Investing in Stock Markets
Saturday, August 8, 2015Posted by
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If you look on average stock markets have given 40% return over last year. Investing in stock markets is great wealth builder. Compared that to Fixed deposit which gives maximum of 9% per annum.
So What are the options to invest in stocks
So What are the options to invest in stocks
Before investing into stock market you want to have a DEMAT Account. Demat account is what is use to hold your funds to invest in stocks or other securities. (Mutual Funds, Bonds, IPOs). Annual charges for these account is free for the first year, after that its around Rs 600 per month.
To get an demat account there are many brokers like axisdirect, icicidirect, sharekhan etc.
So far so good. Okay so lets talk about different ways you can buy a stock of a company.
1. Cash : You can buy the company stock forever by using this method. After buying using this method, you can sell your stocks whenever you want.
Charges: For each Rs 100 transaction you will charged Rs 0.5 + additional charges. Overall it comes around 0.6 Rs for buying and selling stock as cash option.
2, Intraday: In this option you have buy and sell on the same day. But you can also convert intraday to cash option, if you want to hold on to stocks.
Charges: For each Rs 100, charges are Rs. 0.05 + additional charges.
Also note that if minimum charges is less than Rs 20 per transaction, then you will charge at least Rs 20.
There are other options like Cover, F&O. But I will cover those in future blog.
