How can holding a Demat Account be helpful?

How can holding a Demat Account be helpful?


Having an online Demat Account can prove to be beneficial for the investors. As an investor you may need to constantly switch between buying and selling stocks, paperwork, securities market and so much more. This may not be the ideal solution for trading in shares.

The Demat Account is responsible for holding the securities of an investor online. They will help you track the storage and reading. As a result, they will work on making the investing process streamlined and efficient.

Understanding a Demat Account

If you are planning to start trading, you need to have a Demat Account. A Demat Account is a Dematerialized Account where you can store your physical shares and securities in an electronic format. As per the regulations by SEBI, every investor must have a Demat Account to start trading across the National Stock Exchange and Bombay Stock Exchange.

The Demat Account works in the same manner as your bank Account. You need to keep up with the purchase and sales so that you can keep up with the number of shares and determine whether you have credited and debited.

What kind of securities can you hold in a Demat Account?

The Demat Account can be beneficial for holding a wide range of securities. Some of the prominent ones that can be stored in your Demat Account include government bonds, mutual funds, initial public offerings (IPO), shares and stocks or Non-convertible debentures.

  • Benefits of holding Demat Account

Holding a Demat Account can consider getting the benefits. Holding a Demat Account however needs to be done with proper securities. Some of the common benefits of holding the Demat Account include the following:

  • Lesser Risks

Having physical securities can prove to be extremely risky because of theft, damage and loss. However, you can be prone to receiving fraudulent securities which can increase the risk.

When you open a Demat Account, the damages significantly reduce. You don’t have to worry about your belongings being stolen. All your opportunities will be stored in the electronic format. Therefore, until and unless someone knows hacking, they will not be able to go for the majority.

  • Safe and secure

One of the main reasons you should consider holding your Demat Account is because it is safe and secure. You may often have a tough time keeping a record of your physical belongings. However, when you store the same in an online platform, things become a lot easier.

When you buy stocks, you may have a tough time tracking the scores. However, when you’re holding a Demat Account, you will be able to keep a track record of all your investments. Every asset of yours will be stored in the Demat Account. As a result, it will become easier to manage your chores.

  • Less expenses

The high expenditure can be very damaging for your pocket. However, for holding the physical assets, the price will significantly vary. You may need to pay handling charges, stamp duty and so much more. More than your holdings, you will have to opt for expenditures. Therefore, when you convert to the Demat Account, you won’t have to pay these unwanted expenses.

  • Trade in any quantity

Holding your Demat Account will provide you the benefit of trading in any quantity you want. You may have a tough time buying and selling the physical lots. This is mostly because you will be limited to a certain number. However, when it comes to Demat Accounts, there will be no limitations. You will have the flexibility to trade in any Account.

Having aDemat Account can be extremely beneficial for trading. You should consider doing some research before opening a Demat Account. Motilal Oswal can however be a reliable platform for opening the Demat Account.