How to Invest in Stock Market ?

Many people would like to Invest in Stock Markets but as a beginner, one would not know how to Invest in share markets and what are the available options in the share markets Investments like Futures and Options (F&O), Equity, Mutual Funds, SIP etc.

I am here to help you with all such basic questions, If anybody wants to Invest in Share Market then one should have a demat account. What is Demat Account? 

Demat account is created for the sole purpose of Investing in Stock markets, like your bank account you will have the demat account. How to open a  demat account? You can open your demat account directly from your bank, your demat account will get linked to your bank account and then you will be able to transfer money from your bank account to demat account for purchasing the shares. 

An amount transferred to your demat account from your bank account can only be used to share market Investments. If you want to use the demat account money for your personal use and not the share market trading then you will have to withdraw your money to your bank account, It is like transferring funds from your demat account back to your bank account.

Once you sell the shares, the amount gets credited to your demat account and from demat account, you can easily withdraw to your bank account.

What are the options available for opening Demat Account - 

•  Bank

Most of the banks offer this facility but the co-operative and the much smaller banks may not offer this service. In that scenario, you can open a bank account with any other bank who offers demat facility and then you can also get your demat account opened with the same bank. Your bank should have a NetBanking facility.

I have personally used "ICICI Direct", this is ICICI Bank demat subsidiary (You can check their website here). I personally feel that the user interface is very friendly to use and it is very easy to operate as well.

The downtime is rare and I have felt this issue one twice in 7 years, there will be details report available for each stock which will be better for you to judge and get details of individual shares.

Although, the recommendation given by them does not always work in favor and you can avoid depending on their technical calls.

• Share Market Brokerage Company.

Apart from Banks we have many Brokerages Company, they are not Banks and work only in Share Market, Mutual Funds, SIP, Bonds, ETF (Exchange Traded Fund) etc. 

If your bank does not have the Demat facility, you can contact any of the Brokerages and get the account opened and link your existing bank account. Again repeating, your bank should have a NetBanking facility.

I have used Angel Broking Pvt Ltd demat account, the user Interface is moderately good and has faced several downtime issues. The fundamental recommendations given by them works in our favor most of the times so you can rely on and Invest for some longer time frame, maybe for 3 months to a year time frame.

What charges will you have to pay?

Whenever you will transact via your demat account, you will have to pay the brokerages as per the brokerage defined by the Security Company (Demat Account). These charges will be charged at the time of purchasing and even selling of shares, these charges will include brokerage charge and the tax.

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