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Showing posts from December, 2017

What is meant by NRI trading and its procedure?

NRI (Non-Residents India) traders often finds it difficult to participate and trade in Indian stock market because of various reasons.The main reason among all is lack of awareness about NRI trading and complications associated with NRE and NRO accounts. Pehla trade understand this need of traders and facilitates NRI trading to citizens residing outside India.NRI's are free to trade in equity, commodity, ETF's, futures and options but not in currency. To trade in Indian stock market , RBI has made it mandatory to open a NRI trading account with any institution which is authorized by RBI itself. Investors can open either NRE or NRO accounts to begin their investment. Following are some difference between NRE and NRO trading account: 1)Any NRI can open NRE account and they may repatriate all capital and interest earned by them at any point of time. They also do not need to pay any tax, however the case with NRO account holders is quite different. Here account ho...

What is meant by index investing and how it is beneficial ?

Index investing is an investment strategy in which traders needs to maintain same combination of stocks in same ratio as they are in the targeted index.It is simple process in which using index funds a passive investment strategy is built. It has become quite popular in recent years.Some popular index of Indian market are nifty, sensex & bank nifty. Index investors decides which market is best to invest and how much capital they should invest and they can use their existing demat account for this. In different exchange of stock market number of companies are listed and it is a tedious process to pick up stocks among all.With index investing traders and investors gets an opportunity to earn profitable returns as here a well diversified portfolio is maintained and their holding gets affected only when a company enter/exit a particular index. Some advantages of index investing are discussed below : 1) Low cost The biggest advantage of index investing is t...