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Investing in the Indian stock market – All in one guide

Investing in the Indian Indian stock market – All in one guide. The Indian stock market has emerged as a  new arena of wealth creation. It is, in fact, one of the best-performing markets in the world.

Is the stock market only for the elite? Can a common man create wealth from the markets? If you have these doubts, this article is for you…

In order to become a successful investor in the markets, all you need is a bit of patience, common sense, an analytical mind, and a thirst for knowledge. Remember India’s ace investors like Rakesh Jhunjhunwala and Vijay Kedia were from an ordinary Indian middle-class family like you and me. If they can create wealth in the market why can’t we?

Share Market Investment - basic requirements

Investing in the stock market is not a herculean task. Actually, it is a pretty simple process. But it doesn’t mean that a person can go directly to the stock market to buy or sell shares.

You need to have certain pre-requisites for that. Buying and selling of stocks need to be done through Brokers approved by SEBI (Securities and Exchange Board of India).

Make sure that you have the following as the basic prereuisites. 

1. A PAN card or an Aadhar card

2. A computer/laptop/mobile/Internet connection (if you want to do trading on your own in real-time)

3. A valid membership with an approved broker.

Brokers are individuals, companies, or agencies registered with and authorized by SEBI to trade on the stock exchanges. Brokers will charge a small fee or brokerage for the assistance they provide. Buying and selling of stocks have to be done through brokers.

Once you have all the above prerequisites, we can kickstart the process.


Once you have all the above prerequisites, the next step is to open a DEMAT (a dematerialized trading account) account under a broker. Make sure you select a good broker. This account will hold the stocks that you have purchased and will reflect them under your name. You can access the data anytime from any device.


The foremost important point to keep in mind is that you should set your financial goal before doing any investment in the market.

Setting your financial goal and sticking to it will help you to build your short-term and long-term strategies. Investing in stocks early can help you to accomplish your financial goals like buying a home, children’s education, or a foreign trip and reap the benefit of compounding. 


Now that you know your goals, you need to define your strategies. You might need to figure out whether you want to invest in the lump sum (a large amount at a time) or by the SIP (systematic investment plan) approach. If you are planning small periodic investments, analyze how much you want to invest monthly. 


 There’s a common misconception among our society that you need large savings to get started. Say, one lakh or above. But that’s not true.

As a thumb rule, at first build an emergency fund, and next start allocating a fixed amount let’s say 10-20% of your monthly income to investment. You can use the remaining portion of your earnings for paying your bills, mortgages, etc.

Even if your allocated amount turns out to be small, it’s good to build an investing habit.

You will be surprised to know that many ace investors started with a small amount and created their fortune by compounding their wealth!


Though there are several ways to learn about the stock market like YouTube channels, Twitter, Spotify podcasts, etc., books are undoubtedly the best media to learn about the stock market.

There are several decent books on stock market investing that you can read to brush up on the basics and help you get a clear-cut idea about how stock markets work. 

Here are some books suitable for beginners…

1. The Intelligent Investor by Benjamin Graham
2. One up on wall street by Peter Lynch
3. Common stocks and uncommon profits by Philip Fisher
4.The Dhandho Investor by Mohnish pabrai
5. The Unusual Billionaires by Saurabh Mukherjea

Remember, the more you learn, the more you earn in the market. So never stop learning.


The next step is to look out for sectors that are expected to boom in the coming years. For example, Renewable energy, IT, etc. looks promising as of now. Watch out for the leaders in these sectors. Invest in them when an opportunity comes. 

Never invest in a business you cannot understand.
Warren Buffett
American Investor and business magnet

You don’t have to roam around in search of winners, they are right in front of you! 

Observe the companies around you. Observe the products or services that you use in day-to-day life – from soap, shampoo, cigarettes, bank, petrol pump, SIM card, and even your favorite watch. There is a company behind everything you use. Start researching about them. Or you can Start tracking the companies that hit the headlines frequently.

If you like the product or services of any company, dig deeper to find out more about its parent company by analyzing the fundamentals and financial statements of that company,    


You should acknowledge the fact that stock market investments are subject to market risk. You can’t risk your hard-earned money to learn the art of investing. This is the significance of paper trading. Virtual stock trading (also known as paper trading) is similar to actual trading where you can buy and sell stocks with virtual money. That’s where the stock market simulator comes into the scene.

A stock simulator in simple terms is software that allows you to trade stocks, commodities, and even ETFs in real-time using virtual money. The best part about stock simulators is that it lets new investors and traders get a real taste of the stock market without getting their hands burned. Let us see the three best stock market simulators optimized for the Indian market.

1. Moneybhai by money control

2. Stock Market Challenge by Dalal Street investment journal (DSIJ) 

3. Money Pot

You should keep in mind that simulators are not a substitute for real-world market conditions, just as flying a plane well in a flight simulator does not make you an expert pilot! You should be well aware of the amount of risk that you can take while investing in the stock market.

Final words...

If you have fewer financial liabilities then you can afford to take higher risks. While if you have a family who relies on you, it is not wise to take uncalculated risks while investing.

In short, one must choose the investments wisely and invest in the stock market considering his/her risk appetite.

Ashin S Anish

Mr. Ashin S Anish is a financial market analyst, certified from the Indian School of Business. A certified Money manager from the University of California, Irvine, Cybersecurity tools, and cyberattacks specialist certified by IBM, Certified in Artificial Intelligence from deep, Certified in Portfolio and Risk Management from the University of Geneva and Certified in Microeconomics Principles by the University of Illinois. He is also an avid money manager who believes that you have to be agile as a monkey with money matters...

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