Keeping an Eye on Your Stocks and Shares ISA Is Easy to Do

we may complain about the way that we believe modern technology has invaded our lives, but even the most old fashioned among us will have to admit that life is both easier and more fun with the internet around. We use it for so many things and can even keep abreast of our financial circumstances without setting foot out of the house. This is a good thing for those who are housebound as they keep a keep an eye on any stocks and shares ISA performance they have.

There are two types of ISA (individual savings account): cash ISAs and stocks and shares ISAs. The advantage of having an ISA is that it is tax-efficient. Savings and investments held outside an ISA wrapper are liable to income or capital gains tax.Share-based investments in various forms are ISA-able. Shares in individual companies may be placed inside what’s called a self-select ISA, which are usually managed by stockbrokers, but stocks and shares ISAs are usually held in collective investment vehicles like unit or investment trusts. These are pooled investments where a fund manager picks a selection of shares based on geographic or sector criteria and the value of the investment depends on the collective performance of the shares picked out.

Placing these investments inside a stocks and share ISA provides two tax advantages. First, any profits made from share price increases aren’t eligible for capital gains tax and second, it enables all the tax on bonds to be reclaimed. Every adult in the UK is allocated an ISA allowance each tax year. You can save up to 11,280 this tax year (which ends on 5 April 2013). You can invest the entire amount in a stocks and shares ISA or split it and put up to 5,640 in a cash ISA.

What is the difference between a cash ISA and a Stocks and Shares ISA?

Cash ISAs are like any other standard savings account, without paying tax on the interest you earn. Stocks and shares ISAs are a way of putting money into a wide range of investments without having to pay tax on the profits your make. Like with everything else when it comes to a stocks and shares ISA rules have to be followed and there are governing bodies which are in charge of regulating companies.

In today’s financial markets, the distinction between stocks and shares has been somewhat blurred. Generally, these words are used interchangeably to refer to the pieces of paper that denote ownership in a particular company, called stock certificates. However, the difference between the two words comes from the context in which they are used.For example, “stock” is a general term used to describe the ownership certificates of any company, and “shares” refers to a the ownership certificates of a particular company. Most people tend to invest a small portion of their money in an ISA and many people choose a stocks and shares ISA and then follow its performance on the internet regularly.

Investing in Stocks or Bonds

Many investors are looking into stocks and bonds investing for their financial needs. So which is better-stock or bonds for investing? When it comes to this form of investment, it is really all about your personality and individual needs.

First of all, bonds are almost always a safe investment, at least when you do so with a reputable company that is making good money. When you take out a bond, you are essentially lending money to the company, in exchange for getting your money back with interest at a certain date.

Most of the companies on the stock market are relatively safe in this form of investing. It certainly isn’t 100% guaranteed, especially if the company goes into bankruptcy. However, you can be reasonably sure of turning a profit.

A bond is really best if you want some short term money, in order to make a purchase, preferably within the next couple years. The reason these are great for an upcoming purchase is that you can be almost sure of making money in return. With a stock, you aren’t so sure of making a gain short term.

However, when you are investing in stocks the right way, you can be just about guaranteed to make a profit, albeit long term. Here’s how to do that: first of all, limit your investing to companies that have exhibited a long and profitable history, and eliminate the companies that haven’t.

Most investors have the mistaken belief that you can only make a fortune investing in the smaller, riskier stocks. In reality, whenever you invest in these smaller companies, you run a big risk of losing a lot of money, because they haven’t proven they can be successful over the long run.

Sure, some of these companies may turn out to be the next Microsoft, but it is very difficult to spot these diamonds in the rough beforehand; you always are at a big risk with newer, unproven companies. Once you’ve limited your search to a specific range of well run companies, then look at the stock price.

If the company is selling at a low price relative to it’s overall worth, then invest in it, and hold it for the long term. You wouldn’t want to use this strategy if you need money within the next few years, because short term the market always values companies according to how investors feel about them; however, in the long run, companies are always valued according to their profitability. Therefore, determine what your financial needs are, and make your stocks and bonds investing decision accordingly.

Deciding Whether Stocks or Bonds are Right for You

There are a vast number of investment opportunities available to potential investors, but not all of them are right for all purposes. The most common types of investments are stocks and bonds. Stocks are shares of individual companies, while bonds are government-issued investment funds. Both can be great for starting in the investing market, but you should know a little about the difference between the two before making your investment.

Stocks

Stocks can help balance out a bond-heavy portfolio by providing diversification

Stock dividends also receive more favorable tax treatment than bond payouts.

If you make the decision that stocks may be the place for you to put your investment dollars, you must now determine the primary purpose of your stock investment.

The two primary stock investment goals are income and growth. You can have a combination of the two in one stock investment, but the features are almost never equal. In other words, although growth and income may co-exist in a particular stock investment, the investment choice you make should take into account the primary strength of the stock.

Growth Stock vs. Income Stock

Growth stock is stock in a company that doesn’t pay cash dividends, but instead reinvests its profits into the company. The idea behind this strategy is that the company will continue to grow and become more profitable, driving the stock price up.

Income stock is stock in well-established companies that do not need to reinvest their profits into their companies and therefore use their profits to pay dividends to stockholders. Income stock is often more expensive because the income stream and security of the investment is greater.

Mutual Funds

Many investors invest in the stock market through mutual funds. Mutual funds are professionally managed and are easier to diversify your investments in, which makes them less risky than investing in individual stocks. You still have to research what type of stock will best suit your goals, but the average investor finds it less stressful to invest in the stock market through this method.

Bonds

Bonds, though some consider them “safer” than stocks, still come with risks. Some bond funds offer enticing payouts but may take big chances to do so, including venturing into lower-quality and longer-duration credits; if your funds’ bonds lose value, you could see your principal shrink even though you’re pocketing a healthy yield. Checking a fund’s quarterly losses can be an easy way to see whether you could stomach a given fund’s short-term losses. There’s nothing wrong with making room for some higher-yielding bond funds around the margins of your portfolio, but consider these income-heavy funds to be side items because of their greater potential for volatility.

And while paying for high-quality financial advice can be money well spent, think carefully before paying a sales charge for a bond fund. If you’re paying a 3.75% load to buy a bond fund (and that’s a pretty low load), you’re surrendering most of your first year’s income payments from the get-go.

Individual Bonds vs. Bond Funds

Many investors prefer to invest in individual bonds rather than bond funds. While that’s a reasonable tack if you’re buying Treasury securities or perhaps even extremely high-quality corporate bonds, it makes sense to opt for a professionally managed bond fund for every other type of fixed-income security. Not only will a mutual fund offer you much more diversification (and therefore lower risk) than you could obtain by buying individual bonds, but smaller investors who are buying and selling individual bonds are also at a big disadvantage when it comes to trading costs.

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Want to Invest in Indian Government Bond

India – progress and development is thy name! And the same stands true for the Indian economy, more so for the ‘bond market’. An innovation of the recent past, asset-backed securities have grown to be a pivotal part of the corporate debt market. Floating rate instruments, convertible bonds, step redemption bonds, zero coupon bonds – these and many more such instruments are today being acknowledged country-wide.

A decade back, banks like ICICI and IDBI began issuing step bonds. While those of the ICICI Bank paid a higher rate of interest, those of the IDBI allowed clients to pay the redemption amount in instalments after an initial holding period. In addition, the approach of maturity of ICICI step bonds clearly showed the benefits of bond issuance in India, while IDBI step bonds had two put and call options before maturity. All these have provided a range of securities that have helped in maintaining a sought-after risk return balance. Due to these corporate issuers, preference has changed from public issues to private placements.

Upon comparing the equity market [http://www.nriinvestindia.com/free_nri_investment_advice.html] with the bond market for the past decade, we find that the equity market saw a drop of almost 14% of GDP – slumping from 42% in 1993-94 to 28.6% in 2000-01. Au contraire, the Government of India bonds (GOI bonds) enjoyed an increase of about 8% of GDP – from 28% to 36.7% – in the same period. As a result, there appeared a reduction in liquidity in the equity market and a substantial increase in liquidity in the Indian bond market.

But don’t get stupefied with the impressive statistics of the GOI bonds. Every coin has two sides. Similarly, there are some drawbacks to the Indian bond market also. The GOI bond market doesn’t use trade as an exchange and features a bilateral negotiation between dealers. The market hence, lacked price time priority. To top it, bilateral negotiations imposed credit risk on participants narrowing the market with a homogeneous credit risk.

The Indian bond market, however, is today at par with some of the leading markets of Asia like Korea. The grapevine is that in a few years, the Indian bond market will be counted as a renowned market of the world.

We feel proud to recognise the bond market of India better than that of China. And this is definitely an evidence of Indian economy’s quick progression. Moreover, the Indian bond market is profitable to almost anyone and everyone. The new business houses especially find the Indian market profitable from an operational point of view. That is pretty obvious as they have been able to initiate business in a very short time span and generate capital easily.

LIQUIDITY OF INDIAN DEBT MARKET
The liquidity of the Indian debt market has helped both the market as well as the various companies operating in it. But, for the market to sustain itself, and that too in an international level requires capital. Luckily, the Indian debt market has been able to attract enough companies.

POTENTIAL OF FIXED INCOME MARKET IN INDIA
Every market has its highs and lows. For the Indian market, the fixed income market is counted in the former. As stated before, the Indian economy is considered better than the Chinese economy, and the fixed income market is one amongst many reasons for this. Experts expect the bond market in India to grow manifold and become one of the biggest in the world in perhaps another decade or so.

SECONDARY INDIA BOND MARKET
One of the best secondary bond markets of Asia is that of India. It has a high amount of liquidity. The market is an establishment of sixteen primary dealers who underwrite the sales of the debt of the Government of India and deal with India’s apex bank, the Reserve Bank of India, directly. As icing on the cake, some bonds in the secondary market have maturity period of as long as thirty years!

Investing Stocks And Bonds-How To Profit From This Highly Lucrative Form Of Investment

Investing in stocks and bonds is one of the best ways to become wealthy in today’s day and age, because of the wonders of compounding interest. A wise investment can give you the riches of world whereas investment in an already mature stock can take every single penny out of your pocket. Investing stocks and bonds gives you long time financial stability.

What are stocks?

Shares of a company are referred as stocks and if you hold a stock of a company you become a stockholder. A stockholder owns a proportion of a company, and he may be paid a share of the company’s earnings in the form of dividends. Stocks are high risk high reward.

What are bonds?

These are mainly issued by the government and those who buy these bonds are basically lending money and getting paid as per fixed interest rates. Bonds provide fixed income on investments.

Before investing in stocks and bonds you must understand the difference between trading and investing. Investing is when you keep your money in one particular share and wait for months or years for the stock to mature, whereas trading is when you invest or buy a particular share for a short period of time, may be days or couple of weeks.

Investing in stocks and bonds becomes another means of income. Sometimes people choose to invest in real estate, but that is equally expensive and takes a large chunk out of your pocket in brokerage. Stocks and bonds are seen as a better way of investing for future, for retirement, to buy luxuries and of course houses and apartment.

Investing in stocks and bonds have been made fairly easy now with tips, advice, technical charts, graphs and counsel available online and over the phone. You must keep the track of the company’s performance as well though the broker will be informing you about the stock and its movement.

Remember, when it comes to investing, nobody can do this better than you can. The world’s top investors all have educated themselves financially in order to profit from the market.

You will never make as much money relying on other people as you can yourself. Do your own research, and find the right stocks for you and your portfolio to help you become wealthy.

Stock and Bond Investing – Risks and Advantages

Strategic planning for business is necessary for anyone who’ve been or just starting in the industry. Part of this strategy is knowing the features of steps that you are going to take. Success can’t be dictated by a spell or magic. More probably, it is attainable by keeping in mind pointers and simple details. Every decision that you will make, it will end up with either gain or loss. Like in investing, you can’t be sure what is ahead. But to avoid breakdown, conduct further studies or research to know the how’s, what and when.

Stock Investing and bond investing are two kinds of investing. This is like equity versus debt. Stock is the equity and bond is the debt. This article will tell you what are their advantages and risks. We can’t say that this will determine which of the two is better, but this will surely make things clearer.

Advantages:

First is the stock investment:

* Money will grow more. The return on investments are higher than those on investments held in other markets and assets.

* Accessible- an investor can easily take a position in a company in just a matter of seconds through internet.

* Dividends- stocks release a portion of the profits in the form of dividends to their stock holders. The stock has the ability to increase their price, creating more money for the investor.

* Transparent- majority of the companies release accurate information of the money they spend and earn.

* Easy monitoring- information about the companies financial statement and stock’s share price is available on the newspaper and online.

Bonds investment:

* Safety- it is safer to invest in debt. When goes bankrupt, debt holders are the first priority of the bank before shareholders. Debt holders can get back at least some of their money while stockholders lose their entire investment.

* Predictable Returns- the returns may be slow, but steady. Even if it take many years, it is still predictable how much one will earn.

* Better than bank- bonds will give you good returns without risking too much. This is if you don’t need that money soon. The high interest rate on bonds are well paid-off.

* Stable- bonds can provide a predictable stream of income even if the stocks don’t perform well.

* Lesser risk

Risks:

Both options face risks that are inevitable. It is a part of investing. All that investors need to do is to determine their risk tolerance to know how far can they go for their investments.

Stock Investments:

The main disadvantage of stock market is the risk when the company that the investment is residing goes bankrupt. If this happen, the investor also lose money. The condition of the national economy also dictates the flow of an investment.

Another disadvantage is the need for brokerage services. But this is really necessary. To find the best deals in the market, you need to hire a brokerage and pay them a certain amount.

Bonds Investments:

The greatest investment risk that you will face in bonds is the possibility that the principal investment amount won’t be paid back to you. This depends on the profile of the company that you invested in.

For both investments, risks can be financial, market, inflation, personal, political and emotional.

The Investing Basics Of Stocks And Bonds

One of the most basic investment tools is understanding what stocks and bonds are and how they may fit into your portfolio.

Stocks are the cornerstone of every investment portfolio (except for a few specialists who specialize in “junk bonds”, but they need not concern us). A share of company stock is a literal piece of ownership of that company, and therefore when you buy a stock share you get the right to a claim on a part of the company’s wealth. The number of share that you own versus the total number of shares the company has put up for sale, called “shares outstanding”, determines the total percentage of ownership you have in that company.

Common stock allows holders to participate in shareholder meetings and vote on company decisions. Preferred stock does not allow this privilege; however, preferred stock gives its owners other benefits. Preferred stock holders typically receive company dividend payouts before common stock holders, and should a company go bankrupt or need to liquidate itself preferred stockholders would be paid before common stock holders, meaning they have less chance of losing all their stakes in the company.

A given stock’s price–and thus how much it is worth–is driven up or down by a complex set of factors that often don’t seem to make any sense. Basically, however, a stock’s price reflects what the general investing public is willing to pay for it.

The reason that stocks are the cornerstone of virtually every investment portfolio is that historically they have given the highest returns over time than other investment vehicles, and there is a vast array of diversification potential in stocks, allowing investors to make great use of them in balancing their portfolios for risk factors and for shorter and longer term goals.

However, the vast majority of investors also include some bonds in their investment portfolio. Typically, bonds are used for “hedging”. When investors “hedge”, they seek to balance out or minimize greater risk in one sector of the financial world with something less volatile, less complex, or at the other end of the economic spectrum from their core investment portfolio.

Bonds are literally investments in debt. When you buy a bond, what basically happens is that you as the investor lend money to a private company or a government. The government or the company agrees to pay you back the money plus a certain interest rate in a given period of time or, that is, until the bond’s “maturity date”. Bonds are issued to raise money to finance any number of new projects or activities, and their maturities range anywhere from a mere 90 days with government treasury bills to the 30 years of the government bond. Typically, however, investors do not invest directly in bonds but in funds that are, in their turn, financed by the active buying and selling of bonds on the open financial market.

Strategic Land Investment Versus Stock and Bond Markets – A Comparison

How Do Traditional Investments – Stocks and Bonds – Compare to Strategic Land Investing?

Investors are looking outside of stocks, bonds and REITs for better returns. But the alternatives, real assets such as strategic-land, defy apples-to-apples comparisons.

The performance of stocks, bonds and REITs (real estate investment trusts) is based partly in the companies they represent and partly in overall market trends. This has proven to be dissatisfying to many investors in recent years because, net-net, those types of investments have shown little overall growth amidst a sea of financial volatility.

An alternative, strategic-land investing, is attracting disenchanted investors because, simply, such investments are able to outperform the securities traded on the London Stock Exchange, the New York Stock Exchange, the SEHK and other trading organisations.

What makes for this difference? Why would an investment in land be advantageous over something as apparently similar as a REIT? And doesn’t the general health of the economy affect demand for land in a similar fashion to demand for stocks. These are important and natural questions, best understood by considering the following premises:

Strategic land versus REITs – Most real estate investment trusts hold commercial property such as office buildings, retail centres and warehouses. Strategicland, however, is primarily made up of acreage that is unbuilt but ripe for municipal repurpose designations. The strategic land fund, a conglomeration of investors working in partnership with land acquisition and development professionals, will purchase the land and improve its value by various means such as rezoning and infrastructure development (“land site assembly”), then sell the property when its value is sufficiently increased (often, within two to five years).

Strategic land versus stocks and bonds- Investors in market-traded securities follow trends, which often supersede the intrinsic value and worth of individual companies. REITs, also traded on the exchanges, are subject to the same generalisations. But strategic values rise and fall on the acumen of investment property specialists – in how and when they purchase property, their success at rezoning, skill at cost-effective infrastructure construction and identifying the optimal time to sell.

Strategic land relative to the general economy- The general economy may be in the doldrums, yet specific tracts of land in select locations might concurrently be highly desirable due to area-specific factors.

These are each reasons why strategic UK land investment specialists hold great value with their investors. But before you embark on a land investment, speak with your personal financial advisor who understands your own investment goals, timeframes and tax considerations.

Investment advisory India helps people to manage their stocks and bonds

nvestment advisory India helps people to manage their stocks and bonds. Every client has his or her problems and issues over their management of financial issues. Also every client who is interested in investment needs some assistance over the same because the entire day they have so much to do. Then finding time to actually organize everything in a proper way becomes very cumbersome.

This helps clients solve many of their problems. It may happen that the client has invested in some stocks, bonds etc but does not have time to actually continue to see how the prices are fluctuating. Investment advisory helps such people and guides them on the right path. It helps them so that their investment does not go waste. Financial advisories help in managing investment of stocks, bonds, mutual funds, currency derivatives etc. Through efficient planning and organization there is a sense of financial security.

Investment advisory India manages the client’s money and offers them financial service. The experts that are associated with this task take pains and advise you the best financial decision you should take and all this at your convenience.

Investment advisory service India offers assistance through investment advisors. Investment advisors offer the best financial assistance through proper deliberation and thinking. Also there are so many things like tax laws and there are time restrictions to. So managing the client’ money at such times and managing a confusing variations of stock is not very simple. But there advisors make it very easy so that you have comforts and have lucrative gains through each of your investment. They ensure that not even a penny of the clients go waste.

Investment advisory service India helps you take right investment decisions at the right time. They tell when to buy and sell a stock. They also inform you when a stock is showing any loss. During these times they help you take the right decision.