Best tips to invest in share market. How to start investing in share market
Best tips to invest in share market. If you are thinking of investing in the stock market, then you should read this article completely because in this article everything was told about what you need to know in the beginning.
First of all we should know what is share market
The stock market is the market where big businessmen think of raising money for their upcoming expenses or any big expenses or when they sell their share of business.
Then these traders (businessmen) bring their company’s share in the stock market.
Where the general public becomes a partner in the business of the businessman by buying shares in the company in exchange for his money, and money is arranged by selling his stake to the businessman.
Who can invest in share market
Anyone who is not restricted by SEBI can invest in the stock market and is above the age of 18 years.
Here, generally, if a person wants to invest, then it is necessary to have a bank account, PAN card and Aadhar card or any one address identity card in their name.
If the person has all these things then he will have to open a trading (to buy/sell shares) and demat account (to hold the shares) account and without the above mentioned papers this work cannot be done.
You can open this account with a stock market broker or online as well.
With which broker (stock broker) should we open our trading and demat account
Normally the demat and trading accounts are opened by the same broker and some payment has to be made to open the same.
There are two types of brokers
Full service broker
Full service broker
Full service broker tells shares for investment and trading day. And his office is everywhere.
Like ICICI Securities, HDFC Securities, Kotak Securities, all these are examples of full service brokers.
If you want to invest for long term then this broker is the safest.
Now let’s talk about discount broker, this broker only gives you the facility to buy and sell shares, where you can buy and sell according to your own.
Their offices are very few, due to which they have to reduce the payment of any service.
If you want to know how the market works or if you want to earn profit by buying and selling then discount broker is best for you.
Because here you can understand the stock market by spending less in your early days. Like Zerodha, Upstox and 5paisa these are all discount brokers.
How should we invest in share market
If you want to invest in the stock market, then you have to first know which company you should invest in.
Here it becomes necessary to know because many times people do not know where to invest their money and they invest their capital anywhere in any company.
Whose value is less and in the end they lose because sometimes companies with less value are the losers.
Therefore, before investing money in any company, make sure that in which company you are investing and what is the future of that company. It is very important to know this.
How much money should we invest in share market
Here you should always keep one thing in mind that the stock market is very risky, you can drown from 10 rupees to 10 crores.
Along with this, the government here also does not give any guarantee that your money is safe, so if you invest, then know that your money was sunk on the same day you bought any share.
Here we are assuming this so that if there is loss or profit in future, you will not get worried and will be able to invest for a long period.
You should know one more thing that the company never returns the investment made in the stock, so even if any investment is made in the stock, it is for a long period.
Now after reading this, a question must have come in your mind that when we are not buying shares from the company, then what do we buy in the stock market.
So here generally we buy shares from other investors. The company sells its shares to investors mostly twice (IPO, RIGHT ISSUE).
There is another way to invest money in share market which we call mutual fund.
We can also invest in the share market without buying shares of any company through mutual fund company.
When we invest with a Mutual Fund company, we give our money to that company so that that company can invest our money in the right place according to its own experience and earn better returns on that investment. Can you
In exchange for this service, one of our money can be charged which can usually be up to 2% and this is only 2% of the mutual fund company’s earnings.
(A fund may cost 0.1% or charge 2% depending on the fund)
It is believed in the market that when we invest our money through mutual fund route, we invest our money by taking less risk.
If asked what is the safest way to invest in mutual funds, then I will tell you invest in index funds like Nifty or Sensex funds.
what is index fund
An index fund is a mutual fund that is based on a single stock index and an index fund invests in the same proportion of the companies included in that index.
The ratio in which companies are present in that index. Like if an index is based on sensex.
So this index fund will invest in all 30 companies included in Sensex in the same ratio in which those companies are present in Sensex. This is what is called an index fund.
In this post, very general information has been given about investment and stock market, so before investing, definitely take advice of a good expert.
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Is stock market safe to invest?
Stock Market is not completely safe to invest.
How much age should be to invest in stock market?
In order to invest in the stock market, the age limit in India is 18 years, this limit can be different in other countries.
Is it more secure than stock market to invest in mutual funds?
Yes investing in mutual funds is safer than stock market.
Can online trading be done in share market?
Yes you can do online trading in stock market.