First you need to start your investments is a Demat account. There are various companies as well as bank subsidiaries offering Demat accounts for their clients but if you are just a beginner and have knowledge of money market then there are several factors and Do & Don’ts to keep in mind before start of investments.
Some important points to keep in mind:
Research means studying the Balance sheets and profit & Loss accounts of a company. Check there Earnings per share, Dividend payouts in last 5 years and Profit Tend for last atleast 5 years. Also check out Management discussion and analysis of stock you are going to invest into.
Be particular about your short term and Long term goals. You must be clear how much Risk you can take and afford. Always keep a plan handy for reference.
Don’t keep all your eggs in one basket, invest in different industries and sectors so that your earnings are not dependent on one stock, sector or industry.
Investment timing is very important, select appropriate time when there is correction in the market, wait for it and then Go. It may take sometime but is best for earnings.
Don’t jut pour all your money at a single point of time. Be consistent and invest at regular intervals this will help you averaging the cost of your investment and taking it down.
Use Market Corrections
Use market correction wisely as it is always better to invest at ₹ 150/- than ₹ 100/-, Market correction gives benefit of investment at low cost quality stocks in your portfolio.
It is very important to keep your investment expenses very low. There are various charges and costs associated with investment and these just can’t be ignored. Always keep an eye on your trading costs say Statutory costs, exchange transaction cost, Demat AMC, brokerage, Turnover charges etc. All these must be added into your cost to calculate effective investment cost.
Everyone knows about brand power, so is in market, always chose quality stocks and quality means Earning from core business, Profitability and margins than Peer Companies, Assets Turnover etc. Whether its Large caps or Mid caps this theory will always work in your Favor.
It is always recommended to take control of your investment in your hand, take help of technology these days, use trading apps and online trading platforms to manage your trades.
In the end just a suggestion not to follow the crowd and make investments in a systematic manner, Success is more about discipline than skills.