When & Where to Invest in the current Stock Market Situation..!!

Markets have been swinging all over the place, in the gone 2 months. The direction has been unclear and the Fluctuations are a common feature of the current financial markets. However, fluctuations – both positive and negative – can be sudden and dramatic, and can catch even experienced investors off-guard. In turbulent financial times, it is important to understand the economics that underpin all markets – beyond short-term volatility – and to consider market movements from a longer-term perspective. Our new volatility micro site helps you do just that with three easy tools.

Over time, there have been so many events that have affected the confidence of investors. Analysts at NriInvestIndia.com believe that its’s impossible to predict in advance just when the best and worst returns will occur in the stock market and anyone trying to time their investments to avoid short-term losses could be just as likely to miss gains. Over time, missing just a few days’ performance can significantly reduce the overall performance of your investments. Log on to check out exactly how much you could lose on a notional investment of Rs One lakh if you missed the 10, 20, 30, and 40 best days in the market. Most brokerage firms believe that a longer investment period means more stable returns. In investment terms, ‘risk’ means volatility. See for yourself how volatility intensifies or subsides for investments held from one to ten years.

Thus it is advisable for local as well as non resident Indians – NRIs & PIOs to invest with a long term view in high quality, return oriented top Indian mutual funds, that could deliver some good returns in the coming 3-4 years.

Enjoy Investing.
Team NriInvestIndia.com

How inflation effect Indian Stock Market, including Mutual Fund Investments?

Analysts at NriInvestIndia.com feel that the RBI can make a further cut in the prevailing repo rate as well as the reverse repo rate without waiting any further cut in the gas prices from the Indian. Keeping into consideration, the way that other price baskets both CPI & PPI have been going down, probably then all this would get reflect in the domestic prices sometime soon.

Many economists sees the repo rate more in terms of being phased out and feel that we should probably look for a instant target of around 7.50% in the close ten-year within few days and then we look at medium-term which could probably translate into a 7.45% figure or even lower than this. Mostly a repo rate cut possibly in December would bring in more liquidity to the banks that would intrun be coming into the market through spending.

However on the other side many brokers from various investment companies that are helping non resident Indians with investing into Indian mutual funds and stocks, believe that even if the RBI reduce the repo rate, there wouldn’t be a significant affect immediately seen for the borrowing cost of the corporate world. Thus, the the lower inflationary numbers definitely provide that much of chance for RBI to react properly given the fact that world’s financial conditions are also not conducive enough.

All in all, the Indian economy is expected to do well, with such an action, as money would flood properly into the supply system, thus giving more leverage to the banks on cash side. Thus, we primarily expect the inflation to take a continue downturn in the coming few months.

Should an NRI Invest in Indian Mutual Funds – Right Now??

It is quite significant that the global stock market ice has melted this year, than any other year from the history. The year 2008 has not only marked the meltdown of some strong capital markets, but also the emerging financial markets like India, China and Brazil. The sensex – Bombay stock exchange index did not see green, but shed blood all around the year; and the color got darker and darker as the time passed by, with US giving the birth to this global financial turmoil.

The sensex has fallen right on its face since it tried to bounce back last week, and this terrible fall was seen in the top Indian equity mutual funds. The funds have not been affected much by the liquidity crisis, as the banks are strong & cleverly driven by the RBI, but still major sharp in their current NAVs were witnessed due to heavy sell off, due to the worries of FII money drawbacks.

No any fund has given a positive return in the gone 8 months, but if we try comparing these funds with other global mutual funds, then we are certainly outperforming the global leaders, as the downside that we have seen is considerably very low as compared to the leaders of mutual funds in the US or UK.

All these major mutual fund schemes in India, have not done bad at all as compared to other major global mutual fund schemes:

1. Reliance NRI equity Fund.

2. Birla Sunlife Equity Fund

3. Kotak Opportunities Fund

4. HDFC Infrastructure Fund

5. SBI Magnum Contra Fund.

All this clearly signifies the fact that the Indian markets are intact and the fundamentals are still pretty strong. All the havoc that we have witnessed in the gone 6-8 months is primarily due to ongoing slaughter that took place in the US housing market.

Analysts in all major broker firms in India believe that the US market turmoil would settle down in the coming few months, and this would lead to a good long term bull market in India; thus it a good time for long term investors to start investing in India at these low levels.

Team NriInvestIndia.com (Global Leader in NRI & PIO Investments)

Global Financial Market Turmoil comes to an end – ‘inside story’

With Obama becoming the new president of the United States, the global economy is quite likely to head back on the curve of financial prosperity; says most economic analysts from across the length and breath of the globe. His views are quite aggressive when it comes to corporate taxation & the shattered social security. Leaders around the world are applauding his views, as he is devoted to upgrading the current banking system along with clear shot goals to revive the US economy that is witnessing a bad phase of recession.

The markets including the NASDAQ & Dow did pretty well in the gone week, with almost a rally of over 1000 points upwards. The analysts believe that more selling would be seen in the commodity sector especially in the gas & gold segment. This could be one of the best times to invest into emerging markets like: India, China & Brazil. Reason being quite evident, as the indices of these major stock exchanges are trading at very low levels that could provide an investor the opportunity to have cheap bargaining rates on their investments vis-à-vis Mutual funds & Stocks. The best part is that investing at these current levels one can reap out a return of over 15-25% per annum, and this is definitely a golden chance for those who missed on investing in the gone years.

The time is now to invest, but prudently. One shouldn’t rush by investing blindly; he should take his time out to research & build a proper investment strategy & draft a proper portfolio. Once this is done he can hire an investment adviser and get the plan converted into actions. Lastly, the investor should be wise enough to evaluate his risk-to-reward & aim at getting highest returns on his capital without loosing much of his principal.

Good luck..!!

Team NriInvestIndia.com