Traditionally, gold and shares are the most sought after investment arena for Indian investors. However, 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.
Jut stand in a crowd and utter the words “aaj market kaisa hai?” (how is the market today?), and there will be opinions pouring in from all directions. The best part is that even people who have never ever invested in shares will have strong opinions and even tips at times for how to invest in share markets. So if you are someone who simply does not want to stand and give tips without doing anything and wants to actually invest in share markets in India, then here is how to get started with share market investment in India:
How to invest in Shares in India – Beginner’s Guide:
So let us have a look at what a beginner must do to get started with their stock market investments. Here is a 6 step guide to help you out.
1. Get a PAN Card:
PAN or Permanent Account Number is a primary requirement for entering any financial transactions in our country. It is unique 10 digit Alpha-Numeric number assigned to an individual by the Tax Authorities for assessing their tax liabilities. PAN is however required for opening a bank account, investing in mutual funds, filling Income Tax returns etc. Also the first thing you will need to be able to invest in shares in India is a PAN card, so get it first.
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. Brokers can be individuals or companies and even online agencies that are registered and licensed by SEBI or Securities and Exchanges Board of India, who regulates the share markets. Get a broker, they can be individuals you know and are reliable, or you can approach various companies that are licensed to trade and deal in securities in the markets.
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.
(The names given here are just given as examples of well-known companies offering online broker services, they are neither recommendations nor a testimonial to their performance, and please do a research before selecting your broking firm.)
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. A Demat account does that for you. It will store the shares you buy from the markets through your brokers in your account in your name. The selling will also be from here and it will reflect in your Demat statements that you receive from time to time. You will never have a physical share certificate in your hands; it will be reflected in your Demat Account Statement.
The buying and selling of shares you wish to have or want to sell will however require a Trading account. Trading account will be like an intermediary who facilitates the buying and selling. Usually your broker takes care of all this. Whether you approach an individual broker, a broking firm or online agencies, the Demat and Trading accounts will be opened simultaneously as it is one without the other is useless for investing in shares in India.
4. Depository Participant:
There is also a Depositary Participant that you need to be aware of. There are two depositories in India: NSDL and CDSL which stands for National Securities Depository Limited and Central Depository Services Limited. These two have their agents in the form of Depository Participants who will provide an account to store the shares you hold. It is not the same as Demat and Trading account as in Demat it shows the number shares you hold and the Trading reflects the buying and selling that has taken place in your account. Depository Participants will hold those shares you bought and release the shares you sold. However, it is usually taken care of by the broker who will also guide you through the Demat, Trading account opening process as well as register with a Depository. But you need to be aware of it none-the-less.
5. UIN if you want to invest BIG:
UIN or Unique Identification Number is required in case you trade for Rs. 1,00,000 or more at a single time. If you plan to go BIG in share markets, UIN is needed. Otherwise, for regular investors it is not required.
6. Buying and Selling:
For buying or selling shares, you need to inform your broker about which share in what quantity you wish to buy at which price. For example if you wish to buy 10 shares of Reliance Industries Ltd when it reaches a price of Rs. 885, you have to inform the same to you broker; Share: Reliance Industries Ltd. Quantity: 10, Price: 885. In case of online broker too, they usually have customer care numbers where you can place your order if you do not have access to the internet at that point. When the share reaches that price, transaction will be made on your behalf. Same is done in case of selling, for example Sell: Reliance Industries Ltd, Quantity: 3, Price: 895. The sell order will be processed when the share reaches that price. However the buy and sell orders remain valid only up to a certain time, usually the same day or the next. Your broker will inform you of the same. If during that time frame the buy or sell price is not reached, the order is cancelled and you need to place a new order.
The buying and selling takes place in two exchanges: BSE and NSE namely Bombay Stock Exchange and National Stock Exchange. These are the only two exchanges in India where buying and selling of shares and commodities take place. You need to mention the exchange to your broker too, as there is usually a slight difference in price of shares at the two exchanges. However your broker can guide you here in case you do not understand where to trade. (The names given here are just given as examples, they are neither recommendations nor a testimonial to their performance, and please do a research before buying or selling shares.)
Don’t get carried away and avoid these mistakes:
Now that you know how to get started with your investment in shares, do not get carried away as stock markets can be tricky and it won’t take time for you to lose money if you make a slight mistake in judgement or follow stuff blindly. Please refer our post on the 11 mistakes to avoid when investing in shares here. It may help you to avoid some common blunders share market investors makes while making stock market investments in India.
I keep updating this post and write new ones. So do watch out. Also, do note that most of the tips shared here are evergreen and will help you out in most cases. Still I advice once again, never get carried away with any “tips”, “leads” or “sure-shot money doubling” talks. Use your best judgement.
Happy Investing!!!
good informqtion
This is very useful and compact. I am interested in the share market. Could you please guide me on how to start a low investment marketing with a good broker as a beginner?
You made it simple& easy to understand. I want to start investing in shares.
Very Very useful one. These basic tips are required while starting the venture. Really great help. Thanks [redacted].
I’m not having knowledge of share market but I’m interested so please guide me then I can start
very useful information for beginners.
can u please mail me that where i get this broker
now i am in kuwait, am i eligible to trade from here?
i want to start trading with low investment. i want to know about brokers and where i want to get Demat and trading account ?
thank you so much
Thanks..for the knowledge sharing abaut share market some term & investment steps
Hello sir/ma’am,
My interest is in stock market so give me a guidelines.
Thank you
Hi
Iam interested in share market
But I have no knowledge
Please guide me
This was helpful
The data which is given above, is very useful for beginners…
thanks for easy lesson
Nice
thanks for giving this informations about share market can you give more details in my mail account ..
Thank you .. You are great help..
thank you very much ..i wish to start buy shares in indian great companies.
The information provided is really helpful. I’m really interested in stock market and in one of you steps you told about the brokers as it is compulsory to trade through them. BT I want to know that how can we approach the brokers and what are the procedures as to , do they charge fees and all. It would be really great if you could explain it with the help of an example.
Thank you .
Thanks
I am interested in share market but I don’t have any knowledge about this please, give me some guidelines about the share market. How i can work on it because now i am as a beginner .
it is simply nice for beginners. hope you keeping updating us
What is the minimum lock in period after you buy shares?
thank you
Thanx a lot
I am interested in share market but I don’t have any knowledge about this so plz guide me about this
Thank you
Thanks for the knowledge sharing, it’s useful stuff to beginners like me.
please, give me some guidelines about the share market. How i can work on it because now i am as a beginner .
thanks for giving this informations about share market can you give more details in my mail account ..
Hi,
Your valuable write up is noted and it will really take the beginner like me to a higher level of knowledge about trading in the stock market. Hope more gud write up will surely come up in the days to come.
Glad that you’ve found it helpful. All the best in your investment journey.
I m interested in invest money in shares and mutual funds. please guide how to invest in two ways lik SIP AND other investment
really a nice explanation to beginners ….had a great with it
Interested in trading but zero knowledge about market so do I got any course so that I able to do healthy trading
I am a new investor.
Very nicely written article for beginners like me. Thanks a lot
Hi Deepak,
Glad to know you found it helpful. Thanks for the kind words.
I am a fresher in share market and I don’t know where I have to invest money
So plzz guide me
very good information for fresh investor
Thank you very much Sir
This is very beneficial article for all new traders and I am very thankful to the author
I am a fresher in share market and I don’t know where I have to invest money
So plzz guide me
703xxxxxxx
Sir i m totally new for traiding kindly guide for same…and I m already open a account for traiding my contact and what’s up no is 870xxxxxxx
Yes i m intrested in this market so how i can join it
Hi.
I am new to share market. I don’t know how to buy / sell shares. Plz guide me
i am a fresher to invest in market. Please guide me for this. How should i start?
98xxxxxx
Sir bina broke ke trading kia ja sakta h stock market m.
Thanks for good information about share market
How to contact SEBI NSDL Brokerer please provide this on the site
Hi sir I have read ur conversation with friends who asked a question about shares. I have doubt on America trade, can I purchase a any stock from US COUNTRY is any formalities for that. I know India is better country to share or stock.
Intraday would be benificial or holding would yield more
Sir is it safe if i take the trade calls from someone else like registering online? If it is safe then suggest me some of them…
Hi.. It was very refreshing and informative for beginners like me. Can you suggest me any online sites or trading coaching workshops in Mumbai??
Thank you, it’s a very helpful, great article to clear concepts.
Hello Aniket,
Thanks for the article, I wanted to know whether it is safe to invest in unlisted companies. Planning to invest in an unlisted pvt ltd company, any advice regarding the same.
Hi Ram,
It is always advisable to tread with caution.
After open the demat account, are they give I’d & password for doing transactions
can I invest in sharemarket with my smart phones from home…
Sir, how is the sale happening, when we put a command for sale, is it required that there must be a buyer ready to buy at the given price, or is it bought by the broker himself, then do the broker have to bear the risk ? Or do the seller have to wait till a potential buyer comes.
Hi Vinod,
You don’t have to wait for a potential buyer. When you want to sell, you basically free those shares for the open market. You get the value for them and you no longer hold them as they are now in the market again. There is no risk for the broker too.
Sir i started in share market through my friend before 6 yrss i hv no idea about anythingg how can i know abtt this thingss
How much is the minimum to start trading. …
SIR
I AM NEW IN MARKET.
HOW I ENTIRE INTO THE MARKET?
IS BROKER MUST?
CAN I OPEN MY ACCOUNT THROUGH ONLINE?
Wonderful article.
Best suggestion and clear explanations for the Share beginners . Thank you and keep update it.
Sir
I am fresher
I want to invest share market,pls guide me what to do first.
Hi Chandan, this article above has all the guides to help you get started.
Amazing piece of information. Cleared most of my doubts without even asking you. Thank you Aniket : )
Hi Sukesh,
Glad to know that my post was of help to you. Feels good to know when my readers find genuine value from this blog. Thanks a lot once again.
Hi ,
I would like to know hoe does stock market works ?
As if I got one stock worth rs. 100 in any company and next day that companies stocks have gone higher , so do I get extra amount or is it same as my initial amount (Rs. 100)
Or as if the stocks have gone lower so do I lose all my money (rs 100).
Thanks in advance !!!!
I have interest in this field but i dont have any knowledge about stock market and i want to learn everything about this line like how to invest , how to get profit , how to deal with broker etc everything i have to learn please can anyone guide me…..?
Hi I want to invest in share market and i am a fresher. Please educate me in how to buy or sell the shares.
Thanks!!
Hi Anand,
I hope the above article was useful. Do ensure the shares you invest are of companies with sound track record. Do not fall for any tips or ‘sure-shot’ suggestions. Take an informed call. All the best!
Hi I’m interested to buy the shares in small funds
but I don’t know knowledge of this can give some information of this thank you
Hi Sugreevareddy,
Yes you can definitely start small. There is no rule when it comes to investing in shares. Start with the amount you are comfortable with. Also, if you wish, you can start investing in mutual funds as well. You can refer this article here, to help you get started. All the best!
im a fresher I have to invest rs 10000 in share market tell me the procedure.
Please explain trading between NSE & BSE
What are the difference in both and what are the thing that I need to take care while trading between NSE & BE
HOW I will come to know that my present stock is from NSE OR BSE
I am new and fresher in share market,so I want to be a professional in this market,,,can you help me or there is any Broker from Meghalaya stae
Hello
I am new to trading and I want to learn more about it…I was hoping if you could recommend some good books to learn more about it. In your guide, they are tools to initiate stock trading which are very useful no doubt about it. I want to know how to properly invest before I actually begin investing.
Thank You.
Hi I am a fresher , I had a lots of interest in share market, guide me
Sir mai share market mai investment Krna chats hu mai use bare mai jankari Lena chats hu
Dear sir, this is mohan. I want to invest in share market, but I have no knowledge. so I want learn about share market. can you give some insitute information where I can get full information easily. I am staying in delhi. if you have any institute information please informed me.
hlo sir
i am new in this line but i am very much intrested…
now sir how i open a demat account is it like other general account
i hv a pan card
and i dont know any broker how online i can buy shares
How should i open a account to invest money in share market?? Help me to open a account
Dear Sir,
Could you please tell me the minimum amount required to start investing in shares.
such good information it is easy to understand
This is such good. information in easy format
Thanks 4 outstanding briefing on the above matter. It will be useful for beginners in share markets.
Thank you so much for your appreciation. Glad to know the info helped.
i want to begin my investing in small but in successful manner
What is the minimum amount to invest in market
There is no minimum maximum amount. It depends on your choice.
at the outset, i would like to appreciate the practical tips provided by you. i want to invest reasonable amount in stocks , since the returns are so less on fixed deposits now a days. i have not done any investment in stocks earlier.my first thought was to invest for short term, so that , i earn more than fixed deposit interest rates at the end of the year., short term means holding for a max of 3 months. but, the suggestion is for holding long term, means how much time.
may i request you to help me in this regard
3 months is a very-very short time. Unless you are a pro and can read understand the markets really-really well, it won’t be much profitable. Long term means atleast 5-7 years. But that is from an investment point of view. Also equity is known to give great results in the long run.
i have some doubts that if i want sell the share today immediately then i can do so or not and if i want hold the share for longer time then can i do so or to sell on the only
It is upto you… when you want to sell, today, tomorrow or may be many many years later. The only thing if you place a sell request today for example, the transaction will effectively only process within the stock market working hours. So if your sell request is after 4 pm on a business day, then the process is done the next day morning.
I am fresher, I want to invest my money in share market as a side of my occupation so I want guide
I’m a fresher! How I bought a share without any fear .Please guide me .
very knowledgeable inputs for beginners.. I liked it..Thanks
I am fresher , and I don’t know about the shares and demat trading account . I want to invest and buy and purchase the share but sir I did not have idea.plzzzzz guide me sir
I am just zero in it,but i want to invest in share market.Kindly guide me how to find the broker and all
hello sir , i am fresher and i want to do shares bness as a side bness …but i dnt hv enough knowledge about all this ..kindly guide me how to do this
How to Invest Can u help me out For This .
I am 21 , and i wish to get into stocks and shares , can i start my marketing alone and is getting a broker is mandatary .
Hello sir…
Do u know any one personally who have gained substantially by investing in stocks.
If yes , what have they invested in
Thank’s
Thanks a lot sir
Which books help to know about the share market
I want to invest in share market bit I dont have an experience…. so plzz help how I invest
Pls tell me minimem amount to invest
Thanks for your information.it is very useful for the newly beginners and helps them to know how does stock market really works.its good .
Hi Dikshith,
Thanks a lot for your words of appreciation.
hello, i’m fresher for this and i haven’t idea to invest and sell please guide me and give idea how contact with broker.
Im a student and im just 20 yrs old
I want to live self independant
so how much might be the rate of deposition to enter into marketing
I am fresher ,I want to start a shares trading ,plz guide me
wONDERFULL ARTICLE
Thanks for the kind words of appreciation… I means a lot!
Hello Aniket. . For Example I had bought some shares. . I have made a limit. . Wil there be customers to buy shares or else I have to wait. . ???
I am a gov employee and want to invest in share market as my side profession.
Should i invest through sip?
Hi Ankit,
SIP is a better bet compared to share market if you are new and do not have much experience in stock markets.
I want make career in stock market so pls give me proper guidance for this proffetion.
Hello sir,
I’m a begineer i want to invest in shares. I thought of having one broker. I dont know what is the mininum amount that has to be invested. Can you please give a brief information regarding this matter…..
excellent guidance, Sir i m student 20 yr old now but i have to buy car upto 22 yr.is share market will help me to get that. and how? please reply sirji
Tell mi about , Share market
PLS help me anyone
sir what should I do…to buy or sell share byself only( without any broker)……and how much minimum amount I start a trading…..plz tell me….and any information regarding shares
Hi Musheer,
There is not minimum amount as such to start. However you will require to open a Demat account and your demat provider may have a minimum limit for a transaction.
hi i am a dr also very new to stock trading. just want to do small time trading .whats your advice? how to do
i m a student of H.S 2nd yr…….is there is any way for investing in shares ………
Hi Sandeep,
You need to be 18+ and have a Demat account. Or will need a guardian if you are below 18
Sir, I am just 18 is it advisable for me to invest in share market.
Hi Aadeesh,
You can invest if you wish. Just make informed decisions and don’t invest everything you have in stocks, don’t borrow to invest. All the best!
I am a fresher, want to make share trading as a side, proffetion please guide me.
I am a student and on the other hand also do a business . I have a sufficient sum of money. now wanna to grow my money. I am interested in share market industry. but I have not any ideas how to start to trade in the field of stock market. so pls help.
I want to buy permanent shares please guide me
Sir, I’m a student and also 18 so, what to need to start trading. And tell about What is PAT ?
i am a fresher i wanted to know that how much money should i invest in the market and on which share as being a beginner
I am fresher. Just turned 18+.
I want to ask if there is any limit for how many times I can do transaction per day or week, etc…
apart from the value of share which I purchase, are there any other fees for those transaction while purchasing?
Hi Swapnil,
As such there is no number as far as all the transactions done by you are deemed fair and permissible by your demat service provider. There is a STT and brokerage applicable. Your Demat provider will have the details on this.
Hello Aniket,
I had interest in trading and want to invest in the stocks. So I created a DMAT Acc with SBI and doing it by my self.
I just have 5K right now to invest. Can I move ahead with this small amount? If possible can you please let me know which shares I prefer
Hi Ruchir,
I do not do consultation on shares and stocks and hence I comment on that part :)
However, 5000 is still a decent sum and you can start small…it is perfectly fine
Awesome sir ,even a layman can now invest in market with your information.very thankful to you sir.
hii em manjeet kaur
i want to help my frend in share trading field. he is new in this field. so please give me some information about share trading buisness so that i can help him. please give proper info to me
thankss
Hi Manjeet,
Start with companies which have been consistent in their performance in the last 5-7 years. This generally says that the company is stable and will be by and large a safe bet. You can easily find out by doing a Google search on top 50 shares in the last 5 years. Then based on your budget, you can determine which share to pick.
Remember – There is no sureshot way to succeed and no one can guarantee you that a particular stock will give a good return, but we can atleast do our research. You can also try the services of some good brokerage firms.
Seyar market ke bare full detels bataye kya kya karna padata aur kaise karte hai
Kya ham khud se trading kar sakte hai agar kar sakte hai to kaise
Hi Dilkash,
Aap khud bhi kar sakte hai ya fir koi brokerage firm ke through bhi kar sakte hai.
hi sir, have you provied your such help in hindi ???????
Hi Ravikumar,
I would love to do it in hindi. However it is a bit difficult as of now to translate the entire site. But I surely look forward to doing in the future.
Pls help me with basic information on stock market…as I have no idea about it.
Hi Nikita,
The information you found in the post above is all you need to get started. Apart from that, there are some investor training programs by ICICI bank and others which you can attend. You will learn as you go, and there is no set rule which will guarantee success when it comes to stock markets.
i want know about share bazaar deply
Sir. I’m a fresher to stock market. I would like to invest money in shares. I want to trade through any one discount broker. I want to know , what all charges which I have to look for before doing a trade. And also what all are the one time charges they charge from me ?
Hi Jithin,
Charges will typically be brokerage which can be around 0.25% or more depending upon the broker. Also if you do not have a Demat account, you will have to get one and there will be some account opening charges depending upon the broking partner you choose. Then there will yearly DP or Depository Participant charges to maintain the Demat Account. These charges are all very affordable and nominal in nature.
Apart from that Buying and Selling stocks will have some STT or Securities Transaction Tax that will be applicable, again a nomimal amount. All these costs are variable and depend on the transaction amount.
sir , i am a student. can i buy the shares
Hi Purvesh,
If you are above 18 then open a Demat account and then you can buy shares.
Plzz ager koi bta do ki share markate me paisa kaise laga sakye h aor kaise kama sakte plzzzz.
Just I wanted to know that can I buy and sell shares online whenever I need without informing broker with share market differ in even in a sec
Hi Mukesh,
If you have access to your own trading then Yes, you can do it anytime and whenever you feel like without informing anyone.
Sir, Plz guide me how to invest in the best broker in India.
Some banks charge 1000 rupees or so for opening a demat account. Is it right? Can a demat account be opened free of charge?
Hi Gagan,
Those charges are for DP or Depository Participant charges alonwith miscellaneous one time account opening, initial starter kit with slipbooks etc. Banks incur those charges. After that every year the charges may be less, however the DP charges will apply.
I have read about fundamental and technical analysis. But I would like to know the stocks to be picked ..for day trading or short term or long term.does stock selection depends only on news.
Hi Shivanjali,
At times the markets are influenced by some major news, however day to day trading depends on a lot of other factors also, from the company’s fundamentals to market sentiments.
thank you for providing useful information
Hi Mahaswara,
Thanks for the appreciation : )
I’m a IT student so I don’t know much about share market, can you tell me about indian trading league
Hi sir,
Very very good information for beginners.. i like it… thanks for the information..
Hi Anil,
Thanks for the appreciation. It is great to know I could be of some help.
Hi, sometimes I heard share market is down , shat exactly it means and how it is going to affect on our stock
Hi Shrishail,
Share markets go up and down. meaning that there will be a drop in prices and when its up there will be some hike in the prices of the shares. However it is not necessary that every share will go up when the markets go up and every share will go down when the markets are down. This also depends on other factors like which company or sector shares you have, what is the reason for downslide of the markets etc.
Hi , sometimes I heard that share market is down , what exactly it mean and how it is going to affect on our stock
Can u help in searching the broker either in online or in the offline
I to want to make an investment in share market as I was doing ca so I had gotten an intrest after listening the fm classes
suggest book to know rules & regulation of Indian stock market.
I am now working in Dubai. I want to play Share Trading as a side profession. Please guide me through the basics and minimum amount shares as I am beginner to this Industry. Can I do this while I am staying here in Dubai ??
Iam a beginner and so i don’t know much about the stock markets. Can u please recommend some important steps for investing?
Hi Shifin,
More than important steps I recommend you ensure that these common mistakes are committed by you while investing in the stock markets. Never be greedy. Follow the Guide given in this post above and avoid these common mistakes while investing the stock markets found at this link: Mistakes to avoid while investing in Stock Markets
Sir i want to know which is the best broker for investment which can suggest me for day to day trading and there broker fees should be less.
I am a new commer so pl tel how to invesment my shars
hello sir, well i’m khushal from chennai…i’m totally new to this trading field..i only have a little idea on what exactly trading is !! but i have no one to guide me through….that is where to start ??? what is the minimum investment i have to put ?? what software is necessary for that ?? all sort of stuff regarding this….so i badly need your help…can u please guide me through so that i can start doing something on it !!…..please….thank you
Hi Khushal,
There are no set rules for share trading, especially there is no set limit to the minimum amount to invest. The amount that you invest should not be everything or major chunk of what you have and never borrow to invest, never. As far as the software is concerned, if you want to do just casual investing then the online demat providers are good enough.
It will be helpful to you if you can first learn about the stock markets and trading. There are lot of investor training camps from ICICI, Kotak, ShareKhan, CNBC etc where they teach you the basics to get started. You will find the required info on their sites.
It’s always a good idea to do your research before investing in the stock market. Knowledge of stock market operations is also necessary. I believe that the best way to learn stock market investment is through practice. For those who don’t want to risk their money while learning to invest, there are virtual trading platforms like Trakinvest.com that can help.
Hi
I don’t know anything about share market but I want invest my money so how to invest please suggest me.
Hi Ajay,
You can follow the guide I have written above. Apart from that your demat account provider will have a relationship manager assigned to your account. They also can help you get started. For someone who is starting off, buying shares that have performed well over the last 5 years or so is a good starting point. Also opt for Bluechip companies that you know won’t fail or run out of business overnight. Never invest everything you have in the share market, but only put a part of it. Diversify your investments between various investment options.
You can also refer here to avoid some common mistakes while investing in shares:
https://stepupmoney.com/11-mistakes-to-avoid-when-investing-in-shares/
All the Best!
Hello @Aniket Vaishnav Thanks For Giving Such Informative article . I really Enjoy Your Article And All Step To start in Stock Market. thanks : )
sir, i am fresher in share market .so pls advise me.
Hi Amol,
Just be careful and keep the pointers I have given in this link below I mind. All the best. Refer to this article on Mistakes to avoid for newcomers in share markets.
https://stepupmoney.com/11-mistakes-to-avoid-when-investing-in-shares/
I have a demat account in a bank which was opened during one if my loan transactions with them. As there was a requirement that I hold a certain percentage of the loan amount in the form of shares if the bank.can this account be used for trading or investing in other shares?
Hi Dipti,
Yes you can. Even if opened for loan or whatever reason if that Account is in your name, then you can use for trading, investing, linking your existing mutual funds etc… basically it is Your DEMAT account and you are free to use it the way you want.
“If during that time frame the buy or sell price is not reached, the order is cancelled and you need to place a new order.”
Sir can you elaborate on this,
If I wish to keep the shares for long time without selling how should I approach and even in that case should I mention sell price.
What are the conditions in which I can keep shares as long term investment?
Thank you for this elaborate effort and time.
If you wish to keep the shares for long term, you can do so without doing anything. Just buy them and let them be. You need not inform your demat provider about anything. They will be there. As long as you do not ask them to Sell or Buy as per your Price, they do not do it on their own. So simply buy and keep. That is all. As far as long term investment is concerned you can keep the shares for any number of years. There are people who have kept shares they bought in the 1990’s and still have them so it is really upto you. If the company whose shares you have bought is a sound company and is known to have a good track record, you can keep the shares for long term.
As far as buy or sell price question is concerned, if you wish to sell you tell your demat provider a certain price to sell. Example sell Cipla for 100 Rs.(just an example) If during that trading day and in some cases the next day, Cipla does not reach 100 Rs. and is hovering at say 99 or 99.5 or something, your Shares will NOT be sold. Same is for buying.
Hope that helped.
If we are keeping the shares for longer time do we get any interest on the amount invested in particular company ??
There is no interest as such on shares, there is value appreciation – meaning the value of the shares you hold may go up. This also goes down, depending upon the markets. But if keep it for a longer term, the value of a share will invariably be on the higher side from the time you had purchased it. Unless the company is making heavy losses or is just not the financially sound, will you see the value go down in long term.
You can also read some good books on stock market and investments.
Buzzingstock Publishing House has published many books on Indian Stock Market which are available in English, Hindi, Gujarati and Marathi.
i am a new comer how to start share market give me basic information
suggest me some names of books in hindi
Hi S Narware,
Pretty much what I mentioned in this post are the basics of investing in stock markets. Mainly have a long term approach and don’t invest in shares just because someone earned some amount of profit in a few months by investing in shares, since their knowledge and yours can be different. Do not take a loan from anyone to invest in shares or any kind of investment. Look at bluechip companies who have had a good track record over the last 5 years. Ad avoid these basic mistakes mentioned over here: https://stepupmoney.com/11-mistakes-to-avoid-when-investing-in-shares/
In your article you just mentioned that
If during that time frame the buy or sell price is not reached, the order is cancelled and you need to place a new order. ( topic Buying and selling ).
So my question is that if it(price) wasn’t reach to a mark which I was expecting so broker will cancel my order but will I have my stocks save or they all will be removed just because of cancelling the order
Or I just need to set a new selling price on the same stock which I have
Hi Siddharth,
If the price id not reached…. your order whether buy or sell will not go through. In such case no stocks will either come in or go out of your account. Meaning, if u placed sell order at Rs. 100 and that price us not reached then the order is cancelled and your stocks remain in your account. You will not loose those shares till a successful sale transaction takes place. So they there with you only.
Hope I understood your querry and gave you a satisfactory answer.
Thank you
I downloaded kotak securities stock trader app and registered on it. After they called me and assigned person to deal with me. Is it safe? I dont know much about trading? What care should be taken?
You need to verify if they are charging anything for their services. The person may be a relationship manager to handle clients and is generally safe. You should never reveal your password, PIN and you should be fine.
To cross check if the person assigned is genuine or not you can call Kotak Securities helpline number and ask about your account and whether any person is assigned to you by the company and what is his name. If the person whom the company assigned is the same what the helpline told you, then you need not worry about it. Also they person assigned to tou can guide with trading also.
thank you so much for your help sir,but I have no one who can advice me…
I want to start investing,,but before that I want to educate myself on the market as I have limited funds…can you please recommend the best online course…
Hi
I would recommend you to enroll for investor education courses that lot of Demat service providers like ICICI Direct Kotak Motilal Oswal etc or others and you should also take guidance of someone trusted who has been investing in shares for sometime.
I am a fresher , want to make share trading as a side proffession. Please guide me
Hi Anirban!
Thank you for your interest in the site.
There are lot of investor education programs by various companies that you can attend. Also you could take up courses on stock markets from reputed trading houses or institutes to better your understanding in stock markets before you can trade. Also I do not recommend daily trading in stocks unless you are experienced trader. Long term investment in stock markets is always advisable.
Thanks
Hi Aniket,
WellSaid,
Please help me out, which one demat account Bank is best for open demat account.
Thanks
Harpender Singh
Hi Harpender,
Most banks offering Demat accounts are pretty reliable. Although many users feel private banks have slightly better services and handle customer queries better than public banks. If you trust a bank and are comfortable transacting with them, you can go for it.
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