You don't need to be an investment guru to invest in the stock market. You don't need a boatload of money. How to get started with investing?
Open a Demat account with a discount stockbroker. Which can be opened in a few clicks online. Just think of a Demat account as a bank account for your investments.
How much money should I invest? Allocate an amount of money that you are OKAY with losing every month. It could be as small as Rs. 2000 / 30 dollars.
Pick a top-performing Large cap or Blue chip mutual fund - Should be at least five years old. - You can Google it. Start a Monthly SIP with the amount you selected in 2. SIP = investing money at regular intervals; in this, e.g. monthly
Get rid of the get rich quick mindset. Think of investment in the long term. Remember you're okay with losing the amount you selected in 2. The actual returns become exponential after 20 years.
A Rough Calculation investing Rs 5000/$80 per month with a rate of return of mutual fund - 12 % (modest). Let us check the return of investment in:
- 10 years - 12 Lakh ( investments - 6L)
- 20 years - 50 Lakh (investments 12 L)
- 25 yrs - 95 lakh ( investments 15L)
- 30 yrs - 1.77 cr ( investments 18L)
All with the money you don't even care about.
Money not invested is money wasted
- You don't need to think or focus on timing the market.
- The amount is invested monthly and can be done weekly basis too.
- It's very flexible - you can start/update/cancel your SIP anytime.
- Most of the funds start as low as Rs. 500 per month.
Note: Image source
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