How To Begin Share Market Investment

By Author: Vinay Pale
Total Articles: 11
Comment this article

The share market is one of the best places to invest your money. But for a budding investor, navigating its throughs and crests can be a daunting endeavour. If you are a first-time investor, this guide is for you. We will talk about how a new investor can enter the share market and start investing.

Why invest?

Investment is a process of committing money to an endeavour with an expectation of receiving additional income or profit.
Investors earmark money for the future to generate profit from it.
Investment carries the risk of monetary loss primarily due to market volatility and change in asset price.
Share investment is the most common way for beginner investors to gain investment experience.

If you are a new investor, keep in mind there are two kinds of share market: primary and secondary.

Investing in the primary market

The IPO market is the primary market. IPO, or the initial public offer, is a process for privately-owned companies to issue equity shares to public investors to raise funding from the market. Investors can subscribe to these offers by applying through their ...
... Demat accounts.

Investing in the secondary market

The secondary market is where regular trading happens. You can buy and sell stocks from your portfolio in the secondary market.

SEBI has made it necessary for all investors to have a Demat account to invest in the secondary market.

The secondary market differs significantly from the primary market. Here the stock prices keep fluctuating throughout the day based on market movement. Traders and investors try to catch the profit opportunities when a stock price moves from low to high.

How to start investing?

Share market investment needs planning. Here are the points to remember to enhance your experience in the share market.

Open Demat account: Investing in the share market require a Demat account. You canDemat account with a depository participant like a bank or a broking firm. Following are the KYC documents you will need for the Demat account opening.

Personal identity proof
Address proof
PAN card
Aadhar card
Bank account details
Income proof
Passport size photographs

The current Demat account opening process is online. You can submit your application and the KYC documents to open the account directly at the DP's website.

Open trading account: A trading account is necessary to transact in the secondary market. Link your trading and Demat account with the bank account for a seamless trading process.

Stock selection: Login to your trading account through the share market apps to buy and sell shares. Ensure that your account has enough funds to carry out the transaction before you place a bid.

Select price: Select the price you are ready to pay or receive for the share. Wait for the buyer or seller to reciprocate. Once the deal is finalised, you will receive the money or shares in your trading account.

What kind of investor are you?

Before committing your money, you need to determine your investor type.

A reputed stockbroker will ask you about your financial goal and risk level before you can start investing. Some investors like to participate in daily market activities, while others prefer to 'buy and forget. Your investing style will depend on your plans for short-term profit or long-term wealth generation. You can set your goals and limits on share market apps like the one from Angel One to receive personalised investment recommendations.

Things to remember before you invest

Investment is a long term commitment; hence it needs planning and preparation.

Diversify: Diversification helps in lowering the risk of investing. A diverse portfolio is healthy and recommended. It helps to offset a downtrend in one asset class and minimise its impact on overall portfolio profit.

Create a plan: You can avoid investment pitfalls if you have clarity over your investment goals. Plan your investment according to your financial goals and time horizon.

The final words

The share market apps in India have simplified share market investment. These online tools have brought stock trading to the fingertips of millions of investors. You can DIY your investment with these apps with features like a customised watchlist, buy and sell alerts, market news updates, analysis and reports for sound investment decisions.

The more you delay investing, the more you lose money. The share market is the best place to invest for higher returns on your hard-earned money.

https://play.google.com/store/apps/details?id=com.msf.angelmobile&shortlink=957829bb&pid=website_footer_playstore&af_click_lookback=7d&c=website_footer_playstore

https://apps.apple.com/in/app/id1060530981?shortlink=a31f5ce&pid=website_foo_appstore_ios&af_click_lookback=7d&c=website_foo_appstore_ios