How to Invest 1000 in the Share Market?

If you are a beginner in the stock market and want to learn and earn but you have only 1000 Rupees. If you are confused about how to invest 1000 in the share market.

Don’t worry!

In this blog, I will cover all the doubts regarding investment with low capital.

Well, it is a great time to enter the market.

Why?

• The market is recovering from the pandemic and recession
• The Indian market is going in a large bullish trend
• The Indian economy is booming.

In India, only 3-4% of people invest in the share market and this count is increasing day by day. Around 50% of people in the US invest in the share market. India’s economy is the fastest growing economy in the world and investing in the share market is the best way to contribute to the development of India.

So as a beginner, I’ll suggest starting with a little. In this blog, I will tell you how to invest 1000 in the share market. It is a little money but for learning it is good. Before actually investing a large amount, you must understand how the market works. I will describe a few of the better ways to invest in the share market and you don’t need to take any financial advice for it.

I will share a few of the techniques that work in the real market. Before entering into the methods, a few things must be clear in your mind:

1. Don’t expect much return from this much amount.
2. Don’t focus on growing money, focus on learning.
3. You must be clear about your learning period. It can be anywhere between 3 months to 6 months. I think 6 months is a good time to understand the market.
4. You should be more focused on saving your capital.

Before entering the methods, I would like to tell you that I have used the methods below and utilized them in my learning period. To understand it well and implement it in the real market.

1. Invest in one Stock

You should pick one stock in the beginning and understand its price action. In the market, some stocks are worth more than 1000 so avoid them.

Now there is a question, how to pick that one stock?

You can understand the company’s potential from its financial reports or balance sheet. If a company’s profit and revenue are continuously increasing then it has the potential to perform better in the future. Several parameters like working capital ratio, Earning per share(EPS), price-to-earnings ratio(PE), debt-to-equity ratio, and return on equity(ROE) are frequently used among investors to fetch the best share for their investments. Checking these ratios can help you to pick better stock for investment.  

2. Invest in stock you are aware of

In the beginning, if you want to invest in the share market this step can be a great move. Let’s understand this step with an example. We all use the railway as a medium to travel from one place to another. So you will be aware of IRCTC. Pick the IRCTC stock. There are thousands of products or services we are using in our daily life. Find out those companies and invest in them if you are happy with the service or product.

This can be a great choice to make your portfolio.

3. Invest in top companies

If you are unable to find any company using the above methods or want to explore more, then this can be another good option.

In India, we are aware of a few companies which are very famous like Reliance, Tata, HCL, and Infosys. Invest in these companies. In NSE, 50 companies are listed so you can pick any of the top 20 and invest after proper investigation. These companies are stable and good for understanding price action and market movement. The idea for using this technique is to save your time in researching good companies. Companies listed in NSE are the top companies in India.

4.  Don’t run for profit

In the beginning, don’t run for gain. Try different strategies and implement them in the live market. Don’t try to make your investment a big deal. This amount is too small to attach to your emotions. Don’t worry about the movement of stock, if it is going up or down.

Remember if you are saving your Rs. 1000 today and not taking any risk then you will certainly miss the opportunity to get a huge profits.

5. Beware of Penny Stocks

Penny stocks are those stocks that are available at very cheap prices like Rs. 15 or less. These stocks are low prices due to a lack of demand. There are several other reasons poor financial records are responsible for its low valuation.

However many investors used to invest in penny stocks with little money as they seem the best option with limited resources.  Some penny stocks used to perform better and can give you multi-bagger returns but these are exceptions.

So you must consider penny stocks as high-risk stocks and consider the risks before investing.

Conclusion

Even though Rs.1000 might not seem like a lot, it can be the start of your stock market journey. By choosing the right stocks and sticking to a careful plan, you can grow your investment slowly. Remember to do your research and ask for help from money experts if you need it. Good luck with your Rs.1000 investment in the stock market!