Investing in Stock Market can be tricky, especially for individuals who are new to this world of investing. That said, the investment process has become hassle-free nowadays as individuals can allocate their funds to shares through various digital platforms.
In case you are not up-to-date with the process, here’s a complete guide on how to invest in share market online.
In case you’re wondering how to invest in Share Market online in India, we’ve got you covered. Here are the steps that you need to follow to buy stocks easily from the comfort of your home:
Step 1: Open a DEMAT account and ensure that it is linked with a pre-existing bank account to carry out transactions smoothly.
Step 2: Sign in to the DEMAT account via the mobile-based application or web platform.
Step 3: Pick a Stock that you want to invest in.
Step 4: Make sure that you have sufficient funds in your bank account to buy the shares that you wish to purchase.
Step 5: Purchase the stock at its listed price and specify the number of units.
Step 6: Once a seller reciprocates that request, your purchase order will get executed. Post completion of the transaction, your bank account will get debited with the required amount. Simultaneously, you will receive the shares in your DEMAT account.
Individuals must note that there are certain prerequisites when it comes to Opening a DEMAT Account.
For individuals who want to learn how to invest money in share market, it is essential to keep certain factors in mind.
If you’re wondering about How to Start Investing in Stock Market in India or any other investment avenue, you must first identify your financial goals. The investment objective is not universal and alters with every investor.
Hence, you must pick stocks after taking your financial goals into account. Decide your investment horizon as well before investing.
Another essential factor to take into account when investing in stocks is your risk appetite. Investors who have a low-risk appetite may consider investing in defensive stocks that provide stable returns and are less impacted by market volatility.
By building a diversified portfolio, you can mitigate risks. In other words, the more your investment is spread across different sectors, the lower will be the financial risk associated with your investments.
When it comes to investing in stocks, there are two markets that you can consider.
When a company goes public, it offers its shares for sale in the primary market through an initial public offering (IPO). Individuals who wish to purchase these shares can apply for a public issue once it opens for a subscription. To invest in the primary market, it is mandatory for investors to have a DEMAT account.
Depending upon the response of the market to the company’s IPO, investors are allotted a certain number of shares. In other words, investors receive shares based on the demand and availability of the shares.
Once shares of a company become listed on stock exchanges, investors can buy and sell them in the secondary market also.
Generally, the secondary market is what individuals refer to when they talk about stock market investments. To trade in the secondary market, it is mandatory for investors to have a trading and a DEMAT account.
Now that you know how to start investing shares in India or in the share market online, open a DEMAT account with a broker of your choice and follow the steps discussed above to start investing. Also, remember the various essential factors when choosing which stocks to add to your portfolio for better outcomes.
Disclaimer: The views expressed in this post are that of the author and not those of Groww.