Is a Demat Account Required to Invest through Apps | Motilal Oswal

Do you Require a Demat Account to Invest through Apps

A Demat account is opened for the purpose of holding your securities in the form of bonds, mutual funds, stocks and other investments. In order for you to electronically store your securities, you need a Demat account and this is a mandatory requirement if you wish to invest in the stock market, even through an app. 

Investments in India

The easiest account to open for the secure storage of your investments in India today, is the Demat account. A Demat account can be opened online with a bank or a brokerage. Most banking and brokerage firms have apps that you can download and work efficiently on your smartphone or any other portable devices. Apps facilitate seamless operation while you are on the move, and can be accessed from anywhere. When you open a Demat account, you have the option of opening it on an app or online through another device, like a laptop. Depending on the investment options you seek in India, you may need to have a Demat account, even if you choose apps to operate your investments. 

Change Investment 

Sometimes, potential investors procrastinate and put off investing. However, with the advent of new-age apps to invest with, investment in India has become easy even for the laziest investor. Fintechs with digital apps that offer user-friendly platforms let you invest with seamless operation and track investments too. You can invest in anything from digital gold to mutual funds through an app. The best part of these apps is that you don’t need to open a Demat account for various kinds of investments. Therefore, the opening of a Demat account is largely dependent on the investment you wish to make. For instance, to invest in digital gold, you only need an app and the electronic platform of that app to invest. Moreover, through apps, you can make small investments (with limited funds, called ‘change’) and forge your investment path gradually. 

New-Age Investment Through Apps

Investment through apps is largely done with millennials in mind. These individuals want to perform most tasks on the go and apps are the ideal way to meet financial goals. In most new age apps that have been introduced, ‘change investing’ takes on new ways of investing and gives young people a nudge to invest. Once you download such apps on your smartphone, the app (linked with your debit or credit cards) detects when you purchase goods. Automatically, prices that you pay are rounded off, and the difference between the actual purchase price and the rounded-off amount is used to make an investment on the app. This prompts investment and saving in small amounts with minimal risk. 

Invest with Success

Most banking firms and brokerages have apps that you can download and perform transactions with on your phone. Just as you would open a Demat account to invest in stocks and other securities online or physically at a banking institution, you would do the same through an app. The bottom line is that a Demat account works as an electronic storage house for securities and for those assets that require this facility, a Demat account has to be opened, irrespective of whether you use an app to make an investment or not. 

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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