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In order to able to invest in the share market in India, the following procedure needs to be followed
Get a PAN or Aadhar card:
PAN card or Aadhar card is an important requirement for investing in India. It is required for KYC purpose while opening an account with the market regulator, the securities and exchange board of India. Beside this, there is a requirement of six-month bank statement along with a cancelled cheque, which is necessary under the new rule to open a demat account.
Get a Broker:
An individual cannot directly go to the stock market and start buying and sharing shares. Buying and selling of stocks have to be done through brokers. They are individuals, agencies and companies registered with and authorised to trade on the stock exchange. Brokers will charge a brokerage fee for the assistance and guiding provided by them.
Get a demat account:
Once you have a broker on-board, the next step is to open a demat and trading account. This account will have all your purchased stocks and reflect them in one place under your name. Shares cannot behold in physical form and they form part of the dematerialized or demat account.
Read More: How to Choose Stocks for Long Term Investment
Buying and Selling:
In order to sell and buy shares, one needs to inform the broker of the quantity to be sold or bought with the price at which you wish to carry out the transaction. While investing in the share market, these are few tips which can prove to be useful while investing:
Understand your investment requirement and take decisions
Decide your goal and plan the investment accordingly.
Find out the right stocks which fit in your investment objectives
Enter the market at the right time.
Try and buy the shares at the lowest cost when the market is weak.
Good communication with the broker is needed while trading
Monitor your portfolio regularly
Try to invest in mix stock instead of focusing on a single one
Here are six reasons why, in the event that youʹve not invested in stocks yet, you will need to begin this year:
Opportunity to possess a current business:
When you purchase a stock, you get the opportunity to purchase a stake in an already existing business with the huge preferred advantage that business already has its employees and infrastructure set up, and is now ready for action. You straightaway get a case on the businesses future benefits with no of the headache or effort involved in running it.
Read More: Top 5 Ways to assess Stock Market Performance
Liquidity:
Purchasing stocks, you right away rid yourself of all the above problems. You can buy and sell your stake in the business with a single call or a couple of few clicks.
An astounding number of choices:
You can purchase only if you truly like something. It would be a truism to state that you will try to find the most profitable business being sold at the cheapest cost. In any case, the fact of the matter is that the stock markets set you in a place where it empowers you to settle on such a decision.
Little money required:
Regardless of whether you intend to begin a little market in your neighbourhood, you should stake a significant measure of cash on the accomplishment of only one venture that might take off as arranged. Contrast this with purchasing a stake in a business in the stock market. You can get a piece of any profits with even only a couple of hundred rupees.
No hassles of negotiations and brokerage:
Stocks, the price is right there. No hassles of negotiating with the party. The brokerage is usually low which ensure that a substantial part of the investment is not taken up by frictional costs.
The prospect of a higher return:
One thing at the very important of maintaining business as opposed to putting your money in a bank fixed deposits the desire for higher profits for your investment. In this way, businesses more often than not earn returns a lot higher than your average ventures. Try to purchase a stock that has demonstrated that it can achieve the above with reasonable certainty, and to get it at a decent cost.
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