Share marketing in India is certainly a very good way to make money. Without going anywhere, one can make good amount of money right from the comfort of his or her home. Online trading has made things easier for the investors and even for the beginners who want to get into the arena of Indian share market. But, it is important for the beginners to learn trading & how to invest their money in the share market of India. In this regard, there are some tips that you can follow. Take a look at them.
Things you need to know how to invest money in Indian Share Market
Before you can start investing in the share market you would need a PAN or Permanent Account Number card. It is the most basic requirement in order to make financial transactions in the share market. So, if you do not have a PAN card, then get it done. It is used for many more purposes; such as for filing IT returns, mutual funds, opening a bank account, etc.
In order to purchase and sell stocks, you would have to get the help of a broker. A broker can be an individual or even a company that has a valid license from the Securities and Exchanges Board of India (SEBI). So, it is important to find a reliable and reputable broker who can help you do trading in a smooth manner. In the present time, a lot of people are opting for online brokers, which provide them the freedom to manage the stocks from anywhere in the world.
Demat and Trading account
Apart from PAN, you would also need a Demat account, which will be used for storing the shares or stocks that you have purchased. So, it is a kind of stock portfolio. Demat or Dematerialized account statement shows the shares you have purchased and sold. On the other hand, the tradition account is like a mediator that helps in purchasing and selling the stocks. As a matter of fact, the trading account and demat account is opened simultaneously.
It is important to mention that in India there are two depositories; one of them is CSDL (Central Depository Services Limited) and NSLD (National Securities Depository Limited). Both the bodies have their participants or agents, and they are called as Depository Participants. These agents hold the shares that you have purchased. However, they are not same as the Demat or Trading accounts.
Also known as Unique Identification Number, this is required when you trade for amount more than 1, 00,000 INR at once. So, if you want to invest big amount of money then make sure you have a UIN.
In the field of stock market trading, you need to have complete control over yourself. It is important that you do not get carried away. Investing too much money in a small time period, without thinking much can make things bad for you. So, it is important to think logically and then proceed.