How to invest in share market - for beginners

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For those who have never invested in the share market and are not sure how to start there is a simple way to get you started within 1 hour. Like learning to cycle or swimming for the first time, the intent is to ensure that the start is easy and safe, and you are able to start investing in the share market without the worry of making mistakes and losing money. The idea is to start strong where your performance is always as good as the share market. Through this technique your performance will never be worse than the share market. All you need is an hour of time to get started and small amount of Rs 1000.


 Steps to start investing in the share market
  1. Register yourself at myCAMS - https://mycams.camsonline.com/.
  2. Start a SIP of an Index Fund. 
  3. Start with Rs 1,000 per month for a period of 3 years. 
  4. Some of the index funds which you could chose (no recommendations; just suggestions) 
    1. Prudential Nifty Index Fund - Direct Plan
    2. HDFC Index Fund Nifty 50 Plan - Direct Plan
  5. Set up the payment method for buying the SIP. It is called CommonOne Time Mandate
You are now set up and ready to go. ...

Now let's understand what we did.
  1. We started by investing Rs 1,000 per month for a period of 3 years 
    1. It means Rs 36,000 is being planned to be invested over a 3-year period. 
    2. Rs 1,000 per month is being suggested assuming that you earn at least Rs 25,000 per month take home. 
    3. It is 4% of your take home
    4. At a Rs 25,000 salary level will create some challenge to start learning the habit of saving.
    5. At salary levels of more than Rs 25,000 it will get you in the discipline of saving money from frivolous expenses.
  2. We chose myCAMS because it costs you Rs 0 to start. It allows you to evaluate multiple mutual funds from one platform. 
  3. We chose mutual funds because they help you observe in a controlled manner what stock market does to your money. 
  4. We chose index mutual funds because they replicate market performance. They protect you from choosing a wrong fund as a beginner where you end up performing worse than the market.
This approach is called index fund investing and you can google it to learn more about it.

This approach will help you learn the first chapter in the book of investing and getting you started without making mistakes. This is just a technique for a safe start not a get rich overnight. Based on the safe start in an hour you can learn more about the share market work to become rich from the share market

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