How to Invest in Stock Market in India?
Do you want to know how you get rich in life?
Do you want to achieve financial freedom?
If yes, then you have to learn how to invest in the stock market.
If not, then you can ignore it.
Investing in the share market and earning money consistently may seem very hard or complex for a beginner.
But it is not as hard as it seems to be.
In other words, it is a very easy process.
Today I am going to discuss how to invest in the share market as a beginner and make money while you sleep.
But before that, we should know what the share market is and why one should invest in the share market.
What is The Stock Market
The stock market is a public market where shares of a company are bought and sold.
A share of a company is an electronic document that you buy to become a partial owner of that company which you can shell whenever you want.
Over the past few decades, stocks and real estate are two investments that have consistently outpaced all other types of investment in India and all over the world.
Whether it is a bank fixed deposit, insurance, bond, or gold, the stock market offers higher returns in each case.
That is why it is said that those who want to increase their money should invest in the stock market from a very young age.
The two major stock markets in India are the NSE or National Stock Exchange and the BSE or Bombay Stock Exchange.
The NSE is the largest.
Other stock exchanges in India besides NSE and BSE are MCX (Multi Commodity Exchange) for buying and selling commodities like gold, aluminum, etc., and IEX (Indian Energy Exchange).
How to invest in share market online?
Now if you think you will invest in the stock market then you cannot invest directly. If you want to trade stocks in the stock market, you have to buy and sell stocks through any broker or using any stock broker’s platform (website or app).
- To start trading stocks you need to open a trading account. A trading account is an account where you buy or sell your shares or place orders.
- The broker or stock brokerage platform will open a Demat account for you so that the shares or stocks you have bought will be deposited in your name. If you have difficulty in understanding the Demat account then I would say that you can consider the Demat Account as a godown. Just like any business item left in the godown, the shares you buy will be deposited in the Demat Account until you sell them.
- The Trading Account and the Demat Account are linked to your bank account so that you can withdraw the money from the shares you have sold to your own bank account or you can transfer money from the bank account to the trading account to buy the shares.
What Documents do You Need to Open a Demat Account?
All you need to open a Demat Account:
Proof of Address;
Canceled Check or Statement of Bank of last 3 or 6 months.
What is the cost of investing in the stock market and Which Broker Should I Use
How much money it costs to invest in the stock market depends on which broker or broker’s platform you are using to trade stocks.
Because different brokers have different charges for using their platform.
However, if you choose the right broker, your costs will be greatly reduced.
When it comes to cost, it is good to say that there are two types of trading in the stock market.
One way is to sell shares on the same day you buy, which is known as intraday trading, and the other way is to buy today and sell shares tomorrow, or after a week or a month or a year or ten years later.
Selling shares after such a long time is called Delivery Trading.
Delivery and intraday trading charges vary but the broker I use is Zerodha.
Zerodha Delivery Trading does not charge any broker charges which means that with Zerodha you can buy shares of any company for free for a long time without any brokerage charge.
And the charges for intraday trading on Zerodha are also the lowest in India i.e. Zerodha has the lowest charges among all the brokers in India.
[Click on the link https://zerodha.com/ to open an account on Zerodha]
The minimum amount for investing
Minimum Investment in Sharemarket in India.
There is no such thing as a minimum or a maximum in the Indian stock market. There are shares starting from one rupee to eighty thousand rupees. Depending on which company you buy shares with.
Suppose you buy a hundred shares of a company called X worth 1 rupee each. In that case, you will need one hundred rupees.
Or suppose you buy 10 shares of a company called Y whose price per share is 5000 rupees. Then you will need 50,000 rupees.
What is the Minimum Age to Invest in Stock Market in India
There is no age limit for investing in the Indian stock market.
However, since you need a PAN card to open a Demat Account, you can invest in the stock market for at least 18 years of age.
Because you can’t apply for a PAN card before 18 years.
However, if one wants to invest before the age of 18, he can use the Demat Account of his parents.
How much one can earn in the stock market in India
There is no limit to how much you can earn from the stock market in a month. The money that you can earn by trading can be thousands, millions, or more.
But your earnings will depend on your skill and patience.
When Should You Start Investing
Here are three golden rules for all investors:
- Start investing as soon as possible;
- Make regular investments;
- Long-term investment means buying shares for a much longer period of time (not applicable to all companies);
One should always remember it takes time and patience to create wealth and to get a return on investment. Ideally, investing should start as young as possible.
That means anyone can invest in the stock market. If you give enough time to the stock market and study the stock market well then you can create a huge amount of wealth and fortune for yourself.
So let’s start investing by creating your account today on Zerodha at https://zerodha.com/