Shares and gold are the most sought after investment domains for investors especially Indians. If you are someone who is looking forward to invest in shares and have just begun your baby steps, then the first question that would pop in your mind is- How can a beginner invest in shares? The best part is that there are people who have never invested in shares and therefore will have their share of opinions and tips. Here are some tips that you could use in order to get started with your investing,
Get a PAN Card
Permanent Account Number or PAN is very important for any financial transactions in our country. It is a unique ten digit alpha numeric number that is assigned to every individual by the Tax Authorities of India for evaluating their tax liabilities. PAN card is literally needed for everything, be it from opening a bank account or filling Income Tax returns or investing in mutual funds, etc. The first thing that you would need in order to invest in shares especially in India is a PAN card.
Get a Broker
We cannot directly go to stock exchange and sell or buy stocks or shares just like that. There are people who are authorized to sell and buy, and they are called as brokers. Brokers can be anybody from companies to individuals and there are some online agencies as well that are licensed and registered by Securities and Exchanges Board of India or SEBI, who regulate the share markets. It would be wiser to get a broker. But make sure that the person is reliable and licensed.
Get a Demat and Trading Account
Once you find a broker be it a person or a company or online you will then need something called Demat and Trading account. Demat account will hold all the shares or stocks in your name and it will reflect in your stock portfolio. You cannot store shares physically or hold them in physical form. A Demat account will do everything for you. It will store all the shares that you would want to buy from the markets (basically through your brokers). All the selling will be from here and it will be seen in your Demat statements that you will be receiving from time to time. You will not have a share certificate in your hands, it will only be reflected in the Demat Account Statement.
You will also need a depository participant and a unique identification number.