The stock market investment journey may seem tricky at first glance, particularly for those new to the investing world. The investment process has become quite hassle-free in today’s times since people can now allocate their money to shares via several virtual platforms.
If you are not up-to-date on the investment procedure, here is a guide on how you can successfully commence investing in the share market online.
NSE India and BSE India are two stock exchanges wherein you can spend. Stated hereunder are the steps you need to take to purchase shares right from the comfort of your home.
- Open a Demat account and ensure it is linked to your existing bank account for smoothly facilitating transactions.
- Sign in to your Demat account through the web or mobile-enabled application.
- Select a stock in which you wish to invest in.
- Ensure you have adequate money in your bank account to purchase the stocks you wish to buy.
- Buy the share at its current market price and mention the number of units.
- After a seller reciprocates the request, your buy order will be executed. After the completion of the transaction, your bank account will get debited with the respective amount. Also, the shares will get reflected in your Demat account.
It is important to note that certain prerequisites must be considered while opening a Demat account.
- Bank Account
- Address Proof
- Identity Proof
- PAN Card
- A Reliable Stockbroker
- Canceled Cheque
Important factors to note before beginning a stock market investment
-
Investment Goals:
If you are wondering how to commence investing in the stock market, it is vital to first know about your financial objectives, which are not universal and vary from investor to investor. Also, it would be great if you determined your investment horizon before investing.
-
Risk Appetite:
This is another main factor to consider while investing in stocks. Investors with a low-risk capacity might invest in defensive shares, which come with stable returns and are less impacted by market fluctuations and volatility.
-
Diversification:
By developing a well-diversified portfolio, you can mitigate risks. In simple terms, the greater your investment spreads through various sectors, the lesser the financial risk of your investments will be.
Hence, when it is about investing in stocks, there are two markets that you can take note of – Primary Market and Secondary Market.
A primary market is a place wherein shares and securities are created, whereas the secondary market refers to a place wherein shares and securities get traded by investors. In the primary market, companies sell new bonds and shares to the general public for the very first time, for instance, through an Initial Public Offering (IPO).
The securities and stocks that trade subsequently, having their prices listed on the exchange, become a part of the secondary market.
The investment process has become immensely easy, and knowing about your investment horizon and financial objectives is vital before investing in the share market.
Getting equipped with advanced resources, expert suggestions, and thorough real-time share assessment information at your fingertips, especially as a beginner in the share market, is a huge contributing aspect to minimizing risk and maximizing returns. So, open a Demat and trading account with a safe, secure, and convenient stock broker and start now.
