Where Should I Invest Large Amount Of Money In India

Investing money for the long run is a surefire way to generate enough wealth to attain financial freedom or work towards a particular financial goal. Whether it's your retirement, or a year-long vacation in Cancun, it's pertinent that you stick to your investment regime till you attain your financial goals.

 

While SIPs are an amazing way for a beginning investor to get started on investments, investing a large amount of money directly in the different instruments available can also prove beneficial. If you have a windfall, or a lump-sum saved up, and are wondering how to invest large amount, don't worry - you are in the right place.

 

Before going into the details of where you should invest money in India, you should understand certain basic principles first. For instance, while investing a lump-sum amount, it is important that your portfolio is diversified a bit to ensure that your risks are hedged to a manageable level. Here are some of the key principles that you'll need to follow before beginning your investment journey.

 

1. Understand your risk-profile - The quantum of risk that you're willing to take with your investments is usually defined by your risk profile. For instance, equity investments are considered to be a risky instrument, while government bonds and Fixed Deposits are considered relatively safe.
2. Understand Your Financial Goals - Long term investments usually happen to reach a certain financial goal. Whether it's your retirement, or the purchase of your dream house - you'll need to define your goal monetarily, along with an understanding of when you'll need the money.
3. Your risk profile will directly depend on your financial goal, and the time frame. The longer the time frame (and higher the percentage of money necessary to be earned), the higher the risk you should be willing to take. As the goal gets closer, both monetarily and in terms of the time-frame, your risk profile should naturally levitate to some of the safer instruments, in an effort to safe-guard your investments.
4. Try not to put all your eggs in one basket. Keep your portfolio diversified. This will minimize your exposure to any one type of risk - for instance, even if the Equity market is on a bear run, your debt instruments and gold bonds will continue to rake in money.

 

Now that we've understood the basics, let's now go into the different instruments that you can utilize for investing a lump-sum.

 

Share Markets- Equity

Equity Investments are considered to be one of the most attractive forms of investments in India. When you invest money online in Equity shares of a company, you're essentially buying into the ownership of the company. Each stock represents a share of ownership, and if the business you've invested in performs well over time, the value of your investments are bound to increase.

 

The short term volatility is high, and there is a non-insignificant risk that your principal gets wiped out - the reasons why the equity market are considered risky. However, the upside potential is also high - 17% returns per annum, on average (as of 2017). In comparison, when you invest money in FD (Fixed Deposits), you can expect an average return of around 5%, and the annual inflation rate in India is somewhere around 7%. You do the math.

 

It is no surprise that the percentage of share market investment in India is gradually growing year-on-year, thanks to increased financial literacy levels in our country.

 

Share Market - ETFs

ETFs or Exchange Traded Funds are becoming extremely popular in the recent times. ETFs are a type of financial security that passively tracks any index, asset class, sector, or a commodity, and can be traded/purchased/sold in a stock exchange just like an equity share can be.

Different ETFs can track different indices, or even asset classes. For instance, the SBI Nifty 50 ETF tracks the performance of the NIFTY 50 Index, while Gold BeES tracks the performance of gold as an asset class.

 

Market risk is the biggest thing you've to worry about when it comes to ETFs, as short term volatility can tempt you to take a loss, and withdraw money prematurely. The risk is directly dependent on the underlying asset/sector/index. For instance, the Gold BeES are considered relatively less risky, as compared to say an ETF which tracks the automobile sector in India.

 

Debt Instruments

Debt instruments are the asset classes that require a fixed payment to the asset holder, usually along with interest. The institutions/companies/organizations that issue debt instruments borrow your funds, and in turn, are obligated to pay you back the principal after a set amount of time, along with a fixed rate of interest. The rate of interest depends on the organization issuing the debt instrument.

 

Even if you haven't made any huge steps into your personal finance yet, you've probably already invested in debt instruments. For instance, when you invest money in FD, you're essentially purchasing a debt instrument. The bank has to pay you back the principal, along with a fixed rate of interest, usually around 5-6%.

 

Debentures, company deposits, public provident funds, National Savings Certificates, etc are some of the most popular debt instruments in India.

 

When compared to equity investments, the risk element involved is definitely less. Some debt instruments are considered safer than others - for instance, company deposits are considered riskier than say, investing in the National Savings Certificate. In most cases, you'll get at least your principal back, but there is definitely a non-insignificant risk of default.

 

Mutual Funds

If you don't have the time or resources to research individual shares, or debt instruments, you can choose to entrust your money to professionals who will invest in your stead. Professional investors, managed by prominent Asset Management Companies (and regulated by the Securities and Exchange Board of India), will pool the funds from many other retail investors, and come up with a strategy to invest in the different instruments. In return for investing your money for you, conducting regular research and coming up with stocks to invest in, the asset managers charge a small percentage as a fee.

 

There are many different types of Mutual funds in India, and are classified based on multiple criteria. This could be the level of involvement of asset managers (active funds, and passive funds), market capitalization of the companies involved (large cap, mid cap, small cap and hybrid funds), instrument invested in (equity funds, debt funds), or tax savings benefits (Equity Linked Savings Schemes, and other funds).

 

Irrespective of the type of mutual funds, all mutual funds investments are subject to market risks. Investors are advised to thoroughly read all the scheme related documents, understand the risks involved before investing.

 

Investing In Gold

In India, you can't visit a single household without someone asking you to invest money in physical gold. Gold is almost "holy" so to speak, and is the investment instrument of choice for many individuals, despite there being many "better" alternatives available (speaking purely from an investment perspective). Gold has returned an average of 5.7% CAGR (Compound Annual Growth Rate) over the last decade, despite being considered less risky than some of the other instruments available.

 

However, there are also other costs involved in investing in physical gold. The making and wastage charges eat away a significant percentage of your investments, lowering your already low returns on investment.

 

"But, how else do I Invest my money in Gold?". We hear you. The Government has heard you as well. The Government has come up with special instruments called "Sovereign Gold Bonds", which allow you to invest money in gold, without the handling or wastage charges. When you invest money in gold bonds, not only are you exposed to gold as an asset class, the government also pays you a hefty 2.5% simple interest on your investment per annum (making gold a relatively attractive alternative for risk averse individuals).

 

However, the Indian sentiment towards gold jewelry shouldn't be undermined. The ornaments also have other functions, which aren't covered in this article - this post purely looks at physical gold from an investment perspective.

 

Investing In Real Estate

Real Estate Investment in India is another popular vehicle to grow wealth in the long run. Real Estate here doesn't only mean investing in houses for you to live in. It can also involve commercial real estate (extremely lucrative, with a high barrier to entry), and real estate investment trusts (funds that invest in real estate on your behalf - think of REITs as mutual funds for real estate).

 

The Indian Real Estate market is considered to be extremely lucrative, with expected valuations to reach over $1 trillion by 2030. However, the value of the property depends on many factors, including the location, condition, and quality of the real estate asset purchased.

 

The returns gained from real estate investments are two fold.

1. The Capital Appreciation of land and buildings, over a period of time.
2. Rental Income gained.

 

The main barrier to investing in Real Estate is that there is a high cost to entry. Depending on where you're purchasing, a half-decent apartment can cost you north of INR 1 crore easily.

 

Alternate Investments

If you're particularly wealthy, and want to diversify your portfolio even wider, alternate investments like vintage cars, valuable paintings, pieces of art, NFTs and cryptocurrencies come to mind. Keep in mind that these investments are considered particularly risky, and are not advisable unless you know what you're doing. If you're a beginner investor, it is highly recommended that you stay away from alternate investments.

Cryptocurrencies in particular have gained in popularity over the last couple of years. However their volatility and the number of scam and memecoins involved make it particularly risky for amateur investors to start investing in them.

 

How to Invest in These Different Asset Classes?

Different asset classes require a different method of investments. For instance, for purchasing physical gold, you'll have to visit a gold smith, real estate, you'll have to meet with the seller, and in the case of equity shares, you'll have to open a Demat and Trading account. While we can't provide you the details of the best place to purchase real estates from, we can surely tell you where you can invest money online - through Goodwill.

Goodwill Wealth Management is a well reputed name in the brokerage industry, and offers you the ability and the tools to purchase a variety of assets. Whether you want to invest in mutual funds, IPOs, Pre-IPOs, equity shares, REITs or even ETFs - all you need to do is open a free Demat and TradingAccount online. Goodwill assures you access to all these different instruments at a very low cost - Equity delivery, for instance, is completely free! What are you waiting for, sign up with Goodwill now!

Currency Trading Online India - Top 15 Things You Need To Know

Investing in Foreign Exchange is becoming more lucrative with every passing day. With growing awareness of the different financial instruments and tools available, trading in currency pairs can be used to great effect. Currency derivatives are often looked at as an excellent asset class that is perfect for diversification, along with providing other hedging benefits.  

If you're new to the world of Currency Trading, don't worry, this blog post will educate you on everything you need to know. 

15 Things About Currency Trading Online India

What is Currency Trading?

Being the single largest investment market in the world, with a whopping $4 trillion transacted on a daily basis, the currency market is the home to a lot of traders looking to trade and generate profits. Currencies are usually traded in two different markets.

1. Spot Market / Cash Market - Where you physically buy/sell currencies for cash.

2. Derivatives Market - The most common avenue for Currency trading in India. This is the most common method utilized to trade in currency pairs in our country.

 

Currency trading happens through financial instruments called derivatives. Derivatives are contracts that allow users to purchase/sell the underlying asset (in this case, currencies), at an agreed upon date and price.

Furthermore, these derivatives can be classified into two categories - Futures, and Options. While a futures contract gives the holder the obligation to purchase/sell the underlying asset at the agreed upon price, an options contract gives the holder the choice to purchase/sell the underlying asset at the agreed upon price.

Most participants in this market are speculators. They don't actually take delivery of the currency, but rather settle the transaction before the expiry date. Usually, participants tend to gain/lose money based on the prices of the futures/options contract. In the industry, this type of transaction is called "cash-settled" transactions.

Is Currency Market truly Open 24/7?

Yes, and no. The currency markets usually operate in different sessions - European Session, Asian Session and the United States Trading session. There are a few overlaps between the three sessions, but the main currencies of the different countries are only traded during the active hours of their respective sessions.

For instance, currency pairs based on the GBP will have more volume during the European session, while currency pairs involving the USD will be more actively available during the United States Trading session.

 

What Is A Currency Pair?

Now that you have a solid understanding of what derivatives mean, it is time to look at the most important aspect of currency trading - the currency pair.

In a foreign exchange market, a currency pair can be defined as the price of one currency, as quoted against the other currency. There are two components to a currency pair - the base currency and the quote currency.

Base Currency - The first currency that appears in the currency pair quotation.

Quote Currency - The second currency that appears in the currency pair quotation.

 

Let's take a GBP/INR pair for instance, which is quoted at say, 102.

 

In this instance, GBP - Base currency, INR - Quote Currency. The number 102 refers to the units of the quote currency that is required to purchase a single unit of the base currency.

 

In this instance, the quote should be read as, 102 INR is required to buy 1 GBP.

 

Usually, each currency in a currency pair will be referred to by their ISO abbreviations, where the first two letters represent the country, and the last letter describes the currency.

 

Why Is Currency Trading So Predominant?

The $4 trillion transaction value in the foreign exchange markets surely make you wonder "why is currency trading extremely lucrative?". With the rapid advancements in technology and infrastructure, importing and exporting of goods and services have become common. These import/export transactions usually take several days to complete, during which time they will be exposed to fluctuations in the currency values.

Importers/exporters use these currency derivatives to help them hedge against these risks - one of the many benefits of currency trading in India. In other words, they put out futures contracts that would enable them to sell their currencies at a fixed price, after the whole transaction is completed.

This creates opportunities for traders who can spot a good deal. If the currency increases in value in the meanwhile, the traders can pocket the increase, which, in many's eyes, is worth the risk taken.

 

Who Are the Major Players in the Currency Trading Market?

Traditionally, the currency market was dominated by institutional investors and import/export companies hedging their bets against currency volatility. The Central banks of different countries, (The Reserve Bank of India, in our case) tend to exert influence from time to time, to uphold the value of their respective currencies.

 

However, with the rapid growth of internet technologies, and growth of leading brokerage platforms like Goodwill, retail interest has significantly increased in the currency market. 

 

Do I Need To Open A Demat Account For Currency Trading in India?

Demat Account is used only when you take actual delivery of the assets involved. In India, since the Foreign Exchange trades are cash settled - i.e, there is no physical delivery of the associated currency, there is no need for you to open a Demat account.  However, a trading account is required to execute all your currency trades.

However, if currency trading is just one of your many avenues of generating wealth, you should perhaps consider opening a Demat account nonetheless. While there are many platforms that you can consider, Goodwill is hands down the best platform that you can choose to open free demat and trading accounts online.

How to Open Currency Trading Account Online

Opening a currency trading account online is effortless with Goodwill. Fill out your KYC here, and wait for us to do the rest! 

 

Step 1: Enter The Required Personal Details.

Step 2: Fill Pan no, Date of Birth, Aadhar Number and the other required details.

Step 3: Fill Communication Address.

Step 4: Upload the necessary Documents

Step 4.5: Documents that you'll need - PAN card, Passport Size Photograph,                                                     Aadhar Card, Latest Salary Slip/Latest ITR/Bank Statement going back six months.

Step 5: E-Sign and complete the KYC process - Your account will be open for trading shortly.

 

That's it, 5 simple steps, and you're well within your journey to invest in the top currencies in India.

 

Why Should I Open An Account With Goodwill

We understand, you're sceptical about us as the self-proclaimed "best currency trading broker in India". But we assure you, our clients call us that only because of the 100% satisfaction that we're able to provide them with our services. Take a quick sneak peek at some of the services we offer:

 

The Goodwill Advantage:

1. Goodwill makes it super simple for you to open an account and begin trading. 5 simple steps, and you're all set to begin trading.
2. Expert guidance to help enrich your knowledge - in best investment and trading practices.
3. The currency market is open 24/7 - so is our platform. You can trade at your fingertips with Goodwill's Next Gen Trading App - GIGA. Get access to the state of the art web trading platform, and desktop app, along with GIGA, all with your free Demat and Trading account.
4. Don't have access to the internet? don't worry, take advantage of our call and trade facility to truly stay connected to the markets.
5. Hassle-free, timely support guaranteed to all Goodwill clients.
6. Option to trade in currency futures, currency options to inter-currency trading.
7. Flexibility to trade across all exchanges - MCXSX-CD & BSE-CD
8. No Separate Investments Required - Make use of our single margin account. Utilize margins and collaterals across Equity, Futures and Options, and Currency Segments.

 

Oh, did we mention the advanced trading and charting tools that come with the Goodwill account? Go ahead, give us a try, and see if you don't believe we're the best currency trading platform online in India.

 

How to do Currency Trading In India?

Once you've opened your Forex Trading account, you're required to deposit a margin account that will be utilized to make trades. Once Goodwill completes the verification of your KYC, we will share with you the credentials for your trading account. There are multiple methods and strategies that are involved in trading currency pairs. Learning how to make, say, daily Fibonacci pivot trades can take quite some time and effort to understand truly and grasp the concepts.

 

Amateur traders in the Forex market usually start with Scalping - where retail traders attempt to make multiple small trades (with multiple small profits through the day). Another strategy which is popularly employed is called the positional trading strategy, which again, might take a while to understand, and employ to generate profits consistently.

 

Where do I learn Currency Trading Strategies?

For you to pick out the top currency pairs for trading in India consistently, it is necessary that you develop a trading system based on some of the popular trading strategies. As mentioned in the previous segment, different trading strategies vary in complexity, and the time taken to learn, and a good training resource can go a long way in helping you make your trades successfully. Goodwill offers training programs to all our clients, along with calls and webinars to help you generate wealth.

 

The Forex market is one of the most profitable markets (definitely the largest) in the world. However, before making trades or investments, make sure you read all the related documents, and understand the associated risks.

What are you waiting for? Open afree Forex Trading account now, and get started with your Forex trading journey.     

What Are Pre-IPO Shares? How to Invest in Pre-IPO Shares in India?

If you have been investing in the stock market for some time now, the question "What are Pre-IPO shares?" is bound to pop up sometime or the other. IPOs are often seen as the earliest time to invest in a company, which can be quite alluring. However, having the ability to invest in companies about to go public in the near-future can be extremely profitable, if done properly. 

Without further ado, let's answer the questions "what are Pre-IPO shares", "how can I Invest in Pre-IPO shares in India", and "who is the best Pre-IPO Investing broker in India" among many other questions that you might have. 

What are Pre-IPO Shares?

Late stage private companies that are soon about to go public are often referred to as Pre-IPO companies. These companies usually have well-established business models, and are often considered lucrative companies to invest in. However, since they are not listed on public stock exchanges, investment opportunities are extremely limited.

                                                                                       

Fortunately, with Pre-IPO shares, you will be able to purchase shares of these unlisted companies, that are all set to go public.

 

Typically Pre-IPO shares consist of the shares belonging to the promoters, their relatives/friends that were issued during the company's establishment. These shares could also consist those shares that were issued during further rounds of fundraising, typically from Angel Investors, Venture Capital firms, investment bankers, etc. Before the company goes public, these shares will usually be available at a huge discount.

 

Companies that are looking to list themselves in a public stock exchange may have several reasons that are keeping them from getting listed. Usually, companies will not initiate the listing process unless they reach a certain milestone. Furthermore, the process of listing in a public stock exchange is tedious and costly.

Where do These Stocks Come From?

As mentioned earlier, Pre-IPO stocks generally come from the promoters of the company looking to raise additional funds for the business. These stocks could also be from angel investors, VC and private equity firms that invested in further rounds of funding, but this is a rare occurrence.

 

Usually, promoters place large blocks of shares for sale, which are purchased both by institutional and retail investors.

 

Is Investing In Pre-IPO shares for Me?

Investing in Pre-IPO shares is considered fairly risky, and should only be invested by individuals with a high risk appetite. There is a high barrier to entry, as it is required to purchase entire blocks of shares (albeit at a discounted price), which might be an issue for most retail investors.

 

These shares are typically preferred by High Networth Individuals (HNIs), Angel investors and VC firms, but the interest for Pre-IPO shares from retail investors is increasing day-by-day.

 

It is important to note that SEBI has imposed a mandatory lock in period, which requires for retail investors to hold their investments for a minimum period of 6 months from the date of allotment in IPO.

 

Here's a complete list of lock in period rules, as imposed by SEBI.

1. For promoters - 20% of holdings should be locked in for a minimum period of 18 months from the date of allotment in IPO, while the remaining shares can be sold after a period of 6 months from allotment date on IPO.
2. For venture capital funds, alternate Investment Funds (category I/II), or Foreign Venture Capital Investors - Investments are locked in for a period of 6 months, calculated from the date of acquisition.
3. Other Public holdings (Including HNIs, Retail Investors and Body Corporates) - Shares are locked in for a period of 6 months calculated from the date of allotment in IPO.

 

 

 

Is it Legal to purchase Pre-IPO shares in India?

Yes, purchasing pre-IPO shares are 100% legal in India. In fact, purchasing Pre-IPO shares is the number one method that angel investors, Venture Capital and Private Equity firms employ to generate a high Return on Investments. However, care should be taken to ensure that you conduct proper research before investing in pre-IPO shares, as it is considered a fairly risky asset class.

 

Pre-IPO investment platforms like Goodwill conduct independent research and allow only those shares that are fundamentally solid to be traded via their platform. However, this does not act as a replacement to you conducting your own research, before deciding to invest in Pre-IPO shares in India.

 

How to Invest in Pre-IPO shares in India?

As mentioned earlier, since Pre-IPO companies are not listed on the stock exchange, investment opportunities are restricted. There are multiple offline and online avenues, but the benefits of investing in Pre-IPO online definitely gives an edge to the online avenues.

 

With Goodwill Wealth Management, the best Pre-IPO investing broker in India, it is fairly straightforward to invest in Pre-IPO shares in India. Just follow these following steps.

1. Create a Free Demat account with Goodwill.
2. Furbish basic KYC Documents.
3. Purchase Pre-IPO shares. Proof of Share allotment and transfer will be made on confirmation of the purchase.
4. The company will directly issue a Share Purchase Agreement in the Name of the investor.

 

If you're looking to purchase Pre-IPO shares through your mobile phone, we are glad to provide you with our very own Pre-IPO investing app that you can download on the Google Play Store. 

How are Pre-IPO Shares different from Unlisted Shares?

Unlisted shares, simply put, are the shares of privately held companies that are not listed on the stock exchange. Pre-IPO shares are specifically those unlisted shares of companies that have an intention to get listed sometime in the near future. While there are plenty of solid unlisted companies that give amazing returns in the form of dividends, liquidity of such shares remains a problem.

Unlike Pre-IPO shares, where once listed you can freely trade your shares after IPO (post the initial lock in period), selling/trading in unlisted shares in India can be quite difficult. Since these unlisted shares are not listed on public stock exchanges, it requires for you to manually find individuals willing to purchase your stake in the company.

 

This makes Pre-IPO shares much more desirable, as compared to unlisted stocks.

 

How to Buy Unlisted Shares Online?

If your risk profile allows you to purchase unlisted shares in India, the question "How to buy unlisted shares online" should have obviously popped into your mind. However, most unlisted shares that are available online are of companies that are on the verge of being listed on public stock exchanges (Pre-IPO stocks).

 

Goodwill offers only Pre-IPO shares for investors. We only make available those shares that have, by our independent research, solid fundamentals, and have high probabilities of succeeding. However, the process should be fairly similar for external brokers as well.

1. Share the CMR copy of your free Goodwill Demat account to the online agent willing to trade in unlisted shares.
2. Transfer the money to your agent, and await the transfer of shares to your Demat account.
3. Proof of Share allotment and transfer will be made on confirmation of the purchase.
4. The company will directly issue a Share Purchase Agreement in the Name of the investor.

 

What are the Benefits of Investing in Pre-IPO Online?

Investing in Pre-IPO shares can be extremely beneficial, if done right. By investing in companies that are all set to be listed on a public stock exchange (primarily the NSE or the BSE), you stand a significant chance to benefit immensely at a later date.

 

1. High Returns on Investment

When investing in a pre-IPO share, the investor usually purchases the share at a significant discount. When the company goes public, the investor gains significant returns on the investment in the form of capital gains. Typically, successful investment in a pre-IPO shares is characterized by a high ROI.

For instance, stocks of RBL Bank limited were traded at INR 60 pre-IPO, which shot up to INR 225 (375% increase in value) at the time of IPO.

 

2. High Growth Factor

Not only do the returns on investment are high, pre-IPO stage companies are usually in the ultra-growth phase. During this phase, it's not only their financials that show high growth, but the valuations tend to sky-rocket. This is perhaps the latest by which one can invest in a company before the true valuation of the company is realized.

 

3. Discounted Prices

After a successful IPO, the prices of the shares tend to be inflated for a while, before a market correction happens. If you get a chance to invest in a company just before its IPO, the prices will be highly discounted, as compared to its market value/value post IPO.

 

This is not to be confused with Shares discounted at a discount (wherein the company issues shares at a value less than the par value), which is outlawed by the Companies Act, 2013.

 

4. Invest More

If you want to wait for the IPO before investing in a company, the maximum you can invest is capped at INR 2 Lakhs. However, if you really believe in the fundamentals of a particular Pre-IPO company, you will be allowed to invest even in crores, if you wish to do so.

 

5. Certainty Of Allotment

If the IPO is highly successful, allotment of shares might not be a certainty. If the demand during the IPO is high, it is highly probable that the quantity of shares allotted to you will be fewer than what you applied for (if not complete rejection of the application). However, in the case of Pre-IPO shares, you are certain to have your shares allotted, once the purchase is complete.

 

Risks Involved in Purchasing Pre-IPO shares

1. Capital Lock-in - The minimum lock-in period of 6 months post the date of allotment in IPO means your investment is illiquid for a considerable time.

2. High barrier to entry - Since Pre-IPO shares are usually sold in blocks, a high initial overlay is required to purchase Pre-IPO shares.

3. Failure in IPO - Companies may fail to meet the expectations during the IPO, and may cause a significant capital loss, due to external factors not under their control.

4. Delays, Halts or Cancellation of IPOs- Though the companies may intend to get listed in the public share markets, there are significant possibilities that the much-expected IPO never happens.

 

 

Investing in Pre-IPO Shares in India - The Goodwill Edge.

Goodwill Wealth Management is a well-renowned player in the Indian Pre-IPO market, with decades of experience in this field. 

 

Apart from being a well reputed Pre-IPO investment platform, we also provide regular financial advice and insights generated from trained financial professionals.

 

We recommend only those Pre-IPO shares of those companies that have high chances of profitability based on thorough research. Our parameters include:

1. Identification of companies with good market reports and past performance.
2. Thorough analysis of the promoter's backgrounds and track record. 
3. Comprehensive examination of critical financial data, including dividend payments, going back several years.
4. Estimated IPO price and dates.
5. A comprehensive study of their industry, product/service, market share, order books, among other crucial factors.
6. Competition, peer and valuation analysis.
7. A study of the holding patterns of the shares, and research on the major shareholders.
8. Constant eye on the market news, and the potential long term prospects for the company.
9. And many other benefits, as can be found in Goodwill's Pre-IPO page.

 

Final Word

Pre-IPO shares are becoming one of the most popular methods to profitable investing even among retail investors. These shares of unlisted companies that are set to get listed on stock exchanges are often sold at a discount, enabling you to grab a significant chunk of the company even before they are publicly listed. However, it is essential that you invest in Pre-IPO in India shares only through reputed Pre-IPO investing apps, like Goodwill, to minimize the risk of undesirable investments.

What are you waiting for? Create your free Demat account now, and begin investing in these lucrative Pre-IPO shares. Looking for more details? Contact  +91 80122 78000.

HOW SHOULD I DETERMINE HOW MANY SHARES TO BUY A STOCK IN INDIA?

 

Every investor in the stock market would be aware of the companies to invest in but most of them wouldn't know how many shares to buy a stock in the Indian stock market. Well, there are certain factors that help you to determine the shares of particular stock to buy. In this blog, we'll be discussing the factors that help you to determine how many shares you could buy a stock in India.

 

HOW MANY SHARES OF A STOCK SHOULD ONE BUY?

In the beginning, an investor should know how many shares one should buy. Assume your broker charges the lowest fee in the market, you can calculate the number of shares you could buy with a certain amount of money easily.

 

There are three-step process which should be considered by an investor:

1. Determine the current share price of the stock you wish to invest in and obtain a quote through your broker or through a financial website.
2. Divide the amount of funds you wish to invest in the stocks by its current share price.
3. If your broker allows you to purchase a fraction of financial shares, then it's the result of number of shares you can buy.

 

HOW MANY SHARES OF STOCK YOU SHOULD BUY?

In the bottom line, there is no universal answer for this question as it depends on the personal situation and requirements. To buy certain shares of stock, you should consider the following factors:

 

1. Analyze the amount of funds you wish to invest in the stocks.
2. Look out to diversify your investment options by allocating funds to various best-performing assets.
3. Check the brokerage or commission charges of your trusted broker.
4. Ensure that your broker supports you for fractional shares.

 

CONCLUSION:

Analyzing the brokerage charges of the broker will help you to fix your investment on the valuable stocks. By determining the investment, you could fix the number of shares you wish to purchase in a stock. Hence, choose a trusted broker like Goodwill who offers lowest brokerage fee in the industry.

 

Investing your valuable savings with Goodwill offers you exclusive trading benefits like free demo trading platform, live webinar and training sessions, free research calls, lowest brokerage charges, etc. Being backed by dedicated experts, Goodwill promises to deliver exceptional trading support to their valuable investors. Click here to open your Free DEMAT Account with Goodwill today!

 

For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill's Facebook Page and get instant live updates on your stocks.

WHAT INVESTMENTS HAVE A POSITIVE EXPECTED RETURNS BESIDE THE STOCKS IN INDIA?

 

This would be one of the most important and frequent questions that would pop up in our mind as it makes way for the alternates of stock investment. Well, there are certain investments in which an investor can expect positive returns without the risk of losing principal money. In this blog, we'll be discussing about few high return, low-risk combination in an investment product.

 

1. DIRECT EQUITY:

Investing in stocks is always a good option and it's a volatile class of asset with probable returns. Equity investment is good for long-term periods that delivers higher inflation adjusted returns compared to other asset classes. To reduce the risk to a certain extent, you could diversify your investment portfolio across sector and market capitalization. Open a DEMAT Account to directly invest in equity.

 

2. DEBT MUTUAL FUNDS:

If you're an investor who wishes to earn steady returns, then it is time to choose debt mutual funds. These stocks are less volatile and less risky in comparison with equity funds. In Debt mutual funds, you would choose to invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial papers and other money market instruments.

 

3. NPS AND PPF:

NPS or National Pension System is a long-term retirement investment managed by Pension fund Regulatory and Development Authority (PFRDA). The NPS is a mix of equity, fixed deposits, corporate bonds, liquidity funds, and government funds among others. By analyzing the risk appetite, an investor can decide the how much funds need to be invested in equities through NPS. PPF has a long tenure of 15 years and the interest rate on PPF is reviewed every quarter by the government.

 

4. BANK FIXED DEPOSIT:

The bank fixed deposit is a safer choice for investing in India. Under the deposit insurance, each depositor in a bank is insured up to a maximum of Rs.5 lakh for both principal and interest amount.

 

5. REAL ESTATE & GOLD:

Investing in real estate is a wise option by determining the value of the property and location . If you do not intend to live in it, you can also earn rental income and capital appreciation for the property. Owning gold assets in the form of jewelry has its unique concerns like safety and high cost.

 

CONCLUSION:

Every investor would prefer to invest their funds on less risk assets to gain higher returns from the investment. Investing in stocks will help you lower the risk and volatility of the investment. Hence, diversify your investment options and choose the best performing stocks in the market.

 

If you're willing to invest in the stock market and you're in search of a market expert, then it's time to meet Goodwill. Goodwill is one of India's best brokerage firms that offers expert strategies to its valuable investors at the lowest brokerage fee. Goodwill promises to deliver exceptional customer support, demo trading platform and live training sessions. Click here to Open your free DEMAT Account with Goodwill today!

 

For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill's Facebook Page and get instant live updates on your stocks

WHAT IS A BROKERAGE CALCULATOR? HOW IT IS WORK ONLINE?

 

When you're backed by a broker in the stock market, you would be mostly concerned about their brokerage fee and strategies. An investor would look forward to seeking help from a market expert who offers wise strategies at the lowest brokerage fee, hence an investor could calculate the brokerage fee online with the help of brokerage calculator. In this blog, we'll discuss what is brokerage calculator and how it works.

 

WHAT IS A BROKERAGE CALCULATOR?

The brokerage calculator is an online tool that aims to help the traders to know the exact charges that might be incurred while conducting the trade. The brokerage calculator also helps in determining duty charges, transaction fees, SEBI turnover fee, GST and Securities Transaction tax.  Therefore, using a brokerage calculator would simplify the calculation process of calculating the cost of individual components involved in the trade.

 

If you're looking for a market expert who can offer you exceptional service at the lowest charge, then choose Goodwill. Goodwill charges just Rs.11 per executed order and also offer free equity delivery.

 

HOW BROKERAGE CALCULATOR WORKS?

The brokerage calculator works on a simple formula, i.e:

Brokerage = Number of bought/sold shares x Price of one unit of stock x Brokerage Percentage.

This brokerage formula is implemented in both intraday and delivery trading options by share brokerage calculators. The brokerage calculator offers precise and effective computational solutions rather than manually calculating the brokerage fee of a stock broker's commission

 

HOW TO USE GOODWILL'S BROKERAGE CALCULATOR?

Goodwill's brokerage calculator is a user-friendly tool for calculating brokerage. To use the Goodwill brokerage calculator, you would need to enter the following input namely:

●       Stock price or Buy/Sell price

●       Number of Shares

●       Enter the Quantity of Purchase or Sell

●       Choose the Stock Exchange

Once the data is entered, the charges will be automatically calculated and displayed to the investor.

 

CHOOSING THE BEST BROKER:

Choosing the best broker in the market is not an easy task, you would need to analyze their strategies and brokerage fee quoted by the respected broker. You can determine the brokerage fee of an order with the help of an online brokerage calculator tool. Hence, invest your savings with a trusted expert like Goodwill!

 

Invest your valuable savings with Goodwill, who offers amazing trading benefits like free demo trading platform, live webinar and training sessions, free research calls, lowest brokerage charges, etc. Goodwill is backed by dedicated experts who promise to deliver exceptional trading support to their valuable investors. Click here to open your Free DEMAT Account with Goodwill today!

 

For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill's Facebook Page and get instant live updates on your stocks.

WHICH IS THE EASIEST WAY TO DO A STOCK ANALYSIS BEFORE BUYING IT?

 

As an investor, you would prefer to invest in the stocks that have lower risk exposure and higher potential to perform in the future. Thereby, an investor would perform analysis to choose the best performing stocks in the market to make their investment successful. But every investor would be eager to learn about the easiest way to do a stock analysis before investing their valuable funds. Well, in this blog, we'll be discussing about few easy ways that could help an investor to analyze the stock performance.

 

1. FUNDAMENTAL ANALYSIS:

Fundamental analysis is based on the assumption of the stock price that reflects the true intrinsic value of the underlying business assets. Fundamental analysts use valuation metrics to determine the attractive price of a stock. This analysis is used by investors who wish for excellent long-term returns.

 

2. TECHNICAL ANALYSIS:

Conducting technical analysis will reflect all available information to determine the stock price and shifts in accordance to the market trends. Hence, analyzing the stock's price history will help you to predict its future price behavior. If an investor is trying to analyze its stock charts or moving averages, then it's a form of performing technical analysis.

 

3. BUSINESS MODEL ANALYSIS:

The business model analysis focuses on the company's weakness and strength. By performing the business model analysis, the strength of the company is based on the brand's identity, products, customers and suppliers. An investor can also analyze the company's business model through its annual report, trade magazines and websites.

 

4. INDUSTRY ANALYSIS:

The industry analysis could be determined from the available sources of information. By analyzing the annual report of a company you could obtain a good overview of industry future growth outlook. The annual report offers data related to financial performance and sales. Similarly, by determining the annual report of two or more companies would provide you the relevant information of their performance.

 

5. GROWTH ANALYSIS:

The growth analysts will analyze the past figures of sales growth, profit margins and profitability trends of the particular industry. By performing growth analysis, an investor could determine the past performance of the organization, thereby predicting its future performance.

 

CHOOSE THE BEST STRATEGY:

Invest in the best stocks by analyzing and forecasting the performance of the stock in the market. Adopt the best strategy based on your financial requirements and perform the easy analysis methods to determine the potential of the stocks and company. Hence, analysis should be performed before investing your funds!

 

In the stock market, you should be backed by a trusted expert like Goodwill, who offers the investors with trading benefits like free demo trading platform, live webinar and training sessions, free research calls, lowest brokerage charges, etc. The experts at Goodwill deliver exceptional trading support to their valuable investors. Click here to open your Free DEMAT Account and start your trading with Goodwill today!

 

For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill's Facebook Page and get instant live updates on your stocks.