Posted by ni2financial on July 31, 2008
The third largest Asian economy (after Japan and China) and the twelfth largest in the world, the Indian economy is virtually a success story. A mixed economy with more of socialist features to begin with in 1947, India, today, has become home to many MNCs. Since the nineties, when India first associated herself with concepts of Liberalisation, Privatisation and Globalisation (LPG), our economy has never looked back. Having a GDP touching almost 9%, the Indian economy, in terms of growth, is perhaps one of the fastest growing. This can also be attributed to the enormous growth of the services and manufacturing industry.
Huge spurges in call centres, software industry and back-office outsourcing, combined with India’s ability to produce world-class products and goods that are available in the market for a fraction of the amount of its foreign contemporaries has favoured India and has made her a major exporter of such produces.
Due to all these factors, our booming economy, is receiving an unparalleled flow of foreign investments and robust corporate profits. Since five years, the 30-stock SENSEX has been furnishing an annual return of 40% (in Rupees), and the sectors of real estate, banking and information technology (IT) have been at the vanguard of this explosion.
But, as the saying goes, all that glitters is not gold. While the economy, as a whole, is growing, the condition of the stocks is a bit misty. However, this stands true for all the share markets of the world due to the concept of volatility. The capriciousness has increased amid rupee’s strength against the dollar and the global credit crunch hampering Indian exporters. Till date the SENSEX has lost 13%!
Nonetheless, the fund industry has meted out various options for potent US investors to invest in India. The first of the two exchange-traded funds focussing on India has been launched, with the second one in the pipeline.
The Indian Share market also has provision for Exchange Traded Funds (ETF) that holds securities and follows a specific index, and can be traded just like stocks. In addition, ETF has been designed such that its share prices are close to its underlying asset value. This entire market is now open for both PIOs – person of India origin and NRIs – non resident Indians and they can very well invest in India using properly designated NRI Accounts through various financial brokers. These financial firms offer quality NRI Services like: Demat Account, NRI Bank Account, Online Stock Trading, Indian Mutual Funds, Futures Trading and mutual fund SIPs.
Top Brokers offering such investment solutions through their NRI Services are: www.NriInvestIndia.com, www.NriInvestmentsIndia.com to name a few.
Stock Market Fundamentals for Beginners
Posted in Indian Stock Market | Tagged: Demat Account, ETF, Exchange Traded Funds, Financial Brokers, Financial Services, Futures Trading, Indian Mutual Funds, Indian Share Market, Invest in India, Investment Solutions, NRI accounts, NRI Invest India, NRI Investment Services, Nri Mutual Funds, NRI Online Trading, NRI services, Online Stock Trading, Sensex | Leave a Comment »
Posted by ni2financial on July 31, 2008
The Indian Stock Market is as dynamic as any other market – the difference perhaps being that the Indian market is also accredited as being the emerging economic superpower. This perhaps is the reason why many Non-resident Indians (NRI) including Persons of Indian Origin (PIO) and Overseas Citizen of India (OCI) are investing in the Indian Share Market.
Many non-residents today look towards the Indian Market for investing their money. There are many brokerage houses that help non-residents in doing so. Timesofmoney.com, nriinvestindia.com, nricapital.com etc. are just some of the better brokerage houses. These brokerage houses will carry out all the paper work on your behalf with the broker acting as your representative in India.
Investments in India can be done in a number of sectors. The first among them is the real estate sector that has emerged as the hot spot for potent investors. This is perhaps because this sector is fast growing and non-residents have the option of buying, selling and/or even renting out their property.
Next to real estate, the investors have the option of investing in Bank deposits, better known as Fixed Deposits. They can open FCNR or NRE/NRO Account for the same.
In addition, many investors, today, prefer investing in Mutual Funds, as they can diversify their interests and Mutual Funds have the least amount of susceptibility. Investments in Mutual Funds can be done on a ‘repatriable’ as well as ‘non-repatriable’ basis. You can invest as per your convenience.
Investment is also allowed in PSU Bonds and/or proprietary or partnership concern in India. Non-residents may also invest in air taxi operation and Commercial Paper issued by Indian Companies.
Also, thanks to technology, investors can now trade shares online! But before you start with your investment spree, please note that you need to have three kinds of accounts so as to make investment permissible. The first is a bank account with a Portfolio Investment Scheme (PIS) with a Designated Bank (DB). Then you need to have DMAT Account followed by a Broking/Trading Account with a broker. You need not handle all the paperwork involved. You can give a power of attorney to your broker stating him to be your representative, and voila! All your work would be done in a jiffy.
In fact, you don’t even have to come over to get your Permanent Account Number (PAN). Your broker, on your behalf, as your agent, will do that for you. PAN is required, according to Government of India rule, for any financial transaction. A typical PAN would look like ABCDE1234F. For further details on how to get a PAN Card without coming over, please contact PAN Card Assistance Brokers at:
www.nripan.com
www.pancardnri.com
www.pancardonline.com
Thus, thanks to the boom in technology and Indian economy emerging as an economy to reckon with, non-residents are increasingly looking towards this eastern share market to invest their hard-earned money.
Posted in Indian Stock Market, NRI Share Trading | Tagged: Brokerage Houses, DMAT Account, Investments in India, NRI PAN, NRI PAN Card, NRI Share Trading, Pan Card, PAN Card Online, Permanent Account Number, Portfolio Investment Scheme, Share Trading | 1 Comment »
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