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Advising Across Borders: With Love, From India!

14 Oct 2019

The value of a good advice cannot be restrained by a geographical boundary or a line on the earth. As globalization is spreading its stronghold in all parts of the world including the developing and underdeveloped nations, the systems of transactions are coming on a levelled ground. The mechanism of running the stock markets and making investments in financial markets as well as raising funds from the public is also quickly becoming a uniform phenomenon across the globe, be it the advanced markets of India of the relatively lesser volatile markets of countries like Malaysia. And following its footsteps are the products offered for trading on these markets such as shares, commodities, derivatives, ETFs etc.

Exchanging Techniques For Predicting The Future Movements

Uniformity in tracking pattern of these entities such as shares, commodities, derivatives, ETFs etc. gives birth to technical analysis whose one of the founding principles is that it discounts all news and can be applicable on anything and everything that can be mapped on a chart.

Thus, the technique used for predicting market movements for an instrument sold on Indian stock markets would be the same as the technique used for predicting the price movement of any other instrument on Malaysian share markets.

This has given rise to an era or transparent and publicly available knowledge of a country’s economy and its financial resources. Each country today has its own share market platform, its own indices, its own regulatory bodies etc.

What varies is the technological advancement of generating recommendations and predicting the direction of the country’s economy. In fast moving economies like India, where the market pries fluctuate at a faster pace, the need for high frequency trading is felt much acutely as compared to Malaysia where the fluctuations are not as much.

Outsourcing Better Research Mechanisms

Also, with the evolution of capital market, there is a need to understand these markets better with a proper technical and fundamental research. The one place from where people often take advice regarding their investments, particularly stock market recommendations are the brokerage houses which also place trades. While some brokerages take commission on the basis of per trade placed, some seek a share in the profit made by the investor.

However, in India as well as Malaysia, the investors are increasingly becoming conscious of their financial independence and profit sharing. While brokerages too have started seeking one-time brokerages from the clients, irrespective of the number of trades, the trading tips given by them are also taken with a pinch of salt to assess their neutrality.

Outsourcing Pure Play Research

Another aspect of an advanced economy and a developed financial market is that investors value an unbiased and neutral opinion given while trading in the financial markets. This not only helps in saving money which may otherwise have been spent on sharing profits, but also helps in overcoming behavioral biases which may interfere with taking services from a broker who seeking share in the profit or loss incurred.

In India, the business model of pure play advisory industry began in 2006 with CapitalVia Global Research Limited, which has completed over 13 years in the markets. However, in Malaysia, the investment advisory industry is still at its nascent stage. There are barely handful of such companies who provide the service of only research-based recommendations to the investors.

CapitalVia’s extensive experience helps the traders in not only placing the trades in Indian stock markets, but also Bursa Malaysia, the Malaysian stock markets. This leads to the outsourcing of expertise and research skills from India to Malaysia where the market for pure play advisory companies is still untapped.

CapitalVia through its special HNI and technical analysis-based products has been able to amass a huge client base in Malaysia where over 7000 people have already subscribed to the recommendations by CapitalVia Global Research Limited.

Indo-Malay Relations

Malaysia is among India’s one of the most-friendly nations in the South East Asian region. The two countries have joined hands on many important sectors such as infrastructure, IT, manufacturing and banking. The countries share healthy inflows and outflows of wealth across the borders along with cultural exchanges as Malaysia has a healthy Tamil speaking population with their ancestry in India. The relations between the two nations have always been friendly on economic, political as well as security front building a solid foundation of a wide range of trade and business exchanges.

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