How to invest in stock market2 min read . Updated: 11 Jul 2020, 07:47 AM IST
- Never jump into stock market only for the greed of good returns
- Define clear goals to invest in the stock market
NEW DELHI : Investing in equities is one of the best ways to stay ahead of inflation in the long term. But the high returns carry their own set of risks. So, never jump into equity investing only for the greed of good returns. It is imperative for investors to understand the risks before making their debut in the stock market. If you believe you understand the dynamics of equity investing and have the required risk appetite, here’s how to go about investing.
We will start with some prerequisites to invest in shares.
Open a demat account: Opening a demat account is a simple process. You will need your Pan card, savings bank account, Aadhaar card and a personalied cheque. You can either apply online through NSDL, CDSL or ask your broker to do it for you. A demat account is needed to hold shares in a dematerialised or non-physical form.
Find a broker: You need a broker to buy and sell shares in the stock market. A broker is an individual or an entity registered with Sebi, the stock market regulator. Choose a broker after comparing the brokerage plans and services offered by different brokers. Go for a brokerage plan as per your investment needs.
Brokerage is the fee or commission charged by the broker.
Once you are through, you can begin to invest. Here are a few worthy points to make your stock buying experience lush.
It is always better to take help of an expert if you are new to stock investing. Remember it is a very risky area where the downside can be deep and in the worst case scenario you might end up losing all your money.