Many of us are unaware of how to make investment in share market in India. In this article, we are going to talk about the basic aspects on how to make investment in share market in India. We will go step by step by first understanding how to begin with the investment process. Further, we will know how to make a good investment in the stocks & then how to take investment decisions.
First Step on How to Make Investment in Share Market in India
First of all, don’t baffle yourself on how to make investment in share market. You can just begin by visiting any of the top broking company websites like sharekhan, angel broking or motilal oswal. These companies have a good online program where you can sign up and have a step by step method on how to begin with your share market investment journey.
Apart from this online process, you can also contact the marketing executives of these companies. These executives will explain you everything from how you can open your demat account for investment & trading.
However, to make a good investment in the share market is an art you will learn with experience. It is advisable to begin with baby steps and small amounts. Further, let’s see which factors you should consider to make a good investment in Stock Market.
Tips on How to Make Investment in Share Market in India
When you open an account in a stock broking company, they provide you with a relationship manager. This manager always keeps you posted about the highs and lows of the market. The manager also advises you about which shares you should buy and sell. So you can rest assured that you have an expert guiding you through your share market investment journey.
However, if you truly want to be an independent investor & make good investment decisions in future, there are few basic factors to understand. Further, let’s see these factors that can help you to take the right investment decisions in share market.
Tips on How to Make Investment Decisions in Share market
Once you have a decent amount of experience trading in the share market with the assistance of your manager, you can move ahead independently. However, while moving independently you can check some factors below that can help you make good investment decisions.
- Consider the Sales revenue of a company while investing in its shares. Sales revenue is an essential factor to evaluate the financial strength of any company. This will determine whether the company’s performing well or not and help you get good returns on your shares.
- Also check the net income of the company. Whether it has grown from the previous year or not. This will help you to invest in the growing companies’ shares.
- Debt is also a factor you can’t afford to miss. If the company has huge liabilities, then it’s obvious that maximum of its earnings will go towards paying the debts. This gives you a chance to skip investing in such a company’s shares.
- Also check the liquidity that is the cash holding of the company. As companies with high liquidity have more scope for expansion.
- Valuation of the company is also an important factor to consider. As this will determine that the price of the stocks you’ve bought will increase or decrease.
You can get the annual reports of the above mentioned factors on the internet or you can also ask your relationship manager to provide you with these details.
So these were some basic points to go through on how to make investment in share market. To begin with your investment journey, you can visit any of the company websites mentioned in the article. Also, you can visit their office personally or ask the company representatives to explain everything in detail on how to how to make investment in share market.