What You Should Know About the Indian Stock Market & Online Demat Accounts in India | Motilal Oswal

What You Should Know About the Indian Stock Market & Online Demat Accounts in India

A new investor, or a highly experienced one, has it really good in 2021. With advancements in technology and easier ways to engage in trading, investors can conduct any investing activity from their laptops, and even smartphones, at home. The share market today, among other avenues of investment, is totally online and open to making life hassle-free for any investor, novice or expert. This being said, if you are just starting out, there are aspects of the Indian stock market you should be aware of. 

  • Investing in the Share Market Today

The emergence of the demat account has led to many investors turning to the Indian stock market as a channel of investment. With physical share certificates no longer in use, holding stocks has become stress-free. A demat account holds your stocks and other securities in an electronic format, so this is a safe way to store your assets. The need to diversify wealth and expand financial portfolios to cover a wide range of investments and asset classes has only enhanced the ability of investors to trade with gusto. With everything to do with trading and investing in an electronic format, and the mandatory aspect of holding a demat account if you wish to trade, has made the demat account an all-important factor in the trading universe. However, you must keep in mind that demat accounts and come with fees and charges. 

  • Investing Awareness and Demat Accounts

Now that you have gathered that it is absolutely mandatory to hold a demat account, you may choose to apply for an online demat account. Demat account opening can be done both online and offline. The online route is common as it is a user-friendly process. However, there are a few things you need to know pertaining to how to go about this. Firstly, you should contact a registered DP or depository participant. A list of these is available from the websites of NSDL (the National Securities Depository Limited) or CDSL (the Central Depositories Securities Limited). Once you get a good DP, you can easily open a demat account by filling in a few details on the DP’s website. Your demat account may be connected to a trading account, so you can trade with the stocks held in your account in a convenient and flexible manner. 

  • Awareness of the Share Market

Your work as an investor is only half done when you open an online demat account in India. As an investor, you should define your investing aims. Are you investing for short-term gains, or would you like to hold your stocks for the long haul? If you begin investing when you are young, the share market can be a good source to earn from, and you can learn a lot as you go. One thing to note about investing in the Indian stock market is that trading is related to risk. You must tread carefully and be aware of any options facing you. When you choose to be an active investor, it is integral that you do your homework and open a demat account linked to a trading account with a reliable broker like Motilal Oswal. 

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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