The 21st century has brought several changes into this world, one major being digitalization.
In the past, investors held physical certificates for stocks and bonds. Demat accounts eliminate the need for physical certificates by storing investments electronically. Let us learn about the benefits that it offers.
Applications for DEMAT Accounts
To Hold Shares Electronically: Instead of keeping physical certificates for stocks, bonds, and other investments, a demat account stores them digitally. This saves you from losing documents and lets you use your investments as collateral for loans.
To Trade in Different Securities: With a demat account, buying and selling investments is much quicker and easier. You can do it online, and transactions are settled within a day.
To Monitor Portfolio: You can keep track of all your investments in one place, including their current value and how they're performing. This helps you make informed decisions about your portfolio.
To Reduce Paperwork: Since everything is digital, you don't have to deal with storing or transferring physical documents. This saves time and reduces the risk of fraud.
To Apply for an IPO: Want to invest in a new company? You can do it online through your demat account, and once the company goes public, the shares will be credited to your account.
To Invest in Mutual Funds: Demat accounts also make it easy to invest in mutual funds without all the paperwork. You can track your investments and make transactions quickly.
TO Use securities as Collateral for loans: If you need a loan, you can use your investment portfolio as collateral. This can give you access to better terms and more flexible repayment options.
Opening a Demat account is a straightforward process if you have all the necessary documents ready. Just follow the steps diligently for a hassle-free and quick process. You can open a demat account from Tradejini’s website or using the CubePlus app.
Click here to open your free demat account now!
Also, if you are an existing trader, you can reactivate your dormant demat account by completing the necessary verification steps and submitting a form.
Also Read: How Does the Stock Market Work in India? An Overview
