What is need and importance of Demat Account in India?



  • You might have heard of Demat account in India. When we talk of stock investing or stock trading, we often listen about "Demat account". So, I thought to express some useful info on the need and importance of demat account in India.

    Gone are the days, when people used to store physical share certificates. So much hassle to secure these important pieces of paper and avoid them getting stolen or lost. This is when demat account comes to our rescue. No worries to carry this exhausting task of storing paper shares when you have the facility to store them in electronic form. Did you get my point?
    So, Demat account allows you to store your shares in electronic form rather than holding them in physical form. Demat simply refers to "Dematerialization" of shares. Just as you have a bank account and carry online transactions. Similarly, Demat account helps you to keep your investments safely.
    Need and Importance of Demat account in India:

    • Acts as a safe repository for your different investments.

    • Ensures security of your transactions.

    • Paperless process of investing and trading.

    • Demat account is a pre-requisite for trading in stocks.

    • Invest and store a variety of investments like stocks, mutual funds, ETFs etc. at one place.

    • A quick and convenient way to carry on your trading activities.

    • Reduced cost of operations due to less paperwork to be done.

    • User-friendly interface on various online trading portals make it a pleasant experience for investors.

    • A simple and faster Demat account opening process is to be followed. You can easily get started!
      To enjoy a seamless access to different services on your trading and investing path, you need to have a Demat account.

    What do you think? Are you interested in long term investing or day trading? Do you have a Demat account? What are your opinions on the same? Any points to share.



  • @ishu The importance of demat account can't be ignored in this digital era. We have entered the digital age where everything is getting online. Just few clicks & you can do different transactions.
    So, investing & trading in stocks is no exception. Opening a Demat account simplifies the entire investment process. These days 3-in-1 Demat-Trading-Bank accounts or 2-in-1 Demat-Trading Account options are easily available with different stock brokers in India. The Demat account opening process has also become simple involving less paperwork & documentation. It's high time we realise the importance of demat account in India.



  • @harleen I was really confused as to what is demat account. I am not from investing field. I am a newcomer in investing. Many doubts got cleared after reading this. I am not interested in trading since that sounds risky. But, I wish to invest for long term.



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