Basics of Stock Market - Beginner

How to invest on the share market

Before you decide to invest in the share market, there are a few things you need to know. Stocks can provide high returns because of the power and compounding effect. To trade in stocks, you will need a trading and demat account. Don't worry! It is not difficult and can be done online quickly and easily. This article will cover all the details required to open a demat account online.

  • Bank account
  • Broker
  • AADHAAR
  • PAN Card
  • Statement from the bank
  • Personalized cheque

Bank account

To transfer funds to the stock market, you will need a bank account that is linked to your trading account.

Broker

The broker acts as an intermediary between the stock market and the investor. A broker facilitates trade between buyer and seller in the stock market. A SEBI-registered broker must open a demat bank account.

AADHAAR

AADHAAR card must be presented to open a demat account in India. AADHAAR is the only way to authenticate your identity. Before opening a Demat account, you must complete Know Your Customer (KYC), which is entirely based upon AADHAAR.

PAN card

A PAN card is required. PAN will verify your name and date of birth details. PAN cards are required for all financial transactions.

During the online account opening process, you will need to upload your bank statement and personal cheque. You can easily open a demat account within 15 minutes.

Let's now learn how to invest shares

  • Set clear investment goals
  • Based on your goals and timelines, choose the best financial assets
  • Start investing young and continue to invest regularly
  • Diversify your investment portfolio based on your risk-taking nature.
  • Complete research about the company in which you are planning to invest
  • Rumours are not something to believe in.
  • It is important to have patience, not to be greedy
  • Before making an investment decision, consult an expert

Investing in share market will yield higher returns than other financial assets. You have many options when it comes to financial products. You can choose to invest in short-term or long-term assets depending on your goals and needs. I hope you have a better understanding of how to invest on the share market. So get going! Get started investing by opening a trading or demat account.


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