Looking to invest in the stock market soon?
But where would you begin?
How do you choose what to invest in ?
There ARE different things you can invest in? Really?
SMS realizes how overwhelming it must be for someone who is just starting off with their first step towards investing in the stock market.
Apart from the various terminologies, market details and techniques, the most vital question on such a person’s mind is choosing the right kind of investment.
The most important thing to remember is there are different tradable elements available in the Indian market that you, as an investor, can invest in.
Through the course of this article, we would be looking at the top 10 commodities you can invest in the Indian market today.
Stocks are one of the most attractive investment options.We have been seeing how a lot of people look like they’re overnight successes after investing in stocks.
But is it really that easy?
Profits that stocks are capable of getting you are actually much more than the inflation rate in India.In other words, if the inflation rate is 7%, stocks returns rate is 14%. ·
The tax rates that you are liable to pay for stocks are much lesser than what you are expected to pay for other financial investments.
It is much easier to convert your stocks into cash.
When it comes to stocks, it is important to do your research before investing.
A thorough knowledge of the stock market is an absolute necessity to make this one investment work!
SMS has a large database of articles that can guide you to invest in stocks.
Start with Why You Must Invest in Stocks and move on to all other related articles in www.stockmarketsignals.com
Raw materials are one of the safest investment options in the market available today.
Natural gas, cotton, oil, cattle, rubber, metals like iron, aluminium, are often considered to be the safest investment bets in a volatile market.
This is often because natural commodities do not normally crash suddenly.
Either they soar high or they maintain a steady line.
A sudden decline in price is often not noticed.
This does not mean investing in these are super easy!
Before investing in raw material, you need to have a good idea about the general market nature of the product.
Which product grows where, the season there, the manufacture/production of the product, etc.
Rainfall, geography and the global socio-political factors affect these products vastly.
For example, at a time of global oil scarcity, India would be just as affected as any other SAARC country.
We often see huge sign boards in busy market places in India, which have the word “Forex” scribbled over them.
But, what exactly is Forex?
Foreign Trade and external political speculation are seen to be the driving sources behind Forex trading.
The exchange rate between two currencies would constantly change, as two currencies would rarely hold the same value.
Exchange Rates of currencies change based on the supply and demand for a currency which causes a change in its value.
Therefore, Forex trading is based on the fact that one can trade keeping in mind whether a market is trending or not.
4. Unit Linked Insurance Plans
Unit Linked Insurance Plans invest in debts and equity markets in India.
Life Insurance Policies by LIC of India are the most popular form of investment in the country.
Investing in life policies are important.
Not only do these work in paying smaller installments than privately owned medical-policies, the amount of risk involved in such investments is extremely low.
If you invest in a renowned organization, chances are slim that you may lose your money.
In case of insurance policies, you get back the money only when you are in dire need however, you are unlikely to lose all of it in the hope of making more.
5. Mutual Funds
6. Real Estate
What better way to invest than in a piece of real estate property?
Real estate is the fastest growing sector in India.
Housing, hospitality, retail and commercial properties are sold like hot-cakes all over the country everyday.
Post demonetisation, though the real estate businesses have suffered a sudden setback, it’s gaining back the lost momentum.
Today, investing in a farmland or just a piece of land is considered to be the safest real estate investment option.
However, make sure you know all about the property before investing in it – where is the area?
What is the area like – is there any discripancy involved? Etc.
Funds are savings schemes that help protect your money for 15 years or more. It is for those of us who do not immediately require the money and can wait for the long term returns.
8. Precious Metals
Precious metals like gold is a brilliant investment commodity.
The value of precious metals like gold have been on the rise lately and when other investment values drop, their prices always shoot up.
Make sure you are smart about the choice of metal and the form of metal as some of their returns is minuscule.
For example, buying diamond jewellery may seem like a brilliant choice of investment, but their resale values are often quite low.
In case of gold, there are several investment forms like gold deposit scheme, gold ETF, Gold mutual fund, gold bars, etc.
However, in case of bonds, like stocks, learn more about them before choosing to invest in them.
10. Post Office Schemes
Probably one of the oldest investment formats in Independent India.
Post office schemes have been the trusted source of income for Indians all over the nation for decades now.
Though at some point of time, these schemes would give the highest returns, today, the interest rates have crashed low.
There is a monthly income plan of India Post Savings Schemes that are well suited for retired people with a requirement for monthly income.
Though there are no risk factors involved, the interest rates are quite low – lower than that offered by banks.
So, before you make the choice of investing in different things in the Indian market, make sure you are through with a thorough analysis of the market.
Learn and understand how the market works – we are living in rather economically volatile times.
SMS helps you guide your way through such volatile times by bringing you researched articles that can help you understand the market better.
Read more at – www.stockmarketsignals.com