Index Traded Fund – Nifty BeEs

There are multiple methods and modes of investment in stock markets. Traditionally, it was directly by purchasing and selling stocks at the stock exchanges. Then came mutual funds and they had been very popular among investing community. Investors loved the mutual fund because of the ease it offered in terms of the security, consistent returns and relief from tracking the stock markets and individual stocks.

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Best stocks to buy for short term

Indian stock market has been doing well for last some days. It has bought back not only relief for the existing investors but also, optimism on the Dalal Street. Stock markets have gone through a lot of beating in the last few months. It has pushed away the short term traders away from the stock market.Recent up rise has bought them back, but they are not sure what stocks to pick because lot of stocks have already moved up.Picking up long term stock is comparatively easy than picking up for short term trading. Best stocks for long term are those which are fundamentally good and belongs to sector which is expected to perform well in the next 1-3 year time frame. But even a good fundamentally stock may fall in short term which is a good opportunity to accumulate them for long term, but for short term traders that is immaterial.Best stock term stocks for 2010 were a mixed bag of large cap, mid cap and small cap stocks but equation is completely different in 2011. Since its inception, year has been bad for stocks. Stock market has been gone through a lot of pain. Stock market has fallen consistently and there are lot of Geo-Political factors which are still unclear.

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Equity in India

Market has gained for the sixth consecutive day. Dalal Street has been flying high with the recent streak of highs. In last few months, Indian stock market have struggled to maintain any rally which they have got, but this time things seems to be different. Indian stock market has closed above 19000 levels for the first time in last two months. Globally also, markets are doing well and most of the index were in green.

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US recovery on the track

Commerce department in USA released their reports which are indicating the economical situation is improving with the time. This is the eighth month in the row when consumer spending has gone up. But due to increased food and energy cost, most part of that money went into covering them. Spending rose to 0.3 per cent after adjusting for the inflation. Another report suggested the sale in housing is picking up.

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ELSS to stop after DTC

Equity linked Saving schemes has been one of the most favorite tax saving investment instrument for the lot of people in India. Especially, educated working class have been quite fond of it. ELSS come with a three year locking period. This time allow invested capital to grow and they were yielding great returns since last few years.

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Short term investment strategy

This year has seen a lot of upsurge in stock market. If 2008 was a year of great fall, sorrow and depression, 2009 has seen the confidence coming back to streets. Things were looking in a good shape and today they look even better. but we need to ask one question, ‘Are they really in good shape?’ because something, as devastating as recession, cannot be healed in few months. It’s a process which should take more time than it has, so we need to be more vigilant while looking for truth. The global economical situation has stabilized but still remains delicate.

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Stock Idea- Canara Bank

Canara bank came up with QIP issue some time back and it was well accepted. Bank made around Rs1,993 crore from that. This will help Canara bank to expand and utilize it in growing credit demand. Stock is trading around their 20 DMA. In the short term, markets are fragile so therefore indicators are well reflecting that.

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Share market of India and stocks

Share market of India and stocks in India closed in green for second consecutive day. BSE Sensex closed at 18206.16 up by 217.86 and NSE Nifty 5480.25 up by 66.40. Long term investment strategies in India remains strong but there are apprehension for short term investment strategies. FIIs influence the direction of the Indian stock market and their investment in Indian market has consistently gone down.share markets in India has been really volatile and traded in a narrow range of few hundred points in the last few months. Investing in the stock is one of primary method of investment in today’s world and with market behaving in a uncertain manner has given sleepless nights to many investors. Indian shares have got a lot of beating after instability in Geo-political scenarios in India and recent Tsunami and earthquakes in Japan.

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Fundamental Analysis Vs Technical Analysis

We have heard numerous analyst on TV or read about their stock picks in newspapers or magazines. Some of them are called fundamental Analyst and some are known as Technical Analyst. Fundamental Analyst are those who refer fundamental analysis of a stock and similarly, those who refer technical analysis are known as Technical Analyst. Now question rises what is the difference between Fundamental analysis and Technical Analysis?
Fundamental Analysis refer to the process of analyzing a stock by looking into the financial health of it. Financial refers to its Profit and Loss statement, its earnings, profit, interest rates, debt, its management and factors like economy and Geo-political situation are also considered. It also involves looking into PE ratio and EBITDA. Fundamental Analyst believe that a stock may trade at a incorrect price in short term but eventually price will correct to achieve the correct level.

Technical Analysis refer to the process of analyzing a stock based upon its historical price movement. They are studied on a chart and various indicators are used in this study to judge the correct stock and its entry and exit points. Some of the popular indicators are MACD, Bollinger band etc. Technical Analyst believe that the markets or stock moves in a particular cycle and they pass through the same stages and cycles for numerous time. These cycles and stages are influenced by the fear,greed and emotional factor of the investors or traders.

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GST bill in Parliament

Goods and Services Tax bill may miss the deadline of the 2012 implementation. It was introduced in the parliament on Tuesday but due to parliament adjournment, there wasn’t any discussion on it. It is one of the most important and ambitious project of the UPA in its second term. The bill is to amend the constitution and introduce a nationwide Goods and Services Tax. It will reduce the cost and boost the business in the country.

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Old is still gold

In today’s investing community, investment broadly mean investment in equity i.e. investment in stock market directly by buying stocks or indirectly through Mutual Funds. But one of investment which is probably the oldest form of investment asset and was ignored in last few years in Gold.Though, in last few months it has again started shining and attracting investors. Gold always been one of the favorite of big investors but the average investors were only looking at equity market for investment.They were mainly targeting stocks, equity based mutual funds or ULIPs. But with the ULIP’s high charges were revealed and the way market has been behaving in last few months, they have also started hurting average investor. And trader have started shying away from the stock market, with this a new trend has emerged and that is investment in Gold.Gold is one of the oldest and finest investment instrument. It has consistently delivered better returns and now more and more investors are looking at Gold not as alternative but as their main investment. As more and more investors are looking for Gold, more avenues for investment in gold has emerged.Now there are variety of instruments available in the market to invest in gold. There are lot of fund houses which have started offering various schemes in this niche. Earlier gold was available in the physical form which had additional cost factors and difficult to maintain and store. Now there are GOLD Exchange Traded Funds,Gold in paper form and e-Gold which is available in demat form along with physical form.So far, Gold in paper form has been the favorite of the investors but ETFs and e-Gold is catching fast. With the increase in Demat accounts in the country, number of people investing in e-Gold and Gold ETFs have gone up significantly. At the moment, when inflation is soaring high and commodity prices are expected go higher. The interest in gold is like never before. But noone can write of the stock market and they will remain the main source of investment in the modern world.

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Investing in Art

If  i had talked about investment in art around 10 years back, people might have laughed at me. But today, it is a reality. It is getting more and more popular. A time when stock markets worldwide are behaving in a uncertain matter, investment in art is a very good way of diversifying and bringing stability to a portfolio. It was ignored when stock markets were soaring high and stock were yielding 20 per cent returns but as situation is turning very fragile and unstable, people have again started looking at more stable avenues for investment.

Investment in art involves investment in art masterpieces. It is quite stable and chances of masterpiece depreciating with the time are very low. It brings a stability to individual portfolio. Currently investment in art is very low in comparison of investment in equities and commodities. Traditionally art was bought only by art lovers for their passion and elite community to decorate their houses but over a period of time, this interest has gone up. And now more and more people are getting attracted to art pieces.

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RBI’s Credit Policy 2011 March

Reserve Bank of India has come up with quarterly monetary policy review. It has raised Repo and Reverse Repo rate by 25 basis points. Hike is not enough to trigger a immediate rake hikes by banks but what it said in the report is a matter of concern. Monthly inflation for the month of February have come at 8.30 per cent which is 50 basis points higher than expectations.

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