mohammedkhan's Pad

The stock market is considered as the most lucrative option to multiply your money. However, you need a big chunk of savings to be able to invest in profitable scripts. While wealthy people have no trouble in investing big, it is the middle class that is devoid of stock market benefits. To address this issue and to encourage individuals with limited money to invest in stock markets, products such as NRML have been introduced.

NRML also was known as the normal order, is a delivery based product that offers the investors with the flexibility to purchase stocks with a limited amount of money. Here, the investor/trader can buy a particular script by simply paying the margin amount i.e. a certain percentage of the total amount payable. The rest of the amount can be paid within 7 trading days of purchasing the stock. This type of product is ideal for investors looking to book profits in a short period of time.

Let us understand in detail the working of NRML:

• NRML allows you to buy your preferable lot of stocks for only a percentage of the total amount.
• You can pay the amount, either in cash or by keeping stocks as collateral.
• To pay the remaining balance, you are allowed a period of 7 trading days.

For example, if you need Rs 1 lakh to buy shares of Company A, with NRML you can buy the shares at 10 % of the amount i.e. Rs 10,000. Now you can either sell the stocks or hold to the position by paying the balance. Apart from giving you the opportunity to purchase your desired stocks with the limited amount, NRML also allows you to enjoy other perks such as dividend and bonus if you hold the stocks.

Here is how you can opt for NRML:

1. First, you need to select a broker that offers this product type. Research well and compare between different brokers. Ensure that your broker offers a user-friendly online trading interface.

2. Log on to your trading account, select the stocks you want to buy, Select the order type as NRML, pay the margin amount by cash or by keeping stocks as collateral. Ensure that you pay the balance in T + 7 days if you plan on holding the stocks.

When you buy a vehicle for yourself, be it a two wheeler or a car, how much time do you spend in making that decision? For most of the people, it is the purchase of the bike or the car that matters more than the vehicle insurance policy. Many people fail to understand that once the vehicle belongs to them, the safety and protection of it requires equal importance. However, buying a vehicle insurance policy is still considered as a formality since it is mandatory by the Motor Vehicles Act of India. Also, efforts are made to buy it at the lowest cost possible.

If you do not have the right vehicle insurance policy, you are more likely to end up incurring losses than enjoying any kind of benefits. Here is a scenario to understand this better. Ajay purchased a brand new car and was very excited about it. After all, he reached a decision of buying a particular model after taking a series of trials. He was aware that he had to buy a car insurance policy as well. Ajay was self-confident that his driving was perfect like none other and there was no scope of him running into an accident. Two years of owning a car is proof enough of his confidence. While the customer care representative recommended him to buy a comprehensive car insurance policy, he opted for a third party car insurance policy.

One day when Ajay was returning back from his office, he lost control of his accelerator and bumped into another car ahead of him. He immediately put the brakes on, however, the damage was already done to both the cars. He stepped out of the car and apologized to the other car owner. He knew he had to pay for the ruined backlights, number plate and other scratches on the third party’s asset. Ajay then checked the cracked headlights of his car as well as the bonnet. He was shattered and regretted not having purchased a comprehensive car insurance policy. The overall expenses on his brand new car cost him a fortune simply due to the absence of the right vehicle insurance policy. While he paid for the bills, he also upgraded his cover to a comprehensive one for future protection.

Therefore, purchasing the right vehicle insurance policy is crucial to your safety and financial protection. Ensure you spend a good amount of time, weigh the pros and cons and then buy the right cover.

You have decided to invest in stocks and earn money, you’ve read interviews of people who have made a fortune in the market and you will feel it’s your turn now. Good for you. However, all these interviews don’t reveal one thing, the importance of a stock broker. A stock broker is as important as your Demat Account. Here’s how’s you choose the right stock broker.

Full service or Discount?

An essential choice to make for every trader. Full-service brokers or traditional brokers have been in existence for a long time. From helping you to setting up your Demat account to giving you investment advice, creating your portfolio, they make sure you are taken care. However, the cost is high too.

Discount brokers are not as old as full-service brokers, they don’t offer all these services. What they offer is high-speed trading platforms and charge a lower commission for buy and sell orders compared to traditional brokers. The trading here is done online. Understand your needs and budget before picking a broker.

Reputation

Once you have selected the type of brokers, you will come across various brands. Make sure the one you go with is reputed. A good way would be to go through SEBI’s website and check for any complaints filed against them. Talk to people about the services offered by firms to get a good idea. Talk to the broker to get a good idea about how knowledgeable they are and whether they are a sound firm.

Technology

This is important for those who go with discount brokers. Ensure the technology, trading platform, and software is top notch. It shouldn’t hang during trading hours or take a lot of time load or for funds transfer. In the market, every second counts and slow technology can only lead to losses.

Advice

This normally falls under full-service brokers. The quality of advice given to you can often determine your profits. The Relationship Manager (RM) and you need to have a clear understanding of your investment goals and then he or she should tailor the advice offered. Your RM needs to qualify and should be able to keep his or her cool during times of market volatility. A good RM can create wonders on your investments.

Cost

The factor which every investor is interested in. While traditional and discount brokers may offer different commissions for their service. It’s prudent to compare them with your investment goals and then come up with a number you are comfortable to pay as a fee. If you choose one, make it clear to the broker that any trade, any change in your Demat Account is only by your explicit permission and nobody else’s. The fee you pay and the money you invest is your choice only.

There a plethora of brokers in India and choosing one can be difficult. The above points will help you make the right choice. A good example for a broker is Reliance Securities who offer everything a trader needs at affordable rates and excellent customer service.