India is one of the top emerging economies of the world. India’s robust economy withstood the effects of the 2008 financial crisis, thanks to its strong financial roots.
A major indicator of India’s economic prowess is its share markets a.k.a. stock markets. They have helped commuters and companies alike. Companies list themselves to raise funds and people invest to make money, the stock markets have changed many a life.
Most of India’s trading is done at two stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Although both are located in Mumbai, India, they are often confused by many to be similar or the same. They are not. The BSE and NSE are quite different. Read on to know them.
|Bombay Stock Exchange (BSE)
||National Stock Exchange (NSE)
|Established in 1882, it’s Asia’s oldest stock exchange and 11th largest in the world in terms of market capitalization.
||Established in 1992, it’s India’s largest stock exchange in terms of number of trades and daily turnover. It’s the world’s 12th largest stock exchange.
|More than 5,500 companies are publicly listed on the BSE.
||More than 1500 companies are publicly listed on the NSE
|BSE’s market capitalization (total market value) is $1.43 trillion.
||NSE’s market capitalization is $ 1.41 trillion.
|BSE’s flagship index is known as Sensex which shows the 30 top trading companies.
||NSE’s flagship index is known as NIFTY and shows the 50 most traded companies.
|The BSE On-Line Trading (BOLT) was first introduced in 1995 a few years after NSE introduced modernized trading system.
||NSE was the first share market to introduce modernized trading system in 1992.
|BSE’s reach is limited to certain areas and isn’t known by all.
||NSE’s reach is national and is known by all across the country.
|Companies such as Reliance Industries, TCS, and HDFC Bank trade on BSE. (These are top companies based on market capitalization)
||Companies such as ONGC, ITC, and SBI trade on NSE.
(These are top companies based on market capitalization)
The two bourses are a good indication of the progression of India’s financial sector. Many people have invested in these markets and have earned good profits. However, a lot of people invest and trade without proper knowledge and suffer heavy losses.
If you are interested in trading at these two share markets, you will need a good broker. Brokers are members of these markets and are licenced to trade at these markets. They trade on your behalf and charge a fee for it. A good broker to start with would be Sharekhan, they have a lot of franchisees with excellent research data and superb brokers who help you make the right trade.
Purchasing a car is often a costly affair which will take away a huge chunk from your savings. This is why applying for a loan is a gratifying way to finance a car without making a dent on your bank balance. By opting for a car loan, you can buy a better car than you could otherwise afford. Many people try to save money by purchasing second hand cars. But this often results in many costly repairs and amounts to a lot of financial loss in the long run.
A car loan helps you to spread the cost of the car over a long period of time, which makes the payment of the car much easier. One can also calculate the exact EMI payable by using an online car loan EMI calculator. This will give you an exact idea about the amount you need to keep aside every month. Apart from keeping your savings intact, opting for a loan has many other benefits such as:-
- Easy Application: – The application procedure for a car loan is much easier than other forms of loan since it requires lesser documentation. The approval and documentation process takes less than a day.
- Customizable EMI: – The EMI of a car loan can be easily customized according to your repayment ability. It can be calculated easily by using online car loan EMI calculators. These calculators are provided by most banks on their website.
- Discounts: – Many banks offer car loans at discounted rates during promotional offers. By availing these offers, you can obtain loans at really low interest rates.
- Early repayment: – Most of the banks allow early repayment of car loans without charging any penalty. Paying off your loan quickly can help you save a considerable amount of interest charges.
All these reasons make car loans a feasible option to finance your car purchase as it hassle-free and beneficial in the long run.
One of the most important changes on how the stock market functions is the introduction of a Demat account Technology has now made way for an organised approach to how the stock market functions and this has also helped build an error free environment where everything that was on paper is now stored in your Demat account.
Earlier, the Bombay Stock Exchange managed through an open trading system where traders would be expected to stand and shout out loud about their stock and share market prices. After this process, the traders were then expected to exchange receipts and the share certificates openly, without a proper system in place. This was a time consuming process since paperwork generally takes a lot of time; therefore, a Demat account has been introduced to get rid of the shortcomings of how we trade.
This process allows you to store all the certifications that are held by an investor so that one is not required to carry all of it in a physical form. This helps eliminate fraud or theft along with the security factor that is one of the most essential elements of trading. These certificates are generally converted or transferred into a number of securities in an electronic form, bringing along with it the convenience factor.
Why Use Demat Accounts?
A common point: Demat accounts are not only meant for shares, but also other debt instruments such as bonds where you can hold all your investments in a single account. This is a common account where you do not really need to carry physical certificates lest they get lost or are stolen. The account will already have all your details and address and will be updated in accordance to your transactions.
Provides you with the ease: One of the fundamental factors that makes paper transactions dangerous is the vulnerability factor. Paper certificates can be damaged or else inconvenient to carry. Thus, Demat accounts come in handy because it is one of the most convenient ways to hold your securities.
Eliminates risk: This is one of the most important creations that eliminates delivery risks and provides a transaction that is free of errors and fraud. Also, it helps avoid extra costs.
Unit Linked Insurance Plans are convenient plans that allow one to earn profitable returns. These plans are meant for all those who wish for lucrative returns along with their usual body of work. ULIP insurance plans are generally a combination of investment as well as insurance which makes it one of the most sought-after plans to avail.
If you make an investment, you need to be absolutely sure of the fact that you are prone to appreciation as well as depreciation; it works both ways due to the volatility of the market. A ULIP policy assures you success in terms of returns along with providing you a financial cover. This is possible with the premium paid by the insurer which is invested in debt as well as equity securities, making it one of the most profitable forms of investment.
- Advantages of investing in ULIP Insurance Plans
If you avail his plan, then you have an option of selecting from a range of high, low or medium risk investment options which assure you a certain risk cover. As an investor, you also possess an option of switching between the above mentioned ranges in accordance to your capabilities. You are also enabled to make additional contributions besides the regular premium that you need to pay.
ULIPs also hold an amount of liquidity that allows it to gain a certain edge over other policies. The policy holder is generally assured a good return at the end of the term of the policy while also possessing tax benefits.
There are various other benefits of investing ULIPs that help you plan your life as well as secure you beloved family members and dependents. This life insurance plan is one of the many ways you can ensure that your family retains their lifestyle without any changes, especially during times when you are not around. This plan is also helpful for all those who wish to make investments without involving themselves in the stock market. This particular benefit of ULIPs is what sets it apart from other investment options.