The number of shares a beginner should buy depends on a number of factors, including:
- Investment budget: How much money do you have to invest?
- Risk tolerance: How much risk are you comfortable taking?
- Investment horizon: How long are you planning to invest for?
- Stock price: How much is each share of the stock you want to buy?
If you are a beginner, it is generally recommended to start with a small investment, such as Rs. 1,000 or Rs. 5,000. This will allow you to learn the ropes without risking too much money.
Once you have a better understanding of the stock market, you can start to invest larger amounts of money. However, it is important to remember that there is no such thing as a risk-free investment. The higher your returns are, the more risk you are taking.
If you are investing for the long term (5+ years), you can afford to take on more risk. This is because you have more time to recover from any losses. However, if you are investing for the short term (less than 5 years), you should be more cautious.
As for the number of shares to buy, it is generally recommended to buy at least 10 shares of each stock. This will help to diversify your portfolio and reduce your risk. However, if you are investing in a high-priced stock, you may not be able to afford to buy 10 shares. In this case, you may want to buy fewer shares or invest in a fractional share ETF.
Here are some tips for beginner investors:
- Do your research before you invest in any stock.
- Start with a small investment and gradually increase your investment amount as you learn more about the stock market.
- Diversify your portfolio by investing in a variety of different stocks.
- Rebalance your portfolio regularly to ensure that it still aligns with your investment goals and risk appetite.
- Don't panic sell if the market takes a downturn. Remember that the stock market is cyclical and it will eventually recover.
Investing in the stock market can be a great way to grow your wealth over time. However, it is important to remember that there is no guarantee of returns. Always do your own research and invest carefully.