Q & A on Investments & Stock Markets during seminar at Walchand College of Engg, Sangli on 4th Feb 2012

Q) STUDENT:  What are the investment options available to start with for an amount of as low as Rs.1000 per month ?
 A) MOIZ: i) Recurring Fixed Deposit
                 ii) Mutual Funds
                 iii) Post Office Savings Scheme



Q) STUDENT: I have always wanted to trade in shares & I have heard about demat acct? What should I do to open a demat account?
 A) MOIZ: For trading in shares you need to open a
                 i) Demat and a trading account      OR
                 ii) All in one acct (Demat + Trading + Banks)
The 2nd type of acct is usually provided by banks like ICICI & HDFC e.g. www.icicidirect.com
For the 1st type you can approach a share broker like
                 i) India Infoline
                 ii) Geojit
                 iii) Motilal Oswal, etc
For opening such an acct the documents required are
                 a) Photograph (Own & Nominee)
                 b) Pan Card Copy
                 c) Address Proof
                 d) A/C Opening cheque
                 e) Filled up demat & trading form
Usually it takes around 15 to 20 days for the entire procedure



Q) STUDENT: What is a demat account ?
 A) MOIZ: Demat stands for dematerialization of shares. i.e. Conversion of physical shares into electronic form.
The account in which these demat shares are stored is known as demat a/c.
Demat acct are provided by NSDL & CDSL in India.



Q) STUDENT: What is Inflation & Why should I be even bothered about that ? They say it affects ,but if there is more income than only there is more inflation so how does it matter ?
 A) MOIZ: Inflation is good for an economy if it is under control, the problem arises when there is lot of liquidity (Cash) available, which leads to Disruption/Imbalance of Supply and Demand of cash in the economy.



Q) STUDENT: What is better directly investing in shares or investing in Mutual Funds ?
 A) MOIZ: For a person who does not have knowledge about the stock markets and experience in the finance sector it is always advisable to invest in Mutual funds ( which is indirect way of investing in stock markets via a professional guidance).