To meet your financial goals and objectives, you can start making investments in the Indian stock market. Foremost, you need to understand the fundamentals of the share market and then follow the steps required for making stock market investments. As the first step, you need to approach a reliable and trusted stockbroking entity, also known as Depository Participant (DP)., to open a Demat Account and a Trading Account. While the Demat Account acts as a repository of your dematerialisedshares and securities, the Trading Account allows you to make digital transactions. Once you make a transaction through your Trading Account, the corresponding amount of stocks will be added or deducted from your Demat Account. The equivalent amount for any sale and purchase will also be credited and debited from your savings account, which is linked with the two accounts.
The Trading Account is also known as a Share Trading Account or the Equity and Derivatives Trading Account. You can choose to open an Equity Trading Account with Motilal Oswal. Here, you get the crucial advantage of a 2-in-1 account or the joint Demat cum Trading Account. This account can be opened via a single application process and can help you not only store your shares in digital format but also make seamless equity investments. Another key advantage of this account is that at the time of opening your account, you can choose your preferred depository, either Central Depositories Securities Limited (CDSL) or National Securities Depositories Limited (NSDL). You get this advantage because Motilal Oswal is registered as a DP, both with CDSL and NSDL.
Once you open the best Equity Trading Account, you can trade in equities with ease and convenience. Do remember to consider the stock tips and market reports before making equity investment decisions. Remember, a trusted broking partner, such as Motilal Oswal, will help you determine the equity investment opportunities that are in sync with your investment horizon and financial goals.
Equity investments are simply investments in the share or stock of a company. To meet the fund requirements for growth and expansion, a company can provide its equity shares to people directly through an Initial Public Offering (IPO). After the IPO, these shares are listed across stock exchanges, such as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). While IPO is part of the primary market, the stock exchanges in the country are part of the secondary market. You can buy and sell the company shares in the secondary market through your Trading Account. Essentially, ownership of company shares means part-ownership of the total capital of a company. You can benefit from equity investments through receiving dividends or when the price of these shares appreciates or rises. Before making equity investments, you must remember that the stocks are subject to market volatility. To put it simply, the price of equity shares can fluctuate on the basis of a wide range of market factors such as:
Thus, equity investments are subject to market risks and you must analyse a wide range of factors before making an investment decision. Though the price movements of equity shares cannot be predicted with absolute certainty, it is always advisable to consider the recommendations and insights from market experts. Once you open an Equity Trading Account with a trusted financial partner, such as Motilal Oswal, you can receive personalised and exclusive insights from equity specialists.
An Equity Trading account can be defined as an account that allows you to trade in equity stocks and derivatives. You can choose to open this account with either a full-service broking firm or a discount broker. While full-service brokers provide a wide range of services, including financial advisory and market research, discount brokers provide only basic services. Both types of broking firms are registered with government-owned depositories, including CDSL and NSDL.
To open an Equity Trading Account with a full-service broker you have to pay the requisite charges, such as the service fee and Account Maintainenance Charge (AMC). But in Motilal Oswal AMC and Admin charges are FREE for 1st Year.
You can open an online Equity Trading Account in a few, simple steps:
Register online with a trusted broking firm, such as Motilal Oswal by filling in the KYC form.
Provide your proof of identity, PAN card, copy of recent IT returns and other requisite documents.
Once your application is verified, you will receive a unique trading account number.
To fulfil your financial goals, you have the option of selecting various investment avenues. Trading in equity shares can help you fulfil your goals because of the comparatively higher returns. Besides, the returns from equities can also allow you to tackle the inflationary trends in the economy, which deplete the purchasing power of money.
Let’s understand this with the help of an example. If you want to invest in a fixed deposit, you can receive an average return of around 6.5% per annum. However, the actual returns, over the long-term, is lesser because of taxation and inflation. But equity investments can provide you higher returns, ranging from 10% to 12% per annum. The actual rate of return, after considering inflation and taxation, will still be higher than the interest earned from an FD.
You can also benefit if the price of an equity share rises over the long term. Suppose you purchased 100 equity stocks of ABC company in 2012 at the price of Rs. 1,000 each and in 2022 the price of the share has increased to Rs. 2,000 per share. This essentially means you have doubled your investment amount. Even after deducting the 10% tax on long term capital gains and considering the reduction in purchasing power of money due to inflation, you still have earned a reasonable surplus amount.
Yet another reason to trade in equity stocks is that you can earn from your investments through corporate actions, such as dividends, bonus, and rights issue.
Thus, trading in equity shares can allow you to leverage the benefits from price fluctuations in the stock market. However, trading in equity shares is subject to market volatility and you must make an investment decision only after considering your risk profile. Choosing to open a Demat cum Trading Account with a leading stockbroking entity, such as Motilal Oswal, can help you make the right investment decisions
Now that you know about equity investments and the process of opening a Demat Cum Trading account, here’s a look at the manifold advantages of the best Equity Trading Account:
With such benefits, don’t delay your decision to open an Equity Trading Account. Choose to open a Trading Account today and begin your investment journey in the stock market with confidence and poise!
Investment in equity stock can provide you with multiple advantages. Here’s a look:
Thus, you can receive manifold advantages by making equity investments. Invest wisely and make prudent investment decisions with a trusted financial partner, such as Motilal Oswal!
Though investment in equities can provide you with higher returns along with other advantages, you must understand that a variety of complex market factors influence and affect the price movement of stocks. To put it simply the prices are highly volatile and subject to market risks. The question then arises is how to invest efficiently and safely in equity stocks to minimise the risks? Here’s is a look at some of the important factors:
Thus, before investing in equities, do remember to consider the above-mentioned factors. Though equity investment has the potential to generate returns, you should be guided by expert advice and the key fundamentals of a company. Market experts advise against looking at equity investment as a quick means of accumulating wealth. To earn the desired returns, you must know the stock and make long-term investment decisions.