The Key Reasons To Open a Demat Account

With traditional approaches, investors had to worry about the physical certificates and documents of their investments. The concept of demat account opening has brought very significant change in market practices. This account is a safe and convenient means of holding securities just like a bank account is for funds. By possessing physical certificates of your shares, bonds etc. there will be several of the risks such as theft.

There are also risks of delays in transfer of physical securities. Also holding fake papers is another risk. Demat account opening can save your neck from all such types of troubles. You will stay assured about the safety for you long-term investments by holding your securities electronically.

With the help of this account you will be able to keep track of your securities and investments, without the hassle of handling physical documents. Demat account opening lets holders usually obtain quicker receipts of benefits like stock splits and bonuses. It can be considered as centralized investment account from where you can access and maintain investment products. It offers exclusive access of stocks, bonds, ETFs, IPO, Gold ETF, etc. all in one place.

Not only this, you will be doing your investments and transactions with convenience. With the help of electronic transfers, you will be managing your investments without any hassle. Functioning of a Demat account opening is same as that of a bank account. Furthermore, all the buying and selling of shares are also adjusted in this account. Hence, you are free from troubles of transferring forms and redemption requests. You’re also free from cumbersome paper work.

The other set of benefits you get are-

  • Flexibility to park all your investments
  • Automated credit, where all your earnings are transferred to your account
  • Automated processing of bonus and merger
  • You can opt for online trading and also online transfer of shares
  • You can nominate a legal heir with just 1 nomination as per your demat account
  • There’s no question of signatures getting mismatched because of the dematerialized trading of securities
  • Reduces the brokerage charges
  • There will be lesser requirements of paper work
  • The investors don't have to face forgery or delivery problems
  • You don't need to have in-depth knowledge for this. All you need to know is to manage your electronic account and rest will be the piece of cake. Hence, you are free from the hassles of transferring forms. You also get rid of redemption requests. Additionally you are free from bulky paper work.

    The concept of demat account opening has brought very significant change. Your demat account is safe. It is convenient to hold securities just like a bank account is for funds. By possessing physical certificates of your shares, bonds etc. there will be several of the risks such as theft and mutilation. Additionally, there are risks of odd-delivery or delays in transferring physical securities. There might be a chance of one holding fake papers.

    Demat account opening is mandatory if you want to invest in stock market

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