India said to be one of the fast growing country in world, currently 13th in GDP India would be any exciting investing option not only for Indians but also for NRIs and Foreigners.

We will see what are the steps an Indian should do in order start investing in shares .

First you should get a demat account . Well first search for a bank or agencies which offers demat account. They may be banks like ICICI, SBI etc or agencies which gives only demat accounts like sharekhan. All of these groups are linked to any one of the two depositories in India. A depository(DP) is a place where your shares are kept in electronic form.

The two depositories in India are The National Securities Depository Ltd (NSDL) and the Central Depository Services Ltd (CDSL). Getting a demat account is as simple as getting a bank account. It requires some ID and address proofs. But unlike bank account they charge you around Rs. 500 each year for maintaining the account.

Well getting a demat accounts have many benefits some of which are,

• No pay stamp duties involved in paper transactions
• No forgery or any sort of cheating
  
• Easy maintenance of shares
• Time saving

With the demat account you also require a

• pan card
• a bank account with e-banking facility
• a computer with internet connection
  

Now after getting finishing the above mentioned jobs you should start trading. Well many think that investing share market makes you rich but this is not true. To start with you should invest in share market only if you want a growth percentage of about 25 to 30 percent , something higher than what you get from fixed deposits in banks.

As a beginner start investing the money which you consider as waste money. It may vary depending on your income , expenditure etc. Now split your money into two halves invest one half in mutual funds the other half in shares. The former is somewhat less risky than the latter because most of the mutual funds have given a return interest of about 25 to 40 percent except the last six months.

Now take the next half invest that in stock market. The main reason why i asked to invest in mutual funds is that even if you loose in shares you can gain it in mutual funds. Beginners should avoid intra-day trading because the government doesn't tax you if you keep a companies share for more than one year and gain from it. It is considered as a long term investment. Then here are few tips just don't invest all your money in the same company. Your companies should be such that not more than company is from the same sector.

Invest in companies whose debt is lesser. For example company A and B have 2 crores initially. Company A gets another 2 crores for a bank for an yearly interest of 20 percentage. After one year say both company A and B gets a porfit percent of 30%. Now company A would get a porfit of 120 lakhs for the 4 crores from which he as to pay the interest for the debt which is 40 lakhs  and he also repays the debt. So on a total he gains 80 lakks from 2 croes , but company B would have gained only 60 lakhs. This may sound strange. But the fact is that the company A involved in lot of risk which should be avoided. That is the reason why i asked you to invest in less debt companies.

Next one should rate a company based on the total volume of the company and not on the value of a individual share. Here is a example company X's share value is Rs.30 and there are 1000 shares of X. Company Y has 100 shares with share value of Rs.200 . Even though the share value of Y is higher the total volume are 30,000 and 20,000.

well that's it for this article i will be giving more and more tips in article whicj I write later stay tuned guys......