How much money do I need to start investing in stocks?

Calculating Present Value. If you need $200,000 in your account ten years from now, the present value, or the amount you need to start with today, changes based on various assumed rates of return: if you earn a 3 percent return, you'll need $148,818 to start. at 4 percent, you'll need $135,112.

What is the best way to invest in stocks?

Thematic investing is the most natural way to invest. Retail investors like you and me invest in stocks thematically, based on ideas we think will play out in the future for eg. investing in retail chains because India is becoming a consumption-heavy economy, or buying pharma/IT stocks due to possible rupee depreciation.

What are the risks associated with investing in stocks?

Engaging in investment activities is one major source that generates the risks mentioned above, and the variability of cash flows reflects a firm’s risks (Keown et al. 2007; Shin and Stulz 2000). All risks, particularly liquidity risk, are related to cash flows. Bakshi and Chen (2007) concluded that investing in stocks leads to the