50 frequently asked questions

You can buy a single share, sometimes under ₹100, or start a mutual fund SIP from ₹100–₹500 a month. Start small while you learn.

Long-term investing in good businesses is ownership of real companies that earn profits, which is very different from gambling. Short-term speculation with leverage (especially F&O) behaves much more like gambling, and most participants lose.

In a single stock, yes; companies can go bankrupt. In a diversified index fund, losing everything would require nearly every major company to fail, which is extremely unlikely, but large temporary falls (30–50%) do happen.

Generally, clear high-interest debt (credit cards, personal loans) first, since that interest is higher than typical market returns, and build an emergency fund before investing.

As early as possible, because compounding needs time. But it is never too late to start sensibly.

Yes, to buy shares on NSE/BSE. For mutual funds you can also invest directly with the AMC or via platforms.

Most beginners are well served by starting with a low-cost index fund SIP, then learning individual stocks gradually with a small portion.

Use MojoStox: it gives virtual money to trade real NSE/BSE stocks and mutual funds at live prices.

PAN, Aadhaar (for e-KYC), bank proof, photo and signature. Income proof only for F&O.

Yes, through NRE/NRO accounts and the Portfolio Investment Scheme with a broker that supports NRIs. Rules differ from residents.

Demat holds your shares; the trading account places orders. You need both.

Settlement is T+1, the next working day after the trade.

You can place an After-Market Order (AMO) with many brokers; it is sent when the market opens.

Limit orders give price control and are safer in less liquid stocks. Market orders fill immediately but can slip.

Your shares are in your own demat account with NSDL/CDSL, not owned by the broker. You can transfer them to another broker.

For large stocks, either; prices are nearly identical. For small stocks, choose the exchange with more volume.

Maybe your limit price wasn’t reached, the stock hit lower circuit (no buyers), or you didn’t authorise the demat debit (TPIN/DDPI).

Not on Indian exchanges for normal shares. You buy whole shares, though mutual funds let you own fractional units.

An After Market Order placed outside trading hours, sent to the exchange at the next open.

Through an off-market transfer via your DP, with a reason code (e.g. gift). Tax rules for gifts apply.

No return is guaranteed. Historically, Indian large-cap indices have delivered roughly low-double-digit annual returns over very long periods, with big falls along the way. Future returns may be different.

Not automatically. Check why it fell. A falling price can mean a deteriorating business (a "value trap").

Many individual investors find 10–20 stocks across sectors manageable, or simply use a few diversified funds.

Usually not. Falling markets let your SIP buy more units cheaply. Stop only if your goal or finances change.

When the business weakens, your original reason no longer holds, it becomes very overvalued, you need to rebalance, or you need the money for your goal.

No. Price per share says nothing about value. Compare P/E, P/B and business quality instead.

It depends on growth, quality and industry. Compare with the company’s history and peers.

Consistently, almost nobody can. Time in the market (staying invested) usually beats timing the market.

Using leverage or F&O too early, following tips, and panic selling in falls.

Asset allocation (some debt and gold), diversification, an emergency fund so you never sell in panic, and for advanced investors, hedging.

Direct plans have lower expense ratios. Choose regular only if you value and actually receive a distributor’s advice.

Growth suits long-term wealth building and is usually more tax-efficient. IDCW payouts come from your own NAV.

No. NAV level doesn’t matter; % returns do.

Often 2–4 well-chosen funds across categories are enough. More can mean overlap.

No. Judge each IPO on business, financials and valuation. Some list below the issue price.

No. GMP is unofficial, unregulated and often wrong.

In oversubscribed issues, retail allotment is largely a lottery for one lot. Applying from different eligible family members’ own accounts (each with their own PAN) is how families typically apply; multiple applications under one PAN are rejected.

Index funds are cheaper and many active funds fail to beat them over long periods. Some active funds do outperform; picking them in advance is hard.

An exchange-traded fund that trades like a share; yes, you need a demat.

They are well regulated and your money is held by a custodian, but values move with markets. They are not guaranteed.

Generally no. SEBI found about 93% of individual F&O traders lost money in FY22–FY24. Learn and paper-trade first.

Loss per trade is limited to the premium, but many options expire worthless and repeated losses add up quickly.

Listed equity held ≤12 months: 20% STCG; >12 months: 12.5% LTCG above ₹1.25 lakh a year (rules as of FY 2026-27).

Yes, added to your income and taxed at your slab rate.

If you have capital gains or business income (intraday/F&O) above limits or need to carry forward losses, yes. Consult a tax professional.

Promises of guaranteed or very high returns, pressure to act fast, requests to transfer money to personal accounts, unregistered "advisers", and hype for tiny stocks.

Search their name and registration number on the SEBI website (registered investment advisers and research analysts).

First to the broker, then SEBI SCORES, then SMART ODR.

They transfer to your nominee (or legal heirs). Always add a nominee.

No. MojoStox is an education and practice platform using virtual money. Nothing here is a recommendation.