India has a reputation for being a country in which individuals are not inc- lined to invest their money. This is due to a combination of factors, including that many have historically lacked the disposable income with which to attempt investment in the first place. Lately, however, there have been some trends toward more active investment by the Indian populace. In September, in fact, it was revealed that the number of unique investors in the stock market in India had surged above 80 million, indicating that some 17% of the country’s households now have financial holdings.
The increase has been attributed largely to technology. In the same reports highlighting growing numbers of investors, one business development officer from the National Stock Exchange (NSE) stated, “Technology has brought in ease of investor onboarding” and “made available self-paced learning mo- dules to impart knowledge to the masses.” In other words, the NSE officer was remarking that technology has made investing more accessible; first-timers can set up trading portfolios with ease on digital platforms, and the learning materials provided make it easier than ever to get accustomed to investment practices.
Beyond basic accessibility and onboarding, though, it is also important to mention that tech tools can also boost investor efficiency and effectiveness. These tools work differently with respect to different asset markets and the functions they perform. By and large, though, they do a great deal to help investors make better decisions in a shorter time. To provide a clearer look at these benefits, we’ve compiled a look at some of the most effective tools below.
Investment Software
To some extent, “investment software” is a description of the total phenomenon of tech-driven investment opportunities. Nevertheless, it is worth noting specifically that there are now numerous software platforms that serve as alternatives to outdated brokerages. An Indian who wishes to start an investment portfolio in 2023 only needs to go online, choose a browser-based platform or app to their liking, set up an account, and start trading. The simplicity of this practice alone is responsible for a large portion of the growth in unique investors India has seen.
Investment software platforms differ with regard to the markets they provide access to and the tools and assistance they provide for users. As a result, someone seeking to make trades in the NSE may favor a different app than someone exploring currency exchange in the forex market; a trader favoring real estate holdings may drift toward a different platform than someone dealing in commodities. Overall, though, there are intuitive, welcoming, and secure software options to suit just about any kind of trader.
Market Analysis Tools
Within some of the investment software options just discussed, there are tools in place to help users analyze their markets of choice in real time. These tools cover a wide array of functions, broadly helping to provide accurate information about assets’ pricing, trends in the movement of that pricing, and any external or historical information that should be factored into projections.
These market analysis tools should be of particular interest to Indians exploring real estate investment for two reasons. The first of these is that Indians already tend to favor real estate investment, and with more property developments being announced on a regular basis of late, there are opportunities to be found. Developers are working and expanding, and growth can lead to profit in investment with the right analysis. The second reason market analysis can be particularly useful in this sector is that certain kinds of data aren’t readily available without it. When you’re dealing with stocks or commodities, it is typically easy to find charts and news explaining asset movements. The information behind real estate asset movement is more obscure but can be brought to light by analytical tools that reveal the latest news and deals in the industry.
Investment Calculators
Some investment software also comes with investment calculator tools. These are designed to help investors determine in advance how successful their trades and positions might be if the market moves according to plan. They can also help clarify the degree of risk in any potential transaction, as well as show how different strategies –such as leveraged trading– change projections and possibilities.
While broad market analysis tools may be of particular use to real estate investors, investment calculators are especially relevant to those dealing in the forex market. This is because this is a market in which investments often succeed or fail based on minuscule, incremental movements in currency prices rather than larger swings in value. In forex trading, investments are often made in terms of “pips,” which are fractions of units (such as 0.0001 INR). This can make it more difficult to assess positions and potential at a glance, and it is why pip size calculators have become popular among forex traders. These are investment calculator tools that take the conditions of a potential currency trade into account and project the transaction’s potential value in terms of pips.
Automation
Several prominent investing platforms also provide their users with tools that fall into the category of automation. These tools serve to take some of the riskier or more tedious aspects of investing out of users’ hands so that the basics are taken care of, and the investor can focus on strategy.
Automation is perhaps most useful to investors who favor more of a day trading approach. This is a kind of trading in which investors open and close positions within a single day with the dual goals of making small profits across many trades and capping losses on less profitable trades. It makes for a slightly more frenzied effort than long-term investment, and automation can make it easier to manage. For example, the right software may help day traders set upper and lower limits on their positions, such that their accounts automatically sell assets at points that lock in profit or minimize loss. These methods don’t guarantee success, but they do help investors focus on big-picture analysis while some of the basic aspects of transactions are managed in low-risk ways.
These are not the only tools available to modern Indian investors. Together, however, they show how such tools can help traders maximize efficiency and potentially profits.
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