How To Start Invest In Stocks If Your Salary Is Above Rs. 1 Lakh Per Month?

For investing, the priority for investors is to set goals with their investments. Every investor’s needs are different and various investment avenues are available to fulfill everyone’s needs. They can choose different investments depending upon their risk profile and the goals. A financial planner needs a lot more information than a person’s earning. 

Investing in the right way takes some time. Investing demands patience and learning about investments requires even more patience. Salaried persons earning more than Rs. 1 lakh monthly need to first find out how much they are left with after paying taxes and making deductions. Ideally, there should be a 7:3 ratio between expenses and savings. A balance between the two is necessary. One should manage expenses, keep aside emergency funds from 70% of the salary, and save at least 30% of the salary. Emergency funds should be equal to an amount that can cover all expenses including EMIs of at least 4-6 months. 

Following is the process to start investing in stocks: 

Step 1: Get some stock investment education 

You should invest your time to educate yourself about the game of investing. You will need to gain all knowledge that you can about investing before you start. Utilize available online resources and investment platforms.

Step 2: Determine your goals 

Ask yourself why you want to start investing? Is this investment account for a short-term goal? Or for your retirement? Who will get the benefit of this money? Just answer honestly. Through these questions, you will be able to decide your investments.

See also  Reasons Why Small Businesses Should Get An Online Business Loan

Step 3. Decide how you want to invest 

You can invest by yourself or with the help of a financial advisor. If you are a novice and going the DIY route, start following different indexes in the Indian stock market instead of different companies separately. As a novice, start with stock mutual funds instead of individual stocks. If not, then take assistance from your brokerage firm with which you have opened a Demat account.

Step 4. Set a budget for your stocks

If you are going for mutual funds and have a small budget, you can consider exchange-traded funds (ETF). ETFs trade like a stock. If you are investing for retirement, you can allocate 80% of your portfolio to stock funds and bond funds.

Step 5. Find a suitable broker 

You need to find a broker whose services align with your investing goals, especially for beginners. Selecting the best stock broker to maximize the chances of profitable investing. If you open a Demat account with Bajaj Financial Securities Limited, you can avail of the following benefits:

  • 100% online paperless account opening process
  • Lower Brokerage Fees (flat fee per trade)
  • MTF Facility
  • Robust trading platform

How to open Demat account online? 

You can apply for brokerage accounts online by following these steps: 

  • Filled-up KYC application form
  • Upload digital copies of 
  1. PAN Card copy
  2. Address proof
  3. Latest photograph
  4. Canceled cheque 

Just after verification of your documents, you will be able to buy securities through your Demat account.

So, that’s how one can start investing. Start with balance and alignment and think about long term profits. 

See also  Top 15 WordPress Development Companies

You May Also Like

About the Author: Nancy Ahuja

She is an experienced Financial Consultant and Tech Reviewer who has 6+ years of experience in the field of finance, business, and technology. He is very passionate to write about Finance, Business, Technology, Gadgets, Digital Marketing, Fashion, Lifestyle, etc.

Leave a Reply

Your email address will not be published. Required fields are marked *