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How To Invest In Share Market: Ultimate Guide (2023) India

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Investing in Shares is somehow tricky, But if you have the proper knowledge on How to Invest in Share Market, then it’s becomes easy to invest.

Decades years ago, investing in shares was a difficult task. But nowadays investment has become quite hassle free due to digital transformation.

Therefore, In this post, we will tell you how you can invest in the stock market very easily. Along with that, we will also tell you what important factors you should consider before investing and how much amount would be appropriate for investing.

How to Invest in Share Market in India?

Investing in Share Market involves 5 steps, which only you need to follow. Here are the steps on “How to Invest in Share Market in India”, which is considered through which you can invest in Share Market easily.

How To Invest In Share Market
  • Search for Best Stock – Searching for the best shares in which you want to invest, for the vision should be of long term. If you are beginner, then consult a financial advisor before choosing any stocks for investment.
  • Open Demat Account – After finding the share, you need to open a demat account on trusted platform. Demat Account is just like a bank account but only difference is, Demat Account is used to hold Shares and Securities in electronic format
  • Ensure Sufficient Funds – Now, I believe you have opened your demat account, but remember to add funds to your account equal to the amount you are investing in the share.
  • Buy the Stock – Finally, search for the share you want to invest in. After that, go ahead and buy the quantity of that share that you desire.

Documents required for opening a Demat Account

As we mentioned, you will need a demat account to invest in shares. However, the question arises about which documents will be required to open a demat account and where can you open your account.

You can open a demat account at your nearest bank or a registered brokerage firm. Alternatively, you can Open Account With Angel One, which is a trusted broker, and I use their services personally.

The documents that will be asked from you to open a demat account are as follows:

  • Address proof (e.g., Aadhar card, passport, voter ID, driving license, etc, any one proof only)
  • Photograph (Passport size or Live Photo from camera in case of digital process)
  • Bank account details
  • PAN Card

Factors To Consider Before Making Share Market Investment

  • Financial Goals
    • Before investing, first decide how long you want to hold the investment.
    • If you want to invest for the short term than investing in the share market may not be the best option for you.
    • The real benefit of investing is seen when money gets compounded over time.Hence, my strong advice would be to invest in the share market for long-term goals.
  • Research and Analysis
    • It is important to conduct thorough research and analysis of the shares before making Investment.
    • Avoid investing based on tips from unknown or inexperienced sources or fake advisor in the market.
    • Do your own research, understand the company’s future plans, and then only make investments, Otherwise, consult a stock advisor.
  • Diversification
    • Diversification generally means not putting all your money into shares of one company.
    • Invest your money in shares of different companies so that if one company faces losses for any reason, your losses can be balanced or recovered from investments in other shares.
  • Risk Tolerance
    • Assess your risk tolerance level, as we know, the share market is very volatile.
    • That’s why, Understand how much risk you are willing to take on your investments.
  • Monitoring and Review
    • After investing, make sure to regularly check your portfolio because sometimes you might come across opportunities that can significantly increase your returns or protect you from substantial losses.
    • Occasionally, due to news or other reasons, a share’s price might start to decline, and by understanding it, you can safeguard your investments from declining.

Minimum amount to invest in Share Market in India

There is no fixed investment amount here because it depends on the price of the shares. Suppose the price of XYZ share is 50 rupees, so if you buy one share of XYZ, you will have to pay 50 rupees.

Just like that, the price of a share is 200 rupees, you will have to pay 200 rupees to buy one share. Similarly, if you buy 100 quantities, you will have to pay 200 x 100 = 20,000 rupees, and it will continue like this.

But yes, If you invest in mutual funds through SIP (Systematic Investment Plan), you need to do a minimum SIP of 100 rupees or 500 rupees. The minimum amount for SIP can vary depending on different mutual funds. Each fund may have its own specific minimum SIP requirement.

For more details on How to Invest in Share Market, you can watch this video –


I hope you have understood everything related to investing in share market. However, there are some things that have been mentioned about what factors to consider before investing to minimize losses, Please strictly follow them.

If you have any doubt regarding How to Invest in Share Market, then you can ask by commenting below. And yes, if possible, share this post with your friends and family so that they can also take their first step toward share market.


Can I Invest 100 Rs in Share Market?

Ofcourse yes, you can invest 100 Rs in share market but the thing is, you need to find the share whose price is below 100 Rs.

Can a Government Employee Invest in Stock Market?

Yes, a government employee can invest in the stock market, including shares, mutual funds, or other financial instruments. The employees are usually allowed to make investments, but they may be subject to certain restrictions or guidelines regarding the types of investments they can make. Usually Government employees can not invest for short term, In some cases, they may need approval from higher authorities before making investments.

Can IAS Invest in Stock Market?

Yes, IAS officers can invest in the stock market, but since they work for government bodies, they need to follow certain restrictions and rules.

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