We, at Chennaifocus have never blogged on Finance though it has been a part and parcel of our life. The interest to get into better finance management came with a real-time experience when the money I had invested in a normal FD after maturity failed to match the money value it had when the money was invested. Thanks to a friend, it marked my entry into stock markets and mutual funds. It was not an easy ride and more often it was a trial and error method and thankfully, I became wiser in investing my money and getting it to work for me.
Not many of us tread this path for the simple fear of losing money in the process. Unfortunately, in this industry, failures are talked about more than the success instilling insecurity in the minds of people who are yet to test it out. To be honest, you are losing money when investing in the so called safe methods of investing such as the FDs, Post office schemes and Government bonds simply because the interest it pays you does not beat the inflation and so you end up with the amount much lesser than the value you invested. To understand the way wealth must be built, we must invest in the capital markets.
The government on Sunday gave a New Year gift to the stock markets by allowing qualified foreign investors (QFIs), including overseas individuals, to invest directly in Indian stock markets. So far, QFIs were permitted to invest only in mutual fund schemes.
“As a next logical step, it has now been decided to allow QFIs to directly invest in the Indian equity market in order to widen the class of investors, attract more foreign funds and reduce market volatility and to deepen the Indian capital market,” the finance ministry said in a statement. Detailed norms are expected to be issued by the Securities and Exchange Board of India (Sebi) over the next two weeks.