How to Invest in Shares

How to Invest in Shares in INDIA: If you have a fair amount of money to invest and if you are planning to invest them in Equity, here is something for you.
First, you need to get a Demat account. To be frank, you cant invest in shares without a demat account as shares cannot be held in physical form. Demat account is mandatory to buy shares.
But, you can invest in Mutual Funds without a demat account and that is better for you some one who is new to the investment and who has not to prior knowledge in the share market / stock market and it is dangerous to invest in stock market by hearsay without analysing the financials of the company yourself and satisfying about the credentials of the company.
Best option for people like you to invest in stock market is thru Mutual Funds wherein you need not invest in shares individually, it is the job of the Fund manager. Select a good fund based on the previous track record of at least 3 years and select a fund. Don’t invest in pure small cap or sector oriented funds. Invest in either large cap or multicap funds. Go thru http://www.valueresearchonline.com which gives you all information regarding Mutual Fund and also advises you on which fund is best in which category based on their past performance.
How to Invest in Shares

How to Invest in Shares

And if you have Demat account, you can straight away proceed with your investment in Shares. The below were some of the investing strategies that will help you understand how to invest in share market. This works all over the globe irrespective of the country and the stock market you are dealing with.

Share Investing Strategies:

To help succeed in the sharemarket there are a number of tried and true strategies worth adapting to suit your income, goals and aspirations:

Think Long Term of your Share Investments
Look for companies that present good value and above-average profit growth. If you are choosing to invest over trading shares, always think long term. Don’t go looking for quick gains through active trading.

Diversify Your Share Investing
Depending on your investment goals and risk appetite, you would diversify your holdings. Fluctuations of individual stocks leave you exposed to certain risks if you put all your eggs in one basket. Invest in a few different company shares across different industries.

Think Liquidity
Market liquidity refers to shares that can be easily sold if you need cash at short notice. This is one of the advantages of the sharemarket over property. Most shares, especially the blue chip companies (those in the top 200 largest listed companies) are very liquid stocks because millions of their shares are traded each day.

Actively Monitor Your Share Investments
Shares need to be monitored. For most portfolios, all that is necessary is that you read the newspapers to track their rises and falls. However, more volatile shares, such as exploration companies, may need to be monitored by the hour. This can be done on the http://www.valueresearchonline.com which updates prices every 20 minutes, where real-time share prices are available for all SEBI listed companies

Please share your comments and view below. Happy Investing!

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About Haja

Software Engineer by profession, Author and the Founder of "bench3" you can connect with me on Twitter , Facebook and also on Google+

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