HOW TO INVEST IN SHARE MARKET


There are a few things that you should know before you invest in the share market. Investing in stock provides high returns due to the power of the compounding effect. A trading and Demat account is a must to start trading in the share market. Don’t worry! It’s not a cumbersome process and it can be opened very easily online and quickly with no hassle. Pan card and an aadhar card is a mandatory requirement for investing. It is required for KYC (know your client) procedure while opening an account with the market regulator.

In order to be able to invest in share market in India,
the following procedure needs to be followed-


  • AADHAR CARD-Aadhar card is a must to open demats account in India as authentication is done only using Aadhar. Know your customer (KYC) formalities have to be completed before opening demats account and this is entirely based on Aadhar card.
  • PAN CARD-You must have a Pan card as well. Your name and Date of Birth details will be checked against the details mentioned in Pan Card. The government has made Pan card compulsory for any financial transactions.
  • BANK ACCOUNT-You need a bank account that has to be linked with your trading account so that you can transfer money for all transactions in the share market.
  • BROKER-Broker serves as the intermediary between the stock exchange and the investor. It’s necessary to open a demat account with a SEBI registered broker.
  • Bank statements and the personalized cheque have 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.
  • Do complete research on the company you plan to invest
  • You should have patience and not be greedy
  • Take expert's help before taking any investment decision

Buying and selling

Investing in the share market yields high returns than other financial assets. There are many financial products available that you can choose from. You can opt short terms or long term assets as per your needs or goals. I Hope you got a clear idea of how to invest in the share market. So get going! Open a demat account and trading account and start investing now!