Tech solutions for Indian Stock Worries! Improve Your Financial Wellness with These Tech Tools.
Anam Banu
October 15, 2024. 4 minute Read
Investors investing in stock market often face challenges such as high market volatility, rising inflation and interest rates which affect the stock valuation. It’s a fact that sudden circumstances like war situations can affect your overall portfolio adversely because of economic instability and various other reasons leading to anxiety and unpredictability among investors.
We are living in a tech driven world where we manage our investment worries via technology by subscribing to various apps that offer real time solutions to your investment queries.Â
So be it stock market prices and their fluctuations or current stock prices, companies’ income reports, and the latest trending news about the stock market. One can use free stock market tools such as screener app for screening funds available, StockEdge app for tracking the shareholding and many more apps that can solve investors worries and also improve their financial wellness.Â
According to Invest India, India is among the fastest growing Fintech markets in the world. Indian Fintech industry’s market size is $584 Bn in 2022 and is estimated at $1.5 Tn by 2025.
According to Economic Times, Chairman of Motilal Oswal Financial Services Raamdeo Agarwal said that the nifty will double from 24,000-25,000 to 48,000 in the next five years after offering 14% in 2024.
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In this article, we will provide you in depth analysis of the tech tools which helps the investors to ease the trading.
- Table of Content
- Technological tools and solutions for Indian investors
- Mitigating risks and improving Stock Market outcomes
- Benefits of using technology for stock market investing
- Limitations of using technology for stock market investing
- How to leverage technology effectively in stock market investing?
- Final Thoughts
Technological tools and solutions for Indian investors!
There are numerous technological tools available to Indian investors for making investments in stock markets. Some well-known technological tools include:
1.Robo-Advisors
Robo-advisors is an automated platform where financial planning and advice are given in algorithms. Investors can use it to simplify their trading in the stock market. Robo-advisors analyse the investor’s financial goals, risk tolerance and current financial status.Â
Robo-advisor platforms are very cost-effective and easily accessible, automating management and transparency. There are various robo-advisor platforms, such as Paytm money, which has around one crore users, that provide stock market trading and mutual fund investment advice.Â
Robo-advisor has an onboarding process and robust customer support. Investors can get help from AI-powered investment strategies to simplify the investment hustle and bustle, but they must also remember their long-term risk management and financial management.
In 2023, the assets managed by Robo-advisors in India reached approximately 12,ooo cr. which is $1.5 billion. This reflects the growth in market size.Â
According to IMARC group, the robo-advisory market in India is estimated to grow at a compound annual growth rate (CAGR) of about 24% from 2024 to 2032, potentially exceeding ₹50,000 crore (around $6 billion) in assets under management (AUM) by 2032.Â
2. Stock Online Trading mobile apps
Stock online trading mobile apps have an incredible impact on investors; they make trading quicker and faster. It helps investors buy and sell stocks, keep an eye on their portfolios and instantly make investments from the apps.Â
These mobile stock trading apps were user-friendly, gave real-time market data, managed the portfolio, suggested available investment options, and provided research and analysis tools. Some of India’s best stock market apps are Zerodha, Upstox, Groww, Angel One, Paytm Money and many more….
Factors such as Brokerage fees, Security measures, and user-friendly features and tools can influence the choice of stock trading apps.
3. Investment Tracking tools
It tracks your investment and market condition and evaluates performance through apps such as:
- Moneycontrol,
- Groww
- Zerodha console, and
- ET Money.
These apps help investors track real-time changes in their portfolio, provide historical data analytics, and, most importantly, analyze risk.
4. Algorithmic trading
Algorithmic trading is an automated trading process based on conditions defined earlier.
Some algorithm trading strategies are arbitrage, trend, and VWAP (volume-weighted average price). For instance, an investor trades on a set algorithm to buy a stock when the trader’s.The 50-day moving average of the stock has crossed above its 200-day moving average., which shows upward trends and sells when a reversal occurs. Algorithm trading benefits include making trading faster and cost-efficient, providing accuracy, and allowing backtesting.
5. Fractional trading
A tech-leverage for high-ticket stock options!
Fractional trading helps investors to buy fractional shares, which promotes buying expensive stocks in parts rather than purchasing a full share of a company’s stock.
For example,if a stock is worth rs. 500 and you want to invest rs.100 this is rational trading let you buy a 20% of that stock.
With fractional trading,Grow reported 5X growth when it was introduced.
6. Blockchain for Transparency
Using these reduces settlement times, records all the transactions that can not be deleted, and makes it easy to track the stock owner and trade history.
Let us understand how these tools help to mitigate risks and improve investment outcomes.
7. Stock Market News Apps
There are many apps such as Moneycontrol, Economic times, stock edge, BSE India and investopedia etc. available for investors to go through the latest news related to stock market trends, prices fluctuations and expert analysis. These apps help the investors to make quick decision making.Â
Mitigating risks and improving Stock Market outcomes
Through these tools, we can quickly mitigate the risk appetite and improve investment outcomes in the stock market. Here are some factors for investors to minimise the risks:
1. Risk segmentation
These tools assess the level of risk linked to investments and financial circumstances and recommend an investment that aligns with the investor’s risk tolerance. This is crucial for achieving long-term financial objectives.
2. Diversification
Many platforms offer diversified portfolio options that help investors diversify their risk. These tools help diversify investments into different classes of assets, reducing the risk of individual assets.
3. Real-time Monitoring
These tools help provide investors with real-time data analytics, such as stock prices and market trends, allowing them to make instant decisions.
For Example, Zerodha’s Kite app provides real-time stock prices, market accessibility, and       several data analytics that help investors.
4. Stop-loss orders
Effortless Monitoring your loss making stock options!
Stop loss is a risk management tool that helps investors limit their losses. In this method, investors set a specific price to reach the stock level, and then the stock is sold automatically. This helps the investors minimise their losses when prices go down.Â
For Example, suppose you purchase a stock of Rs.100 and set a stop loss of Rs.90. When your stock reaches Rs.90, it sells automatically.
Now let’s dive into the benefits and limitations of using technology for stock market investing.
Benefits of using technology for stock market investing
There are many benefits to using technology for stock market investing. Some are the following:
1. Easy to access
Technology helps investors to trade with different apps easily from anywhere. Using the apps for trading is easy and without any trouble or stress.
2. Cost-effective
Many online brokerage platforms in India provide discounts. Zerodha charges Rs.20 or 0.03% per order compared to other brokers who charge 0.5% or more, making it cost-effective for investors.
3. Fast transactions
Technology helps traders trade instantly without any stress when markets fluctuate. It provides real-time trading with quick processing.
4. Automated trading
AI-powered investment strategies allow investors to leverage advanced algorithmic tools like machine learning and natural language processing to analyse vast amounts of data and identify potential investment opportunities. These strategies can significantly speed up the trading process, minimise human error, and enhance overall efficiency in the investment decision-making process.
By harnessing the power of AI, investors can access real-time market insights and make more informed investment decisions.
Limitations of using technology for stock market investing
The limitation of using technology for stock market investing are:
1. Over-dependence on Algorithms
Algorithmic trading involves using computer programs to execute trades at high speeds and is relied upon by many investors. However, it’s important to note that this approach can lead to unexpected losses in fluctuating market conditions.
The Securities and Exchange Board of India (SEBI) has noted that while algorithmic trading can enhance market efficiency by enabling quicker transactions and reducing trading costs, it also has the potential to contribute to higher market volatility. This is an essential consideration for both investors and regulatory authorities as they seek to balance the benefits and risks associated with algorithmic trading.
2. Lacks of human judgements
Sometimes, sudden market falls, which require investors’ judgement, are neglected by using technology for the stock market.
3. Cyber security
As technology rises on different platforms, cybersecurity is a primary concern for investors, especially those who rely on them. When platforms are not well-secured, there is a risk of cyber attacks and the leak of personal information.
How to leverage technology effectively in stock market investing?
1. Do the research and choose the right platforms.
Try to evaluate some platforms before selecting, such as their security, reputation, broker fee, etc., which helps to do reliable trading. Most importantly, it should be regulated by SEBI with a regulatory framework.
2. Efficiently Use Risk management Tools
In the Indian financial markets, it’s important to use risk management tools like stop-loss and take-profit orders when investing. Indian investors should also seek financial education through specialised courses to enhance their expertise.
3. Stay Alert And Updated.
Some days are devoured completely by work, family, or other personal problems and won’t let you squeeze in any workout. You know what? That is totally all right. You are not going to blow it all—the built-up progress—just because you skipped one gym session.Â
It’s how you handle those moments and how you prevent them from becoming a habit. Take the day off, act on whatever else is on your priorities, and get back to routine whenever you can.
4. Have A Safe Transactions
Cybersecurity tips and tricks!
- Use strong passwords,
- Use two-factor authentication. Many broker platforms, such as Zerodha, provide two-factor authentication, which puts extra security criteria,
- Try to avoid using public wifi,
- Regularly monitor your account,
- Use secure apps and platforms that SEBI regulates.
- Secure your mobile apps and
- Regularly backup your data
Final Thoughts
Let's sum it up!
Far from being a flaw, stable and consistent rest periods are an essential component of any fitness regime. Muscles perpetually need to be put to some challenge in order for them to grow; at the same time, they need to recover. Train your balls off—it’s an investment in health and fitness for the long game.Â
Be aware of your own indicators, really listen to your body, and understand that recovery is part of the job, not an absence from the job. Knowing how to read the warning signs indicating that it’s time to rest is going to allow for effective workout periods and training for the longer haul.
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