The experts of capital market consulting will also agree when we say that the capital market has seen a sufficient boost in recent years. From agriculture to manufacturing, many areas enabled the growth of the capital market in India. It is also due to the instrumental changes in the functioning of the capital market with new institutes like SIDBI put in place that more investments are coming in and sprouting the capital market scenario of India.
Keeping everything aside, there are some very necessary aspects that we can pinpoint that denote the improvement in the capital market of India in recent past years.
- Youth investing in mutual funds
mutual funds are not the greatest risk factor when it comes to investing, but surely a way to make better profits compared to bank interest or fix deposits. Any capital market consulting professional will enlighten you that mutual funds have grown exponentially in the past few years. People, especially the youth have become more vigilant but also accepting when it comes to mutual funds. With multiple applications and trading websites onboard, digital finance transformation has also assisted easy investment methods.
- Enhanced Foreign Direct Investment
India’s current Prime Minister has promised to make the country a 5 trillion dollar economy. And to expand to such limits, India needs more international money to come in. The financial institutes in India have laid out revised plans that promote foreign direct investment in the capital maker of India in sectors like Power. This makes the future better in every way, for the Indian market.
- Trading virtually and trust
With many brokers going online with their apps and websites like Upstox, Sharekhan, or Grow or trading, a lot more people can invest from the comfort of their homes. There is less chance of people being misguided since everything is available right there on the screen for the public to see. They can monitor prices in real-time and trade instantaneously. Overall, it has become safer which drives more money.
- Stock market fraud prevention
The financial bodies are constantly developing new ways to prevent any like of stock market scan and insider trading in the system. Amongst the many measures, a circuit breaker is one of them. Through circuit breakers, the market can be automatically shut if the cut-off of that day goes above 10%. This presents any fraudulent increase in stocks and manipulation.
Brands like NSEIT are amongst the few recognized companies by the National Stock Exchange. It is with the help of these institutes that one can further their investment opportunity and invest risk-free. Companies like these are also one of the reasons why the capital market today is booming. Rather than doing it directly, if individuals or companies choose to invest in a trusted third party institute, they get an added advantage of risk management, surveillance, and better control over the best areas to make a profit in the market.
So, what do you think? Got a biting question you want to ask? Spill it out in the comments and we will answer.