How to invest in share market

Investing in the stock market will help you to reap the rewards of your labour in the future | Photo for Representation

Investing in the stock market will help you to reap the rewards of your labour in the future | Photo for Representation

Stock market investment is an excellent way to grow wealth. Invest money in share market provide high returns due to the power of compounding effect. So if you invest in share market or invest in stock market you will be able to reap the rewards of your labour in the future.

But do you know how to invest money in share market? If you have the queries like how to invest in share market, how to invest in stock market, how to invest in stock market online or specifically you want to know about how to invest in share market in India, you have to know these steps to invest money in stock market.

To know also about how to invest in share market online or how to invest in shares online, follow the steps below.

Things you should know to invest money in share market

> Try to collect photocopies of all your documents executed for registration as a client, immediately on its execution to make a share market investment. Ensure that the documents or forms for registration as a client are fully filled in.

Try to give clear and unambiguous instructions to your agent/broker/depository participant.

As an investor, you have to insist on contract notes from your broker. If you have any doubt in respect of the transactions, please verify the authenticity of the same on the BSE website.

To invest in share market, always try to deal with the market intermediaries registered with SEBI (Securities and Exchange Board of India) / stock exchanges.

It will always be better to settle the dues through the normal banking channels with the market intermediaries.

You are requested to check about the company credentials, its fundamentals, management, and their recent announcements and various other disclosures made under various regulations before placing an order with the market intermediaries as an investor. You can get genuine information from the websites of companies and exchanges, business magazines, databases of data vendor etc.

You have to adopt investment/trading strategies commensurate with your risk-bearing capacity. You also have to remember all investments carry some risk, which varies according to the investment strategy adopted.

Before registering yourself as a client with any intermediary, you have to carry out due diligence. You also have to read and understand the contents carefully stated in the Risk Disclosure Document.

You have to keep copies of all investment-related documentation (e.g. application forms, acknowledgements slips, contract notes) always to invest in stock market.

It is always better to keep photocopies of documents you are sending to companies, Registrar, Trading Member, and Transfer Agent, etc.

To ensure delivery, you should send important documents by a reliable mode (preferably through registered post).