A wise investment today = A secured tomorrow

Investing in the equity capital market fetches rich returns for the future. Here’s why you should check out Kuwait’s ECM.

Making investments for a better future is par for the course for financially aware individuals and companies around the world. But this does not entail merely deciding to invest – being aware of the various avenues for good investment is the key. Individuals and companies wanting to create future wealth are always on the lookout for great avenues to grow their monies.

In this context, the equity capital market (ECM) is a great marketplace to try. However, it is always better to forge ahead in the ECM with the help of investment banking companies.

The capital markets combine high volatility with superb returns over a period of time. But it is also a complex universe to inhabit. An experienced investment banking company can help by presenting the right inputs and expertise needed to steer the investment in the right direction.

These are a few facts to know about investing in the ECM:

* Stocks are risky! There is no such thing as a ‘safe investment’ or ‘risk free investment’. Every investment carries some element of risk. The risk propensity rises in terms of stocks. Stock prices can rise or plunge in the blink of an eye, riding on market trends and influential happenings around the world. If you are a risk-averse investor, it is better to steer clear of stocks.

* But the returns are excellent. Despite their high risk profile, stocks offer high returns. Your investment can earn a lot of money, especially in the MENA region, where the ECM has been growing by leaps and bounds. However, you must be prepared to stay invested for the long term.

* Do not put all your eggs in one basket! A good investment banking company will structure your portfolio to offer maximum diversification. A diverse portfolio reduces the element of risk and increases the chance of high returns. When you invest in one stock, you stand the chance of losing all your money if the stock fails. You can invest in several well performing companies and buy small and medium stocks.

* Stocks provide regular income. Stocks pay returns via dividends. As an investor, you should be looking at the market trends and also the dividends payable on your stocks. These incremental payments might be affected by the companies’ performance. They are paid every quarter in addition to the stock’s value. With a diverse portfolio, dividends can create regular income for you.

* You can try other options. If you are not comfortable with taking high risks in the ECM, you can try other investment options like precious metals, bonds, collectibles, real estate and deposits, among others. Your investment banking company can recommend a good strategy based on your future goals and risk appetite.

Why should you trade online?

Online stock trading offers several key benefits to investors, the key ones being convenience and real time connectivity at the press of a button.

For decades, stock markets around the world functioned in a dense ecosystem that novices could not understand. Trading on the stock markets required a broker, who would then map the business day using bulky, complicated looking machinery. Both the broker and the investor would have to be near a telephone so as to discuss the day’s strategy and act on business impulses.

Cut to 2017, when most of these elements have fallen by the wayside. Today, the Internet makes it possible for investors to track the markets using their laptops or mobile phones. Sophisticated online tools make online trading a breeze. Besides, many investors are teaming up with reputed investment advisory firms; these firms trade on the markets on their clients’ behalf, thus maximising the latter’s earning potential from one business day to the next.

Online trading is a better option for investors, especially in a competitive business environment. Investors can connect with several markets at once, get a comprehensive look into new trends and take decisions in the blink of an eye, based on the inputs received. Meanwhile, the trading firm also helps these decisions along by offering real time updates and inputs to steer the investor in the right direction.

Besides, online trading is simpler and uncomplicated, with the investor having complete control over the financial decisions of the day. The best investment trading firms also offer mobile apps for investors, so the latter can keep track of the markets at any time using their mobile phones.

How online stock trading is better for investors

Online stock trading encompasses a range of tasks using sophisticated tools that make trading easier and more interactive. The online tools help investors gain real time connectivity with the markets. So whether you wish to trade on the Kuwaiti stock exchange or look for trends in the US stock market, the online stock trading platform offers ease and immediate access to both.

The online investment trading firm that your company partners with also plays a key role in the online trading universe. Reputed firms provide access to their entire product suite, so investors can trade as per their level of expertise, risk profile and financial goals. Besides, the firms offer such functionalities like mobile trading, real time pricing, indexing, etc.

Another key benefit of online trading is that you need not maintain multiple accounts for different functions. A single account can include several platforms and operations, so trading becomes easier. You can access up to seven key markets by using NET (Standard) and PRO (Premium) trading platforms. Meanwhile, the trading firm links your Watani brokerage account with the bank account so that funds can be transferred seamlessly.

7 healthy financial practices for companies

We list the essential practices your business needs to follow for regular growth and prospects.

All over the world, several companies come and go but only a few are able to consolidate and grow. Successful companies do not have a magic wand that helps them garner profits every month. They follow a few important financial principles that help them stay afloat even in challenging times.

We list the important financial practices your company can follow for future success:

1 Draw a monthly expense chart.

Every company, whether big or small in size, must have an idea of how much money it spends every month. Compulsory heads of payment include office overheads, staff salaries, company supplies, transport, machinery maintenance, vendor payments, etc. Apart from these mandatory heads, it is important to trim expenses that bleed the company revenues. This helps save money which can be plugged back into the business.

2 Have a business plan for two years.

Many companies start out by taking each business day as it comes. This is hardly conducive to growth over the long term. A company that plans ahead and sticks to its plan is able to achieve all its goals. Draw up a business plan for two years, breaking it down to a month-wise schedule of tasks, new pitches, investments and projected revenue inflows.

3 Be alert about receivables.

Some clients do not pay bills on time, even when the invoices are presented as soon as the project is complete. Delayed payments can even force you to put a few operations on hold. Following up on payments after presenting the bills will help your revenues. Moreover, you can incentivise early payments by offering a percentage discount on the final bill for settling payments by a certain date.

4 File all paperwork diligently.

All paperwork related to correspondence with clients and vendors, applications made for new licenses and business-related permissions, expense bills etc. must be filed such that you can summon the figures instantly. Properly filed paperwork helps balance the books every year.

5 Look up investment options.

Your company’s surplus funds must be invested so that the monies yield sufficient returns for future business prospects. On the other end of the spectrum, you can explore options for raising private investment via equity capital for your company. Private investment also encompasses raising debt funding. Your company can also choose to monetise certain idle assets.

6 Hire a professional advisory firm.

You cannot reasonably look up private investment and monitor your company’s growth on a daily basis. You must hire an advisory and brokerage firm to create a financial roadmap and devise strategies to attain the company’s goals. Your profits and revenues can soar with professional handling.

7 Play the markets sensibly.

It is tempting to trade intensively if you have sufficient money in hand. However, do exercise due caution and create a portfolio that comprises a mix of long and short term investment options, for sustained growth and balance.