We reside in the 21st century, where the money factor always keeps investor into the shelter of share market or equity market.
We reside in the 21st century, where the money factor always keeps investor into the shelter of share market or equity market. It is a smart decision to invest in equity, popularly known as shares. Although It takes some golden rules to rule in this sector especially for a starter, it is not as easy as it seems, but if invested prudently shares are the best options to invest, because of the high returns. Smart working, risk, patience, lots of market research and fluctuations analysis are the main keywords to take the investors to new heights.
Procedures to invest in Share Market
If you are actually looking to invest in share market, the following essentials should be followed :
Permanent Account Number (PAN) card or an Aadhar card is a mandatory demand in order to invest in India and to deal with the Demat account and tax liabilities. If you plan to go big in share markets ( Rs. 1,00,000 and above) UIN is needed otherwise, for regular investors, it is not required.
Brokers (Authorised people by SEBI) provides the stock market advisory services because we can not in touch with the shares directly. Either they can be full-service brokers i.e. SEBI registered companies or any person, even any online agencies (like Sherkhan, Kotak securities). Generally company charge 0.3% - 0.5% of the total invested amount.
The Demat account will store the shares you buy from the markets through the brokers in your account in your name. The selling will also be from here and it will reflect in your Demat statements timely. Other the trading account works as an interface for the buying and selling of shares. Once it is opened, we have to transfer invested amounts on this, by linking the bank account with this to use online funds transfer services.
After transferring the money in broker’s account, trading can be done with them either online or offline. A bill and ledger account will be sent by the broker on the trading date. Now the investor will find a text message on the registered contact number from NSE (National Stock Exchange) or BSE (Bombay Stock Exchange) for the trade.
Misinterpretations evade to invest in Share Market:
According to Benjamin Franklin, “An investment in knowledge pays the best interest”. Never put your hands directly on the share market. First, do your analysis on your best level, have a sound knowledge of the financial terms, business plans, meet with experienced peoples. Before investing in any company, go through with the complete details and past records.
Be a risk taker. It is said that “No Pain, No Gain”.
No one can be 100% sure, so never ever start trading in the share market with the borrowed money, or all your money at once, because of greedy thoughts. Always start with your surplus money even if you lose that, it should not affect you.
Never have any unrealistic assumption to become a billionaire at once. It requires long-term patients to gain excellent output in the share marketing sector.
To save from the negative losses, monitoring on the quarterly basis is essential to check out the sudden falling in shares, which can affect the financial growth of the company. Learn when to enter, when to exit the market. If you are not able to do this help with the brokers, if not, sorry share market is not for you.
For more details contact zoid research.