How to invest in share market?

There are many sectors in the stock market

There are different types of sectors in the stock market. Oil, Real Estate, Banking, Consumer Goods, Metal, Steel, Power, Communication are some of the sectors where an investor can invest as per his/her choice. If an investor wants to choose his preferred company, then first of all he has to know about the company. Along with the balance sheet, the investor should also get information about the turnover of that company.

Choose your best sector

As we have seen above that there are many sectors in front of investors where they invest. It is a difficult task for anyone to tell which will be the best sector among these sectors which can give better returns to the investors in the short and long term. This task becomes more difficult when the economy of the country is not right and the world is going through an economic crisis. In such a situation, experts advise choosing mid-cap stocks because in such situations large-cap stocks tend to dive a lot.

How to invest

The first question before the person investing would be how to invest? First of all, decide when you need whatever investment you are looking to invest in because this allows you to choose long and short-term stocks. You should know thoroughly about the company in which you will take shares to invest. For this, you can take the help of consultants. It is not necessary that you invest in only one company. You can also invest in more than one company.

Read: Stock Market Basics

Demat account is necessary

You must have a Demat account for investment, for this, you will have to approach any bank or share brokerage companies like Share Khan, Reliance Money, and India Infoline. Until recently, there was physical trading of shares. In this, shares were transferred directly. But now it is not so. Now their buying and selling are done through the Demat account of any bank or financial institution. You can buy and sell shares yourself or a stock broking company in your place.

Read: What is Demat Account

Investment period

Investors can adopt two types of methods for investing. Long-term and short-term investment. Investors can keep the shares bought in the short term for 3-6 months. Whereas the shares purchased in the long term can be kept for more than 6 months. Ordinary investors are advised that long-term investments are best as day trading and short-term investments are riskier.

Nowadays trading of shares is done electronically. This process is done through the Bombay Stock Exchange and the National Stock Exchange. Apart from the exchange, investors can also take the help of brokerage houses like Reliance Money, ICICI Direct.

If you like our article then read other articles and give feedback in the comment section.