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The Basics of Investing in the Indian Stock Market for Beginners

Introduction
If you've been interested in investing but weren't sure where to start, this post is for you. Whether you're a seasoned investor or looking for your first opportunity to get involved, we'll cover everything from what stocks or equities are and why they matter to what risks are involved with stock market investments and how best to get started. By the end of this post, we'll have given you enough information on these topics so that you can make an informed decision about whether investing in stocks is right for you. In addition, if there's anything else we didn't cover that would help us understand how stock markets work, please let us know!
What is the Stock Market?
The stock market is the place where people buy and sell stocks. A stock represents a share in a company, which gives you ownership of that company. When you own a share, it means that you have 'rights' to any profits made by your company.
A stock can also be referred to as an equity security or simply an equity because it represents ownership in something (in this case: companies). 

Why Invest in the Stock Market?
Investing in the stock market can be a great way to grow your wealth over time.
The risk of losing money is higher than other investment options, but it's still less risky than gambling or playing the lottery. Though equity investments are volatile in nature but staying invested for the long-term can help mitigate the risk. Long-term equity investments have proven to be an excellent strategy for wealth creation & have outperformed other asset classes historically.
Equity is one of the best asset class to hedge inflation. Inflation can be quite damaging & can eat a major chunk of returns generated. Investing in Equity & Equity related financial products, can provide you higher real rate of return. The theory is simple: a company’s revenues and earnings would also rise with inflation over the course of time. Thus, generating a positive real rate of return.
Investing in stocks not only leads to capital appreciation but it can also be a good source of income through dividend payouts.

How to Start Investing in the Stock Market?
You can take exposure to stock market by investing in stocks directly or through equity mutual funds. To start investing directly in stocks, you will have to open a demat account with an online broker. A demat account is basically a virtual space where your securities are stored and tracked. When you buy shares of a company, they will be credited to this account and when you sell them later on, they will be debited from it.
If you are a professional you can look at investing in equity yourself, else we strongly recommend to consult your financial advisor before making any investments.
Investing can be an effective way to grow your wealth over time, but it comes with risks and requires some knowledge of the process.
Investing can be an effective way to grow your wealth over time, but it comes with risks and requires some knowledge of the process.
You need to understand the basics before you start, which is why we've put together this post on investing in the stock market for beginners.
The first thing you should know about investing is that there are two main types: active and passive. Active investors try to beat their benchmark indexes or other traders by picking stocks themselves; passive investors simply buy index funds that track an index like Nifty 50 or BSE 30 (and charge lower fees). Passive investors usually don't bother learning about individual companies because they believe in the theory that in the long-term, market will outperform any single investment, so they just want to mimic the market!
Investing in individual stocks isn't easy; even experienced traders sometimes lose money! If you are not an experienced investor, we recommend you to start with equity mutual funds rather as they offer excellent risk diversification & first step to wealth creation. Please consult your financial advisor before making any investments.
Conclusion
Investing in Equity is a great way to grow your wealth over time. It can be risky, though, so you must understand how the market works before investing. We hope this article has helped you learn more about investing in general and what it means for your financial future!

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