Most investors in India consider the stock market a lucrative option and a place to earn a quick profit. However, you must learn many things before investing in India’s stock market. Investing in a controlled and disciplined manner is safer than trying out your luck buying opportunities.
If you are a newbie trader and just about to start your journey in the stock market, then you may have a question: What is the minimum money required to start investing in the stock market in India? According to research, this is one of the most sought-after questions among new traders because it helps them calculate the risk and get an idea about their capability parameters.
So is there a minimum amount to invest in stocks? Let’s find out.
The minimum amount required to buy stocks
Most first-time investors assume they need to have a particular amount to begin investing in stocks. However, there is no pre-defined amount required for trading in India.
You can invest in stocks as low as ₹1 and there is no minimum amount.
Because of the availability of diverse options (including penny stocks), you can find multiple methods and amounts to invest with practically.
Everything depends on your comfort level, the risk you are comfortable taking, and your willingness to make a certain amount of investment. But as a thumb rule for all the new traders out there, we suggest that you begin with a low amount and slowly increase your portfolio as you gain expertise.
The price of a stock depends on the company offering it. So the main question you must ask is how much you can invest.
Indian Stock Exchanges i.e. NSE & BSE have thousands of stocks whose price ranges from INR 1 to INR 10000.
Examples of some low-price stocks in India
- Lloyds Steels ₹16.45
- South Ind Bk ₹19.35
- Orient Green ₹11.60
- Vikas Life ₹4.80
- Urja Global ₹10.95
Now that we know that there is no minimum amount to invest in stocks, now let’s explore the best investment strategies exclusively developed for new investors.
Best Strategies for Newbie Investors
There are a few investment strategies that we recommend you use since you are a first-time investor. So instead of calculating how much money is required to start stock trading in India, you can try these three simple investment strategies.
Since you are a beginner with zero experience in the market, you will benefit greatly from the X / 3 strategy. As per the strategy, you only have to invest X / 3 towards a certain stock.
For example, if you plan to invest 9000 INR, then as per the strategy, you can divide it into three equal parts, which are 3000 INR for three rounds.
Here x is the total amount you are planning to invest. So if your stock is performing well by chance, you can use the same strategy twice or thrice to invest in the same stock. X / 3 is one of the safest investment strategies.
100 minus your current age strategy
This strategy is quite popular among new investors. 100 minus your current age strategy works on the principle of reducing your risk slowly as you age. According to the strategy, the percentage of your stocks should be similar to 100 minus your present age.
So if you are 30 and you have savings of 3000, your investment would be 100 – 30, which is 70% of your net worth. So, as per the strategy, you should invest INR 2100 from your savings.
75% Percent profit strategy
As per this investment strategy, if 75% of all your stocks are performing well, you must continue investing. For example, if you have bought ten stocks and 8 of them are performing wonderfully well in the market, then, you should increase your investment.
However, remember almost no investor has 100% of all their stocks performing well in the market, as the stock market is always volatile.
For all those new investors, there isn’t any minimum money to start trading in India. You can invest in any stock of any company. However, you must follow these three investment strategies as mentioned earlier as these will help you get gain profit and minimize the risk of losing money. If you want help with an investment you can always sign up at Moneyisle.
1. What do I need to start investing in stocks?
The first thing you require to invest in any asset is a Demat and trading account. With the help of them, you will be able to purchase or sell stocks on the stock exchange across India.
2. Is it possible to start Intraday trading with INR 500?
Actually, there is no fixed amount to start intraday trading in India. So you can start even with less than INR 500 and if you have huge savings then you can also start with INR 2 lacs.
3. Is it possible to trade online with a small amount of money?
To invest online or offline, you only need to have a Demat and trading account. After that, you simply need to transfer the amount from your savings account to your trading account and then go online to buy stocks of your choice.
4. How do new investors learn stock trading?
- Open a trading and demat account.
- Use the demo account to understand the stock quotes
- You can ask an experienced trader or take help from an expert from your stock broker
- Start with safer stocks that are well known but have less price
5. Will the stock broker charge a trading fee?
This depends on the stockbroker. Some stock brokers allow you to trade without any charge. However, some may charge a certain account maintenance charge or a one-time payment fee for your Demat account, which could be around 200 to 500 INR.