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.