Investing In Indian StockMarket

How to Invest in Stock Market Safely?

The Indian stock market is an excellent way to capitalize on emerging markets. Investing in the Indian stock exchange can a great choice for those, who are looking to diversify their portfolio. India is the seventh-largest economy in the world, and since the late 1990s, it is attracting a large number of foreign investments. So if you are searching in Google regarding how to gain knowledge about share market then this article is for you. we will help you know how to invest in stock market safely.

Invest in Stock Market Safely

In the 1990s, Foreign direct investment of FDI was allowed, which eventually permitted foreigners to invest in the Indian stock market through two major categories: including FDI and FPI.Now confused what is FDI and what is FPI? FDIs are basically active investments, where you can get involved in a company’s management. On the other hand, FPI is a passive investment, which is often made by foreigners, who opt to buy Indian equities.

Before investing in the stock market, one thing you must know, the stock market in India is mainly dominated by two of India’s largest stock exchanges, first one is the Bombay Stock Exchange (BSE) and the second one is National Stock Exchange (NSE). Also, please note any stock market in India is bound to submit to oversight by the SEBI. Another popular way to invest in Indian stock market is buying American depositary receipts (ADR) or global depository receipts (GDR). Alternatively, investors can also acquire shares in mutual funds and ETF based on Indian stocks.

The stock market is the first avenue that usually springs to mind when you are looking to make the maximum returns. After all, the stock market is quite a lucrative investment platform in India, isn’t it? Stocks allow you to grow your wealth through attractive returns. You can either choose to invest once and let your investments grow or trade actively through intra-day trading. The choice is yours. However, when you invest in the stock market with a long-term perspective, the return potential is high.

A word of caution—though—remember that stock investing is fraught with risks. So, you need to look out for the possible risks and be careful when choosing any particular stock.

Here are some rules of trading in the stock market

Don’t hurry when investing in the stock market. Research about the stock, take expert help and then start. Here is a quick stock market guide for a ready reckoner if you need it. If you want a readymade portfolio to start your journey, StoxBox can prove helpful. You would get a portfolio of investments selected based on quantitative, qualitative, and fundamental analysis by experts. Moreover, StoxBoxes are professionally managed avenues, allowing you to leave your investments in expert hands that understand the markets. A better alternative, don’t you think?

Mutual funds

Mutual funds are another popular avenue that gives you the benefit of diversification. Under mutual funds, various investors pool their investments into a corpus. This corpus is then invested in different types of securities by experienced fund managers.There are different types of mutual fund schemes so that you can invest as per your risk appetite and investment need.

There are different investment modes, also. You can either invest at once or choose the systematic manner of investing through systematic investment plans (SIPs).For getting tax benefits, you can choose Equity Linked Saving Schemes (ELSS). ELSS would give you a tax deduction on the money that you invest. This deduction is available under Section 80C of the Income Tax Act, 1961, up to Rs. 1.5 lakhs. Interesting, isn’t it?

The salient features of real estate investment are as follows:

A long term investment that you need to hold till the market price rises to its potential.
Time consuming as it requires thorough research for making the right choice, followed by legal paperwork to complete the process.Exposed to market risks, but holding it till the market prices rise, thereby generating high returns.
You have to wait for the right market conditions, find the best buyer and sell the property to liquidate your investment.No option for diversification.

Salient features of stock investments are:

It is a long term investment though may not be as long as real estate investment.
All you need so as to invest in stocks is to find a reliable stock broker, open demat & trading account, link it to your bank account – all of which can be done online.
Exposed to market volatility, but usually generates higher returns over long term than real estate. However, misleading market trends often make investors take impulsive buying and selling decisions.
You can exit your stock investments anytime during market hours. You can also liquidate your equity investments partially to meet your needs.
You can diversify your investments with a nominal amount and also invest in equities and stocks of various companies.

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