Investing Online

While most of us understand the benefits of investing, we often do not give enough importance to this process because of the ‘hassles’ involved and the erroneous belief that ‘it is not my cup of tea.’

This article explains how investing online can be a very easy, convenient and an informed experience.

Say goodbye to hassles of investing offline. . .

When one has very little time on hand and too many options to choose from, investing can be a very daunting experience. One faces several issues while investing offline like maintaining bank and demat accounts separately and manually, lack of proper information, tools and advice, constant struggle with the paperwork that is generated (try filling an IPO — initial public offer — form manually), lack of time to plan investments systematically and finally keeping track of your investment portfolio and networth.

This either leads to a situation of too much dependency on someone, total inactivity or sometimes even taking wrong decisions while planning your investments.

Fortunately, help is at hand through the online investing platforms. Today technology enables you to completely plan your investing needs in the comfort of your home and at a time you like, all at the click of the mouse.

All you need is a computer with an Internet connection and a subscription to a 3-in-1 online investing account with any such service providers. Online mode of investing largely eliminates all major hassles of investing:

It provides a wealth of information, analysis and tools that enable you to take more informed decisions,
Virtually no paperwork involved as all transaction records are online and statements available in digital form,
You can invest anytime and from anywhere at your convenience (yes, even at night),
Integrated operations between your bank account, de-mat account and trading accounts, and
You can track your investment portfolio and net-worth online anytime.

Today, the online mode allows you to invest across different asset classes like equity shares, mutual funds and IPOs amongst others. You can be your own master in planning your investments. The online mode provides you the benefit of getting up-to-date information and analysis, which is often sourced and compiled, in an investor friendly format, from some of the best information providers in their respective fields.

You are, therefore, not only able to take more informed investment decisions but in the process is also able to reduce the probability of risk and improve the probability of earning better returns on your investments.

Services to look out for. . .

To start investing online you would need to register as a member for an integrated 3-in-1 online trading account with any of the service providers. The three accounts are:

Trading account, which enables you to transact online,
An Internet-enabled bank account for online money transfers with any of the banks with whom the online service provider has a tie-up, and
Your demat account, where your shares will be deposited.

Tips on choosing your online investing account:

Credibility and credentials of the service provider: While there are several service providers, for any retail investor like you, the backing of a reputed bank or financial institution can always provide that additional safety. Some service providers also have an ISO certification for their online investing portal.

Investments that you can make online: Are you allowed to invest in equity shares, mutual funds, futures & options and IPOs fully through the online route or in only one of them? To derive the full power of online investing it is important you get to invest in all.

Quality of information and content: Ensure you are getting the best information, research support and tools in an easy and reader-friendly manner. This would play a key role in taking informed investment decisions.

Speed of order execution: Are you able to place your equity orders and receive quick order confirmations during peak hours or are you struggling to access the site just when you need it most.

Are you getting wide array of products to choose from? A few service providers provide a choice of products starting from the basic (classic) account to more advanced (trading platforms with live and streaming market information on equity markets).

Safety: Check for the inbuilt security features.

Customer care: Does the service provider have a dedicated customer care cell to take care of your queries and problems?

Additional features: Besides the above criteria there are a combination of several additional features whose importance can be determined based on your own investing needs – ability to sell shares next day before receiving delivery, SMS alerts, and intra-day trading in equities.

-Rediff Business

Investing Online

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