How i can invest money on share market and what is the procedure to deal in share market .?

Question

i am freshers and have no basic knowldge about share market . so how i can invest my money in share market . What i do for purchase and sale of share of any company. I live in India and citizenship of india.In which bank i open a demat account so that i get maximum rewards. By how much amount is sufficient for being investing in sahare market .

Answer 1

You can start investing in the share market by opening a Demat account and a trading account with any of the stock brokers like ICICI, HDFC, IDBI, Sharekhan, Geojit etc.

There is no minimum amount to invest in the market.  It depends on which particular stock you will purchase.  Stock prices in the market range from Rs.0.50 to a few thousands.

Look at this good tutorial here to know the basics of the share market :

Answer 2

You can contact any leading share broker who will guide you from the basics. You may contact Share khan, Kodak securities or ICICI etc

Answer 3

Hi,

     You are an fresher in a share market and want the advice for this.Firstly do you know what the share market is ?when did it start?or the companies which were in the listings of bse in india?what was the bse sensex when it started?

     You may or may not know the answers for all the above questions,ill tell u bse had started in the year 1980's where there were only 30 companies in the listing and it started with 100 points.But look at todays sensex points it has reached to the peaks overtaking 15,000 points.

     If at all you want to open a demat account you should never open it from banks coz they dont give the proper preference to the demat account holders and also they charge high brokarage.Comparing to that I would advice you to open your demat account from Indiainfolines.It is the share broking company which charges low brokerage charge @ 0.40 delivery and 0.04 for intra day.Never ever try to go for the F&o segment as you are new to the market coz this will undertake the earth benith you.F&O is nothing but Futures & options Or also know as Intra day.Where in you need to buy and sell the shares before the closing bell at any cost may or may not be in profits. For further details u can mail me.

Answer 4

i dont know about share market

Answer 5

You could follow the steps outlined below:

1. Get yourself a PAN (Permanent Account No.), if you don't have one. PAN no is mandatory for any financial/investment transaction in India, including Mutual Fund investments. Usually one receives the PAN card within 15-21 days of application. See the details for PAN Applications, here https://tin.tin.nsdl.com/pan/index.html

2. Open a trading account with ICICIDirect or an Investment account with Citibank. If you already have a bank account with either bank, opening the investment or trading account is fairly simple. You will need to fill up some additional forms, and you can be ready to roll withing 7-10 days

3. I will advise you not to jump into shares investing straightaway. Do that once you have developed some understanding of the market,which businesses are good, why they enjoy some competitive advantage, etc. . Instead invest in the best mutual funds with as little as Rs. 500 per month. A mutual fund is managed by a professional fund manager, who is deeply involved in the stock market, has years of experience, has a team of analysts to help him strategise and buy/sell. He is much better equipped to handle your money and buy/sell stocks on your behalf -money pooled form all subscribers to the mutual fund. Most well performing mutual funds return atleast about 15-20% per annum.

4. Next you need to do some research, about the best funds to invest in. Fortunately there is a very good, unbiased and independent research site dedicated to the mutual fund industry ValueResearchOnline. Check out the top-rated funds there, funds that have a track record of atleast 5 years or more of solid performance. Do some more research, read what the analysts have to say about the fund, fund manager, and its track record, and things like risk/return. You can start form here http://www.valueresearchonline.com/topra...

Its generally not advisable to start SIPs in funds that have performed best in the last 1 yr. Make sure to check what their record is over the last 3 yrs, 5yrs and since inception. Doing this, and reading the Fund Analysis will lead you to the funds with the best track records. This is where you should be investing your SIP money in, why take chances with unproven funds when there are a host of great funds with super track records like SBI Magnum Contra, HDFC Prudence,etc. It is advisable to invest in only the 5-Star or 4-Star rated funds

Its generally not advisable to invest in too many funds. You may end up in funds with similar styles and your returns will end up fragmented. Pick 4-5 funds at most and split your money equally to start with. If you have Rs. 2000 to put in SIPs every month, go for 2 funds that you like. If there is Rs. 5000 sparable, go for 4-5 funds. More than that, again split equally among the 4-5 funds

5. Once funds are identified, you then need to use the SIP purchase option in ICICIDirect or RIS (Regular Investment Scheme) in Citibank. Choose the Fund Company, select the appropriate fund and click on SIP/RIS, enter monthly amount, and you are done!

6. Make sure to monitor your investments every 3 months or so. Check what returns the fund has given you. Periodically revisit valueresearchonline to see what they have to say about your fund and its rating.