Investment is extremely important once you start earning money and living independently. Every working individual today looks for multiple avenues to invest his/her money. Some opt for property; some make fixed deposits and the most commonplace to invest your money these days, is in the share market.
What are the key factors of investment?
Investment is a concept that came into being for the growth of your money. Investment is made with the intention of drawing or making additional profit, along with your regular income.
Investment isn’t short-lived. It is made with the intention that the returns will grow with time and is normally looked at as a security for the old age.
Investment can also lead to losses. So, be careful with your money and where you put it.
Stock market investment marks the beginning for many investors and attracts the young working-class too.
So, how does one purchase shares in India?
To be able to buy stocks in India, one must have a trading account. A trading account will enable you to carry out transactions without any hassle. So, how can one go about it? Let’s discuss:
Savings Account – Trading can only be done once it is linked to a bank account. So, in order to invest, one must have a savings account first. When a share is purchased, the amount automatically gets debited from the savings account. Also, when the share is sold the money from the share gets credit into the account.
Trading Account – It is the main account that is used to buy and sell shares. Every time someone wishes to buy or sell stocks. He/she has to login to the account and transact. The savings account is connected just to pay or receive money. The rest of the activities related to the share are conducted here.
Demat Account – A trading account needs another place to store the shares. It cannot store all the data in the account. So, a demat account is needed. When all the shares are sold, they are taken out of the demat account.
How to invest and where to invest?
Company documents – The best method to understand an industry or a sector is to go through the companies offer documents and portfolio.
Annual reports – If the company’s portfolio is clear enough for you, you can refer to annual report and earnings and accordingly decide.
BSE declarations and Press release – Every company regularly generates press releases and announcement to stay in the news. Such news’ can be seen at the company website or BSE website.
Daily stocks – If you check shares prices every day, then you should look for stocks to buy today column in every stock related newspaper, forum or news channel.
Websites – There are websites that only deal with share market status’ and give updates. If you’re keen, you can always gauge those websites.
Stock Market is critical; it can take you through some refreshing highs and depressing lows. It is a learning curve, and you learn through the victories and errors. Only then you learn to master the art of investing in stocks.
