As compared to investing in FDS/Bonds or in any other schemes, investing in equities protect and develop the wealth significantly. We shall try to address why to invest in equity? When to invest? Moreover we will discuss about the debts and study how they disturb the plans of equity investment.

We often find that farmer borrow high amount of money from their zamindars so that he can pay dowry during her daughter’s marriage, the debt taken will results him to a laborer of that zamindar. An individual purchases TV, fridge, car etc on his credit card. But he doesn’t know it is another form of debt which he plans to give back from his salary.

Moral:

Above cases shows that debt has been made beyond one’s earning. Normally, whatever we earn either goes into buying our basic necessities or save with an intention to buy the same during our retirement. We spend our earnings today or save it to spend it later. Debt is the element; while we postpone consumption when we save, we spend future savings when we borrow! In simpler terms, savings and debt are like day & night. They rarely exist together.

Let’s take another example Naresh who is very practical man; learned from his ups and downs of his life. As usual he also has desires to have a car, A/c., TV etc but his earning capacity was not so high. He fulfills his ambitions, he started to save regularly and invest a part of it in shares of good company. He bought a car month ago from selling the part of his investment in shares.

He has his colleague Naresh, he lives his life king size. He surpassed his credit card limits for which he is paying back at 3% interest per month. Two years back he took a loan to purchase a car at Rs 8000 per month as installment out of his Rs. 14000 salary. A year ago, he also decided to start experimenting on shares. He followed the instruction of his broker blindly and purchases the stock of Rs 150. After a week he found his stock decreased up to 35%. He shocked and asks his broker why the stock got freeze. At this point of time, his interest meter was growing on his borrowings while his principal was down the tube.

Moral: Never stretch borrowings to invest in the stock market. Ideally, one should repay all borrowings and then invest the surplus in equities. Shares are long-term investments that cannot be matched with short-term borrowings. So, when we are debt free, we are ready to invest in equities!

Hence, in the long run equities offer the highest returns. We have also learnt that one can invest in equities any time provided one has surpluses after repaying debt and meeting one expenditure!

This article explains about the basic requirements on how to trade in Indian stock market. Before starting trading the investor should have basic knowledge about stock market and have invested in the mutual funds.

If you are an Indian citizen and residing in India or Non Resident Indian then you must have PAN Card. PAN Card is compulsory, then only you can proceed for next step. To get PAN Card in all over India many bank branches accept application forms. After applying for PAN Card within a month you will get your PAN Card.

There are many online broking houses, subscribe your trading account with one of the major online broking houses like India Infoline, Share Khan, India Bull and Reliance money.

Some of the brokerage houses have their own charting having limited features. But better option is to get good charting software such as Easy Chart, Metastock or Amibroker. You have to subscribe to an End-of-Day facility which will update data feed from signal.

Now start with most challenging step i.e. learns trading. To get knowledge about trading, you can refer books, join online charting communities, blogs, and membership site or apply for mentorship program. You can take help from any known investors. Start paper trading with full efforts as if you are trading real money.

Update and remain active for economic news, fluctuations and equations of demand and supply of every sector of economy. Also keep in touch and update yourself regarding decisions of Government monitory policy and Reserve Bank of India upcoming announcements and also keep track of global events which mainly affect the market and economic conditions.

After you clear above steps without any confusion can start actual trading with real money. With best efforts ready to face challenge and don’t reach the starting point of loss. As per your style and personality develop and apply method which is tested for minimum loss ratio.

Following are some trading rules which can be applicable globally to any Stock Market:

1. In single investment take risk up to 10% of your capital.
2. When you come to know the stage where you could suffer loss. It is important to use stop loss orders which save you from such situation.
3. Always trade according to market position, movements. Never get over confident and never over invest. And trade within the fundamentals of trading for earning profit. Thus don’t do overtrading.
4. The safer side is not to trade the earned profit and should not take risk of loss.
5. Firstly, get ensure and study the market trend before trading.
6. Any doubt during trading, quit out/stop trading and don’t get in market when you are in doubt.
7. Always trade in active markets.
8. Divide risk equally among different markets to face lower risk.
9. Keep aside all profit in separate account to keep track of income out of trading.

10.  Don’t trade in that impression that this time you will earn maximum profit.

11.  Calculate the loss differently from different markets and remain them separate for next trading.

12.  You should not be guided by your emotional moods to get out of the market as you lost the patience or get in the market as you are an anxious.

13.  Don’t go for large losses and small profits.

14.  Once you place stop loss don’t cancel it.

15.  Don’t take quick decision of remaining in or quitting the market.

16.  Try willingly to make money from both the sides of the market.

17.  Don’t apply the strategy of buying when prices are low and selling when prices are high. Other aspects of trading should also be considered.

18.  Don’t border you’re losing position get ready to suffer even worse position.

19.  Remain stick on your own position, until and unless you have strong reasons.

20.  After long period of gaining or loosing avoid restart trading.

21.  Never estimate and predict the high and low position of market.

22.  The loss is only due to your inefficiency in trading not about luck.

Indian Postal Department has been operating and expanding its services in India very efficiently since last many years. It is having one of the biggest financial networks in India, having its existence right from prime location in metro cities to most interior part of rural india. Now, Indian Postal Department is taking up new look and new name of ‘India Post’.

To have a look on the prosperity of the department, postman of department is now driving a bike instead cycle to dispatch post, money order services are taking up global shape and postal department owns their aircrafts to deliver their postal services on time. Postal department is not only dealing with mutual funds but also providing cash card services, going to step into core banking along with providing ATM services and so on. Let take a look into the new shape of postal department in terms of new services going to be launched in near future:

Biggest Saving Bank

The idea of providing saving bank services came into existence in 1865 which was initially governed and operated by government treasury. In 1883, after so many changes in the operational part, it was opened to general public which resulted into 39121 saving accounts holding Rs. 2.79 crore. In 1954 saving account was increased 5.1 crore holding Rs. 2232 crore and currently number of saving account has reached 20 crore holding more than Rs. 5 lacs crore. Post office saving accounts are operated from 1,38,622 rural and 16,537 urban saving banks.

Core Banking and ATM Services

Postal department saving bank is working as nationalized banks. Postal department is waiting for the approval from Finance Ministry to launch core banking services. Initially these services will be started in 4000 post office in India. You can operate your saving account from anywhere in the country. Postal department will also provide ATM facilities.

International Money Order Services

Postal department is offering Money Order services and Instant Money Order Service (IMO) with association with the Western Union Financial Services, USA. Western Union Financial Services provides the worldwide network including banks and financial institution to transfer money worldwide.

Prepaid Card facilities

Postal department is launching its prepaid card services which can be used as cash card having the maximum value of Rs. 20,000. Hence now you don’t have to travel or go for shopping along with your cash, you can get your prepaid card from any post office.

Dealing with Mutual fund

Post department is also active in selling mutual funds units, although this service is active at only few post offices. These services are on hold as there are few disputes on commission part while dealing with mutual funds units. These disputes came into existence after the entry load is made inapplicable in mutual funds. As soon as these disputes are solved, postal department will start transacting in mutual funds again.

Exclusive pin code services

Looking at the competition with courier services, postal department have allocated exclusive postal pin code services to many corporate. Corporate companies who are availing this service receive their postal mails directly from the main business center of postal department instead of the local post offices. By this they receives their mails faster than before. Hence this service has redesigned the pin code with an intention to launch it as a marketing tool of postal department.

Account information from E-center

Postal department is going to launch E-Center to track your posts and letters. Postal department will open Letter Tracking Centers having latest technology wherein you will be able to know the exact location of your posts or letters by just feeding in the addressees’ name or senders’ name. Postal department have bought two machines to extract the posts and letters which cost almost Rs. 60 crore. It is planning to buy few more machines to save time of their employees. Postal department already owned three aircrafts and going to buy in near future to dispatch the letters as soon as possible.

Rural Price Index Analysis

In India, post offices exists 15 states and about 1200 villages. Postal department is going to start working on rural price index analysis for commodity market by which it can keep track of cost of living in rural areas. By this postal department will work as the medium to measure the Inflation in rural areas of the country.

Hence we can say that postal department is taking up new shape in the form Financial Super Store to take up the monopoly in the earning maximum revenue.

The three components of indirect tax are 1) Excise Tax 2) Custom Duty and 3) Sales Tax. All these three components have registered decline in collections during the period of Apr-Oct ’09. Indirect tax collections lowered by 21.6% to Rs. 1.27 lacs crore in the first seven month of this financial year. Rs. 1.27 lacs have shrunk against Rs.1.62 lacs crore last year.

The one of the reason behind the low collections can be the global slowdown in service sector which is the key contributor to Indian economy. Service sector fetched 5.4% lower revenue at Rs. 28.926 crore. Another reason can be declaring of stimulus packages which cut excise duty by 6% and service tax by 2%.

Customs Duty collections:

Customs duty receipts declined the most, by 31.8% at Rs 45,412 crore till October 2009, indicating lower imports because of economic slowdown and decline in petroleum prices. In October 2008, customs duty collections grew a healthy 15.8% to Rs 66,621 crore.

Excise Duty collections:

Excise duty receipts declined by 18.8% at Rs 52,566 crore till October. Whereas in the same period of 7 months last year, excise duty receipts had dipped by 0.3% to Rs 64,742 crore.

Service Tax collections:

Service tax collections declined by 5.4% to Rs 28,926 crore till October this year, Whereas it was showing a healthy collections of 13.4% growth a year ago.

The technology behind the scene of Wimax wireless internet services is launching of web-cum-phone devices built on Android operating system. These Android devices will take web services to the airwaves. Android is a software kit for mobile devices comprising of operating system, middleware and key applications, developed by Google. Android provides tools, APIs and web services necessary to run on Android-powered devices.

As per the industry sources, it has come to know that MTNL have not been able to agree upon branding and the extent of role of Google’s involvement to setup the project.

As the possibilities of increase in interest rates are seen in near future, hence experts think that the time has gone to invest in long term debt funds. If you are not confident to play with the shares by understanding the proper timing to earn, you can always go for investing your money in long term SIP (Systematic Investment Plan) in infrastructure and power sector mutual funds. You can also go for investing into Gold ETF, which also gives effective results. As per the experts opinion, prices of copper is going to increase in world market, hence you can also give variations in your portfolio by investing into commodity market especially in copper. Investing into property market is also a better choice but as per expert opinion you will not get more than 20%-25% return in coming two years.

Hence, it is advisable to give variation in your portfolio by which you will minimize your investment risks and increase chances for get better returns from various industries.

India is an agricultural country the agricultural production mainly depends upon the favorable rain and weather conditions. In such situations, it becomes very essential for the government to store agricultural products so that it can supply in to the people when the agricultural production is not proper in unfavorable situation. It is seen that goods are produced and stored in such a quantity that it can be supplied to the consumers till the next production comes into the market. This is an important step of government to speed up the economic conditions of a country. If the storage on goods are done in proper way then Indian economy can grow up to 1%. The current recession and slowdown, government can say with confidence that country is capable to fight against this slowdown based on the goods stored in the government warehouses.

Manufacturers, importers, exporters, wholesalers, transporters uses and occupies warehouses and store their goods to execute their business. Warehouses are very much linked with the transportation medium such as railway, ports and airports.

There are so many types of warehouses. Cold storage warehouses are becoming more and more popular wherein agricultural products are stored in the cold storage. These warehouses are having latest equipments wherein dumping of products are automated process. Buffer stock of products like grains, fruits, and vegetables are dumped in these warehouses. Nowadays, warehouse is not only a storage building but it is becoming a commercial equipped with latest machineries. Palett Rack warehouses are equipped with features like double dip, pushback and gravity flow, in which customer can take their vehicle and dump the goods right in the warehouse.  Mezzanines structural warehouses gives roll formed, rack supported and self supported features. Cantilever rack structural         are ideal to load bulky and awkward sized products which are normally used by metal, steel wire manufacturers. Automated storage and retrieval system warehouses have lifts for dumping goods.

Now SEBI have exempted pan card requirements for the small investors who invest money less than 50,000 in mutual funds. SEBI also got the permission for the same from the government, but the notification is due in short period of time. With this retail investors can come in front and invest their money in small lots or even go for SIP (systematic investment plan) upto 50,000 without giving pan card issued by Income tax department. This may increase higher percentage of asset base due this.

On other side, mutual fund plays does not see any major benefits out of this as they already have their pan cards. It will be beneficial to the small investors who will join from rural areas more than metros. No doubt this is a positive step of SEBI towards improvement of collections in coming future.