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Benefits Of Investing In A Demat Account

Share market investment, thanks to Demat accounts, has become incredibly easy and convenient. You can open this account online or visit the bank branch/office of banks and investment firms that serve as participants in the deposit. In fact, merely visiting the DPs website, you can even open a free account online.

Short for dematerialised, this account allows you to hold your market investments in the electronic format. Here are the main benefits –

  1. Market assets

The most crucial benefit of Demat account is that this account facilitates you to hold all your investments market assets. From stocks to different mutual funds and government bonds to exchange-traded funds, you can hold and manage all your market investments within a single account.

  1. Storage of investments

You no longer must go through the trouble of saving physical share certificates since all your investments are stored directly in electronic format. You can purchase securities via your trading account, and the same gets reflected in your Demat account.

  1. Secure investments

Since the securities are transferred automatically to the electronic format, they are deposited safely in the account. You need not worry about losing certificates of physical sharing due to manual errors or natural calamities. This secure feature also ensures that your investments do not get stolen or fall into the wrong hands.

  1. Transfer of shares

Another simple Demat account information that you need to learn is that shares can be transferred in seconds, quickly and easily. You are not required to send your shares to the registrars of companies and wait for them to transfer them in your name. Once you have placed the order to purchase/sell shares, they will be credited/debited into your T+2-day Demat account.

  1. Transaction charges

While you open Demat account, the cost of transactions is also quite low. This is because, because all is automated, DPs do not need to make any effort in the transaction process. This decreased effort on the part of DPs has contributed to the gain being passed on to the owners. You also do not have to pay any stamp duty charges, thus reducing the transaction-related expenses.

  1. Accessible

Today, most DPs provide mobile Demat account applications. This facility helps you to reach every corner of the world via account form. As such, you can keep track of your investments and at any time buy and sell securities, whether you are at home, in your office, or on holiday.

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