The  share market is a thrilling but challenging experience for the new inventors in the Indian context. But it doesn’t take a genius to make good decisions regarding the stock market, one just has to do a little research. Below are some guidelines to help those desiring to invest with the share market in India.

1. Due Diligence in Share Investment

While making share investments, one has to ensure that considerable efforts are made in a bid to investigate the companies that one is willing to invest in out of your pocket. Review and dissect the balance sheets, income statements, and cash flow statements, acquaint yourself with its annual reports, identify the company’s business model and the products and or services that they offer. This will enable you to understand the basics of the company and lead to better decision-making. Always, start with familiar, and solid businesses with respect to their financial characteristics.

2. Start Small: Daily Investments for Beginners

Beginners, therefore, should be sure to put in daily bets and avoid big stakes at the onset. The second rule is to invest in equities a certain amount of money each month and follow this practice regardless of the stock market fluctuations. This will assist you in levelling your purchase prices so that you do not end up paying a lot of money for unreasonably priced items. Once your confidence in the process builds and your nest egg increases, you can begin making more. But wait, remember the phrase, Rome was not built within a single day.

3. Choose Asset Allocation Wisely

Pay attention to how you invest your overall portfolio of investments, not just in stocks. Other investments such as debt investments, gold and real estate should be considered as the complements to equity investments. The division between these two categories thus helps to reduce overall risk and variation. Equity should be anywhere from 60-70% of working professionals’ portfolios with the rest going into debt, gold.

4.  technology/tools for efficiency.

With the advancement in technology, there exists various tools that enable the flow of new entrant share investors. Trading platforms of Online/mobile trading like 5paisa provide convenience, easy to navigate and research tools thrown in to help to understand trading opportunities. Some also include advisory services in their list of services that they offer to their clients. Utilise such facilities in order to improve the overall output and convert it into maximum returns.

5. Stay Rational

It is also important that one should not get carried away by short term movements of the markets. This means that one needs to be patient with the India stocks and believe in the India story for the long term. Fluctuations of 10-15% will recur and are normal, rather than entering a state of crisis, it is the best time to purchase good companies at their lowest rates. Avoid stress and maintain a clear vision of the sojourning objectives.

Conclusion

Shares investment may however seem to be a very complicated process for most investors, especially for those who are new in the market. But if one follows the above tips with diligence and extraordinary thinking, it will be possible to get the best returns without causing much risk to the capital and losing it. To invest without hitches, the best course is to open a demat account with such firms as 5paisa. Be steady in mind and have confidence in India – it is safe to say that working with confidence and a stable mind while conducting adequate research is the way to successful investing in equities.