Is it good to open Demat account? Top Advantages of having a Demat Account 


Is it good to open Demat account

We all know how online trading and investing are becoming a trend. Online trading is an act of buying and selling financial products with the help of an online trading platform. Know that these online trading platforms are handled by brokers who have the right expertise and knowledge to deal with online investments. Also, you should educate yourself on your investment options, placing orders to buy and sell etc. 

Know that for online trading, it is very much important to open a Demat account. Before opening a Demat account, you should know the advantages of a demat account. The Demat account helps convert your securities into electronic format. Your shares and other securities will be stored in this account and you can easily make buy and sell transactions. It is just like your bank account, holding all your investments. With the help of a demat account, you will have a streamlined experience without much hassle. You can open it for free on any online trading platform. Know that you can open a Demat account without possessing any shares. It is necessary to have a Demat account as per the Securities and Exchange Board of India (SEBI).

Following are some of the points highlighting the benefits of Demat account:

  • Lowers risk- Handling the securities in physical format is very risky as you can lose them or misplace them. Having them stored in the Demat account will help in eliminating the risk of loss. As they are quite prone to risk, a demat account will hold your investment portfolio safely. 
  • Ease of trading- Know that with the help of a demat account, you can easily buy and sell the securities anytime anywhere. With paper certificates, it gets tough as you have to first send them to the company or to the registrar and transfer authority to get or give the ownership of shares, which is a very tedious task. 
  • Ease to hold- You can manage your securities well and have an easy look at what investment portfolio you have. You can easily trade in securities, view your portfolio, and transaction history and much more. 
  • Quick process- It is a very quick process with a Demat account. You can easily look into the details and buy and sell your securities in the easiest way. Also, in case you want to change your personal details, you can easily do that with a click. All these things can be done and completed in no time without much hassle.
  • Variety- You can store all kinds of investments like equity shares, mutual funds, bonds, debentures, exchange-traded funds etc.

So above are some of the advantages of having a Demat account. Make sure you have all the Demat account opening documents like proof of identity, proof of address and other bank-related documents. If you want to open a Demat account and trade online, you can visit ‘Sharekhan’. They will help you in achieving your financial goals by alerting you about market movements.