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Demat Account Trends in 2022 and what they mean to you

Over the years, the stock market has been evolving at a rapid pace, partly due to the plethora of investors that have joined the trading bandwagon, and mainly due to the advantages that technology has contributed. As technology has developed, so have the markets. Of course, the stock market and Demat accounts have to be mentioned in the same breadth as the number of depository participants, along with full-time serious investors and share brokers. There have been overwhelming changes in the whole sector of trading and all the people who are constantly participating in it are reaping benefits. If you are a new investor and are about to open a free Demat account with no annual charges, you must know the full meaning of the importance of Demat accounts and their growth in the stock market arena. 

  • The Perks of Demat Accounts

With a view to expand the sphere of trading and investment in stocks, depository participants, mainly banks and brokerage firms, are going out of their way to ride the trend of stock market investment growth in 2022. Since the pandemic began, more and more people stayed in their homes, several losing employment, and these turned to the markets for a quick way to replenish lost income sources. From then on, the trend has been for several individuals to look to stock markets for investment. With conventional investment channels like FDs taking a back seat with excruciatingly low interest rates, investors view the stock markets as a great place to gain returns. Along with information like Demat account opening charges, benefits of Demat accounts, and the like, depository participants have seen a growing number of new Demat accounts in 2021, going into 2022. Essentially what the growth means is that more and more people are looking to the stock markets as money-making sources. 

  • Demat Account Trends and Implications

Steps to open Demat account online are easy enough, and anyone today can do so with ease. The best bank for demat account opening may be your own bank if the bank is a depository participant that is registered with the NSDL or CDSL. Here is a lowdown on some Demat trends in the recent past, only touted to continue through this new year:

- Demat accounts, whether a Demat account for minors or adults was opened, saw immense popularity as they were opened to the tune of 5-6 million in 2021, continuing into 2022. 

- The pandemic has only enhanced the opening of new Demat accounts and linked trading accounts as people have requirements for quick ways to earn incomes. 

- During the past few years, as ‘work-from-home’ routines have taken shape, individuals have more time to dabble in stock markets, attracting new investors who opened Demat accounts. 

- The trend of opening new accounts has majorly arisen from, not just main metros, but tier 2 and tier 3 cities, indicating that individuals from small towns are becoming savvy where wealth allocation is concerned. 

- Most new Demat accounts have been opened by youngsters and this implies the trend of early investment. 

  • Invest in the Right Way

Demat accounts can be useful to investors and any investor must begin the investment process by opening a Demat account. At one of the most reputed brokers in India, Motilal Oswal, you can open a Demat account and take an important first step in your investment voyage. 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account | Upcoming IPO | LIC IPO

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