OnlineTradingInvesting.com
OnlineTradingInvesting.com was created mainly for helping beginner traders, advanced traders & investors of all levels and to teach them how to invest in the market and how to trade in the market, effectively and efficiently. It consists of all the very basics you need to know before getting involved in the financial markets. You will learn about the market in general, stock exchanges, stocks, the stock market in general, bonds, mutual funds, options, futures, currency trading – FOREX and many other things. The basic information is free and is included in the articles. We have also provided material where you can further your education and perfect your investment and trading skills. We have created this site so that new investors/traders do not go into the market uneducated and end up losing all of their money.
India’s fixed deposit rates & types of NRI accounts online.
The Foreign Exchange Management Act (FEMA), 1999 is a set of guidelines governing financial transactions of non-resident Indians. A non-resident Indian (NRI) can open and operate a bank account in India. This does not require the permission of the Reserve Bank of India (RBI).
The NRI should use the services of a bank authorized to handle foreign exchange transactions by the RBI. Such types of accounts are called NRO accounts, and even the post offices in India have the facility to accommodate such account-types.
Get free information on India FD rates & different kinds of NRI accounts below: www.nriinvestindia.com/banking.html
Different NRI accounts and their benefits:
Demat Account for NRIs
In the developed countries, the system of deposits and associated services are well-defined. This has helped streamline online share trading. It has also given a rise to foreign direct investment. The National Securities Depositories Limited (NSDL) is a national body in India that wants to achieve in this in India. The NSDL, being controlled by the Securities and Exchange Board of India (SEBI, helps investors overcome the burden of investing in India by offering well-evolved depository services.
NRE and NRO Accounts
NRI’s can have two account-types – NRE and NRO accounts. They are expanded as Non-Resident External and Ordinary Non-Resident Rupee accounts. To credit money to an NRI, you deposit funds in their NRO accounts. NRI’s use the NRO accounts to make investments in India.
NRI Bank account-types
The following are some widely used banks accounts by NRIs. They are:
- NRE savings/FD account
- NRO savings/FD account
- FCNR FD account
Understanding the NRE savings/FD account
This type of bank account can be used by non-resident Indians. You can manage your foreign currency through this bank account. All your earnings in the foreign country can be deposited in this account. This is an easy way to bring your money into India.
You open a NRE account as a Savings and Fixed deposit account in any of the banks. You are not levied any sort of tax. NRE accounts are exempted from wealth tax. You maintain the value of your earnings in the national currency, which is the Indian Rupee.
You can even open a joint account. You can also nominate somebody as this facility is available with NRE accounts.
Demerits of NRE accounts
The banks buy your foreign currency earnings at Indian rates. When you withdraw foreign currency, you get valuation in the selling rate of the bank. You may have to bear a conversion loss, because you have no option than to buy at the selling rate of the bank.
Since exchange rates are volatile, your earnings in the NRE account are exposed to such fluctuations of the exchange rate.
NRO Fixed Savings and Deposit Account
The interest rate you earn in this account is levied 30% tax. There is also surcharge and education cess levied. Your savings and fixed deposit accounts are charged such.
You maintain this account for crediting legitimate earnings. Banks are given the option to determine the interest rates offered to you.
For term Deposits, banks decide the interest rates offered on NRO deposits, which cannot be higher than those offered by them on comparable domestic rupee deposits.
FCNR (Foreign Currency Non-Resident) Fixed Deposit Account
You earn Indian rates on your deposits in this account. You get overdraft and nomination facility. Your deposits are exempt from tax. Only certain types of currencies are allowed in this account. You need to check with your bank on this.
Rates offered by banks
As per the RBI, banks can decide on the rates offered to NRI account-types. This is actually a beneficial thing considering that some banks may offer a higher deposit rate, and you can think of opening an account with this bank.
How to invest in SIP – Systematic Investment Plans in Mutual Funds?
SIP investing is a simplified monthly amount that is debited to your account automatically for investment in equity and debt instruments by a mutual fund. If you are not experienced enough and confident to play in the stock market on your own, the SIP is an excellent way to let mutual funds manage your money in the stock market. It is a regular and equal payment into a mutual fund, trading or retirement account for reinvesting into a wide array of stocks for getting optimum returns.
FREE information on SIP investing: Know more >>
Long term returns
It is a regular and equal payment into a mutual fund, trading or retirement account for reinvesting into a wide array of stocks for getting optimum return. You can benefit from a long term investment advantage as it is common for many stock traders to book their profits very early or too late to make good profits.
Stock market experts have always said that you can only make money by staying invested for the long term. You can also gain from the dollar-cost averaging as well as avail of the opportunity to save regularly by making the first SIP payment.
You can buy shares at different prices over a long period of time, but gain from the dollar-cost averaging that in the end reduces the price of each share. The average cost per share of the security will automatically go down in future.
As an investor you can plough back money from dividends earned into more stock which is known as the dividend reinvestment plan. With the SIP method of investment, you are assured about your money being debited each month at a specific date.
The scheme allows investors to buy units each month on a predetermined date. But your best bet would always be to start an SIP when the stock market index has hit a low. You can expect to reap rich profits over time as the value of your investment will go up.
The mutual find will also spread your money over many sectors which will enable your money to grow. All sectors do not perform simultaneously and a loss from one can be offset with profits from the others.
Experts handle your investment spreading over many portfolios
Over time, your money will experience the highs and lows of the stock market that will also ensure a reasonable return. If the market remains volatile for some time, you may lose in the stock market by investing on your own. The greatest benefit of SIP is that your money is spread over a longer period of time to weather any periodic volatility that can wipe away your money.
With the money going into mutual funds, it would be handled professionally.
They have their own investment techniques and know exactly which sector to tap and when. All asset management companies charge very little entry loads and the entire process is cost effective as well.
Your savings habit also becomes far more disciplined as the money is invested through automated debit system of your account. But the major reason of opting for an SIP is that you get all the benefits of stock market investing without having any knowledge of stock price movements.
The SIP investment works out like this. You may invest a certain amount of money on a fixed number of units. If you can buy the units when the value is low owing to the stock market upswings and downswings, you can easily get the unit cost worked out much lower. It will help you get more profit when the market picks up and the unit price shoots up.
Invest in Online SIPs: Click Here >>
How to Invest in the Indian real estate market – Commercial & Residential Properties?
Indian real estate is on a boom with more and more companies targeting the NRI’s who plan to stay for a considerable time each year in India following their retirement abroad. New projects are being tailored to make it easy for everyone to invest in real estate in India and the facilities offered are top drawer. The facilities and infrastructure are nothing short of premium real estate in the UK and the US.
Make an Investment in India’s Real Estate: www.NriInvestIndia.com/real-estate.html
FDI needs to develop before selling
Foreign Direct Investment can come into India for buying and selling real estate, but there are some conditions that they have to abide by. FDI is allowed in the real estate sector only for development of real estate from the ground up, which will involve construction and beautifying before they can sell it. This has made it difficult for real estate majors from outside India to come in for trading purposes only. There has to be some real time effort in development of the real estate as well.
FDI’s NRI’s and PIO’s
The facility is on offer for FDI’s, NRI’s – Non resident Indians and also People of India Origin (PIOs) as they are known. FDI’s can invest in the land, construct on the land and develop it before they can sell it. This is a new development for FDI investment in the real estate sector that was not allowed earlier. In the past, for any new proposal, government approval and sanction was required. But with the new laws coming into place for FDI investment in real estate, no prior permission is required from the government.
Eased up policies
Earlier, FDI’s had to take approval from the government and they were restricted to the housing sector projects only. But with the new policies in place, they can invest in building townships, commercial areas and housing complexes from the ground up. There is no basic rule about the plot size, but a minimum requirement is still in place. FDI investment in the real estate sector has to be for a minimum of 50,000 sq meters for construction purposes. If you buy land for development only, it has to be a minimum of 25 acres only.
The paper work and the earlier formalities have been eased up making it easier for investors to plough their money into Indian real estate. Before getting into the Indian real estate sector, check the market, take advice and suggestions from everywhere you can including close consultations with your relatives to get an idea of the prospect of the real estate plot you are interested in investing in.
Take government policy intro account
You should also take into account any government or municipal projects in the pipeline that can have a direct bearing on the cost of the finished construction. There are legal firms whom you need to consult as well as real estate consultants who can give you an upfront idea about the investment possibilities that are emerging at the moment. You can take advantage of the real estate boom only of you can stay invested for the long term.
You should be clear about your objectives and check various agencies depending in whether you are interested in commercial or residential real estate. The FDI investing in Indian real estate has to take into account all the parameters before plunging in. You should have a clear idea about the city, the growth prospects and also the kind of government that is in power to factor in all kinds of eventualities as well. The yields can only be calculated once you have all the information details at hand.
Please feel free to contact us if you want to buy a house in India. We act as a NRI broker who will help you to buy or sell a home in India. Basically getting you the best NRI property deal in India.
Pension plans are great advantages for a regular and comfortable income after retirement. Insurance companies also offer them to individuals for generating a regular stream of income after retirement. They are not life insurance plans, but made in installments or lump sum payments which you end up making for a given period of time. They can be made quarterly, half yearly or annually for life or a fixed number of years.
Get Free Financial Planning:
www.NriInvestIndia.com/insurance.html
Annuities
You need to know some basic differences between annuities and a life insurance cover. Unlike life insurance cover, annuities do not offer a guarantee for an income for life or a fixed period of time. Annuities are bought for the sole purpose of generating income which is like pension after you leave service and decide to live a comfortable life. If you buy a pension plan or an annuity, you could be assured of generating a life time income.
If you retire from service with a large superannuation benefit, you would need a perfect pension plan so that you can effectively invest the money and earn a comfortable income. These payments are annual in nature and spread in such a way that you won’t be hard pressed paying them.
A life annuity will guarantee a specified amount as long as you live and after your death, the money invested will go to your nominee. For a guaranteed period annuity, your nominee will get a fixed amount of money for a predetermined number of years.
Under the annuity certain plan, the stipulated annuity is paid for a predetermined number of years and stop after some time which could precede your lifetime. For deferred annuities, the amount is deducted from your taxable income during payment and the interest will not be taxed right away. But the proceeds of the annuity will be taxed as soon as you receive them. You can choose from a wide array of pension plans in India like UPIL, Tata AIG, Reliance, and those offered by Bajaj, LIC, ICICI and HDFC.
Compare maturity payouts
In maturity payouts, you will receive the entire corpus as son as it matures. For pension plans, you will have the option of withdrawing a third of the maturity amount. In the case of death benefits, the nominee will receive the entire sum and bonuses. You can also take the option of receiving the entire amount in cash which can be used for buying up annuities. People looking for pension plans also look for death benefits to ensure their dependents live a reasonably comfortable life after their deaths.
You can also avail of loads of tax benefits as well under section 80 c. For premiums paid up to Rs 1 lakh yearly, they are eligible for deduction. Premium payments towards pension plans are also eligible for deduction.
You can end up preparing for your future, securing a comfortable lifestyle when you retire as well as enjoy tax benefits on your present income. The pension plans are fantastic and can ensure that your stay in India after retirement will be full of fun and frolic. If you are reasonably healthy, there is no way of lowering your lifestyle.
Maturity payouts are not taxed in conventional insurance plans and the money is absolutely free right from the time you receive it. A third of the maturity amount, if withdrawn, will be treated as tax free. Marginal rate of tax will be employed on the balance amount. There are several options in pension plans and your best bet would be to opt for the one that would suit you best. To begin investing is not easy as you need to check out the websites of the insurers and pension planners and compare their features.
Four Strong Reasons To Invest in Foreign Markets
Thanks to the global recession, inexperienced investors are leery of investing outside of their immediate comfort zone. For many, this comfort zone is limited to their country of origin. While some amount of anxiety is understandable, there are at least four strong reasons to consider foreign investment in an unsteady global market:
1. Diversification
The power of diversification is well known among investors. In fact, diversification might be the best safeguard against unexpected economic downturns. Geographical diversification, investing in more than one nation or region, serves the same purpose as spreading your money across several investment types or industries. With so much potential for domestic turmoil, choosing more than one horse to bet on is the best bet you can make.
2. Foreign EFT’s
For US based investors, among others, foreign EFT’s have taken the guesswork out of buying foreign stocks. In the past, investors were often saddled with the responsibility of choosing individual companies in which to invest their resources. Without a native knowledge of local business culture, these choices could be quite daunting. The makeup of foreign EFT’s is determined by experienced fund managers. This gives inexperienced investors an edge when investing in foreign stocks for the first time.
3. Shifting Markets
Within many nations, liquidity has never been lower. Money isn’t being exchanged by the same avenues. While the global economic crisis has adversely affected many businesses, it has also opened up completely new industries. The United States, for example, has recently allocated a great deal of money to research green energy technology. Foreign investors could potentially take advantage of this new US government-funded market. If these investors only considered investment opportunities within the borders of their country, they would miss out on a significant opportunity.
4. Unlimited potential
If the value of your country’s currency is unstable, investing in foreign markets protects part of your capital from depreciation. In an uncertain economic climate, guarding against depreciation has become as crucial as gaining economic ground.
Bio: Alexis Bonari is a freelance writer and blog junkie. She is currently a resident blogger at First in Education, researching various online degree programs. In her spare time, she enjoys square-foot gardening, swimming, and avoiding her laptop.
How to Trade Currency Futures in India – Online Process?
Forex trading is trading in currency pairs and you buy and sell currency at a particular price for making a profit. Forex trading can be done through a broking house or a broker that could also be a bank or any other financial institution where currency can be traded. Nowadays, trading in forex does not require being at a currency trading floor. You can trade in forex online from the comfort of your home at the click of a mouse.
Do Currency Futures Trading over NSE:
http://www.nriinvestindia.com/forex.html
Large volumes and high volatility
Compared to other speculative trades like stocks and commodities, forex trading is many times more at more than three trillion dollars daily. You cannot match the sheer volume with any other speculative trades and more and more people are logging in from their homes to make profits from currency trading. The surge began after the global meltdown waylaid many investors who had banked on the stock markets to turn their money into gold.
They quickly found out forex trading yielded more in terms of profits and there was more scope in making money on the go rather than from stocks or commodities. You can trade online and use the great forex trading systems that are available to make money when your computer is on as well as when your computer is off.
Great trading systems keep you updated about all the latest developments and your best bet would be to get a broker and find out whether your computer supports the software.
The reason why people prefer forex markets is that they can trade round the clock as fx markets never close. There can be some public holidays in all host countries when markets might close, but you can always find some other place to trade. Finding a trading platform to suit your requirement is a great challenge and most traders check out the internet to study broker reviews posted by other traders.
They post their reviews at forums and blogs recounting their experiences over several brokers and you can also get valuable tips from them upfront. Forex is traded in pairs of currencies and your best bet would be to select some of the principal currencies like the USD, GBP, Japanese Yen, and Swiss Franc. By trading in the principal currencies you would be somewhat fire walled against volatility as well as get adequate volumes for closing your deals.
Use forex robots
There are forex trading robots that can take care of newcomers with very little or no experience at al in the currency markets. Forex trading robots allow traders to go on autopilot and your trading can be done automatically. In forex trading, one currency is bought while selling another at the same time. That is exactly why forex is known to be traded in pairs. You can learn the trading tricks online at various classrooms on the internet as well as benefit from their trading systems.
After you gather some knowledge, you can look for a broker on the internet who can allow you to practice on a demo account for a month. You can hone your skills and also use the strategies learnt for later use when you trade with real money. Forex trading is the toast of many investors coast to coast as they are trying to find out alternative means of investing their money.
But forex markets can also be very volatile as a small change in economic, political or social conditions in a far away land can easily have a ripple over effect in mainland US or large parts of Europe. You can make money in a flash but also run the risk of watching your margin money with the broker being washed away.
