How to deal on the stock markets with your bank's help

Your bank can offer expert inputs and timely guidance on buying mutual funds or trading with business entities, or even setting up escrow accounts for major projects.

Every person or company with disposable income today wishes to make a good investment. The key in making good investments is to augment the money you have today into wealth for tomorrow. However, this is easier said than done: most individuals and companies are not fully cognisant of how to invest on the stock markets, or what capital markets mean. The right information can open the doors for successful investments and long term wealth that endures.

Investment guru and one of the richest men in America, Warren Buffett, has this gem to share about investing on the capital markets: ‘Risk comes from not knowing what you are doing’. The safest option to do well on the market trading is to work with your bank for a seamless connect with the capital market in India.

Here’s how leading banks can offer expertise in trading and investment:

Buying mutual funds.

Leading banks in India are instrumental in helping individual investors and companies with latest market inputs to steer their portfolio in the right direction. If you wish to invest in good mutual funds, enlist your bank’s help to set up and monitor your portfolio with a range of suitable options. Instead of doing all the research by yourself, your bank can stay clued in to the markets in a more structured way. Besides, the bank can handle strategic investments on your behalf, in line with your financial goals. A good bank will advise you to put your money in the best mutual funds and stay invested for at least 10 years for good capital appreciation. Your bank can offer valuable insights and real time analysis to make your investment a success.

Investing in the ECM.

The equity capital markets (ECM) is a space that exists between your company and the bank. Leading banks in India are often tasked with raising equity capital for companies, so that they may meet their various financial goals. The bank offers targeted actions like marketing, raising IPOs, opening and operating escrow accounts, private placements, and resource allocation, among others. The Indian capital market also comprises other investors and companies, and the bank can track the environment and map every stakeholders’ performance for its clients.

Buying market-linked insurance.

Another area where your bank can offer you a protection-cum-wealth solution by trading on the markets, is by selling you a good market-linked insurance plan. An example of this is a Unit Linked Insurance Plan (ULIP) with varied investment fund options. Leading Indian banks have as many as 8 different fund options, and they can match your investment needs with your risk profile properly. It can also provide statements annually for you to file your tax returns and avail of rebates under Sec 80C and 10D of the Income Tax Act, 1961.

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