One can invest in equities in various ways. Through mutual funds, directly in stocks in the primary market through the initial public offering (IPO) route, or by buying stocks from the secondary market, either in the cash segment or through derivatives (futures and options). A word of advice for beginners: start by investing in mutual funds or dealing only in the cash segment in the stock market; avoid trading in futures and options. Trading in derivatives is a highly speculative venture that requires due skill and carries high risk.