Benefits of holding a demat account
The concept of dematerialization is similar to the concept of keeping your money in a bank with a passbook and accessing your balance on the internet. For all of us, it has simplified and made safe the process of trading and holding shares. The details are securely stored with depositories, and the data is adequately backed up given its value and sensitivity.
According to an Indian wealth research report, only 5% of Indian families’ financial wealth currently goes into financial products, including equities directly or through mutual funds.
As a fully electronic data trail with a full investment history, Demat is also an effective tool for investment, reports, tracking, growth, and tax compliance.
The opening of a Demat account reduces trade barriers with its ease of access and the ability to transfer shares quickly. Moreover, the agreement between you and the Depository Participant is not subject to stamp duty, saving you costs associated with dealings and registration.
The shares held in can also be pled as collateral to secure a personal loan.
Opening a Demat account allows you to link it to other relevant accounts and start trading or investing making it easy and smooth for the people.
For more information, visit
