The youth of India is futuristic and likes to explore diversified aspects when it comes to money-making. In the quest for best investment opportunities , almost everything has become their cup of tea, from investing in stocks to crypto to NFTs to gold to real estate . The stock market capitalization in India rose to 37% this year, amounting to $3.46 trillion as per Bloomberg's index. Likewise, retail investors comprise a significant fragment of the Indian stock market.
Thus NSE witnessed a growth in the participation of retail investors from 33% to 45% in 2016 and 2021, respectively. In June 2021, the monthly registrations of new investors hiked to 1.5 million. With the immense growth of the stock market, aspiring investors are now keen to make money by tapping the best investment opportunities.
Investment Prospects for the Beginners
As said, "The sooner, the better," the same goes with stock market investments as well. It is recommendable to start early for reaping higher returns in the future. For this, it is crucial to identify the best investment opportunities in the market. Here are the two types of financial markets a beginner needs to consider before stepping into the stock market arena!
- • Primary Market: In the primary market, new securities are created. The firms float new bonds and stocks to the public investors for the first time. Generally, the primary market deals with the trading of equity-driven securities. Under this market, investors acquire fresh securities that were not traded before. This market is also famous as NIM or the New Issue Market with The Initial Public Offering (IPO) as its key constituent.
- • Secondary Market: The secondary share market is where investors buy and sell stocks. There is no new issue of stocks/bonds. Precisely, the secondary market operates on equity-based trading under which pre-issued or existing securities are traded-off.
How can Beginners invest in IPOs?
The primary stock market in India was lively throughout the year 2021. Around 63 companies raised $15.4 billion collectively through the IPOs. The market was full of the best investment opportunities for zealous investors. The beginner can invest in the primary market through IPOs.
After a company receives and counts the IPO applications into consideration, there is allotment of shares to investors as per availability and demand. The IPO applications are made via net banking account through ABSA or Application Supported by Blocked Amount.
How can a Beginner participate in the Secondary Share Market?
Putting money in the best investment opportunities is essential for good returns. As a beginner, follow the below-mentioned steps to kick start your journey in the secondary share market!
- •Open a Demat/Trading account via your linked bank account
- •Log into the trading account and choose the shares that you want to sell or buy
- •Make sure your account contains the required amount of funds to purchase the stocks
- •Determine the price at which the specific shares will be traded-off
- •Pay for and acquire the shares or sell the shares and receive the money
Thanks to technological advancements, investing in stocks for beginners is a straightforward process. Nevertheless, one must know the best investment opportunities and financial goals before putting money in stocks. Assess the financial instruments available in the market carefully and select one that clicks your mind.