Kind of Investment : Stocks

With the advent of globalization, more Indians are working overseas in countries like US and the UK. Businesses in developed economies are also choosing smaller companies in India for cost saving purposes. Given the two factors above, it does not come as a surprise then that remittances to India have increased manifolds in recent years.

Earlier a bastion of usually large organizations, today, individuals as well as small businesses need to remit to India in order to serve their business purposes or meet the needs of their loves ones. If you are thinking of remitting to India, here is all that you need to know about it.

How long does it take for remittance to India?

That is one of the primary questions asked by people sending money to India. The answer to that is- it varies. The time taken to transfer money to India from USA or any other country depends on the method you have chosen for doing so. A direct bank transfer or a wire transfer is the fastest way of doing it, while sending a cheque or issuing a draft are perhaps the slowest. In fact, in the case of the latter, it depends on the courier service you have chosen. Of course, there are overnight courier services available, but typically, they set you back by a lot.

Should I wait for the exchange rate to improve?

The exchange rate determines the amount of money in Indian currency that the recipient would be getting. A weaker rupee means more money in Indian rupees for the same amount of dollars. However, it is not always wise to wait for the rate to improve. In fact, reading the global cues could be an indicator of whether to wait or send the money right away. For example, news such as foreign investors increasing their holdings in India or Indian government allowing FDI in India in certain sectors would definitely bolster the rupee. Hence, in such cases, it is better to send the money right away. Apart from that, a general observation is that the rupee is at the highest in the middle of week, that is, Wednesday and Thursday, while it is weaker on Mondays. That observation is a good pointer to have when you decide to send money to India from UK or any place else.

The right service provider

Of course, while you choose to transfer money to India from US or some other country, selecting the right service provider is essential. Contrary to popular belief, different banks and services providers give you different exchange rates, often differentiated by a few cents. But those few cents can make a lot of difference, especially when transferring a potentially large amount. There is also the consideration of service charges levied by different banks and service providers to keep in mind.

After many years of being scorned by the mainstream market community, cheap trading is getting more interest from investors than they used to receive.

Like other stocks, choosing the right stock in the over the counter market, the one that will make you money, is typically more difficult than selecting more expensive stocks because of the absence of internet information and expertise about cheap investments. With renewed interest in small cap investments, new websites are starting to use the tools of the trade and apply them as you would any stock.

These tools generate lists of these kind of investments much like those used to create lists of more expensive stocks. Like all stocks, cheap companies are subject to patterns and these new tools are designed to screen penny stocks to help investors in this kind of investment.

Tools that enable a penny stock picker to identify where a company is in a particular pattern are available that will make choosing cheap stocks easier and less time consuming than before such tools were available. Saving time on research allows investors to apply one of the same techniques used by purchasers of more expensive stocks.

The use of these tools will further help investors to avoid missing an opportunity because they didn’t have a chance to research a given stock or more dangerously to risk money on a stock that the investor knows nothing about. New tools that generate lists of cheap stocks also enable prospective or current investors to expand their investment portfolio to include other over the counter stocks that are determined to be good investments by patterns generated and shared on penny stock list websites.