HomeBlogInvestorGuide to Start Investing in the stock market for Beginners in India

Guide to Start Investing in the stock market for Beginners in India

General introduction to investing

Investing is the right way to secure your financial future. Without investing it is impossible to build wealth. While aiming to increase your income is great, investing is necessary to beat inflation and enjoy retired life.

Investing involves buying shares of a company for future dividends or capital appreciation. It also involves putting money in Public Provident Funds.

Trading involves buying/selling stocks in order to make money on price fluctuations. Speculation means betting on whether something will go up or down without any intention of holding it long-term. This is usually done through derivatives like futures contracts or options contracts.

Some stocks and mutual funds give monthly returns. Peer-to-peer lending is also a great investment with monthly returns.

Simple things for a beginner to follow for stock market investing

Have you ever thought about investing in stocks?

If so, you’re not alone. The stock market is one of the most exciting places to be today. It offers opportunities to earn high returns and can also help you build your wealth over time.

  • Learn about the basics of the stock market and investment terms:

Risk appetite: The risk level of your portfolio should be taken into account when selecting a mutual fund. If you have a high-risk tolerance, then you should go for higher-risk categories like Large Cap stocks and Blended Funds. Others can settle for Mid Cap funds or Conservative Funds depending on their appetite for risk.

Goals: This will help in determining which category of funds is best suited for your investment needs and goals like retirement corpus, education expenses etc., so make sure that they match with those goals as well!

Investment time horizon: The longer-term horizon means higher returns but also higher volatility which makes it difficult for investors who don’t have enough experience or knowledge about investing in stocks yet.

In addition, you also need to understand trading vs investing.

  • Pick the investment strategy that suits you best

An important question to ask here is: how aggressive are you willing to be with investing? Depending on that you can choose the right mix of instruments.

While mutual funds may be a good way to invest in the stock market, they can also be a bad one. They’re designed to diversify your portfolio and spread out your risk, but they don’t guarantee profits or returns. If you expect high returns with little risk, then it’s best not to use them as a primary investment vehicle.

On the other hand, SIPs are more flexible than mutual funds because they allow investors greater control over how much money they put into their investments every month.

PPF investing can also be a part of your investment strategy. Moreover, Platforms like LenDenClub are enabling direct P2P lending, one of the upcoming investment opportunities.

  • Know the important investment ratios

You need to learn about all the various investment ratios before investing. The working capital ratio is important and also called the liquidity ratio by some. Other ratios are the price-to-earnings ratio, net profit margin and debt to equity.

Debt to income ratio is an important parameter to consider when investing through a Peer to Peer lending platform like LenDenClub. It helps you assess the financial health of the borrower and determine accordingly.

Lending through an AI-powered platform is one of the best investment opportunities.

  • Start slow and slowly grow

You need to start slow and steady. First, cover your basics like creating a recurring deposit system with a bank, and putting away money in a retirement plan like the National Pension Scheme. Keeping money in the Public Provident Fund, also called PPF investment, is also another slow investment strategy.

While fixed deposits are common and are quite safe, they give poor interest rates. By investing with a peer-to-peer lending platform like LenDenClub you can earn returns of up to 10 to 12% p.a.*

  • Always look to diversify

You should be investing in different sectors and industries to ensure that your portfolio contains a wide range of investments. If you don’t diversify, then you may not have enough exposure to different industries or companies.

Take the help of a fund manager if necessary. A good manager has strong experience in their field, is able to analyze data efficiently and quickly identify trends before anyone else does (and therefore often gets hired by firms with similar expertise). You’ll have to learn how markets work so know where current trends are going next.

LenDenClub uses hyper diversification, enabled by artificial intelligence, which minimizes your risks.

Why should you invest in LenDenClub?

LenDenClub is a growing platform for lenders and borrowers, registered under the RBI. It uses AI to allocate

Investment opportunities

Investment with monthly returns.

SIP vs Mutual funds


Ppf investing

Trading vs Investin


your money to creditworthy borrowers. Borrowers are verified by the credit bureau after considering a lot of factors like credit score and debt to income ratio.

Moreover, it uses a hyper-diversified model to minimize risk for money lenders. You can invest up to Rs 50,00,000. More than 20 lakh investors are lending through this platform at the moment.

The FixedMaturity PeertoPeer Plan delivers returns of up to 10 to 12% p.a.* It has an AI-enabled matching system, which leaves no room for defaults and mitigates risks.


There are many ways to build a portfolio for beginners. One way is to choose the right stocks and mutual funds in your portfolio. You can also use sector funds, which invest in various sectors of the economy. For example, if you want to invest your money in small-cap stocks or large-cap stocks, then you should consider using sector funds as they offer access to both types of companies at one time.

If you want more control over your investments and are willing to take risks with them (which most investors do), then it’s best that you choose individual shares instead of buying an entire fund at once.

A good investment with monthly returns is peer-to-peer lending. So, start with LenDenClub and earn a safe interest on your money.

  • A family of more than 2 million people
  • AI-powered Auto investment
  • Allows diversification and reduces risk
  • Screens borrower’s profile through 200+ data points to reduce the risk of default.
  • 100% investors have earned between 10 to 12% p.a. based on returns earned in Sep., Oct., and Nov. 2022.
  • Market-risk free returns
  • Safe and Secure transactions using the ESCROW mechanism.

Hop on the bandwagon with 2 million+ investors. Register now!

*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499


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