An increasing number of Indian investors are now looking to invest in the Indian stock market because of the opportunities that it has to offer to all categories of investors. The domestic benchmark indices Sensex and Nifty 50 had their longest weekly winning streak in the past six years in December 2023 as Foreign Institutional Investors (FIIs) continued their inflows in Indian equities, as per Livemint. Now is, therefore, a very good time for Indian investors to invest in equities. Any first-time investor who is looking to invest in stocks can follow the stepwise guide mentioned in this article and benefit from the best stock broking guidance online.
How do you start investing in stocks?
Investing in the stock market is a completely online activity today, and any investor can access their stock market investments directly through a digital investing app. IndusInd Bank, for instance, offers the INDIE app that helps investors trade conveniently on the stock market and analyse their stocks online. Here is a step-by-step guide on how an investor can start investing in the stock market:
- Opening a demat account: A demat account is a form of depository system that holds an investor’s shares in an electronic form the same way a bank holds money in one’s savings account. The shares held in a demat account cannot be lost or stolen and can be used for carrying out instant transactions. Furthermore, the transaction costs are lower than that in the physical segment.
- Opening a trading account: As the next step, an investor can open a trading account through a digital investing app like the INDIE app or any other web-based digital investing platform. INDIE in partnership with Paytm Money offers easy stock trading solutions that help simplify the digital stock trading experience.
- Picking a stock: Investors must conduct a lot of analysis before picking a stock. They must consider factors such as the expected returns, the stock price, and their investment objectives.
- Purchasing the stock: The investor can then proceed to purchase the stock at its listed price by specifying the number of units.
- Confirming the receipt of shares in one’s demat account: After the execution of the purchase order and the completion of the transaction, the investor’s bank account will be debited with the required amount.
Considerations to be made before taking any investment decision
Investors must keep the following points in mind before investing in any stock:
- Invest only after building a sufficient emergency fund: Investors should first build an emergency fund that can help them meet any pressing financial need at the time of an emergency.
- Analyse your risk-taking capacity: Analysing one’s risk-taking capacity is a very crucial part of investing in the stock market. An investor who has a low-risk appetite must invest in stocks that offer lesser exposure to risk or limit their stock investments.
- Fix your investment objectives: Before making any investment, an investor must decide on their investment objectives. An investment objective is a financial goal like planning for retirement towards which the investment is geared.
- Keep re-assessing your investments and diversify your investment portfolio: It is also important for the investor to keep re-assessing their investments and re-aligning them, if necessary, with the objective of aligning them better with their larger investment goals.
Ending note
With FII (Foreign Institutional Investor) influx increasing, now is the best time for any Indian investor to begin their stock market investment journey. IndusInd Bank’s INDIE in partnership with Paytm Money can serve as the stock broking assistant you need to fulfil all your investment needs.
