Every commercial on the TV makes us think now is the time for us to start investing in the stock market. However, many of us have second thoughts due to valid reasons. Is it the right time to invest? What do stock market brokers in India say? Will I get enough returns and on. Let us tell you, investing in the stock market is not rocket science. But one must always be careful before investing their hard earned money.
Here’s an easy guide for beginners to invest in the market:
Step 1: Get the basics:
Any stock advisory company in Mumbai would advise you to keep a Savings Bank Account, a Demat or a Trading Account and device from which you can operate ready in hand.
Step 2: Get the documents:
Next, make a list of the following documents - PAN Card, Aadhar Card, Passbook or your Bank Statement and last but not least, your passport sized photographs.
Remember, it takes time to get profitable returns. You will not become Warren Buffett in a day. There are chances that you might not get returns as high as you expected. But if you go by the word of stock market brokers in India then you might be able to put a limit on the risks. If you’re new to investing in market and kind of skeptical about them, follow these points:
1) Be debt-free before you begin: The returns on your investments might be high. But the interest rate of your loans and debts will be much higher. So, it would be a wise move to clear out the debts beforehand.
2) Investing other than surplus is a no-no: As they say ‘Cut your coat according to your cloth’. Never invest the money from which you’re supposed to pay your rent and bills. Enter the field of investments only if you have a surplus or an additional income especially if you’re new to this.
3) Always follow the rule of liquidity: Not only it’s a habit that an ideal investor should follow but also it’s helpful in many ways. If you follow online stock trading India then you would know that keeping some cash in hand can always be used as a backup.
Now that you are aware of the basics, here’s what you need to do next:
A) Know your investment goals: Be it big or small, every investment should have a specific goal. Whether you’re planning for your kid’s education or just want to have some extra earnings, one should have a plan so that the investment can be structured. Investing for a long term goal will give you plenty of time and you can plan the return on investment accordingly.
B) Plan your investment: Once you’re figured out what you are investing for, now it’s time to determine how much to invest. Decide if you wish to go for a bigger investment at once or smaller investments every now and then. However, there’s no limit for investing. You can begin with a minimum amount as well.
C) Find an investment Guru: It’s always better to have someone who can guide you if you’re new to something. Get in touch with someone amongst your peers who has experience in investing. Share your plan and know their thoughts, they will always help and guide you on a personal level.
Also Read: Why Investing is Important for Every Individual