10 Indian Stock Market Tips
Are you looking for some Indian Stock market investing tips? The Dehli Stock Exchange and the Dehli Share Brokers’ association are the two largest and most active exchanges in Asia. India’s stock market is also one of the oldest in Asia.
- Understand the differences between investing in India and investing in America. The Indian exchanges let their agents buy and sell shares for their clients on a commission basis. A foreigner investing in the Indian stock exchange who is used to doing business in London or New York may be surprised when he sees the commission fees.
- Ask the person who represents you on the Indian stock exchange whether he charges the commission fees or merely acts as a broker.
- Save money by looking around and hiring someone who only charges flat fees for his services.
- Do not expect to buy shares as you would on the American and European exchanges. What an Indian Stock Market investor buys is a limited security in a publicly traded company. The difference is mostly a legal one. A listed security holder can still vote in the company’s elections and receive profit shares.
- Watch the prices of the stocks you own and the stocks you want to buy. The same rules apply to the Indian stock exchange that apply to the exchanges all over the world. If the investor’s goal is to buy low and sell high he must keep abreast of the market conditions.
- Buy tech stocks. This is not the market it once was, however, as many American companies have started moving their tech support back into rural areas of the United States and Canada. Tech support within the country is still booming, however.
- Don’t invest solely in India. It’s just a good idea. How many times have investors heard the phrase diversify your portfolio?
- Invest some in agriculture. The returns may not be as high as tech stocks, but with a population of nearly a billion people, the commodities market and agricultural companies are not likely to go out of business.
Check out the entertainment industry. Bollywood may not be as impressive as Hollywood, but the country exports films worldwide. It does not export many to the United States, however.
- Don’t forget the legal aspects. The national governments of your home country and the country you invest in have their own laws regarding foreign investors. Familiarize yourself with the regulations to avoid trouble.
Posted on: Sep. 10, 2010