How to invest in share market in India?

Wondering how to invest in share market in India? If yes then you have come to the right place. There is no doubt that the share market is one of the best options out there whenever someone thinks of investing. It is one of the high return investment paths that one can take along with the risk of course.

However, whenever it comes to investing in the share market, not everyone is well aware of the whole process. So if you belong to such people and wondering how can you start investing.

Then here is a complete step by step guide to that:


How to invest in share market in India?

1. Get A PAN Card

One of the first steps towards investing share market in India is to own a PAN card. PAN card stands for Permanent Account Number. And it is one of the important documents that you will be needing while investing in stocks. PAN card is basically offers you a 10 digit number which is associated with your financial statement. So no matter where you make money or in which schemes you make your investments. The government will be able to track your status using that number.

2. Get a Broker

The next step is to get a broker. As you cannot just go and start investing in the share market. Instead, you will need help from an authorized agency who will help you with the whole process. And these organizations are what known as a broker and 5paisa is one of the india’s premium broker.

Brokers can be individuals or companies. Even nowadays there are quite a lot of online websites are there which is offering broker services. Some of these top companies are the ICICI Direct, Sharekhan, Kotak Securities, Indiabulls and so on. However, no matter which organization you choose, you have to make sure that they are licensed by SEBI or Securities and Exchanges Board of India (SEBI regulates the share markets).

3. Get a Demat and Trading Account

The next step is to get a demat account and trading account after you get yourself a broker. However, in most of the cases, your broker does the job on your behalf. But if you do not want their service, then you have to get yourself a demat and trading account.

Now the question is what these accounts are? Well talking about the demat account. It will be used for holding the stocks or shares in your name. As you cannot hold your shares in physical form and store them somewhere. Hence you have to keep them in digital , and this is where the demat account comes into play. Also, for creating a demat account, you can try out this app called 5paisa.

Talking about the trading account, well this account is for handling all the buying and selling shares process. It will let you by and sell your shares.
Along with that, you will also need to have a savings account. The savings account obviously is for loading money to your trading account so you can buy or sell shares.

4. Buying and Selling

In the end, there is the buying and selling process. So in case if you want to buy any shares, then you can inform your broker to do it for you. Even in case, if you do not want to bother your broker, then you can try out a trading software.

As most of the broker companies offer their customers trading software. As a result, you will be able to buy and sell your shares without informing anyone.

Also, you must know that the buying and selling take place in two exchanges which are the BSE and NSE. These two exchanges stand for “Bombay Stock Exchange” and “National Stock Exchange. So while you are buying or selling your shares, you will have to keep an eye on these exchanges. Even if you are asking your broker for the same, then do mention the exchange.

Final Words:

Finally, I would say, before investing any of your money do make sure to do proper research. And only after that, you should make your investment choice. Stock market Websites like 5paisa will help you at no additional cost.Else, you may face loss with your first investments. Also, for any questions do comment below.

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