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Let’s say 26-year-old Meera from Pune wanted to grow her savings of ₹1,00,000. She wasn’t sure where to begin, but after reading expert advice, she split her money smartly:
After a year, her investment grew to ₹48,988 in Consumer Durables, ₹35,301 in Capital Goods, and ₹34,452 in IT — a total of ₹1,18,741, a gain of ₹18,741!
Isn’t that exciting for a first-time investor?
Key Pointers:
The information below is taken from an Economic Times article.
Let’s say Priya wanted to save and grow her money. She decided to invest in a company called TechCo. She bought 100 shares at ₹50 each, spending ₹5,000. This made her a shareholder, which means she now owns a small part of TechCo.
After one year, the company did well and gave ₹2 as a reward (called a dividend) for each share. So Priya got ₹200. The price of each share also went up to ₹70. She sold all her shares for ₹7,000 and made a total profit of ₹2,200.
What are Shares?
Shares are small parts of a company. When you buy them, you own a piece of the company and can earn money if it does well.
Key Points (Explained Through Priya’s Example):
Detail | Value |
Shares Bought | 100 |
Price per Share | ₹50 |
Total Investment |
Let’s say Ravi had ₹50,000 in savings and wanted to grow it. He invested ₹30,000 in ABC Company shares at ₹150 each, buying 200 shares. Over two years, the share price rose to ₹220. He sold them for ₹44,000 and earned ₹2,000 in dividends during that time.
Ravi’s total return was ₹16,000, proving how stock investing can build wealth—but only if risks are managed.
Item | Amount (₹) |
Investment Amount | ₹30,000 |
Selling Value | ₹44,000 |
Dividends Earned |
Let’s say Aarav wanted to invest ₹25,000 in the stock market. First, he got his PAN card, linked his bank account, and opened a Demat and trading account through a stockbroker. Then he researched XYZ Ltd, a renewable energy firm.
He studied its business model, annual report, and key ratios—its P/E ratio was 15 and dividend yield 3%. Confident in its growth, he bought 100 shares at ₹250 each. Over 6 months, the price rose to ₹310, giving him a profit of ₹6,000.
Steps Before Investing:
Step | Example / Data |
Investment Amount | ₹25,000 |
Buy Price (per share) | ₹250 |
Number of Shares |
Let’s say Riya had ₹50,000 to invest. She looked at two brokers. Broker A charged ₹20 per trade and had good tools and support. Broker B charged ₹10 but had bad reviews and fewer features. Riya planned 10 trades a month. Though Broker A cost ₹100 more, it was safer and better. So, Riya picked Broker A for peace of mind.
How to Choose a Broker:
Criteria | Broker A (Premium Choice) | Broker B (Budget Choice) |
Cost per Trade | ₹20 per trade – slightly higher | ₹10 per trade – budget-friendly |
Monthly Trade Volume |
Riya chose Broker A for long-term growth
Not selected due to limited features
Demat Account: Stores your shares digitally.
Trading Account: Let's you buy and sell shares.
4. Link Your Bank Account
Connect your bank account to your trading account for easy fund transfers.
₹5,000
Dividend per Share | ₹2 |
Total Dividend | ₹200 |
Selling Price/Share | ₹70 |
Sale Amount | ₹7,000 |
Total Profit | ₹2,200 |
₹2,000
Total Profit | ₹16,000 |
100
Sell Price (per share) | ₹310 |
Total Profit | ₹6,000 |
10 trades = ₹200/month
10 trades = ₹100/month |
Trading Platform | Advanced tools, real-time charts, reliable UI | Basic interface, limited charting tools |
Customer Support | 24/7 support via chat, phone & email | Limited support, slower response time |
SEBI Registration | Registered and compliant | Registered but mixed reviews |
Research Tools | Offers detailed reports and market insights | Minimal analysis or education resources |
Mobile App | Smooth, secure, and full-featured | Basic functions, occasional lag |
Best For | Long-term, serious investors | Beginners testing the waters |
Final Decision |
*T&C Apply
5. Add Money to Trading Account
Deposit funds into your trading account to purchase shares.
6. Research and Pick Stocks
Study company performance, news, and financial data to select the right shares.
7. Place a Buy Order
Log in to your trading platform, choose the stock, enter the quantity, and place your buy order.
8. Order Execution
Your order is sent to the stock exchange. If matched with a seller, the trade is completed.
9. Track Your Investment
Monitor your share prices, profits, and losses through your broker’s app or website.
The information below is taken from a Business Standard article.
Let’s say Amit, a teacher from Jaipur, invested ₹2,00,000 in shares through monthly SIPs in 2024, trusting the market’s growth. But global investors pulled out ₹15 billion, and the Nifty 50 fell 14%. Amit’s portfolio dropped to ₹1,72,000 — a ₹28,000 loss.
He didn’t know the market could go down or how to check if shares were expensive, but foreign investors had better tools and more knowledge.
Key Points:
Table: Retail Investor Risks
Risk Factor | Explanation |
Market Volatility | Stock values can drop suddenly |
Lack of Research | Retail investors often follow trends |
Foreign Fund Withdrawal | Impacts market stability |
Emotional Investing | Fear or greed can cloud decisions |
Over-Financialisation | Too much exposure without understanding risk |
The information below is taken from an Economic Times article.
For Example, Ananya, a 25-year-old software engineer, wanted to invest ₹1,00,000 in the stock market for the first time. She researched the past 10-year returns. She saw BSE Consumer Durables gave 22.97% CAGR, Capital Goods gave 17.67%, and IT gave 14.84%.
She split her money: ₹40,000 in Consumer Durables, ₹30,000 in Capital Goods, and ₹30,000 in IT. Her goal was steady, long-term growth with less risk.
Key Pointers:
10-Year Sector Performance Table
Sector | CAGR (2014–2024) | Why It’s Good for Beginners |
Consumer Durables | 22.97% | High demand, stable growth |
Capital Goods | 17.67% | Linked to infrastructure & development |
Information Technology (IT) | 14.84% | Global demand, strong future potential |
Financial Services | 13.95% | Backbone of the economy, ongoing credit growth |
Large Cap | 12.82% | Lower risk, reliable blue-chip companies |
FMCG | 10.72% | Daily-use products, steady performance |
Buying shares is a smart way to grow your money. You just need a PAN card, Demat and trading accounts, and a trusted broker. Learn about good companies before you invest. Start small, spread your money across different sectors, and be patient. Prices may go up or down, but with time and care, your money can grow. Start today!
Q1: What do I need to start buying shares in India?
You need a PAN card, bank account, Demat and trading accounts, and a SEBI-registered broker.
Q2: How do I choose which shares to buy?
Research company performance, sector growth, and financial ratios before investing.
Q3: Can I lose money in the stock market?
Yes, share prices can fall due to market risks, company issues, or global events.
Q4: How can beginners reduce risk while investing?
Start with stable sectors, diversify across industries, and avoid emotional decisions.
Q5: Do I earn money only when share prices rise?
No, you can also earn through dividends if the company shares its profits.
How to Guides – Investing, Trading & Wealth Building | ||
