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    Unless you are a genuine fortune teller, you cannot predict the future. However, you can prepare for it, in this case, w...
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  • Unless you are a genuine fortune teller, you cannot predict the future. However, you can prepare for it, in this case, w...
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  • How to open your first Demat Account ?

    Technology has changed and has made every aspect of life easier. In olden times, investors used to hold physical shares and had to keep them safe, but in modern times shares can be kept in a demat account...
    How to open your first Demat Account ?

    Technology has changed and has made every aspect of life easier. In olden times, investors used to hold physical shares and had to keep them safe, but in modern times shares can be kept in a demat account and access to a dematerialized account requires both an internet password and a transaction password. A dematerialized account is like a bank account wherein an investor holds shares instead of money.
    If you wish to know how to open a demat account, follow the steps given below:
    1. The first step is to approach a depository participant and fill an account opening form.
    2. You must give a photocopy of the documents required along with an account opening form for proof of identity as well as address.
    3. You will have to sign an agreement with the depository participant which gives details of the duties and rights of the investor and the depository participant.
    4. The depository participant will then open the account and provide you with the account number. All investments will be credited and recorded in this account.
    The advantages of holding dematerialized shares are:
    1. Easy to hold- It is a very simple and easy way to hold securities because these are no physical shares which can be easily stolen or burnt due to fire.
    2. Immediate transfer of shares- Transfers of shares are immediate and take very little time for transfer.
    3. Reduced paperwork- Dematerialized shares are electronic and reduce the amount of paper used which makes its use eco-friendly.
    4. Any number of shares can be bought/sold- There is no limit of shares that can be sold at one time as an investor can choose to buy or sell any number of shares.
    5. Bonus shares- Bonus shares are immediately credited into a dematerialized account.
    6. Stamp duty- There is no stamp duty in opening a dematerialized account.
    Now you know how to open a demat account and the advantages of a demat account, go on and open your own account to begin investing.
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