If your goal is capital appreciation through the highest returns from the market, then you must consider investing in stocks and securities. Long term returns from shares can range up to 16%, thus allowing you the opportunity of wealth creation. As an investor, you can invest in a wide range of asset classes, like gold, real estate, and mutual funds.
But, it has been historically proved that stock markets offer the best returns. You must, however, understand the basics of the stock market before investing your hard-earned money in shares. Investment in shares is often fraught with the risk of high market volatility, and expertise in the market will prevent you from taking unnecessary risks.
In the present digital age, you can purchase shares online at the click of a mouse. Here are the steps required to buy shares online:
Obtaining a Permanent Account Number (PAN) is the first step towards any trade in the stock markets. According to government regulations, you have to provide your PAN before making any financial transactions. PAN is a 10-digit unique alphanumeric number allotted to you. A PAN card also acts as a valid identity proof. PAN is used by the government to assess your tax liability.
Before purchasing shares online, you have to compulsorily open a Demat Account.
The next step is to open a Trading Account.
After following the five steps listed above, you are now all set to purchase shares online. Once you place a purchase order, it will be matched with a similar sale order in the stock exchange. After settlement, your Demat Account will be credited with the number of shares purchased.
Thus, for purchasing shares online, you have to follow SEBI-mandated rules. You must always remember to choose a trusted financial partner for trading in stock markets. IIFL’s Demat and Trading Account provides you with award-winning research on over 500 stocks. Among the few brokers in India to provide Demat services of both NSDL and CSDL, IIFL provides the industry’s best trading platforms along with a customized portfolio analysis.