There is no minimum limit to start investing in the Indian stock market. You simply need to have sufficient capital to cover the price of a stock. So, you do not need a huge amount of money to start trading in India. It is possible to buy stocks for even less than Rs 10!
You can make a lot of money through stock trading. But you could lose big by investing at random without coming to grips with the nitty-gritty of the market. So, it’s crucial to invest properly in the stock market. Here are some pointers:
How much to invest: There is no minimum amount that you need to trade in the stock market. There are two main stock exchanges in India—the Bombay Stock Exchange and the National Stock Exchange. Stock prices range between Rs 1 and Rs 75,000. You can buy any stock in any quantity. It all depends on the kind of money you have.
How to invest: You cannot walk into a stock exchange and lock your money in! There is a method that you need to follow. Start by opening a demat account and work through a trader. The trader will buy and sell the stocks on your behalf in exchange for a brokerage fee.
The costs involved: Apart from the brokerage fee, you will have to bear some other charges. These are added to your overall investment. Say, you have Rs 100 to invest. Then you might only be able to buy stocks for Rs 80, as you may need the remaining amount to clear the fees. Or, you could open an account with Kotak Securities where you pay zero brokerage charges and minimal fees.
Research: You must carry out some research before investing in stocks. This will help you make profitable investments in the stock market. Related : How to identify stock market trends
As mentioned, you can start stock trading with just Rs 10. But it is practical to invest a decent sum—say Rs 10,000—as a newbie. After you get to know the market and gain more confidence, you can gradually increase the amount.
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