How to invest in Shares in India

Traditionally, gold and shares are the most sought after investment arena for Indian investors.

if you are someone looking to invest in shares in India, and are just starting off, the first question in your mind would be.]

How can a beginner invest in shares in India

Well here is a guide to get started in Share market investment in India.

1.Get a PAN Card:

PAN or Permanent Account Number is a primary requirement for entering any financial transactions in our country. 

2.Get a Broker:

You and I cannot directly go the stock exchange and buy or sell stocks/shares like we would buy or sell any other thing. People are authorized to buy and sell on the markets and they are called brokers.

If you are comfortable with internet and online stuff, you can even have online broking through companies like ICICI Direct, Sharekhan, Kotak Securities, IndiaBulls etc.

3.Get a Demat and Trading Account:

Once you have a broker, whether in form of a person, company or online, you will now need a Demat and Trading account. Demat account will hold the stocks or shares in your name and the same will reflect in your stock portfolio. You cannot hold shares in physical form or store them physically. They have to in Dematerialized state or Demat state.

4 Steps To Stock Investing

1.Learn about the various types of investments:

If you’re absolutely brand-new to investing, get the lay of the land first. Read some basic books (here’s a good list), join an Investing 101-type Meetup group, and do some research, such as on the Bogleheads forum, for do-it-yourself investors.

2.Invest in a broadly diversified portfolio of low-cost:

Keeping your costs low is surefire way to reap higher returns. Over time, tiny percentage charges and or small fees add up — for a median-income two-earner family, they will eat away almost one-third of their investment returns in a 401(k).

3.Don’t try to beat the market; participate in it:

In trying to beat the market, investors usually underperform not just the market, but even the investments they choose, because they buy and sell at less than optimal times.

4.If you want to try investing in stocks, set aside a small percentage of your portfoli:

Once you’ve got a nice nest egg started, you should have a financial planner or investment advisor who is a fiduciary, meaning they’ll give you financial advice that’s in your best financial interest, ahead of their own. (See the slide show below for what questions to ask when choosing a financial advisor