So, you have noticed how a bunch of your friends or family members have started saving and investing regularly in the stock markets, and you are curious as to how you can do the same.
Before you start your investment journey, the first and perhaps most important step is to open a demat account with a brokerage firm.
Demat accounts were first introduced in 1996 and since then they have revolutionised the manner in which secondary markets operate. Since then, shares, bonds, debentures and many other financial instruments have been converted into an electronic form. Demat accounts allow the user to get a comprehensive view of all his investments and provide him with real-time value.
The full form of demat is dematerialised and the market regulator SEBI instituted it so as to enable easy storage of shares and securities. A demat account makes it far more simple to transact financial instruments.
By using a demat account, you can access your portfolio holdings anytime, anywhere. Since one is connected to the markets via his smartphone, one can look up the value of his investments by simply using the stockbroker’s app or by logging on to a designated website.
2. Access to multiple financial products:
One can invest in equities, bonds, mutual funds, trade in commodities, currencies, ETFs all from the comfort and convenience of one’s smartphone. Investors don’t need to open multiple accounts to invest in different products. All the information is available in one place. You can also invest in multiple financial products by opening an online demat account with Motilal Oswal.
In the era of physical shares, investors often struggled with trading and transacting in physical shares. However, that problem has been eliminated by Online trading. Prices keep fluctuating every second and the investor gets a detailed breakdown of the price at which his shares or securities were sold or purchased.
4. Reduces risk:
People often inquire as to what is a demat account and what is the use of it? Well, one of the most important tasks that a demat account serves is eliminating risks. It eliminates the risk of theft, damage, delay in delivery, counterfeit shares and other risks that are associated with the physical delivery of shares.
5. Speedy execution:
Numerous processes like crediting dividends, interest, refund becomes super quick and easy with a demat account. Additionally, investors can also apply for IPOs, receive bonuses, dividends, stock splits, rights at an accelerated pace with a demat account. This kind of convenience was unimaginable with physical shares.
Once you have opened a demat account, you can operate a demat account depending on which financial instrument you want to trade in. You can trade in equity, derivatives, commodities or currencies.
When you open an online demat account with Motilal Oswal you get access to a hassle-free and seamless trading experience along with access to secondary markets like BSE, NSE, MCX, NCDEX.
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
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