How to invest in the share market


Are you a novice, thinking of how to invest in stock market? Stock investments are the most crucial yet famous avenues of engendering affluence in the modern world. However, beginners are always worried about how to invest in the share market as it is quite a harsh condition for them.

You may hear of the story of “big bulls” who have sometimes gone through severe losses. So, their losing story to awe-inspiring game-changing stories often enthralled us! Nevertheless, few things are there to remember before you start learning how to invest in the share market. Investing in a company’s share provide massive returns because of the power of aggravating effect.

A Demat and trading account is a must-have criterion before one starts his journey. Not to worry! It is not a difficult one to get started! Although the process is relatively hassle-free and straightforward, the tools for investing in stocks are available electronically. So, are you inquisitive about how to invest money in the share market? Let’s get started!

Mandatory requirements to invest in shares

Let’s take a glance at the major requirements to invest in shares, which are shown below:

PAN Card

In order to consider how to invest in the share market, you should have a PAN card. All the details, such as your name, DOB, and others, will be thoroughly checked against the details mentioned in PAN. The government has mandated PAN cards for any minute to large transactions.

During your account opening process, all the customized checks and bank statements need to be uploaded. Therefore, without any hassles, you can open your Demat account within 15 minutes.

Demat account

It is a type of account that stores the shares in terms of a buyer’s name. Anyone can open a Demat account with any safe deposit partaker. Various banks offer Demat account creation services. However, cutting-edge investment platforms also provide Demat account opening services most straightforwardly.

Linked Bank account

As you wanted to know how to invest in the share market, you will purchase and sell the stocks over time. Hence, you need to link your trading account with your bank account in order to make sure hassle-free flow in and flow out of money from your account during the transaction.

Trading account

Are you ready to know how to invest in the share market? In order to make a fruitful stock investment, you will require a trading account with a stockbroker. Please ensure those stockbrokers are registered with stock exchanges. Some top-rated stocks might be available on either BSE or NSE. Therefore, you must open your trading account with a registered broker with both NSE and BSE.

Major documents required for share investment

Here you require these documents while stocks investment, which is shown below:

  • Aadhar Card
  • PAN Card
  • Address proof
  • Income proof
  • Photographs
  • A canceled check from your bank account

So, with these essential documents in place, you are all set to start your investment in the stocks.

Investing in the primary share market

It is quintessential for corporations to provide their shares on an elementary share market via Initial Public Offering (IPO). It means if you think of how to invest in the share market via the primary share market, they can efficiently do that through a commencing IPO. In order to put money into both primary and secondary markets, it will be inevitable for a trader to possess their self Demat account, which consists of electronic copies of their stocks. Furthermore, a trading account is also significant while purchasing and selling online shares.

In some rare cases, it also doable for a trader to directly apply from their bank accounts. A trader will be assigned a few shares in terms of the market’s response to the IPO. After all the IPO applications are amassed and counted by the organization, all those major shares are allocated in terms of availability and requirement. It is sufficiently easier to apply for an initial public offering via your net banking account and a process name ASBA, which stands for Application Supported by Blocked Amount.

According to ASBA procedure, if you think about how to invest in the share market, the worth 1 lakh, rather than being transferred to the company, such funds will be closed into their account. After you get your allocation of shares, that entire amount will be then debited, with the required balance being liberated. With the help of this protocol, all the applications will be sent to IPOs. After allocating shares to the traders, they are enlisted on the primary stock exchange, and now you can start trading them in no more than one week.

Investing in the Secondary share market

Are you excited about how to invest in the share market in this secondary method? The secondary market is generally what traders are discussing while they refer to make investments in stocks. Are you curious about knowing how to invest in the share market for beginners? Look at the best steps for a successful investment:

Step #1

Corresponding to a primary account, a secondary market also needs your personal trading and Demat account. It is an inevitable and starting point of investing in the secondary market. Both Demat and trading account must be linked to your bank account for a facile transaction.

Step #2

Now you have to log into your trading account and select the shares, which you prefer to purchase or sell. Make sure to have a sufficient amount of balance in your account so that you can buy any shares. On the other hand, if you are willing to sell those shares, please ensure you possess a fair share before you think of selling.

Step #3

The next step lies in deciding the price at which you want to purchase a company’s share vs. selling it. Wait patiently for the buyer or seller to answer that request.

Step #4

Now, you need to figure out the complete transaction of the share market by sending shares or money, and you will receive the same.

As mentioned earlier, the leading steps of how to invest in the share market is a pretty streamlined and straightforward process. Ensure that you are careful about the time when you desire to invest money and sustain your financial goal.

A quick glimpse of how to invest in the share market

  • Let’s have a look at the short process of investing in the share market:
  • Must have transparently defined investment objectives
  • Opt for the financial assets in terms of your goals and timelines
  • Start making investments from a young age and do it daily
  • In terms of your risk-taking nature, modify your investment into various financial assets
  • Do thorough research about the company in which you want to invest
  • Don’t believe in rumors
  • Have enough patience and don’t be greedy
  • Take professional’s help before making an investment decision

Things to consider before investing

Now, you must have a clear idea of how to invest in mutual funds and share; let’s check what needs to be considered more before an investment.

1. Diversity in a portfolio is good enough

Diversity in your portfolio is highly appreciated if you think of how to invest in the share market. The more diverse your portfolio is, the significantly healthier it will be! Therefore, such diversity in your portfolio can safeguard you against a tough period of share market crisis.

2. Perceive your investor’s profile

This is highly significant before you move ahead and learn how to invest in the share market. Your investor’s profile can debunk what types of equipment are highly matched to your palette. By understanding, which equipment will work miraculously for you, you can make sure that you are indulging in that amount of risks, which are best organised to your lifestyle.

3. Plan your successful investment journey

You might also evade robust perils down the line if you have that investment plan, for example, the amount of revenue you are willing to earn from your top-notch investments. On the other hand, you need to plan your investment journey, so you need a proper time horizon to stay invested in acquiring that amount.


Certain factors need to be considered when it comes to knowing how to invest in the share market. The efficacious points include:

  • Proper planning of your investments.
  • Perceiving your risk hunger.
  • Ensuring you should opt for divergence in your portfolio.

We hope that the article covered all your questions related to how to invest in the share market. Stock market investing is the best-in-class way to maximize opulence but needs some patience, strategic approach, and persistence.

Therefore, we hope you get a great idea about the investment! Well, get going! Open your trading and Demat account right now and start your first investment in shares. Happy investing! If you have any queries, kindly let us know! We will be happy to help you.



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