Finance

Adam149 published in Finance

Why Japanese investors are turning to US stocks

Japan has the third-largest economy in the world, following closely behind China and the US. As Japanese investors venture beyond investing in domestic stocks, many have flocked to US stocks. This is no surprise, as the US and Japan have always had a good diplomatic relationship.

In this article, we’ll talk a bit about the Japanese foreign stock market. We will also discuss why US stocks are flourishing in Japan, the advantages of trading US stocks, as well as how you can start trading US stocks as a Japanese investor.

The foreign stock market in Japan

In Japan, the biggest foreign stock market is the Tokyo Stock Exchange (TSE), which has been proactively engaged with foreign stocks since the establishment of its foreign stock market in 1973.

US stocks on the TSE consist of two categories: ‘blue chip’ companies that are created and listed on US stock exchanges, as well as US companies that are listed on the TSE. All trading takes place with assets bought and sold in the Japanese yen.

Why would Japanese traders invest in US stocks?

The US stock market is popular with Japanese traders for the same reasons they are popular with international traders in general. The two main reasons are that the US stock market is huge and highly liquid, and the second is that Japanese investors can diversify their portfolio.

  1. The US stock market is huge

US stocks are some of the most traded in the world, and the US stock market is highly liquid. This is because the US economy is among the world’s largest.

By investing in US stocks, Japanese investors can gain exposure to the growth of the US market and potentially profit from it. They can also get the chance to invest in leading ‘blue chip’ companies around the world in various sectors and capitalise on high growth companies in the US.

  1. Portfolio diversification

Japanese traders may also choose to invest in US stocks to diversify their portfolio across geographies. By investing in overseas stocks, Japanese traders can reduce risk in their portfolio in case the Japanese stock market takes a dip.

Advantages of trading US stocks in Japan

One of the main advantages is that US stock trading is very commonplace in Japan, and investors can find stock price information in daily newspapers, financial journals, and also on the news on TV. US stock traders in Japan will never lack for information. They can also easily access charts and news with their respective brokers.

Another advantage of trading US stocks in Japan is that they can be traded in the same manner as local Japanese stocks. Stock orders can be executed on a real-time basis, and orders can be placed easily on trading platforms. Even the daily price limits of US stocks are the same as local Japanese stocks. This makes it very easy for local traders to take up US stock trading.

Additionally, foreign stocks such as US stocks can be traded in the Japanese yen. This saves the hassle of converting currencies, and it can also minimise risk for traders as they avoid potentially unpleasant currency exchange rates.

On top of that, traders will find that US stocks can be traded with a relatively small amount of principal. This depends on the broker and the rates they issue, but it is entirely possible to start investing with only JPY 100,000.

Finally, annual reports and breaking news of US companies listed on the TSE are usually available in Japanese. When investing in stocks, it is crucial that an investor has adequate knowledge of the company they are purchasing a share of. Japanese investors can usually access disclosure materials in both Japanese and English.

Potential risks of trading US stocks in Japan

One of the main disadvantages of trading US stocks in Japan is the time difference between the two countries. Japan is about 13 hours ahead of the East Coast and 17 hours ahead of the West Coast. This is a substantial difference, and Japanese investors may find it hard to keep up with breaking news in the US during the day. Breaking news can impact the performance of individual stocks and the stock market, which Japanese traders may miss.

Another disadvantage of trading US stocks in Japan is that you have to be a Japanese citizen to open a trading account with some of the leading domestic banks. For example, neither Fidelity Japan nor Citibank Japan allow US citizens to open investment accounts with them. Rakuten, SBI, and Monex allow US citizens to open accounts with them but have limitations on the products they can trade – they can trade Japanese stocks but not US ETFs. When in doubt, foreign investors residing in Japan may want to contact international providers with a Japanese presence instead.

How Japanese investors can get started trading US stocks

The TSE has made it relatively simple for Japanese investors to trade US stocks. Below are steps that as to how traders can participate in the US stock market:

  1. Open a trading account — Japanese investors can seek out domestic brokers that provide access to global markets. Note that many local brokers focus on serving clients in Japanese only, and they usually do not provide services in English. Some also, as mentioned, do not allow foreign citizens to open trading accounts. For foreign investors in Japan who prefer to communicate in English, they can open an account with an international broker with a Japanese presence. These include Saxo, Interactive Brokers, and Fidelity.
  2. Fund your account — After verifying your account with legal documents, you should also check if there is a minimum balance your broker requires of you to deposit into your account.
  3. Decide which stocks you would like to trade — You should also do your due diligence and check if there are any minimum purchases for the companies in which you intend to invest.
  4. Start trading — You can open a position when you have decided on the shares you would like to trade. Remember to set any stop-loss orders when you open your trade, and you should monitor the markets closely.

The bottom line

Trading US stocks in Japan is relatively straightforward, and anyone interested can give it a go. Just remember to understand your own risk tolerance before you start making trades and never risk more than you can afford to lose. If you are new to trading, you can also start with a demo account to learn the ropes of your trading platform first.

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kartikgoh published in Finance

Check 6 Tips to save money for buying your dream home in 2022

Buying your first home can be very exciting, but it’s an expensive undertaking. Here are some tips to help you manage your money better and save up for the costs that are associated with buying your dream home.

1. Determine how much you need Money

 If you are planning to buy your dream home, then you need lots of money. Once you have a budget, then you can see how much money you need. You need to plan whether you are buying a new home or want any remodeling with your money. There are several other factors which determine the amount you need. If you have a home loan, then you need to pay it back. So, you need to know how much money you need to repay your home loan. You can also include other liabilities. So, you need to calculate the total of all liabilities so that you know how many dollars you need. You also need to spend on items which are required for your daily life. So, you have to determine the worth of such expenditures.

2. Get your debt under control

 Buying a home is one of life’s biggest purchases. It has the potential to be a source of joy, but it can also be a source of stress, particularly if you’re taking on more debt than you can afford. Fortunately, there are a number of steps you can take to make sure that this doesn’t happen.

3. Put retirement savings on temporary hold

 Patience is the key to making your dream house a reality. Rather than dropping all of your retirement savings into a home and watching it diminish, aim to save enough money over time for the purchase of your next home. Rather than making a single large purchase upfront, spread it out over 10-15 years, and you’ll end up in a stronger financial position in the long run.

4. Use technology to make saving less painful

 Technology can play a major role in the success or failure of any purchase. This is especially true when it comes to something as large and important as a new home. We’re constantly faced with new apps and devices designed to make our lives easier, whether we’re buying groceries, working, or spending time with our family. So how does this apply to buying a home?

5. Ask for gift money

 Purchasing your dream home comes with many expenses. That’s why many real estate agents encourage buyers to ask their lender for a gift money loan. You receive the money as a down payment on your new home. It’s not a loan. Instead, your lender is gifting you money, which you pay back once your home sale is finalized. Start your dream journey now by talking to a mortgage lender.

6. Get a side hustle

 A side hustle can help make your dream home come true, but it can be difficult to come up with a side hustle idea that suits your schedule and interests. Here are a few ideas for side hustles that can help you get started.

At Nutshell

So, you’re thinking about buying a house. Congratulations! Buying a house is one of the biggest financial decisions you’ll ever make. And it doesn’t have to be overwhelming. Follow these tips and you’ll be well on your way to buying your dream home. Want to hear more about how to save money for your dream home? Let me know in the comments below!

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Arsalan published in Business, Finance

MSME Loan – How to Obtain It Smoothly

MSME, Udyam Registration

MSMEs are India’s monetary foundation’s spine. Aside from being a great commercial enterprise maker, this enterprise makes an important dedication to the country’s GDP. Nonetheless, due to unshakable authorities techniques and intermittent pandemics, the MSME place has encountered bad improvement as of past due. The Indian authorities have as of past due observed a manner numerous approaches to reestablish them in mild in their financial importance to the country. Their remaining, then again, has remained for the maximum element unaffected.

Also, Visit – Udyam Registration

A format of MSMEs’ and MSME Loans

MSMEs are characterized as materials related to the get collectively or remedy of items, as consistent with the Micro, Small, and Medium Enterprises Development Act of 2006. The essential limits applied for his or her request are idea and turnover. Something almost the same is framed withinside the going with table.

Venture Investment in Plant and Machinery (INR) Annual Turnover (INR)

  Miniature < 1 crore < five crore

  Little < 10 crore < 50 crore

  Medium < 50 crore < 250 crore

An MSME increase may be gotten with the aid of using a corporation decided on below the MSME plan to advantage finance for coping with their motion or assisting their bookkeeping report.

What are the Pros of getting an MSME Loan?

Here is the rationale MSME have to remember assisting an improvement to fulfill their monetary requirements:

  • Progressed carriers fill in as dependable accomplices for the nation’s monetarily engaged MSMEs. At the factor whilst a financial setback seems to linger and budget withinside the Rs 50 lakh degree are required, those streets may want to provide a fast and badly organized unfastened credit score.
  • In the present day automated age, almost all financial streets provide the lodging of online recording, which takes out the requirement for unreasonable documentation. All credit score searchers have to visit the excessive degree issuer’s access and provide the critical subtleties in addition to the predicted conformation. The passage likewise thinks approximately the solicitation to foreordained picks and shows the suitable credit score plan.
  • In the existing cutthroat climate, almost all top-notch moneylenders move in opposition to the concept of “one length suits all” credit score assist. Following the dismissal of the improved demand, the credit score searcher can assume a collection of remarkable picks for adaptable repayment and assisting fee choice.
  • The MSME’s obtaining price is someplace withinside the variety of 17 and 21 percent. Nonetheless, it’s been noted to reduce as little as 11. ninety-nine percent now and again. Generally, moneylenders make use of numerous limits to painting the assisting fee’s estimation, like district, pay, and compensation home.
  • A few banks moreover have distinctive equipment on their web website online that is probably applied to virtually check abilities and chronicle prerequisites. This empowers credit score searchers to come to a decision fast and told picks approximately their budget.

Also, the Government of India has numerous techniques installation to assist MSMEs running in India. The Indian authorities make those advances via a collection of banks and NBFCs. For instance, the Pradhan Mantri Mudra Yojana software offers companies and MSMEs safety let out advances to INR 10 lakhs. For sure, a part of the publications of motion allows certified credit score searchers to rejoice for multiple months without running.

Qualification Criteria for making use of for SME/MSME Loan

The credit score issuer has installed huge improvement functionality policies for institutions further as people have the selection to use for an MSME increase. The fashionable recommendations to advantage credit score from monetary streets are in step with the accompanying:

  • A singular’s age has to now no longer to be below 22 years at the same time as attempting to find the credit score and a restrict of sixty-five years on the advancement’s time.
  • Private companies or sole owners primarily based totally materials drew in with trading, collecting, or companies location processes SME credit score.
  • The applicant has to have something like five years of commercial enterprise revel in and have to have positioned three years of employer lifestyles in a commercial enterprise concern.
  • The every year turnover of the commercial enterprise has to lie among 2-10 lakhs rupees. The commercial enterprise has to have collected advantages for someplace close to years.
  • The commercial enterprise has to have a great MSME choice installation on the hour of losing the credit score interest.

Philosophy to be observed for assisting an MSME increase

Comply with the given policies to get an MSME increase

To start, move into the credit score expert’s file and whole the digital shape with specific data. A relegated man or woman will attain you for confirmation. During in-character correspondence, the agent may pose unique key inquiries to assess your software for headway.

Ensuing to getting wanted information, the applicant can be drawn closer to grant a few documentation for the check. There isn’t anyt any amazing clarification to provide true reviews because the online passage absolutely searches for a delicate reproduction of something essentially the same. In any case, you can have a choice to serve those indicates in a disengaged mode. Directly following getting the referenced documentation, the entrance propels something nearly the same to the great collecting for confirmation.

After a hit confirmation and aid of credit score interest, the moneylender drafts and gives the improvement understanding. Here the up-and-comer has to be cautious and pay terrific mind to any stupid and questionable phrases withinside the stated understanding.

Following consenting to the sports plan, the moneylender administers the agreed improvement overall interior for forty-eight hours.

Sort of stories that financial institution appears for the shelling out of MSME credit score

Crucial documentation for MSME credit score joins:

  • The up-and-comer’s PAN card.
  • Affirmation regarding the place of the competitor and the commercial enterprise.
  • Banks absolutely pay clarifications in addition to molding 16.
  • The association’s IT returns for the modern-day years nearby inspected financial outlines reflecting benefits for something like years.

Conclusion

MSME is one of the regions that make contributions altogether to India’s GDP. Thus, the Indian authorities’ capability to maintain up with an increase on this place has become a flat-out need. By bringing down the regular requirements and developing credit score channels, the general public authority can provide absolutely vital financial assistance to MSMEs everywhere in the country.

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