In August 2022, the Indian financial markets witnessed a new milestone. For the first time ever, the number of Demat accounts in the country hit the 10-crore mark. The numbers have more than doubled since the pandemic and are a clear indication of the growing acceptance of the securities market as an investment avenue among individuals.
No doubt, investing in the stock market is nothing short of a roller-coaster ride. But in the long run, it is one of the most effective ways to build wealth. Picking the right stocks with the right investment strategy can give excellent returns, help you diversify your portfolio, and even act as a secondary source of income in times of emergency.
And with so many people accepting the stock market as a lucrative investment avenue, you must also be tempted to open an account and start investing.
Not sure where to start? Read this article to know in detail how to start your journey in the stock market for beginners.
The stock market, or share market, is where companies issue shares that buyers and sellers trade. It also involves other financial products like bonds, mutual funds, and options. The stock exchange is the platform where these trades happen, ensuring proper regulation. Stocks can only be traded once listed on the exchange. In India, we have two stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
You can easily start investing in the share market by opening a Demat account online. Here's how to begin.
A Demat account holds your shares in digital form. The first step is to choose a registered stock broker who will trade on your behalf. Make sure to evaluate brokers based on their fees, research services, and user interface. Once you've chosen a broker, you can open the account and access it through their app or website.
Before you invest, understand how investing works. Start with fundamental analysis, which looks at a company's financials. Also learn technical analysis, which focuses on price trends and market movements.
This knowledge helps you decide whether to go for stocks, mutual funds, bonds, or other options based on your goals. In India, the stock market opens at 9:15 AM and closes at 3:30 PM, with a short pre-opening session from 9:00 to 9:15 AM.
After selecting the stocks you want to buy, transfer money into your Demat account. Your broker will handle the purchase and ensure that the money is debited from your account and the shares are credited to you once the transaction is complete.
To minimise risk, invest in stocks across different sectors. A well-diversified portfolio helps spread risk while aiming for better returns. Stick to investing in 10-12 solid companies.
Regularly check your investments and stay updated on market news. Monitoring your portfolio helps you decide when to buy, sell, or adjust your holdings to maximise profits.
You can open your Demat account from any of the registered brokers. Irrespective of the broker, you will need the following documents to open your Demat account.
- Bank Account
- PAN Card
- Proof of Identity
- Proof of Address
- Canceled Cheque
Before you invest, keep these important points in mind to manage risk and make better choices.
Know why you're investing. It could be for retirement, buying a house, or saving for your child's education. Once your goal is clear, decide how much you can invest and for how long.
Learn how the stock market works. Know the difference between NSE and BSE, and what Sensex and Nifty mean. You don't need to be an expert, but a basic understanding helps you get started with more confidence.
Before investing in any stock, check the company's past performance, financials, and future outlook. Don't go by tips or social media posts. If you're unsure, it's better to ask a trusted advisor.
Some stocks go up and down more than others. If you don't like too much risk, stick to stable companies that have been doing well over time. Your comfort with risk should guide your choices.
Spread your money across different companies or sectors. This way, if one doesn't do well, the others can balance it out. A mixed portfolio helps reduce overall risk.
Ready to invest in the stock market? With Tata Capital Moneyfy, you can easily invest in the best securities and mutual funds that will help you achieve your financial goals seamlessly. Get in touch with our financial experts, who will help you pick the right mutual fund investment based on your goals, risk tolerance, and investing style. Start your investing journey today with the Moneyfy app.
You need to open a Dematerialised or Demat account and a trading account to invest in the share market. The Demat account holds your shares in electronic form, while the trading account facilitates the buying and selling of shares.
Making a short-term or a long-term investment depends on your unique financial goals and plans. Which is better for you requires careful consideration of your risk appetite, investment amount and the preferred period of investment.
Yes, you can invest Rs 100 in the share market. All you have to do is open a Demat and a trading account, identify a stock that can give you high returns and buy it.
To start investing in the share market, you need first to open a Demat and a trading account. After this, you need to log in to your trading account and select the stocks you want to buy. Next, specify the buying price. Once your transaction is complete, your shares will be reflected in your Demat account.
To withdraw money from stocks, you need to sell your shares through your Demat account. After the sale, the funds will be credited to your linked bank account.
In stock markets, you can trade stocks, bonds, mutual funds, ETFs, and derivatives like options and futures. These instruments allow investors to diversify and manage risk.
You profit from stocks by selling them at a higher price than you bought. You can also earn dividends if the company distributes profits to shareholders.
Click the “Allow” button to receive notifications
We're constantly crafting offers and deals for you. Get delivered straight to your device through website notifications.
All you have to do is click on “Allow”.
Now keep a track on your favourite fund
Go to the watchlist page to remove a fund from the list.
No funds are added to watchlist
Add your favourate funds to watchlist to keep them handy
No funds are added to portfolio
Add your favourate funds to portfolio to keep them handy
Contact Us 
30 April 2025
5 mins read
Twitter
Facebook
Previous Post
