Do you wish to start investing but are clueless about how an Indian Stock Market works? Fret not! We have got you covered! We will be talking more about the Indian Stock Market and how to invest in share market starting from the little money. 

How, When, and Where to invest are the most important questions to keep in mind. Have you ever wondered why the Indian Stock Market is given so much importance? Well, the National Stock Exchange of India Limited (NSE) is one of the leading stock exchanges of India, which is located in Mumbai, Maharashtra. It is also said to be the world’s 7thth largest stock market (Feb. 2021).

India has seen one incredible growth in the number of people investing when the pandemic hit and the number of investors jumping into the market in the post-pandemic boom. People started realizing that investing is not a want but has become a need. According to the Economic Times report it said, India will overtake France to be the sixth-largest in the world. 

But why did India see such a peak in the market cap during such a turbulent period? How and Why did it happen?

Pandemic was such a struggle to the entire world, from losing jobs to losing people the terror was real. As there was no other space to get the income, people used to see it as passive income but a pandemic made them switch from passive to the main income, and hence, it led to the increase in the number of investors. 

But how exactly to invest in stocks with little money?

It is the biggest myth when it comes to stock investing that one needs to have huge money to put. These myths rob good minds (or investors) to take the first step towards investments. Sometimes to keep waiting till the finance grows and to invest is one of the biggest mistakes one makes.

But you know what? As a newbie, you can start as low as 100 Rs as an investment at the start. 

Here are some tips that you should keep in mind while investing:

• Choosing A Good Platform

Choosing the right platform to invest in is one of the important tasks, Angel One is said to be one of the best places to start with your investments. It is one of India’s leading platforms as full-service brokers, they offer flat brokerage charges. It is also one of the easy, modern, and fastest ways to transact.

• Financial Goals Clarity 

Having financial clarity at the start is so important for an Investor. If there is no financial clarity you’ll end up having lifetime confusion. Ask yourself, why are you investing? Hence, to get good returns draw a better timeline. 

• Assess your Risk Tolerance 

Ask yourself, what kind of risk can you tolerate? Once you`re clear about the kind of risk you can take. You can build your emotional quotient that way. 

High risk

Medium-High Risk

Medium Risk

Medium Low Risk

Low risk

• Learn the Basics 

Having prior knowledge of not only what you wish to perceive but also in general, where you`re investing your money is extremely important.  So make sure you learn the basics first, that will help you build your confidence and will never give you second thoughts on any of your investments. 

• Focus on Your Savings 

Every rupee has a value and in the period of time it gets compounding, so even if you try saving 500 or 1000 Rs per month it`ll be a good investment for the future.

• Keep a Watch on Penny Stocks 

Penny stocks are those shares that are available for less than 10 Rs. or sometimes less. These stocks keep on fluctuating, just because of the less price people tend to buy more in quantity. Hence it is important to be aware of these stocks. 

• Do not Mix Emotions with Investments 

Being a slow starter is a smart move, sometimes slow and steady actually help one to win the race. This allows one to be a careful investor because most of the time new stock investors suffer from losses but at that moment they tend to forget that behind every loss there’s a win and that win is a lesson. 

The biggest takeaway example, in 2020 because of the covid-19 plunge pharma stocks showed excellent performance. The important fact is, to keep up with news from political factors to environmental factors of the country to companies, each one of them stands important. Hence, read. From news to articles to blogs of Angel One which are mostly investment-centric and latest updates on stocks, one should keep track of all of it. 

Woah! You`re one step ahead in the process to become an Investor!

Let us know about your first investment experience in the comments.