Invest in SIP's for a happy future

Posted: Jul 27, 2011 |Comments: 0 |

The BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange) are home to thousands of companies, making them the most complex bourses of the world. Finding a company or a stock that has great potential in terms of future growth and delivers decent returns is an extremely difficult task. It is like finding a pin in a hay sack.

India is one of the fastest growing economies in the world today. In such a scenario few bad companies also enter the market and list themselves on these bourses as successful enterprises to make quick money. It is these fly-by-night organizations, which you, as an investor have to watch out for. But it is easier said than done.

So what is the solution? Stock screener.

A research tool, called stock screener becomes an important and a necessary tool in your arsenal if you plan to deal in stocks.

An NSE stock screener is a database of all Indian companies that holds information with regards to their history, financial details since inception along with its book value, PE Ratios and the category to which it belongs.

SIP's or Systematic investment plans have suddenly become the darling of all investors. Mutual funds systematically build individual portfolios with the help of skilled and qualified workforce thereby freeing the investor from the burden of research work.

A SIP calculator allows an investor to calculate his or her corpus at the end of its expiry by investing a fixed amount every month.

Systematic Investment Plan is unlike stock market investment. It is an investment transport offered by mutual funds to save regularly. It builds up portfolios by investing in various financial instruments including stocks in a disciplined and diversified manner. Systematic investment plan is commonly known as SIP.

NRI's or Non-resident Indians are entities who live and work abroad and are eligible to open NRI accounts. They can open accounts under two main categories namely, Rupees account & Foreign currency account.

Under the first category two options are available.

1. Non-Resident (Ordinary) Account - NRO A/c.

2. Non-Resident (External) Rupee Account - NRE A/c.

Under the second category a Non-Resident (Foreign Currency) Account - FCNR A/c can be opened (In all the major currencies).

Funds accumulated in NRO account cannot be repatriated outside India in foreign exchange, without the prior permission of Reserve Bank of India whereas funds generated in NRE account can be repatriated freely.

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    Source:  http://www.articlesbase.com/business-articles/invest-in-sips-for-a-happy-future-5069919.html

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