How to invest in share market
There are few things that you should know before you invest in share market. Investing in stocks provide high returns due to the power of compounding effect. A trading and demat account is a must to start trading in the stocks. Don’t worry! It’s not a cumbersome process and it can be opened very easily online and quickly with no hassle. We will learn the essentials required for opening demat account online in India.
- Bank account
- PAN Card
- Bank statement
- Personalized cheque
You need to have a bank account which has to be linked with your trading account so that you can transfer money for all transactions in the stock market.
Broker serves as the intermediary between the stock exchange and the investor. You can carry out trade in the share market through a broker as he facilitates trading between the buyer and the seller. It’s necessary to open a demat account with a SEBI registered broker.
AADHAAR card is a must to open demat account in India as authentication is done only using AADHAAR. Know Your Customer (KYC) formalities have to be completed before opening Demat account and this is entirely based on AADHAAR only.
You must have a PAN card as well. Your name and Date of Birth details will be checked against the details mentioned in PAN. The government has made PAN card compulsory for any financial transaction.
Bank statement and personalized cheque has to be uploaded during online account opening process. Within 15 minutes, you can open demat account without any difficulty.
Now let’s learn how to invest in shares
- Have clearly defined investment goals
- Choose the financial assets based on your goal and timelines
- Start investing from a young age and do it regularly
- Based on your risk taking nature, diversify your investment into different financial assets
- Do a complete research on the company you plan to invest
- Its not wise to believe in rumours
- You should have patience and not be greedy
- Take expert’s help before taking an investment decision
Investing in share market yields high returns than other financial assets. There are many financial products available that you can choose from. You can opt for short term or long term assets as per your needs and goals. Hope you got a clear idea of how to invest in share market. So get going! Open a demat account and trading account and start investing now!