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Fundamentals of Stock Market Investing

May 19, 2025

Stock Market Basics by Pranjal Kamra

Introduction

  • Speaker: Pranjal Kamra
  • Channel: Finology
  • Objective: To strengthen stock market fundamentals for beginners.
  • Analogy: 10-year-old kids outperform Chartered Accountants in stock picking.

Key Topics Covered

Importance of Stock Market

  • Historical example: Rs. 10,000 in WIPRO 40 years ago = Rs. 700 crore today.
  • High potential for both profit and loss.

Common Beginner Questions

  1. Is the share market risky?

    • Buying shares is like becoming a co-owner of the company.
    • Potential to gain or lose money based on company performance.

  2. Expected Returns

    • Portfolio strategy: Invest in 8-10 companies.
    • Long-term return expectation: 18%-20%.
    • Contrast: 3x FD returns, 2x Gold & Real Estate.

  3. How Much Money to Start?

    • Example: Starting with Rs. 1000/month, increasing 15% yearly.
    • Outcome after 25 years: Rs. 1 crore at 15% return rate.

  4. How to Start?

    • Required documents: Aadhar Card, PAN Card, Bank Account.
    • Brokers: Online discount brokers like Zerodha.

  5. Negative Perception of Stock Market

    • Misconception: Rapid wealth expectation.
    • Importance of long-term perspective.

  6. Non-Commerce Background

    • Education background isn’t a barrier.
    • Examples: Kids and non-financial professionals successfully investing.

Understanding Market Mechanics

  • Stock Price Fluctuation

    • Companies raise capital from the public.
    • Share market provides liquidity for shares.

  • Learning Resources

    • Books: "Investonomy," "Rich Dad Poor Dad," "Learn to Earn," "The Education of a Value Investor."
    • Platforms: Videos, Twitter, Instagram, Facebook, Telegram.

Practical Advice

  • Starting Investments
    • Tools: Online calculators for return estimation.
    • Recommended report: "My First Investment" for beginner-friendly stocks.

Conclusion

  • Engagement

    • Viewers encouraged to comment, share experiences.
    • Continuous learning through newsletters and social media.

  • Call to Action

    • Share video with friends and family interested in investing.

Note: These notes are a consolidation of the key points from Pranjal Kamra’s lecture on stock market basics, intended to serve as a foundational guide for beginners entering the stock market. For practical application, use the resources and tools provided in the lecture.

Full transcript