Stock Exchanges In India, Listing, And Mutual Fund Investments

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Capital markets across the world irrespective of developing and developed nations have evolved with the joint contribution of stock exchanges and the general public; India is no exception. Today, both stocks and mutual funds in India are the key steerers of the capital market of the country. Not all existing companies can sell their shares to the public to raise funds for further expansion or other related activities. Stocks in India available to the public are those that are listed in the stock exchanges. As is known to all, there are two principal bourses in India, viz. NSE of Indian and BSE of India. No business news is complete without display of performance figures of the BSE sensex and nifty.

When companies get listed in these bourses, i.e. the NSE of India and the BSE of India, they avail a whole lot of advantages. Besides getting an opportunity to raise capital for the funding of new projects, undertaking expansions, diversifying into newer horizons, acquisitions, and more, corporates and entrepreneurs also get the market's individual valuation. Private equity investors get an exit route whilst ESOP-holding employees get liquidity. By selling stocks in India with the listings, companies get to display their public profile to the media, financial institutions, suppliers, customers, and investors. Furthermore listed companies in the NSE of India and BSE of India are typically covered in analyst reports and are included in the indices - BSE sensex for BSE of India and nifty for NSE of India. Other routes that may be followed by a company to raise capital from the market are preferential issue, rights issue, ADRs/GDRs/FCCBs and Qualified Institutional Placements; there are countless investors interested in the same thus facilitating in easy raise of funds. The interests of the investors also get protected with listings because of better and timely disclosures. It is no surprise if shareholders get continuing liquidity, broadening the base with a company listed in the BSE of India!
Listing on BSE provides a continuing liquidity to the shareholders of the listed entity.

Investing in mutual funds of India is like investing in stocks. This is because money is pooled from the public and the collective amount is then invested in stocks and other investment securities; the same is managed professionally by fund managers. Yes, risks are no doubt there but not as compared to direct investment in stocks. As an investor in mutual funds in India, getting maximum returns depends on your knowledge and expertise besides the expertise of the fund manager of the particular AMC (Asset Management Company). Few of the top performing companies in this segment are SBI, Tata, Franklin Templeton, Birla Sunlife, Reliance, Sundaram BNP Paribas, Fidelity, Religare, ICICI, and the list goes on. Investing in mutual funds in India is a boon to tax payers; as investors do get tax rebate! A brokerage portal that provides solutions beyond brokerage will prove to be the right guide for you for your investments.

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