Why should you Protect your Trading Account with Balance?

So you have decided that you want to take the first step into online commodity trading, forex trading, stocks and shares trading etc.  You are ready to open your trading account and have your initial capital investment-ready.  But have you considered the very important question of how to protect your trading account?

DON’T SET YOURSELF UP TO FAIL

New traders often start out full of enthusiasm and confidence that they are going to make a healthy profit.  Sadly all too often they fail to achieve this, leading them to conclude that ‘trading is too hard’ and ending their trading career before it really got going in the first place.  The mistake they make is to invest all of their capital in the early days and have nothing left in reserve to keep them going once that is wiped out.

BALANCE IS THE BEST FORM OF PROTECTION

The best advice that newcomers to trading can take from the common mistake described above, is to only ever invest what you can afford to lose.  Holding back some funds in your account for when you spot a good opportunity, or to keep you going in times of trouble,  can only be beneficial in the long run.  Investing everything immediately is a bad idea for sure.  If you do not have funds in your account, you can not trade anything new.  Imagine any event that requires a ticket for entry.  In order to participate in that event, you need to buy a ticket.  No money = no ticket.  This example can be adapted to the stocks and shares market too.  No funds = no chance to trade.  You need money there in order to do business.  Use it sparingly and replenish it when you get profit.

PLAY SAFE UNTIL YOU FIND YOUR FEET

Remember that the aim of the game is to make money.  Having everything tied up in shares is not particularly useful.  Your trades should be used to generate money.  The more money you have in your account, the bigger trades you will be able to go for, without having to worry too much about loss.  Risk is always a factor in any form of trading, but your balance helps you to run that risk more easily.  By doing so you can enjoy less risky trading with money management in place.  If you have more, you can afford to lose more.  You should never have to compromise your lifestyle and day-to-day living because your investments are in a mess.  You should manage them so that they take care of themselves, using only your disposable income.  Never take loans in order to invest.  It is never worth the risk.   

BUILD UP SLOWLY AND GROW YOUR BALANCE

Lets say for example, you begin your trading career with 10 lakh rupees of balance.  You immediately buy 10 lakh worth of stocks and shares and now have zero balance.  Not only is ALL your money at risk, but you don’t even have any spare to use when a particularly attractive trading opportunity comes your way.  The alternative and proper way to operate could be to invest part of your initial 10 lakhs (how much exactly will depend on your trading strategy and goals which should be planned carefully with your broker or advisor and adhered to carefully) beginning with small trades for small profits.  This will give you a taste of the market so you can get used to the act of trading.  Playing with small amounts at first ensures that you will not be wiped out in the event that you make a few bad trades.  Remember that everyone makes bad trades at some time or another.  Nobody wins consistently.  Going forward, your small trades should generate small profits which all add up to a substantial amount.  Lets say you are able to generate a further 2 lakh rupees in 2 years, you now have 2 lakh rupees extra to play with, without needing to touch that amount of the initial capital that you held back in your account.  Let that be there, safe for use when you become more experienced, more sure of your self and more used to the way the markets work.  You could even afford to lose the 2 lakh rupees and be no worse off than where you started.  After all, that is money that you never had to begin with.  If you lose money from your initial capital however, you are losing your hard-earned money and becoming worse off overall.

DO NOT UNDERESTIMATE THE POWER OF AN INVESTMENT PLAN

Those who create robust long-term plans for themselves and stick to them meticulously almost certainly perform better than their counterparts who invest randomly and sporadically on a whim.  If you don’t have a plan in place, you need one, plain and simple.  If you require help in creating a plan for yourself, you can rely on the expert assistance of the staff at GWC INDIA.  Get the best risk management for active traders.  They are waiting on the other end of the phone line to help you maximise your potential and get the best returns on investment.  Call today on +91 80122 78000 and discover why GWC INDIA are the top online broker when it comes to value.  Don’t forget to ask about their extra-low brokerage charges and bonus special features that they make available to every GWC INDIA customer.

Mutual Fund Investment ideas for beginners (Include types of mutual funds)

WHAT IS A MUTUAL FUND?

In simple terms, a mutual fund is an investment product that is formed from money supplied by multiple individuals and/or companies, which is managed by a professional fund manager.  The fund manager uses his discretion to invest the money in various sectors in various forms of securities.  The purpose of spreading it in different areas is to hedge against the potential losses that would be incurred if a single sector was to suffer a crash.  The fund manager invests according to the investors’ risk tolerance.  The overall aim is to maximise the return on investment for everyone.  His own salary may be fixed regardless of how well he succeeds, or he may receive bonuses for achieving a good performance.  It is not necessary that each investor contributes the same amount of money to the fund.  Those who contribute more are entitled to a higher percentage of the gains.  To understand more easily who owns how much of the fund, and how much the fund is worth at any given time, it is divided into ‘units’.  An investor holding two units will be in receipt of two-times as much of the profit share compared to someone who only owns a single unit.  The current worth of the mutual fund itself is expressed as a price (Net Asset Value) per unit.  Mutual funds generate ‘passive income’, which means apart from supplying the initial capital funds there is no day-to-day work for the investor as everything is handled by the fund manager.  Monthly dividends are credited to the investor’s account automatically each month.

DIFFERENT TYPES OF MUTUAL FUNDS

Now that you understand what a mutual fund is, you should learn that there are several different types.  Not all mutual funds are equal to each other.  In fact there are many variants.  In order to make a decision on which type you would prefer to invest in, you must consider your aims, as all investors should have a plan.  Some mutual fund products are intended to generate more profit in a short time, but have inherently higher risk.  Others are designed to be long-term investments with more modest monthly returns but much less risk.  You should ask yourself how much you can afford to invest, how long you wish to invest for, and how much risk you are prepared to tolerate.  Most types of mutual funds allow you to put money in or pull your money out when ever you chose, but not all.  The ELSS (Equity Linked Saving Scheme) for example has a minimum lock-in period of three years.  It does come with its own special benefit though.  That is the fact that it qualifies for tax deduction on up to Rs. 1.5 lakh.  This is a unique opportunity to put some of your salary away and not be taxed on it, and earn returns in the meantime.  With the sheer amount of mutual funds available to invest in all with different risks as well as different benefits.  It is an absolute minefield for the uninitiated.  This is why it is highly advisable to invest with the assistance of a broker, at least in the early days of your investment career.

READY TO INVEST? HOW TO GET STARTED?

If you are convinced of the benefits of mutual funds investment in India, and wish to make an investment yourself, you must be wondering how to get started.  It is actually possible for anybody to contact a mutual fund company directly and ask to buy units.  This is considered risky for newcomers as although the company can sell the units, they are not best placed to give advice, and make sure that the investor knows the full implications and risks of what he is buying into.  For newcomers it is highly recommended to begin trading with the assistance of a reputable broker such as GOODWILL INDIA.  These kind of brokers are well placed to coach and mentor newcomers and may even publish a mutual fund investment guide for beginners.  They can provide you with all the support you need to get started in mutual find investing and avoid the pitfalls that can often catch out novices if they are not pointed out to them.  GOODWILL INDIA will be able to open a Demat Account on your behalf, absolutely free of charge!  Demat accounts make the buying and selling of mutual fund units so much simpler and safer as they hold all your ownership certificates in the digital domain and do not leave you with the hassle of possessing and protecting masses of paperwork.  Many brokers charge for open demat accounts, but not GOODWILL INDIA.  Free opening of demat accounts is just one of the many benefits they provide to their customers.  A few of the other GOODWILL good value bonus features are daily online webinars providing invaluable tips and strategy ideas for beginners and advanced investors.  Customer service telephone lines that are open longer than the competition, unlimited ‘call-and-trade’ service whereby you can phone to place orders, AND a unique mobile application allowing you to monitor your accounts and make trades right from your mobile device, wherever you may be.  To top it all off, GOODWILL INDIA have some of the absolute lowest brokerage charges anywhere in India.  Why not give them a call on +91 80122 78000 today?  Find out just how they can assist you in achieving your investment goals.

Oil Price Falling Due to the Impact of COVID 19? What Will Happen in the Future?

One of the most popular commodities t be traded on the MCX has always been crude oil.  Being one of the primary sources of energy for human activity in the world, it has been in constant demand since the invention of the internal combustion engine.  Apart from it being the raw material used for making petroleum and diesel, it is also imperative for the production of other petroleum based products, LPG, plastics, and bitumen being a few of them.

Crude oil prices have always seen fluctuations based on world events such as wars and recessions, but there has perhaps never been such a sudden drop as we have witnessed on the oil price after the impact of COVID-19 in 2020.  This sudden shock has been caused by a huge decrease in the demand for crude oil due to some of the highest consuming countries in the world (The USA being the highest consumer of all) being under lockdown.  International passenger flights have also been halted to a large extent, meaning that aviation fuel and fuel for private vehicles is in very low demand.

The fall in oil prices has sent shudders down the spines of commodity traders throughout India and the world over.  The question on everybody’s lips is ‘What is the future of the oil market?’  Only time will tell.  The absolute priority of the world right now must be to find a way to put an end to the coronavirus pandemic known as COVID-19.  Only after we emerge out of the other end of the crisis will be able to watch and observe how the market recovers in the future.

To give you an idea why the demand for oil is at such an all-time low, you need to understand that 84% of the COVID-19 infections and 94% of deaths through COVID-19 have so far occurred in the top 22 oil consuming countries.  These 22 nations make up 79% of global Gross Domestic Product.  Restricted economic activities, and restricted personal and public travel in these countries had led to this low demand, culminating in low oil prices.

The low price of oil is not all bad news for everyone.  For example, those ‘key workers’ who are working at the forefront of the fight against coronavirus, providing invaluable medical and care services, are still allowed to travel and commute in order to perform their daily work.  Petrol and diesel prices have fallen dramatically at the pump, meaning that those who use vehicles in their work can see hefty savings in this element of their monthly expenditure.  Buildings that are heated with heating oil or use oil-fired boilers can also make savings during this time.  Those with the infrastructure in place to stockpile oil and petroleum products may find enterprising solutions to take advantage of the low price.  New commodity traders are deciding to jump on the crude oil market and invest in it while the price is so low.  Of course they are doing this on the presumption that the price will shoot back up when we finally see an end to COVID-19 related lockdowns.  

For any of the savings suggested in the above paragraph to actually make a real-world profit for anybody going forward,  the oil price has to rise up again.  History has shown us that as world issues pass over and economic activity resumes to normal levels, the demand again rises in line with this.  It is highly likely that this will happen in this instance too.  However there are still many unknowns.  Whether or not a cure or a vaccination for COVID-19 will be discovered, and how long it will take for them to arrive is not known.  Whether there will be a second wave of the virus is not known.  How long these lockdowns will be in place in their respective countries is not known.  There are many speculations from different so-called experts and spokespeople, all with differing thoughts and explanations.  The actual fact of the matter is that the world has never seen this virus before and ultimately nobody knows the final outcome.  Commodity futures traders may well be able to take advantage of the situation by buying rights to buy oil at future dates when it is anticipated that the price will have risen back to normal or even higher.  Since nobody can rightly state whether or when that will actually happen, it may be wiser to consider buying options instead of futures.

To discuss the current situation regarding the low oil prices, or indeed any other aspect of commodity trading during the COVID-19 impacted times, you can always called GWC INDIA.  They are leaders in low-price, high-value brokerage, and have a team of professional trainers and advisors who are best placed to provide you with relevant information to help you decide whether you would like to enter the commodity trading world at this rare and opportune time.  Similarly if you are already an active trader, they can help you decide what to do with your current stock in order to hedge against risk and preserve your account. +91 80122 78000 is the number you need to put your mind and your stocks in order.  GWC INDIA. The caring brokers.

Does the Monsoon Affect the Share Market in India?

A common question for investors in India is whether or not there is any impact of the monsoon on the stock market.  In this article we explore exactly how the monsoon rains do have an impact on the stock market, both negatively and positively, albeit not in a direct manner.

India is a nation that is largely agrarian.  That is to say that it is highly dependant on agriculture.  With around 55% of arable land being fed by rainwater, it is easy to understand why the monsoon is so very important for getting good yields from the farms.  It is the yield rate which will have an effect on the markets.

YIELDS OF CROPS DRIVE RURAL SPENDING

The primary income of rural Indians is from farming and farming related occupations.  When crop yields are good, rural income is boosted by crop sales.  This encourages farmers to make more purchases and invest.  It also means more disposable income in the rural areas, which benefits companies that carter for rural Indians.  A good monsoon therefore equals good yields and that equals good news for those companies who are listed on the stock market that sell to rural areas.  Their stocks receive a little boost.

POOR YIELDS DRIVE UP COMMODITY PRICES

In the opposite scenario, a poor monsoon leads to poor yields in the fields.  Shortages of crop-grown commodities leads to increased demand for those particular commodities.  This situation can be advantageous for certain commodity traders.  To be specific, those traders who anticipated a bad monsoon may have bought FUTURES in order to ensure that they can buy quantities of specific commodities at a predetermined price prior to the monsoon taking place.  They will then have full rights to purchase them at the agreed price, and then immediately sell them on for a profit at the current (inflated) market price once the harvest is over.  However, they will be in the minority.

 

EXTENT OF THE IMPACT

While there are many scientific bodies that study rainfall, analyse its trends, and predict its future, their predictions are not 100% accurate and can not be totally relied upon.  They may serve to be of more use for farmers to decide when and how much of particular crop they decide to sow.  The overall effects of the monsoon have shown to have only a small impact on the stock markets, especially when taken outside of commodities.  It may be surprising to you just how the share markets recover from monsoon effects.  When a poor monsoon season has passed there is no time to dwell, as life goes on and so does trading.  We also have to be clear that it is not the monsoon itself that has any bearing on the stock markets, but it is the YIELDS from the fields which decide whether it will be a good or a bad year.  In future as India’s infrastructure improves and develops, it is hoped that farmers will be less reliant on monsoon rains.  This can can be achieved by developing new and improving existing irrigation systems, rainwater harvesting and storing water for the future, and desalination plants which will provide cleaned sea water upon demand. 

If you would like to invest and are worried about the issue discussed in this article, you can contact GOODWILL INDIA who will be happy to converse with you and help you identify Key areas to invest in Stock Market simultaneously to avoid impact of monsoon, or at hedge against it.  GOODWILL INDIA, the broker with the extra-low charges, and the extra-high value.  www.gwcindia.in

To Become a great Trader, You must Avoid these 10 Mistakes

Starting out on a new road which is full of pitfalls and dead ends is never an easy task.  The same can be said of your first foray into trading on the stocks and shares markets.  Don’t make the mistake of stepping out blindly into the road.  Read GOODWILL INDIA’s helpful tips on how to become a good trader.  This article aims to give you some tips on what are some of the mistakes to avoid for trading.  The examples are based on identified common mistakes that are frequently made by inexperienced traders. 

INVESTING MORE THAN YOU CAN AFFORD

Always make sure you have enough reserve funds to live your life should something go horribly wrong with your investments.  Do not invest every single penny and leave yourself short of ready cash for day-to-day living.  Remember that investment always has an element of risk involved, so only invest what you can afford to lose.  

PLAN YOUR INVESTMENT

Do not randomly invest, but talk to a professional investment planner about your aspirations, time scale and situation.  Those with a robust plan in place almost always outperform chancers who scrabble around aimlessly, so draw up a plan and stick to it.

BE PATIENT AND HAVE CONFIDENCE

Short term gains sound very attractive but in reality they are very risky.  Be patient, and reduce the risk of loss.  At least until you are an experienced trader, try to stick to long term goals.  Don’t expect instant rises, and don’t get impatient and liquefy your stocks while they are climbing, however slowly.

DON’T BE OVER-CONFIDENT AND TAKE UNDUE RISKS

Similar to the above point, it is common that after a few good trades, inexperienced traders often tend to get overly confident.  The markets are dangerous and unpredictable places, so never assume that what worked once will work again.  If the markets were able to be anticipated and beaten consistently then they would not serve any purpose.

DO NOT FALL FOR ‘TRICKS’ TO GET RICH QUICK

As mentioned in the above point, there are no ‘tricks’ that can be relied upon.  If there were, then all traders would be rich and the markets would be broken.  Do not fall for such fake claims.

DO NOT TAKE LOANS IN ORDER TO INVEST

When you invest money, you should always be mindful that that money can be lost, even if there is only a very slim chance of that happening.  You should only ever invest money that you can afford to lose.  In fact when opening your trading account, a responsible broker should check that you are financially sound, and able to survive in the event of your trading account getting wiped out.  Only use your own money, and not that borrowed from third parties, as it will only end in disaster if the money is lost and you are left in a position where you are unable to repay loans.

PREDICTIONS ARE ONLY PREDICTIONS

You will find endless numbers of stock analysts, analytical software, and websites.  Always remember that these can only make predictions.  They can not give you any guarantees.  While it can be useful to take information from these sources, they can not be fully relied upon.  The end decision to buy or sell is always yours, and you are the only person to thank or to blame according to the outcome.

GET OUT QUICKLY

Don’t assume that plunging stocks will recover.  Get out when they start to drop.  As long as you sell for more than you bought, you are a winner.  Remember that if they start to climb, you can always buy them again.  Limiting your losses is one key skill that all traders need to learn.

HEDGE RISK BY CREATING A PORTFOLIO

You will surely have heard the phrase ‘don’t keep all your eggs in one basket’.  If that basket is dropped, you lose all your eggs.  Similarly in stocks and shares, you should diversify in as many areas as you can.  This will limit the loss if one particular investment crashes.

DON’T RELY ON PAST HISTORY

The world is a fast-changing place.  Year by year new companies rise up and established companies fail and die.  When deciding where to buy shares, don’t simply base your decisions on past glories of a company.  Read carefully into the company profile and their plans for the future to satisfy yourself whether or not each company has the framework in place to continue to succeed into the future.  Don’t bet on a lame horse, even if it was a former champion.

We hope you enjoyed reading about some of the common mistakes made by new traders, and that you are able to make use of the knowledge you have gained.  If you are thinking of beginning your investment career, you may be wondering which share brokers help you for good trading.  It is a good question, because very often brokers only exist to take your money and leave you to your own devices.  GOODWILL INDIA are different however.  GOODWILL INDIA care about the customer’s success, and take great efforts to help ensure you maximise your full potential.  With daily webinars addressing different aspects of trading, providing beneficial advice from professionals, trading tips sent directly by SMS, and friendly, knowledgeable customer service advisors, GOODWILL INDIA welcome you into their family.  For further information check out www.gwcindia.in or give them a call on +91 80122 78000.

How to become Share Trading Sub Broker in India?

ABOUT GOODWILL

GOODWILL is a well established, full-service broker of financial management services.  They are experts in commodity trading with MCX/ICEX/NSE/BSE, and capital market trading as registered trading member with NSE,BSE,MSE, and mutual funds registered intermediary with AMFI.  The benefits of trading with GOODWILL are manifold, thanks to their philosophy of providing utmost value to their customers, thereby gaining confidence and market share through trust and respect.  Benefits that GOODWILL customers can currently avail of include their exclusive mobile application that allows mobile trading and instant access to look at account stats and market data, unlimited call-and-trade service for people who like placing their orders over the phone, free opening of trading and demat accounts, free online training via webinars that provide valuable insights, tips, and skills to traders.  GOODWILL offer you the chance to work alongside them as a partnered sub-broker, in a mutually beneficial relationship, whereby profits are shared with you in exchange for your help in expanding the GOODWILL name into different areas of India.  As of 2020, GOODWILL’s services can be accessed at over 200 branches and sub-brokers which are mainly located in South India.  New sub-brokers are joining up all the time and helping to make GOODWILL’s name visible nationwide.

HOW DOES THE AGREEMENT WORK?

GOODWILL will provide you with back office support, a dedicated land-line, and a trading terminal including risk management software, MCX, BSE and NSE support.  You will get research advice and market updates regularly through phone, chat and email methods as well as personal training so you can learn everything you need to know about how to run a sub broker business.  Contract notes, and billing to the end clients will be handled by GOODWILL directly.  The provisos are that you should have a minimum of 2 years of experience in selling financial products and have a good reputation and track record in financial services or other business, and have a good client base.  Perhaps the sweetest part of the deal is that there will be no capital setup cost to you, the sub-broker.

FURTHER BENEFITS OF BEING A SUB BROKER

In addition to what has been mentioned in the previous section, there are further benefits to be availed by those people who are able to set up their own office space.  By becoming a GOODWILL authorised person, you will be entitled to GOODWILL business cards, a glow-sign skin, and other marketing leaflets.  You will have a relationship manager assigned to you personally who will communicate with you via phone, email and chat to service all your requests and keep you updated of all the latest news and developments. You will also get direct access to the centralised back office system via the online portal.

HOW TO JOIN AS SUB-BROKER IN GOODWILL

Applying to become a sub-broker with GOODWILL could not be any simpler.  All you need to do is go to https://gwcindia.in/Businesspartner and fill in the online form, after which one of the GOODWILL representatives will get in touch with you to talk about your situation and past record, and determine if you meet the requirements.  If you satisfy the criteria, they will guide you through the process of formalising the agreement.  Alternatively you can telephone them directly on +91 80122 78000

This is the Right Time to Open a Demat Trading Account Online and Buy New Shares in India?

FROM THE CRUELNESS OF CORONAVIRUS COMES UNLIKELY OPPORTUNITY

As we are all struggling to live our lives in these days of lockdown while COVID-19 (Coronavirus strain) is ripping across the earth, there is an unlikely opportunity that has come into being.  The onset of COVID-19 has set the stock markets crashing down.  Existing investors are quite rightly panicking as uncertainty is everywhere at the moment.  In India we do not even know if we are over the worst or whether the worse is yet to come.  As of the time of writing, the death toll of COVID-19 continues to rise day by day and there is no saying when this will end.  As investors witness the values of their stocks plummeting, many are frantically offloading them in attempts to limit the losses they are suffering.

THIS IS THE RIGHT TIME TO BUY NEW SHARES

Just as every cloud has a silver lining, some savvy people are already making the most of what is undoubtedly a very bad situation, not only for India, but for the entire world.  The opportunity that has arisen is for new investors to get into the world of trading and scoop up some of the best stocks at low, low prices that are rarely, if ever seen.  Opportunities like this come infrequently. “When it rains gold, put out the bucket, not the thimble” is a quote by the famous investor Warren Buffet, which applies perfectly to the current situation.  The meaning of the quote is that you should take advantage of an opportunity while the time is right rather than regretting it later.  You could just as easily compare it to eating fruit while it is ripe rather than delaying and regretting doing so when the fruit goes bad.

ARE WE AT ROCK BOTTOM, AND WILL THE MARKET RECOVER?

These questions can not be answered with one-hundred-percent certainty, but history has taught us that every time there has been a sudden crash of the market, for whatever reason, it has been overcome in the medium to long-term and the market has righted itself again.  As for whether we are at rock bottom or not is a matter that can only be speculated.  Nobody can ever be certain when a market has hit the bottom until it starts to rise again, by which time it may be too late to bag a bargain.  

OPEN A DEMAT TRADING ACCOUNT ONLINE

If you have been thinking for a while about getting into stock market trading but you have been putting off taking the plunge, this could be just the opportunity you need to give yourself a head start.  To being buying shares in companies you need to have a demat account.  You may think that opening a demat account is a costly expense, but actually if you go to the right places you can actually get your account opened absolutely free of charge.  GOODWILL INDIA are one such super-value broker that offer demat accounts at no cost.  Not only that, but they have a range of special features that their customers get for no additional cost.  Features such as a new mobile application that grants users the ability to check on their accounts and make trades on the move, daily webinars highlighting key points of knowledge that traders should be aware of in order to maximise their chances of success.  They have an unlimited ‘call-and-trade’ feature that allows customers to call the hotline and place their orders over the phone.  Their customer service phone lines are open long hours.  The customer service representatives are friendly, knowledgeable and professional.  They are well placed to answer all your queries and put your doubts to rest.  They are happy to discuss your requirements and expectations.  They aim to provide you with as much information as possible to allow you to make informed decisions about where you wish to invest your hard earned money.  You may wish to discuss with them before deciding which category of shares is best to buy during this COVID-19 impact time.  GOODWILL INDIA are a company of helping hands who put in the extra effort to make sure that the customers they serve feel as comfortable as possible, and do not feel lost and alone when entering the strange new world of trading for the first time.  By all means you should investigate a number of different brokers before deciding which one you would like to work with, but make sure GOODWILL INDIA are on your list.  Call them today on +91 80122 78000.  You will not regret it.

What are IPOs? How do they work?

WHAT IS AN IPO?

The initials I. P. O.  in the context of the shares market refer to an Initial Public Offering.  This occurs when a privately held company makes the move to become a publicly listed company and begins to sell shares to investors.  Companies have varying reasons for wishing to become publicly listed, but it is usually as a way or raising more capital as the company desires to enter a phase of expansion into other areas or to take over a competitor.  The main difference from the point of view of the investor is that they will be the first owner of any shares that they choose to buy.  The price of the shares at the IPO stage is always fixed.  Once the IPO is complete and all the shares have been sold, investors wishing to purchase shares in that particular company will have no choice but to buy them from other investors who bought them during the IPO stage.  At this time, the value of the shares is subject to change as they are said be be in ‘free float’ on the stock exchange.  They can rise or fall in value as the markets dictate.

HOW CAN I INVEST IN AN IPO IN INDIA

In order to purchase shares at the IPO stage, an investor must have a demat account in place.  A demat account is a like a digital locker for storing electronic copies of documents proving that you own the shares.  In days gone by these were paper documents which needed to be carefully looked after and protected from accidental loss, damage or theft.  There was also the possibility for unscrupulous dealers to sell fake share documents.  The demat account system has virtually put an end to such risks.  Demat accounts can be opened by your designated broker on your behalf.  Some brokers charge for opening demat accounts, but others such as GOODWILL INDIA offer this service absolutely free of charge.  Once the demat account is opened, buying the shares of your choice is a simple matter of placing your order with the broker.

THINGS TO BEAR IN MIND WHEN DECIDING TO PURCHASE SHARES AT IPO STAGE

The first thing to realise is that you do not have control over when a company decides to go public or not.  You may be desperate to purchase shares in a particular company that you have identified as having potential, but if that company has no plans to go public, you have no chance of buying shares in it.  You will have to see what IPOs are available at any given moment in time and decide whether or not you are interested in those companies.  It can be very difficult to make a decision, as the companies will be offered on the stock market for the first time, they have no history to look at and base your decision upon.  All you can do is study the literature that the company itself publishes about itself.  Of course they are looking to appeal to investors so they will always highlight positive attributes and gloss over the negatives.  You must consider the risks carefully before you decide which is the best IPO in India for your personal self, if indeed IPOs are right for you at all.  There are some people who specialise in buying shares at IPO stages and immediately selling them on as soon as they are allowed to do so.  These people are known as ‘flippers’.

WHERE TO FIND MORE INFORMATION?

Most good brokers will be able to give you more advice and explain more about the process of acquiring shares during in IPO stage.  GOODWILL INDIA for example have a team of friendly and knowledgeable customer service advisors who are more than happy to respond to the questions and doubts of potential investors.  This need not only be on the subject of IPOs but on any matter relating to stocks, shares, commodities and foreign currency exchange in India.  They can be reached by calling +91 80122 78000.  There is no need to be shy.  They are there for you.

What is a mutual fund? How to open an account and invest?

WHAT IS A MUTUAL FUND?

A mutual fund is formed when a financial organisation collects money from numerous individual investors or companies, consolidates it together and allocates it to a trusted professional fund manager.  The fund manager can invest the money in any number and any type of securities with the aim of generating the most return on investment while being mindful not to take too much risk in regards to where he invests.  The fund manager builds up a portfolio which may be comprised of stocks, shares in companies, bonds, and other securities.  As the investments begin to bear fruit, the profits are divided between the investors and paid monthly into their respective accounts.  It is not necessary that each investor should invest the same amount of money.  The original lump sum used to form the mutual fund will be divided up into units.  Those who invest more money are said to own more units and therefore will receive respectively bigger shares of the monthly profits compared to those owning a lesser number of units.

HOW TO INVEST IN A MUTUAL FUND IN INDIA

There are a huge number of financial institutions that offer the ability for the common man to invest in mutual funds.  You may be confused as to which company will help you attain your goals in the simplest and cheapest way.  Who will provide you with the best service?  In order to work out which is the best online mutual funds service provider in India for you specifically, you have to ask some deeper questions from numerous companies and see what they offer in terms of service and how much they intend to charge you in fees.  GOODWILL INDIA are completely transparent about their fees, and they offer some of the absolute lowest brokerage charges in India 2020.  They also offer you the chance to open a trading account completely free of charge.  This is something you will definitely need to have in place before you can begin investing in mutual funds.

BENEFITS OF MUTUAL FUNDS

How great the benefits of any mutual fund will depend on several factors.  Not least the diligence and skill of the fund manager tasked with looking after the investors’ money, but also on current market conditions.  It is not unknown for a seemingly well performing mutual fund to crash down due to sudden unexpected changes in market conditions, such as we are seeing in early 2020 with the COVID-19 issue.  This will most likely be a temporary setback, as history has shown us that markets sort themselves out once the disturbance has passed.  A skilled fund manager will diversify the areas in which he invests the money across several sectors, industries, and securities.  This acts as a hedge to protect against huge losses in the case of one sector or area suffering a crash.  This is one benefit of mutual funds compared to investing in a single company or sector.  The other main benefit is that investing in mutual funds requires little to no time or effort on the part of the investor.  His role is limited to that of a provider of capital funds, and the management of the mutual fund is conducted by the fund manager on behalf of the investors.  Monthly profits can be said to be a form of passive income, as they arrive month after month without the investor having to do anything.

HOW TO OPEN A MUTUAL FUND ACCOUNT

As with everything these days, online is the modern way to go.  GOODWILL INDIA are one mutual fund service provider that can, in most cases, open an account for you entirely online.  The process is very simple, and consists of filling out an online form with your details, followed by the uploading of scanned documents such as your PAN card, and proof of address.  GOODWILL INDIA believe in offering their customers choices, so in addition to the online system, they can also open your account in person if you choose to visit any of their branches or sub-brokers which number more than 200, and are distributed across India.

Never be afraid to ask questions, however silly they may seem.  GOODWILL INDIA are on hand to put your mind at ease.  Everybody has questions when they are thinking of getting into something new for the first time.  The chances of finding answers to your specific questions online are slim, so directing them to one of GOODWILL’s friendly and professional customer service representatives is a great way to get the exact answers you are looking for.  Why waste time? Give them a call on +91 80122 78000 today, and find all all you want to know about mutual funds, foreign currency exchange, commodity trading and much more.

What are the special features offered by GWC India or Goodwill Commodities?

When you select a broker with whom to do business on the stocks and shares market, currency exchange or mutual funds, what do you look for?

Perhaps you go with the biggest famous names, or perhaps you look for the lowest brokerage charges in India.  If you are looking to get the best possible value from your broker, you should take a serious look at the benefits of trading with GOODWILL INDIA.

FREE ONLINE TRAINING FOR SHARE TRADING

GOODWILL INDIA are pioneers in the provision of online training for all their customers.  Live webinars take place on a daily basis in both Tamil and English languages.  They cover a whole range of topics designed to help investors and traders achieve the best rates of success.  The webinars are followed by question and answer sessions where the viewers can put their specific questions to the trainers.  The webinars are recorded and made available to watch again just in case you miss them.  Goodwill take a genuine interest in the progress of their customers and strive to ensure they reach their full potential.

FREE MOBILE APP FOR ONLINE TRADING

The exclusive GOODWILL mobile application was built from scratch specifically for GOODWILL in order to benefit their customers.  With the GOODWILL mobile app, instant access is provided to view all your accounts, check current market prices, and even conduct trades on your mobile phone or tablet.  That’s great news for people who are constantly on the move and not sat in an office in front of their computer.

UNLIMITED ‘CALL-AND-TRADE’  TELEPHONE TRADING SERVICE

For those customers who prefer to place their orders directly over the telephone, GOODWILL has customer service representatives who are waiting to take your call.  There is no charge for this service and there are no limits on how many times a customer can ‘call-and-trade’.  If you prefer to speak to a human being when you make your trades, this could be a very appealing offering to you.  While many other brokerage firms are putting pressure on customers to trade online, GOODWILL does not believe in pressuring customers, but instead gives them choices.

OPTION TO BECOME A SUB-BROKER

As part of GOODWILL’s expansion plans, they offer you a fantastic opportunity. You can earn money from your relationship with GOODWILL by becoming an authorised sub-broker.  If you meet the key criteria, GOODWILL will provide you with all the training you need to teach you how to become a sub-broker in the stock market.  You will bring new customers to GOODWILL, and earn a commission each time your customers do business.  Your share of the profit generated from your customers begins at 50% but can rise to as much as 70% if you have a large turnover.  You will be assisted and backed by GOODWILL all the way.

COMPANY RESEARCH REPORTS

All GOODWILL customers have access to company research reports which are written and maintained by GOODWILL research staff.  These reports give a company overview, key facts, lists of the major products and services offered by the company, detailed company history, information about recent developments and future plans of the company, profiles of key employees, subsidiary firms and their locations.  The more information you get about a company, the better informed you are, and better able to decide whether you wish to buy or sell shares in that company.

FREE SETUP AND OPENING OF TRADING AND DEMAT ACCOUNTS

Yes, you have read it correctly.  GOODWILL offer to open your trading accounts and demat accounts absolutely free of charge.  What’s more is that the process is incredibly simple, and can even be completed entirely online in most cases.  Of course customers who are not interested in online services have the option of visiting any office in GOODWILL’s extensive network of over 200 branches and sub-brokers across India.

THE ICING ON THE CAKE

After reading about these special offers and the benefits they provide to customers, you would be forgiven for thinking that GOODWILL’s brokerage charges must be very high.  In fact the absolute opposite is true.  GOODWILL operate with some of the very lowest brokerage charges in India.  Don’t believe it? Just give them a call to compare what they can offer against the other companies you are considering.  You will be pleasantly surprised to find that GOODWILL INDIA are all about quality of service and GREAT VALUE.  Call them now on +91 80122 78000 and discover a new path to your investment dreams.