Hopefully you've read up on Part 1 and have already created a DEMAT Account using my Referral for Zerodha India's No. 1 stockbroker.
Today I will be showing you how you can buy your first Stock Portfolio but before that here's a small recap on what exactly Smallcase is and what can you achieve using it.
Smallcase is an equity Investment Product where you can buy multiple stocks (Portfolio Of Stocks) in just a single click.
If you want to make an equity investment meaning invest in stock markets and if you're a new investor, if you are in your teens or just started working or you've just started college you will be able to take more risks as you are still young so Equity Investments comes highly recommended.
The best way to accomplish this is by buying a Portfolio of Stocks which is buying more than 2 Stocks at a time and this is where Smallcase comes into the picture.
Note: You can only buy stocks between 9:15 AM to 3:30 PM IST post that the markets are closed and you will have to wait for the next working day.
Now in India you have 2 major stock exchanges which are National Stock Exchange (NSE is the largest stock exchange in India) & Bombay Stock Exchange (BSE is the oldest stock exchange in India)
The number of companies listed in BSE are higher than that of NSE but when it comes to trading volume NSE has the upper hand as majority of the market participants trade in the NSE.
The first thing you'll need to do is link Smallcase to your Brokerage Account which is your DEMAT Account and in our case it's Zerodha.
Go to smallcase.com and click on Login.
Next you'll be shown a list of Brokerage Accounts out of which you need to select Zerodha.
Once done you'll be redirected to Kite where you will be asked to enter your User ID & Password. Please note your User ID will be sent to you VIA E-Mail by Zerodha once you account has been created (It Takes A Minimum Of 2-3 Working Days For The Entire Process)
Next you will be asked to enter your PIN for 2 Factor Authentication (This PIN Will Be Created By You When You Receive The Login Credentials From Zerodha VIA E-Mail)
Once you Login you will be taken to the main page of your profile in Smallcase
If you've made it till here successfully then congratulations, You are now ready to buy your first Portfolio Of Stocks.
Currently i'm only focusing on 2 highly recommended Stock Portfolios which is;
- All Weather Investing (Minimum Investment Rs 4193)
- Equity & Gold (Minimum Investment Rs 246)
Now you may invest in any of these 2 Portfolios or all of them it's upto you. Apart from these 2 you have a lot of Stock Portfolios to choose from in Smallcase and you can find them under the Discover Tab.
I will give a general brief about what these 2 Portfolios about.
They basically invest in Equity, Gold & Debt therefore it is the best and perfect one to choose from also because its a Low Volatility Investment meaning it's Low Risk. All Weather Investing has a CAGR (Compound Annual Growth Rate) of 13.38% in short it's a return of your investment.
This portfolio only invests in Equity & Gold and not Debt/Fixed Instruments. This again is another best investment because i'm sure you would have notice that the price of gold keeps going up year by year and hence It has a larger CAGR of 18.63% and is of Low Volatility as well.
Now I will show you how to invest in these portfolios. You can select any one of the 2 Stock Portfolios mentioned above and click on Invest Now. I will be selecting Equity & Gold to Invest on in this example and the stocks under this portfolio come under NSE.
The minimum investment for Equity & Gold is Rs 246.44 and below you can see how your money will get divided between the stocks and its respective weightage and the quantity you will be buying.
I will be investing around Rs 500 you can invest as much as you'd like to its totally up to you. Once you've entered your desired value click on Confirm Amount and it will show you exactly how much you can invest close to your desired value and in my case it is Rs 492.88
Since you haven't added any funds into your Zerodha Account you will be asked to add an appropriate amount of funds to further proceed with your transaction. Click on Add Funds Now and you will be redirected to a Deposit Funds page.
Now enter the desired amount to add into your Zerodha account select the mode of payment of UPI as it has no Fee associated with it and click continue.
Once the payment has been done and has been approved close the payment screen.
Now for your current desired value you can see how it's divided between the stocks and its respective weightage and the quantity you will be buying.
In your case you will have an option called Invest Now. In my case I have an option called Invest More as I have previously invested in this portfolio and now i'm investing further.
Once you're satisfied with everything click on Confirm Orders.
Your Order gets processed.
And finally your order has been placed and your order will get updated in 2 Days. Now you may ask why 2 Days ?
Okay so basically in India you have a T+2 Settlement Period which means that if you buy a Stock, Bond, Exchange Traded Fund (ETF) Or Mutual Fund lets say on Monday and assuming that there are no Holidays during the week. Your settlement will be done only on Wednesday.
In this example I bought Equity & Gold Today which is a Saturday 22nd May, My settlement will be done only on Monday 24th May.
Now you can click on See Orders to view the order you have currently placed.
Here you can see that 2 Stocks GOLDBEES & NIFTYBEES of 4 & 2 shares respectively are waiting to be filled on May 24.
Remember how I spoke about KITE yesterday ? So this is where KITE comes in to simplify everything for you. You can track all your Positions & Holdings through the mobile app. In my case i'm just showing you a preview of my KITE on my Laptop's web browser where we have the order we placed a minute back.
Once the orders gets filled you can view their performance in the Holding Section.
Well thats pretty much it, It's that simple and if you've followed through and bought your first Portfolio Of Stocks successfully then congratulations on your first purchase.
Currently i'm a beginner in stocks and I will not be taking part in Intra-Day trading of stocks and il'l suggest the same for my readers as well.
Long Term Investment is key to building a good stable financial growth for me.
If you have any questions or get stuck anywhere during your transactions do drop a comment and I will be there to help you guys out.
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Have A Great Day!
