Regarding investment in share market

The stock market seems very lucrative from the outside, but once you step into it, it’s like a roller coaster ride; it has lots of turns and twist that it will set your head spinning. So be careful.

If you want to invest in the stock market, my suggestion is:

1. To know the basics of stock market, what's index, how shares are valued, bonus, debenture, what’s dividend, etc.

2. To understand how the stock market functions, there are many different parameters that affect the share market, right from inflation to international crisis. You want to be able to judge these parameters to understand how the market will move up and fall down trend.

3. Study the major company you want to invest in. Technical and fundamental Research them, Don’t INVEST BECAUSE SOMEBODY SAYS YOU TO. It’s your own hard earned money; don’t let others decide where you should put it.

4. Firstly go in for a list companies, Reliance, Birla, like Tata, etc. The big names are costly; but they are strong and will give you outstanding return in the long term.

5. Don’t invest in small companies, in hopes of fast profits, these companies are mostly scam, and will crash down with all your money.

6. Active market investor, don’t put your money where you are not sure.

7. Don’t put more than 60 percent of your saving money in share market. It’s unstable and when it moves downward, you will lose funds if you have to cash your shares then.

8. Invest in 'Mutual Funds' they are the safest route - They will invest your money into the stock market, and because they have professional knowledge and information your money is much safer with them.

To invest in share market you will need:

1. A demat account with any approved depositary, because nowadays shares are traded in demat form only

Example: HDFC , ICICI, SBI etc.

2. You can trade throw a trader, in which case you won’t require a demat account, however beware the trader has full access to your funds and shares and can simply dupe you.

3. To invest in mutual fund you will require getting your KYC done. You can check the details here:

Good luck :)

Stock Tips | Forex Tips