For many years, citizens in India have had a reputation for avoiding traditional investments. Whereas large percentages of populations in other countries tend to have holdings in financial markets, Indians have traditionally preferred to store their wealth in physical assets. Primarily, this means holding onto property in the real estate market. Slowly but surely, however, things may be starting to change. According to recent reports from Economic Times roughly 17% of “overall households” throughout India are invested in stock markets. Furthermore, it was revealed that over a third of “what Indians consider as wealth” is “now represented” by the National Stock Exchange (NSE), which could speak to more interest in the investing market moving forward.
These are positive developments for a number of different reasons:
Growth potential – As mentioned, a vast majority of Indians favor physical assets over investment markets. One reason for this is that there is often a degree of stability in physical holdings. The other side of this stability, however, is a slow growth rate that, at times, moves no more quickly than the rate of inflation. In digital investing markets, however, Indians can gain exposure to opportunities that, while more volatile, provide greater potential for financial growth over time.
Diversification – It is commonly stated by financial experts that diversification is one of the keys to successful investing. The logic is simple: If you have a given amount of money to invest, and 90% of it is in real estate, it will be vulnerable to a sudden crash. If the real estate market declines, the vast majority of your portfolio will fall with it. By contrast, if only 20% of your investing capital is in real estate, and the rest is divided across an assortment of markets, you are less vulnerable to a crash in any one of them. As Indians gain more exposure to non-physical investing markets, they also gain a greater ability to protect their wealth through diversification.
Opportunity – While diversification itself represents an opportunity to build strategic investments, it is also important to point out that each individual investment market represents an opportunity in itself. Buying assets in real estate alone limits the potential of an Indian’s future financial planning. By exploring other markets, however –– including commodities, stocks, the currency trade, and more –– you can increase your chances of finding profitable assets.
Simplicity – It is also the case that modern investing tools have made it simpler for Indians to access a range of financial assets. Real estate purchases can be complex, burdensome, and difficult to manage. By contrast, it is now a straightforward matter to set up a digital investment portfolio on a robust and secure app or online platform and swiftly gain the ability to buy assets across markets. It is still important for investors to be careful and considered with their decision-making, of course. But the process of investing beyond real estate is appealing in its simplicity.
To this final point about the simplicity of financial market investing, it is also important today to find the right platform to trade on. Quite a few such platforms have emerged in recent years, and Indians who wish to diversify their assets now have the ability to explore different apps facilitating the practice. Generally, it is wise to seek out a platform that offers modern convenience, widespread market access, and a reputation for security and ease of use. Currently, it is fair to say that out of all the trading platforms available to Indians, MetaTrader 4 meets these criteria more effectively than the rest.
This is a modern version of a platform that has had a strong reputation for quite some time. With MT4, traders can invest efficiently either in computer browser windows or via mobile apps. They gain access to a variety of useful tools, from automated trading directions to demo accounts that can be used for practice. Best of all, however, MT4 provides access to a range of markets all on one account –– thanks in large part to its facilitation of CFD trading, which is an alternative investment method in which assets are bought and sold via contracts concerning value fluctuation.
Specifically, through either direct trades or CFDs, online traders using MetaTrader 4 gain access to the following types of assets:
Stocks – For many people around the world, the very idea of investing is synonymous with stock markets. Indeed, even the aforementioned reports suggesting that more Indians are starting to invest were referring primarily to stock investment; it was noted that some of Indians’ preferred investable assets are listed on the NSE. Using MetaTrader 4, traders are able to invest in those assets by way of CFDs, setting up contracts that yield profit when included stock prices rise.
Commodities – According to data from The India Notes, aside from real estate holdings, Indians tend to invest in gold more than any other assets. Often, this means purchasing physical gold, or golden objects, to hold in households. It is also true, however, that gold can be traded digitally through commodity markets. With MT4, a trader can invest in the price of gold (as well as a range of other commodities) without needing to hold assets in physical form.
Forex – While it may be true that some consider the very concept of investment to refer to the stock market, it is actually the forex market – or currency trade – that commands the most attention worldwide. The forex market is a vast, worldwide space in which traders buy and sell currencies to capitalize on even the smallest shifts in their relative values. With the MT4 trading platform, it is possible to invest in forex directly, purchasing currencies at their most accurate prices and selling efficiently to lock in gains.
Indices – MT4 also provides access to index trading. Indices are often described as “bundles” or “baskets” of securities that are designed to track certain markets or types of assets. Rather than trading those assets individually, some traders prefer to buy and sell index shares. This helps them avoid the volatility of individual stocks while still diversifying by buying into other markets or even unrelated indices.
Altogether, access to the features and markets outlined above makes for a robust and reliable trading platform. As convenient and appealing as this may be, however, it is still important for investors (and particularly newcomers) to approach the process with care and patience. Starting up a portfolio will not result in overnight wealth; not even those wealthy and famous individuals you’ll find in our “Net Worth” section are so fortunate as to have made market fortunes with ease. By taking a disciplined, deliberate approach on a reliable platform, however, you can begin a process of financial stabilization and gradual growth that will improve your long-term prospects.
Jessica is engaged in brand exposure at LandscapeInsight. She brings forth content that helps both the reader and brands based on research and trends. You can reach Jessica at –[email protected] or on Our website Contact Us Page.
