Online Investing – The trends

Investing is a topic very near and dear to everyone who is interested in some serious money making. Investing has come of age. Initially people used to buy land, gold and commodities. Later big enterprises came to forefront and they started making Public offerings and in the financial terminology “Went from Private holding to Public”. Equities became the talk of town. It has been since then the major and important contributor to amassing serious amount of wealth. The purchase and sale of shares had to be governed by regulatory bodies and the types of trading were also limited. The instruments of trading were also few and the margins as well as brokerage fees was substantial.

With the advent of internet, things have completely changed, almost in all the sectors. May it be ERP, Online Shopping, Travelling bookings for that matter Investing. People have started using internet effectively and the eventually the dot com era which was lost and busted has started getting redefined. Today people have started investing online for IPOs, Mutual funds, Insurance products, Futures and Options and even Foreign Investment. There is still one instrument which needs to get modified and redeveloped to online investments and that is Art. Yes investing in art is one of the lucrative options present in front of people today. There are Mutual funds who invest in arts and they have been historically giving good returns in the range of 30 %.

There are a lot of changes which the stock market had to undergo. Initially the shares were physically transferred or settled. But now we have the DEMAT of shares and any online Futures; options trading has an online contract associated with it.

Online investing gives a lot of benefits over the previous model of trading.

1.       There are lower brokerage charges

2.       The Control of share trading is in hands of client.

3.       The Client can even buy 1 share unlike before.

4.       The execution and maintenance of accounts is being much clear than before.

5.       Transparency in trading

6.       Security wise there are scopes of improvement but it is much better than before.

7.       IPO listings have started becoming faster.

8.       Allocation cycle for shares is reduced drastically.

With this we come to the close of this particular article on investing. I hope it has been able to briefly tell the online investing trends as is being noticed in the markets today.