Here’s A Look at How Internet Trading Began in India

Now a days, you can enter the share market anytime you want. Thanks to the rise of the internet, investing in stocks have never been easier. All you need is money to invest, a Demat Account with a broker, an internet connection and you are good to go. Yet, things weren’t this simple before.

Before the advent of the internet in the markets, traders used to congregate at the trading ring and shout the prices along with their intention to buy or sell the shares they owned. Traders used to call their brokers to place a trade as a call was the quickest mode of communication at that time.

The online share trading that most of us see and use today was first used in 1996. The Pune Stock Exchange became the first regional stock exchange to put in place the online trading system. The online screen based computerised system was christened Vector.

Thanks to this revolutionary new system, trading didn’t become just easy, it became transparent as well. Investors realised that they could conduct their trades at their offices than congregating at the exchanges or trading ring to get their trades confirmed. The other benefit was transparency in the prices of shares and securities.

The National Stock Exchange (NSE) became the first exchange which allowed its members to provide internet based online trading services to its members. It meant a SEBI registered broker who was also a member of NSE could give his/her clients the option of internet based trading.

It was a short time before the other exchanges began to offer internet based online trading. Today, the stock markets have gone digital and trading happens at breakneck speed. Everyone from a small time investor to India’s mightiest broking houses uses the internet.

As technology moves ahead, so will the processes. We are witnessing the slow and steady rise of mobile-based trading applications. They allow you to keep a tab on the market trends and trade on the go. Today, investing in stocks isn’t restricted to a select few, it is for everyone.

You will find many brokers such as Angel Insurance, Kotak, and ICICI offer online share trading facilities along with a host of other services to make an investor’s work simpler. It’s never been a better time to invest and create wealth to meet your future goals.   

Here’s why ULIPs Are Excellent Long-term Investment Purposes

Have you ever come across the word ULIP as you were buying life insurance online? They are often listed on many insurer’s websites as one of the best insurance plans to choose. If you are considering to buy one, here are a few things you need to know about them.

UnitLinked Insurance Plans (ULIP):

Insurance companies offer ULIPs as an alternative to traditional life insurance plans. When you invest in ULIP, a part of the premium is invested in assets such as debt and equity instruments. The remaining premium is to give you a life cover. The double benefits of life cover and investment attract many consumers to buy ULIPs. 

Types of ULIPs:

There are types of ULIPs

1.    Type 1 – This ULIP provides you either the sum assured (insurance cover) or the Fund value (total value of the investment) based on whichever is higher.

2.    Type 2 – Thus ULIP provides you with both the sum assured and the Fund Value. Although, the premium for Type 2 ULIP is higher.

Tax benefits:

A major factor which consumers look for when buying life insurance online is the tax benefits. Under ULIPs, premiums up to INR 1.5 lakh are exempt under Section 80C of the IT Act, 1961. At the time of maturity, all payouts are exempt from tax.

Investment options:

The major benefit of ULIP is that a certain sum of the premium you pay is invested. You get the power to choose the where your money should be invested. The most popular ones are equity and debt funds. You need to choose the investment strategy based on your experience and risk appetite.

Surrender Charges

ULIPs come with a lock-in period of five years unlike the three-year lock-in period for traditional insurance plans. If for any reason, you need to surrender your plan, the charges levied with traditional insurance plans will leave you with near zero profit. With ULIPs, the surrender charges is small or zero sometimes and you are often left with a higher profit.

Cost

Many insurers such as Aegon Life, HDFC, and SBI offer ULIPs at low costs thanks to the internet which has reduced maintenance costs. You will find many ULIPs in the market which cost less and perform better than Mutual Funds.

Whether you going through an agent or buying life insurance online, make sure you know the ins and outs. ULIP is a hybrid insurance product tailor-made for long-term investment purposes. It’s an excellent way to meet your future needs.

Retirement Planning for a Secure Future

In order to be able to live life to the fullest, you need to pre anticipate and be prepared for certain stages that life is going to throw at us. While at the beginning of our life, we are dependent on our families for everything. Right from our clothing to nutrition needs, and everything else is fulfilled by our parents. Even in our teenage and youth, parents play an important role to educate us and make us into this independent individual who can take care of all their needs by themselves.

Once we are set on our paths after college, we become the front runners in the bread earning department of the family and the responsibility of feeding our families and providing them with clothing and shelter becomes our primary responsibility. As one can only work till the time they have the energy of doing so, they are bound to retire after a certain age. As the families are still going to be around even post the retirement years, one will still be required to provide for them. And without a job or business, things could get really quite cumbersome for the provider of the family. In order to avoid any desperate situations, it is best to prepare for such situations, by doing your retirement planning in advance.

Based on your job profile, you may or may not be eligible for a pension plan for your years post work. However, as the needs and aspirations are quite different from one another, one needs to do their financial planning accordingly. As the pension that a government service provides may not be enough to achieve all your goals, it still becomes mandatory to invest in a proper retirement plan in order to be able to achieve your goals.

Like someone has truly said, 60s are the new 20s. Definitely, you may not be in the same shape and not as physically fit as in your 20s, but the point is that you get plenty of time to be able to travel, explore, and do all those things that you dreamt of doing in your 20s. By securing yourself financially and doing your retirement planning with companies such as Aegon Life, Max Life, etc. you can be sure of having a safe and solid future full of pleasures you had always craved for! So go out there, save up, and live your retirement life to the fullest!