September 30, 2020 Last updated September 30th, 2020 758 Reads share

How To Invest in the Share Market During COVID19?

Image Credit: DepositPhotos

“Most people get interested in stocks when everyone else is. The time to get invested is when no one else is. You can’t buy what is popular and do well”, said Warren Buffet, the renowned business tycoon, American investor, and owner of Berkshire Hathaway. These words pretty much sum up the entire ideology of stock market investments. The investors who follow the masses are likely to get misled in the crowd. Although the COVID-19 pandemic has highly impacted the world stock market and not just India, potential investors should see it as the right time to start investing.

There were as many as 40.8 million new Demat Account registrations in India in the financial year 2019-20, even amidst nationwide lockdown during the last month of the 2019-20 fiscal year. Not just that, over 1.2 million Demat Account applications have been successfully passed by the CDSL (Central Depository Securities Limited) from March’20 to 30th April’20. The rise in online trading activities is a significant percentage of 53% during the lockdown. It seems like people are passing time during their quarantine period on the online trading platforms. If you too want to invest in shares, click on this link- to open a Demat Account today!

Do not let the temporary pandemic affect the investment portfolio permanently.

The Experts’ Stand: It Is The Good Time

The stock market experts are very positive about investing in the stock market. It is being said that the amount of pessimism that has filled the stock market has induced many investors to sell their potential shareholdings at a low price. As they say, one’s misfortune is another’s opportunity. So, the new investors have a chance to see this as a burning advantage to dive into the sea of share market. This might not be a prevailing thought among everyone but that does not mean the ones who are considering it should fall back.

The value investing legend, Van Den Berg claims that the investors are surrounded by a lot of fear caused by the uncertainty of the market which alleges them to sell off their shares well below its par intrinsic value. And historically speaking, the investors who end up purchasing shares in this bargain end up rewarded when the fog of uncertainty settles down.

The COVID-19 Scenario

Although the COVID-19 pandemic has influenced pessimism on the hopes of millions of investors, the delightful news is that many are still hopeful. The market has registered over 50% of respondent investors who are planning to resume and pace up slowly with the rise in the market conditions while 18.5% of investors are unwilling to make any changes to their Demat Account and portfolio. Only 3% of investors have shown signs of quitting the market while 3.5% are contemplating whether or not to choose equities. Overall 7.5% of investors are indifferent and waiting for the market to recover.

These statistics are enough to reveal that the market conditions are a mix of investors who are presently driven by emotions. This is the time to enter the market and start investing in whichever deal is the most profitable one.

Tips To Follow For Investing During COVID-19

During times like this, all one needs is a ray of hope and knowing how to start the journey in the stock market. Do not fail to find the right Depository Participant to get guidance and help along the way.

Learn Online Trading

Although it is very rare these days that the investors use offline trading methods as the SEBI (Securities and Exchange Board of India) has regulated the Exchanges to not allow offline trade, some people choose the intermediaries to do their job while they are offline. Maybe this is why the national lockdown has registered many new inventors in the line. However, during the pandemic, it is not possible to reach out to people who can get the job done, it is better to utilize the quarantine period in learning online trading. For beginners, these following advice might be productive.

  • Choose a full-time broker for the required accounts (Demat and trading) services as they also help with investment consultation services. The expert team of professionals of the leading brokerage service providers extends help graciously. You can open Demat account with a broker and then continue your investments with them.
  • Look for a firm that is offering online applications and web portals with a user-friendly interface and fast technology. It is easy to learn online trading.
  • Learn the nitty-gritty of internet surfing if one does not have the basic idea of the same. Since getting stuck at some point during the trading process requires some simple computer skills to continue.

Build a strong investment career graph to earn a good amount of fortune in future.

Open The Online Demat Account And Trading Account

The health advisories are strictly requesting people to maintain social-distancing and do not step out of the house. Thus, an investor has to learn how to top Demat Account online along with the trading account without which it is not possible to trade in the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange). All one needs to follow a few simple steps to complete the procedure.

  • Find a Depository Participant that satisfies all the parameters of good online services and technical requirements to carry trade operations.
  • Fill up the application forms required to open the accounts. Most of the DPs offer 2-in-1 account service so one needs to fill only one form in this case.
  • Submit the scanned copies of all the required documents.
  • Complete the e-KYC (Know Your Customer) procedure followed by the e-IPV (In-Person Verification) process.
  • Make the e-payment and the possession of both the account will be given within a few working hours.

Choose The Right Stocks

The last of the process is to choose the right stocks keeping all the concepts in mind. There are plenty of options that offer distinct risk exposure and returns. Look out for the cheapest stock items that will value more after the clouds of uncertainty as the market will subside.

Investors can conveniently start online trading by following the aforementioned tips and tricks. The hopeful always end up with the sweetest fruits in hand. However, one has to realize that the stock market is neither a wish-granting factory nor a money-printing machine. One cannot hope to experience the highs without being subjected to the lows of the investment market. Thus, learn and grow during the process while keeping the investment portfolio in check.

Stock market -DepositPhotos


Isha Ray

Isha Ray

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