not always be what you expect. In other words, the return on your investments can be sometimes more than your expectations, or can also be way less than what you expect.
However, all the investors who put their money in BSE or NSE market do not necessarily get maximum returns. Some might get to face losses repeatedly. Hence, one can clearly infer that investing in any of the segments involves risk. Your returns will majorly depend on the way your risks are managed, the level of knowledge you possess, your financial strategies and goals, how much updated you are with live happenings surrounding share market in India and beyond, among others.
The Indian share market is highly volatile just like any other market in the world. Market experts generally advise investors and traders to diversify their investment portfolios as much as possible. There are many investment options available in the market that have varying risks factors, rates of return, etc. Some of these options are commodities, forex, mutual funds, etc.

However, investors still prefer to invest in the traditional financial instruments. This can be attributed to the fact that the investors are quite educated and aware of these traditional instruments, hence they are comfortable investing in it. The traditional financial instruments include share trading.

A Positive Approach for Carving a Niche in the Shares Market

It is quite natural for novice investors in the shares market to get frozen into inactivity when they learn that their shares are falling in value. They end up in a dilemma when to sell them. By the time they take a decision, they had held them for too long, thus resulting in the incurring of big losses. This is because they are simply driven by the notion that some time the value will rise and ultimately their hopes get shattered. But this is not always the case. Falling stocks do again rise in value, especially in case of blue chip companies. Small companies that are witnessing a downtrend continuously hardly rise. This is the reason why market experts offer tips on the shares market besides also advising investors in staying updated with the latest market trends. Hopes can be fulfilled if before investing in the stocks, a proper research is done especially concerning the rise and fall of their value for the past several months.
If you are ruled by emotions, it will be difficult for you to make a mark in the Indian shares market. The best way to survive is to strip all emotions out of your decisions. A share in India or any other part of the world is subjected to market volatility. This creates the risk factor. Obviously when you invest in a stock in India, you will look forward towards selling it in an opportune time. How do you know when is the right time to sell this stock in India. The answer is news! The latest news on BSE India and NSE India will let you know about the market conditions. For example, if you have invested in a BSE share in India, you should frequently read the BSE India figures, i.e. the sensex. Similar is the case with NSE India when investing in a NSE stock in India.

There are several subtle techniques which you can follow to find out the potentiality of stocks. As novice investors, buying and selling only is not the only means. There are several parameters that need to be considered simultaneously. Read a lot; it will only add to your knowledge and in turn facilitate you in taking informative decisions. Never hesitate to conduct research on any particular stock in India you want to buy. The two key techniques followed by most successful investors in the Indian shares market are stock technical analysis and fundamental analysis. Besides this, the right strategy, staying updated with latest news related to NSE India, BSE India, and the stock market as a whole, researching on recommended stocks, and more will definitely help you carve a niche in no time.

Friday 7 November 2014

An Overview Of Indian Mutual Funds

Mutual Funds have gained a lot of popularity over the last few years. People favor MFs to bank deposits, life insurance and even bonds for the reason that with a little money, they can get into the investment game. Moreover, the generally accepted goals of the small investors - the protection of principal, the maintenance of income and appreciation of principal are achieved when their savings are invested in MFs. One can possess a string of blue chips like ITC, TISCO, Reliance etc., through them.
MFs basically act as an intermediary between the investor and capital markets. The business of MF is to re-invest in any scrip in the market, and prove their performance through returns to investors. Hence, they are useful in spreading risks and optimizing returns.
History of Mutual Funds
The formal origin of MFs can be traced to Belgium where Society Generale de Belgique, was established in 1822 as an investment company to finance investments in national industries with high associated risks. But the real credit of introducing the modern day concept of MFs goes to the Foreign and Colonial Government Trust of London established in 1868.
The idea of MFs in India was born out of the far-sighted vision of Sri T. Krishnamachari, the then Finance Minister. MFs began to take shape in India with the establishment of Unit Trust of India (UTI) in the year 1963. UTI had twin objectives of mobilizing household savings and investing the funds in the capital market for industrial growth. The first scheme launched by UTI was Unit-64.
The year 1987 marked the entry of non-UTI, public sector MFs. SBI MF was the first non-UTI MF established in 1987.
In the year 1993, the MF industry was opened to the private domestic and foreign players. The Modis, Birlas, Mahindras, Tatas, among others jumped on to the fund wagon. Other players like Jardine Fleming, George Soros, and Capital International also joined the party and the number of MF houses went on increasing. The Kothari Pioneer MF (now merged with Franklin Templeton) was the first private sector MF registered in July 1993.
The second half of the 1990s saw the commencement of numerous new types of schemes in India, particularly by the private sector funds. UTI In 1994 launched the First retirement benefit plan, and Kothari Pioneer MF (KMPF) launched the first pension plan in 1996. During 1997-2000, several gilt funds, government securities funds and liquid funds were launched.

SEBI notified regulations for the MFs in 1993 under which all MFs (except UTI) were to be registered and governed. The regulations were fully revised in 1996 and have been amended thereafter from time to time to protect the interests of investors.

History of Indian Mutual Fund Industry

The mutual fund industry is a significant part of financial markets in India. It was introduced in India with the objective of attracting small investors and to make them invest in financial markets. For many, it became a preferred investment option compared to bank investments like fixed deposits, small savings schemes, etc., that earn low returns. As mutual fund schemes are professionally managed and are more diverse, most people in India prefer investing in them.
In this article, let us look at the history of this industry and see how it has grown successfully since its establishment.
Entry in India (1963)
The concept of mutual funds emerged in India with the formation of Unit Trust of India (UTI) in 1963 which is a watermark in the annals of history of mutual fund industry in India. It was initiated by government and the Reserve Bank of India (RBI) with an object to attract small investors and to encourage them to invest in schemes that help them create wealth in long run.
Monopoly era by UTI (1964-1987)
Established through an Act of Parliament in 1963, the Unit Trust of India (UTI) enjoyed monopoly status for 23 years and functioned under the regulation of the RBI for 15 years. Later, it was de-linked from RBI in 1978 and operated under the regulation of Industrial Development Bank of India (IDBI) which took over the administrative control from the RBI. The first unit scheme of UTI was launched in 1964 and later more innovative schemes were launched in 1970s and 1980s to attract and match the needs of Indian retail investors. By the end of 1987, the Assets Under Management (AUM) of UTI increased ten times to Rs 6,700 crore.
Entry of public sector players (1987)
Public sector players entered the market in 1987. SBI was the first non-UTI mutual fund in India. It has been successfully managing large investors' funds since 1988. It launched many schemes to provide investors with opportunities to make profits by investing in stocks of various Indian companies.
Later, such schemes were launched by Canbank Mutual Fund in 1987, Life Insurance Corporation (LIC) in 1989, Punjab Mutual Fund (Punjab National Bank) in 1989, Bank of India in 1990 and General Insurance Corporation (GIC) in 1990. By the close of 1993, the AUM of mutual fund industry had increased seven times to Rs 47,004 crore. However, the UTI retained its position as the dominant player with 80% of the market share.
Entry of private sector players (1993)
To provide a wider choice of funds to Indian investors, the private sector players along with foreign companies were permitted to enter India in 1993. In the same year, the first mutual fund regulation was passed, saying all companies except UTI need to be registered and governed. In 1993, the erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund company in India. During 1994-95, 11 private sector companies launched their schemes introducing innovative investment strategies.
SEBI regulation (1996)
The industry witnessed a sea change in the 1990s. In 1993, the industry started functioning under the regulation of Securities and Exchange Board of India (SEBI). This is, probably, the most elaborate regulatory effort in the history of the industry. Consequently, there was a spurt in the number of mutual fund houses with many foreign players setting up their companies in India. By the end of 2003, there were 33 companies with total AUM of Rs 1,21,805 crore.
In 2003, UTI was disaggregated into two entities. Of them, one is the Unit Trust of India with AUM of Rs 29,835 crore (as on Jan 2003). This has been functioning under an administrator and under the rules framed by Government of India. This does not come under the purview of the mutual fund regulations.

The second is the UTI Mutual Fund Ltd, sponsored by State Bank of India, Punjab National Bank, Bank of Baroda and LIC of India. It is registered with SEBI and functions as per mutual fund regulations. Currently Unit Trust of India works under the name UTI and some of its earlier schemes have gradually been wound up. However, UTI remains to be the largest player in the industry.