Investment, Stock News

Why Nris Should Invest in India ? Investing Reasons for Pios..!!

Sixty years young India, having a GDP that is touching 9%, is tomorrow’s economic superpower. With all its companies doing decently well, the Indian Share Market has become a hot and favorite destination of investors. Liberal economic policies, an ever-growing GDP, and relatively less competition (relatively less because India, unlike the established markets of USA/Japan, is still in its infancy) – all these factors are driving the potential investors our way.

But these factors are certainly not the ONLY factors responsible for the sudden boom in the number of NRI investors in the Share Market of India. There are other factors as well that has given big reasons to NRIs to start investing in India, and through this article we intend to put some light on the available investment opportunities in India or some best investing options in India available to NRIs, PIOs & OCIs. While stating all may be beyond us and next to impossible (partly because there ARE so many factors involved!) we have tried our best to highlight a few below.

India is synonymous with the word “resilience”. The people are pliant in catastrophe and so is the Indian market. While the world was contemplating the US Market, India, after initial jitters, was back on her feet soon. This is because the Indian market, still in its early years, has not, unlike the American Market, become an umbrella market taking all the major economies in its fold. Investors are still coming in in this growing market. The resilience is mirrored in the fact that since the reformed economic policies of 1991, the economic growth rate has reached new heights. While political power in Delhi changed hands constantly resulting in diverse economic policies, the market did not, even once, even stumble, let alone collapse! Moreover, as India is becoming young day-by-day (and so is the Share Market) we hope and expect the economy to perform even better.

Secondly, since our current PM and the then Finance Minister, Dr. Manmohan Singh liberalized the economy, the two sectors that were somewhat left unattended were those of agriculture and infrastructure. But there is good news. For about two-three years now, these sectors have been given their due recognition. This, our experts at NriInvestIndia.com, hope will boost our economy a great deal. While the results are yet to be seen (we hope to see them in a couple of years from now) we are confident that the impact will be huge. Paying more attention to these two fields implies increase in production and consequently, consumption (India is also home to many poor). This will obviously lead to better standard of life and higher income levels for the Indian masses. And guess what? Higher income level means more investment and more money to be made.

Foreign Direct Investments (FDI) has proved to be a boon for the Indian economy. While the inflow of FDI has become less in the recent times, they continue benefiting us immensely. India is still a developing country and a country of many needs. FDI helps us fulfill our wants as it not only augments capital, it also brings with it better (or perhaps, the best) technology, products, services etc. It also creates scope for employment. This, of course, as mentioned earlier, leads to greater productivity and competitiveness, which in turn results in better standard of living, higher income levels and more investments.

We are sure all of you must have heard of BPO – Business Process Outsourcing. A growing fad in India, BPO is, in general, considered to be a call centre. But there is more to this global outsourcing boom than just BPO. These include research and development, manufacturing of various automobile parts etc. And this is primarily due to the increase in the confidence (of the world) in India’s skilled labour and its abilities. Again, as is the case with increased attention to agriculture and infrastructure, and FDI, outsourcing is people-oriented, resulting in better living standard, raised income and higher investments.

Fifthly, India has a strong domestic consumption level. Since majority of the Indian masses come in the “working class” category, they are surely profiting from better (and higher) pay-cheques. According to McKinsey, a consulting firm, the number of households having an average annual income of US$ 10000 is increasing by 20% per annum. The corporate world has emerged as one of the strongest industries. It is said that the Indian economy is all set to benefit in the long run from the nurturing affluence and the willingness to spend of the Indian masses.

Last, but not the least, all the reasons mentioned above will not be as worthwhile if the market is not regulated well. Fortunately, for India, the Securities and Exchange Board of India (SEBI), along with the Reserve Bank of India (RBI), regulate the market ably. Be it anything of Indian stock markets: mutual funds, Indian stocks, NRI demat accounts deposits or life insurance, the Indian Share Market has arrived on the global platform. Redressal measures, innumerable choices, no major liquidity concern for the investors and better investment opportunity – all these combined have made India a favorite amongst all. But, having said so, we would also like to inform all of you that like any other market, the Indian Share Market also has its share of ups and downs. While you can minimize your risk by heeding to the advice of a financer, you cannot completely overcome the same.

Thus, all the above dynamics, amongst many more, together, along with the fact that India is the tenth largest economy in the world and fourth largest in terms of PPP (Purchasing Power Parity), have made India a potential destination for NRI. Miscellaneous, but no less important, factors like manpower, literacy level, some of the best educational institutions, strategic location etc adds fuel to the fire. The credibility of India lies in the fact that India has never defaulted from international financial obligations. Small-scale industries and strong English language base have helped India. A recent World Bank report has predicted that Indian economy will become one of the strongest by 2050 A.D.

This is why NRIs- Non Resident Indians and PIOs – Person of India origin invest in India and (we hope) will continue doing so. One of the best brokers in NRI Investment segment is http://www.NriInvestIndia.com/

7 Practical and Emotional Tips for Resisting the Temptation to Invest in Gold

As a licensed psychologist and a Registered Financial Consultant I often see how investors allow emotions to sabotage their efforts at investing long-term to build a secure nest egg. During periods when the stock market is weak or fears of inflation are high, gold often spikes in value, tempting people to invest in bullion-related securities whose value fluctuates with changing gold prices. Some investors are tempted to buy Krugerrands or other coins that change in price based upon their bullion value. This article identifies the emotional issues that make gold a tempting investment at times, explains why gold is a terrible investment, and provides 7 tips for resisting the urge to invest in gold.

Over the decades gold has periodically spiked in price and then crashed. During the inflationary period that occurred in the late 1970s and in 1980, gold reached 0 an ounce before plummeting in value. Recently, we have seen a new spike in gold prices with gold reaching over 00 an ounce. The latest surge has been fueled by record highs in gasoline prices, fears of inflation, and a weak stock market.

When gold prices surge, numerous investing companies spring up, touting gold as a wonderful investment. The companies describe the dramatic returns that gold has produced over the last two or three years, which dupes investors into believing that gold offers the prospect of a wonderful return. Unfortunately, gold is one of the very worst investments that an individual can make. When we examine long-term returns, we find that gold has failed to outpace inflation over the last 25 years. Gold has dramatically underperformed the S&P 500, corporate bonds, and even completely safe U.S Treasury securities. Simply put, gold is a horrendous investment for the long-term.

In addition, gold is one of the most risky investments an investor can make. The hype accompanying spikes in gold prices is often greatest just before the gold market crashes, luring investors into the market at the very top.

How can we avoid the temptation to invest in gold? Below I outline 7 tips.

Dr. Rob’s Practical and Emotional Tips for Resisting the Temptation to Invest in Gold

1. Ignore news reports that describe soaring gold prices. Historically, spikes in gold prices have been relatively short-lived.

2. Recognize your emotional vulnerability to being tempted to invest in gold. Descriptions of dramatic price increases often trigger feelings of greed and envy.

3. Keep in mind that investments that go up quickly have a tendency to go down quickly. Focus on generating steady returns over time.

4. Discount the claims made by companies that specialize in selling bullion-related investing products. These companies are more interested in sales commissions than in making money for you.

5. Always focus on historical averages for long-term returns, which will lead you to the stock market for building a strong nest egg over time.

6. Obtain advice from a licensed, qualified financial professional before making any investing decision. Financial pros can educate you on realistic expectations for long-term returns and guide you to products and services that will meet your specific needs.

7. Consider contacting a Financial Behavior Coach™, a Financial Behavior Consultant™, or some other professional who is specially trained to help you manage the emotional factors that impact money decisions. Don’t allow hope or greed to lure you into investing in gold.

When to Invest in Real Estate

When it comes to investing in property there is no right time or wrong time, anytime is good when investing in property. The market is so wide and high that it is always possible to find some value in there. It can be easier or harder to find value depending on the state of the market but it is always there. There is always some sort of property that has been in neglect, disrepair, or simply has motivated sellers that must make a sale. Properties such as these make for a great buy at any time no matter the state of the market. Another thing to remember is that the Real Estate market moves in cycles. It never stays low or high for too long. Eventually things reverse and go back to the way they were in the previous half of the cycle. With a little bit of knowledge you can come close to predicting the cycles and making a killing in the market. The market is also unpredictable with the leading experts unable to always buy low and sell high. Most of the time it is just educated guesswork that may or may not work so you there is no point in waiting for the ideal time to invest in the market.

The Real Estate investor that always makes money is the one who makes it a habit of buy and hold. While it is true that their money is tied up it is equally true that a sluggish market or slow economy does not do them any harm. They simply have to hold on to the property and eventually when the upside of the cycle comes around they can sell it off. In the meantime they can continue to make money by renting or leasing such property. Buy and hold investors are very patient and they usually have more experience watching the market than short term investors. This means they are that much better at predicting the cycles. They know when they can expect peaks and valleys and they can plan their actions accordingly. They are much better at reading the signs and making the right buy or sell decision. Being active in the market for a long time also means that they have a thorough knowledge of what is available where, and they can move in and get working.

The Real Estate market is currently going through a sluggish period all over the world, apart from a few spots like Dubai and some locations in China. This turned out to be bad news for those investors who thought that the market will continue to go up indefinitely. The good news here is that since the prices are falling down it is the right time to buy. You cannot wait too long or the cycle may reverse again by the time you are done deciding and you will pay more than you ought to.

If you are looking to buy ownership property instead of investment property then there is no point in looking at the market condition. Just go ahead and buy.