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How Forex Trading Works in India?

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  How Forex Trading Works in India? There’s a slow and steady rise of people in India who are making investments. People are getting educated about investment options like the stock market, mutual funds, bonds and using these options to secure their future. This is a great development not just for Indian markets but also for the overall financial health of the country. What many people are still unaware of is forex trading. This investment option still needs a lot of promotion and awareness. Here are a few points to give you a basic understanding of how forex works in India:   The Legality of Forex Trading in India   There’s a false notion among investors that if you trade in forex , you will be put behind bars. In reality, you can easily find a currency exchange regulated by the Reserve Bank of India and protected by the Securities Exchange Board of India (SEBI) and can legally trade in it. You just have to make sure you are following the regulatory restrictions and trade only w
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Things About IPOs that Deserve You Attention as an Investor

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  Things About IPOs that Deserve You Attention as an Investor In India, IPOs are going through an interesting phase. People who understand the concept of IPOs, love investing in them and the ones who are oblivious to it stay away. For the uninitiated, the full form of this term is Initial Public Offering . Companies looking to raise capital for their business, offer their stocks to the people. The first investors of these stocks get their shares through an IPO . After the allocation, these stocks are listed in the stock market and investors have a choice to retain them or sell them off depending on the market situation. There are many things that you should know about IPO investment . Here are some of them:   Grabbing the Opportunity Early   If a particular share appreciates in value after getting listed, the investor who bought it at its initial offering price benefits the most out of it. IPOs provide an early mover advantage to people who show trust in the company before it’s ou
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Why you have an advantage when you invest in mutual funds

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  Why you have an advantage when you invest in Mutual Funds Mutual funds can be liquidated at any point of time that you – the investor – want to. This is the most crucial benefit that you get over here. This is where they are different from the likes of fixed deposits. However, please remember that with this immense flexibility in withdrawal you must also be wary of the likes of exit load and pre-exit penalty.   They offer you great diversification   Your investments would not lose or gain value together. It could be that when one of your investments is faring poorly you would get good returns on the others. This means that your overall portfolio would perform pretty consistently. There is little chance that market volatility would affect your  mutual fund returns . When you diversify your portfolio you reduce the risk that is involved in the same. Mutual funds usually are made up of lots of securities. This makes sure that your interests as an investor are always secure. Even
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Things you might want to consider before you start share market journey

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  Things you might want to consider before you start Share Market Journey You must understand the business model of a company before you decide to invest in its shares. The business model of a company is the representation of the way that it works. It is a plan that the company has put into practice so that it can earn revenue and make its operations profitable. Harvard Business School conducted a study where it espoused the characteristics of a proper business model. The model should be aligned with the company’s goals. It has to be robust, and it should reinforce itself. When you understand the business model of the company you know the sources from which it makes money.    You must analyze the industry    Before you invest in the  share market  find out about the industry of the companies where you wish to invest. Find out how much the industry would grow in the days to come. These industries are divided into parts that are known as sectors. This is a cluster of industries t
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What is cut-off price in IPO?

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  What is cut-off price in IPO? Nowadays, the term IPO is heard a lot in our regular lives. You will read about it in newspapers, hear about it in television ads and it will also be part of the TV news. For companies, whenever they want to raise funds, they will opt for the route of Initial Public Offerings. It will list the company on a different platform. It can be an NSE IPO or listed in other stock exchange. While going for IPO, the company will inform in the red-herring prospectus, the need for it and how the funds are going to be utilised and they also mention the floor price or price range and the number of shares per lot. IPO is of two types – Book Building Method and Fixed Price Method: Fixed Price Method In the Fixed price type, you will know in advance the price at which the shares will be allotted to the investors. In this method, the details of the subscription level by retailers or High net worth or institutional investors are not known on daily basis and are decl
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