I have a huge file, where I have to insert certain characters at a specific location. What is the easiest way to do that in C# without rewriting the whole file again.
Filesystems do not support "inserting" data in the middle of a file. If you really have a need for a file that can be written to in a sorted kind of way, I suggest you look into using an embedded database.
You might want to take a look at SQLite or BerkeleyDB.
Then again, you might be working with a text file or a legacy binary file. In that case your only option is to rewrite the file, at least from the insertion point up to the end.
I would look at the FileStream class to do random I/O in C#.