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Monday, May 18, 2020

How much Money is needed to start Investing in Stock Market?

    

                                        hi all today we are going to discuss about two major questions about stock market beginners,which is asked by my friend, every beginner will get confused about these questions before entering in stock market, there are no difficulties in it, but that question will confuse both every beginners and learner, if you are interested to start investing in the stock market, I told him the answers in a simple manner and I decided to write an article on it are as follows.

  1. How much Money is needed to start Investing in Stock Market
  2. How much money should I invest in the stock market in India

How much Money is needed to start Investing in Stock Market

How much Money is needed to start Investing in Stock Market this is one of the question flows in every beginner's mind when they are interested, different kinds of people ask the different questions in different formats

It is a general answer to all beginners and I tell the common answer to all my friends, relatives, and you.

their is no minimum money is required to start investing in stock market in India,here you can see the stocks list less than 100, 
you can find

Sl.No

Company

Price( in Rs)

1

Idea

37.15

2

Federal Bank

94.10

3

Essar Ports

93.40

4

ITI

91.85

5

Tata motors.Ltd

91.10

6

Tata Power co.

77

7

Adithya Birla Capital

98.15

8

Oriental bank of India

94.95

9

India Cements Ltd

93.10

10

Indiabulls realestate

87.15

now you can analyse yourself how much money is required and you don't need a thousand & lakhs of Rs to start investing in India. the above shares are less than 100 rs now you see the complete list of stocks less than 100 
Here :
 https://money.rediff.com/companies/price-sorted/10-100/nse

The answer to the question

Question ‘what is the minimum money I need to start stock trading and Investing in India?’

Answer is that there is no minimum money limit required for starting stock trading and Investing in India.

the funny thing is the above stocks are less than 100 I think so it less than your pocket money, then Why you are still Confusing.....

her you can find the list of stocks with price range you can choose Here https://money.rediff.com/companies

How much money should I Invest in the stock market?

There is no any ristrictions on stock market and their is no limit to invest and trade in stock market, but if you are a brgineer i strongly recomend you to start with small investment as you can, if you are in a starting stage of learning.

followed the thumb rule which i Followed in my learning stage, you can invest the shares between 100 to 500 range,and choose which company have low debt, because debt is a thread to companies.

If you really want to invest a big amount on stock market definitely you want to do Homework on it by reading the company business model,competitors, fundamnetal, financial statements etc... and consult a financial advicer

Always remember the Great Quote  Small  Steps Towards your Large Future.

question : How much money should I Invest in the stock market?

Answer : There is no minimum and Maximum Limit in stock market

And my suggestion you don't want to lose your Money by Investing in a Stock market rather than Invest in Mutual Funds in SIP System read this article what is mutual funds and how it works


Thumbrules for How much to Invest in stock market?

1. x/3 Rule :

it is a famous rule for beginners to reduce their risk while investing, In the beginning, you can invest in X/3 rule only x is the Total Amount of your investment,

for example total amount of your investmnet is 10,000 means calculate in x/3 rule, 10,000/3 =3,333 generally first month you invest your 3,333 rs and another month you calculate the remaining amount into X/3 rule continuely apply this strategy it will reduce the risk and averaging is applicable

2. 100 Minus your age :

its also another famous ruled said by market gurus for beginners, it basically reduces the risk as yourget older, if your getting old means you risk will reduce according to 100 minus your age rule.

for example: if you start investing in your 20's and your total savings is 10,000 then the amount should Invest in the stock market is 8000 rs(100-20) of your net savings, it will reduce the risk.

Conclude :

start invest as soon as possible lastly I hope my post is helps to stock market learners and readers  Happy Investing


3 comments:

  1. Thank you for sharing this article here.I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. pocket money

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  2. Very interesting blog. Alot of blogs I see these days don't really provide anything that I'm interested in, but I'm most definately interested in this one. Just thought that I would post and let you know. Can I retire at 60 with 500k

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  3. You are providing important knowledge. It is really helpful and factual information for us and everyone to increase knowledge
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    ReplyDelete