First step is to decide whether this type of investing i.e. long term investing is suitable for you. In long term investing its about buy and forget type of process in which stocks will be held for minimum 5-7 years and investor need to keep patience without checking the price on daily or weekly basis.

Since we are investing for long term so it becomes important to know the maximum risk involved. You should invest assuming that this money is not of your urgent need and can be held for more than 5 years and in some circumstances (like market crash or crisis), money may go zero(less chances)

As you start research, filter stocks which lie in price range of Rs.10.00 – 50.00 only, it can easily be done on websites, chartink.in or screener.in or even in some advanced terminals.

Find stocks trading on National Stock exchange as well on Bombay Stock Exchange with good volumes, having sufficient liquidity and greater price circuit limits.

Learn how to apply technical and fundamental analysis. This is all about your own investing approach and realizing the potential of business in the products offered by company in market.

Stock market comprises of companies from almost all industries. Choose the industry which you understand the most and pick stocks from this industry. Narrow your search by further digging the operational works of the company

Pick about 10-15 number of stocks from each industry and then apply filters according your research giving ample time to check their performance and market presence.

From the whole list finalize only 10 stocks to invest and keep in mind that you have not only selected these companies but their businesses. So make firm belief in them and keep a separate watch list to track them for atleast 2-3 months.

Depending on your risk appetite you can invest equal amount in each share. Example : You can invest 1 lac in each share amount to a total of 10 lacs in 10 shares. So your total risk here would be 10 lacs and reward will be according to the type of business(5-8 times).

Once you decide the amount to be invested and the shares you track them in watchlist and invest the amount in parts only. We suggest you to divide the amount  in 4 equal parts for each shares and invest only when you see 20-25 percent fall in stock price.

Since you are invest large chunk of your hard earned money so do not go with discount brokers or small brokers. You should go with bank account demat arms as they are most safe and have have chances of demat frauds.

You can open one 3-in-1 account here.