i am very interested in investing in shares, though i would like to start with small money. what is the proced

Answer 1

If you have never invested in stocks before, first know that it is a form of gambling. No-one, not even the "experts" can predict what the market will do.

That having been said, if you still want to invest, start with a mutual fund, where you can decide how much you want to invest and does not have a minimum.

Call a brokerage company such as Fidelity (1-800-544-8666) and speak with an agent. tell them what you want to do and tell them you want a fund that has had double digit profits for 5 to 10 years (it doesn't have to be a Fidelity fund). A fund like that is usually a safe bet. Also, ask if that fund is very diversified ( deals in many different markets ie: domestic, foreign, finance, consumer goods, etc). Don't let them make you decide immediately. Think over what they have told you and if necessary ask more questions, until you are confident.

Also, if you want an investment that is easily accessible, and liquid you could call a financial organization like ING. They have an account attached to your checking account, that pays about 4.5% annually guaranteed. It is not double digit, but it is safe, and your money will grow slowly.

Anyway, I hope I have helped you, and good luck.

Answer 2

1st: it's always better to consult with an expert before you put money for some share. If you don't have that option, then you also can be an expert in this field. But you have to spend quite a good portion of your days in share market just by looking the ups and downs of the share for individual company. Gradually you will understand this and time will come when you can predict the market with almost 90% efficiency. (no one can predict the other 10%)!

Thanks,
Somu

Answer 3

You need to have 3 accounts to start investing in shares.
First you need a banking account where you will deposit money and issue cheques for purchases of shares. You will need this account to deposit cheques ( when you sell shares, you will receive cheques).
Secondly you need a trading account. This is to buy and sell shares. You can open this account with any of the stock brokers near your residence or office. All your purchases and sells will take place through this account. Please understand all the terms and conditions including brokerages and taxation parts. Discuss these matters with your broker so that there is no confusion in your mind. Calculate cost of trades based on this information. Cost of trade occurs on every trade ( buy or sell) that takes place. Please understand the implications on financial front.
Thirdly you need to open a demat account to park your shares. You can open this account through the stock broker where you open your trading account. This also involves money. Annual charges, opening charges etc are charged. Please discuss this matter with the broker, too.

Alternately you can open these account with ICICIDirect, HDFC Securities etc to have seamless operations. Another plus will be you will be able to do the trading online with these entities.

You can also think of investing small amounts regularly through SIP ( systematic investment plan ) of some reputed mutual funds. These are safe investments compared to direct share investments if you do not know much about share investments ( like fundamental study, analysis, newsflow monitoring et al).

One advise from me : please do not trade on hearsay i.e do not cater to inside news, gossip, rumours etc. Usually these will lead you to hugh losses. Be your own guide. Study yourself and then take your decisions.

Best luck.

Answer 4

Good though to start with small money and on big cap. You need to 'feel' the market first when you are just started. If you want information about stock investing, visit http://www.stockpickguide.com

Answer 5

Open a brokerage account at Zecco and I will help you for FREE. (I am a Portfolio Manager with over a decade of experience in the Stock Markets)

Answer 6

It is very easy to trade online to buy and sell shares. or to go IPO or Mutual Funds. You can choose one of the stock brokers like reliancemoney, sharekhan, apollosindhoori etc., and open a trading and demat account with them. Please visit,
http://rr0101.googlepages.com/helpline
for further details. Best of luck.

Answer 7

STUDY FIRST

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