Investment in Stock Market helps you to manage your finances. If you are new to the stock market then the whole process may appear too complex or risky. So it’s important to do pre-analysis and gather information that would help in taking informed decisions. Proper research and careful understanding can help you to get a good start.
One of the most important reason to invest in stock market is to get a higher return as it has potential to give more profit as compared to FDs & other fixed investments. Now we move on to the question: How to invest in stock market in India?
Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) dominates the Indian stock market. First you have to open a trading account with a stock brokerage platform because investors cannot directly buy or sell securities on the exchanges. Few top brokers in Indian stock market are Zerodha, Angel Broking, ICICI Direct, HDFC Securities.
Brokers are authorized for providing platform for investing in stock market. They opens a demat account which holds the securities in your name in electronic form. This account then linked to your bank account from where you can withdraw money to add in your trading account and vice-versa. To open your demat account you need to provide documents for KYC that includes authorized identity cards, your photograph, signature, nominee detail (if any).
After you’re done with all these account opening procedures you can start investing by taking position in any of the securities as per your choice. However with each operation, there is a transaction cost like brokerage charge which is a fee taken by broker to facilitate a trade for their customers, along with mandatory taxes like GST, STT. You can trade different securities like equities, derivatives, ETFs.
For taking position in a stock you need to choose the shares that you wish to sell or buy. Make sure you have sufficient monetary funds in you trading account. After that decide at which price you want to buy or sell a stock. There are some social platforms where you can read other investors opinions and also discuss with them regarding your views, one such platform is ZoomStocks which is very easy to use. A couple of nice features they have are investors can rate stocks buy/sell as per their views and beginners can practice trading on BigBullsLeague contest.
Investment in Stock Market in India can appear little bit complicated to newbies but the process (as mentioned above) is simple in real. When you are new to the stock market, you come with lots of dreams, hopes and expectations. Though we have lots of people who have made good wealth from stock market, but there are lot more examples who lost their everything in Stock Market. Investment and trading needs proper discipline, analysis (fundamental & technical), handling of biases. Diversification also plays an important role in managing your risk; so as a thumb rule don’t put all eggs in one basket.
Stock Market is a lucrative means of investing and has potential to generate high returns, provided you follow some basic principles, discipline and you must have conducted background research on the company in which you are going to invest. To keep yourself updated, well informed, be a part of the community and learn how to invest in stock market in India, you can consider joining a platform like ZoomStocks.