All of you might know the importance of a bank account. But have you thought about opening a demat account? Demat accounts have many benefits, and every Indian citizen should have one. A demat account not only facilitates online stock market investing but also enables trading in different securities such as bonds, debentures, treasury bills, exchange traded funds (EFTs), and mutual funds. The transactions carried through demat accounts are quick and you can manage all your financial assets on a single platform.
Here is a list of the benefits of having a demat account:
Ease of making transactions and managing your overall portfolio
Once you have a demat account, it is very easy to make transactions. You can buy and sell multiple securities from a single account. The tracking of your portfolio becomes easy and you can make decisions swiftly.
A single account for all types of securities
A demat account is not just for trading in company stocks. You can also trade in other securities like ETFs, mutual funds, bonds, and various types of debentures. You can also keep gold sovereign bonds and treasury bills in your demat account. A demat account enables you to manage and trade in different securities as and when you need.
Reduces paperwork and increases safety
The most important aspect of having a demat account is that you no longer have to keep physical shares, which could be stolen, misplaced, or damaged.
Quick processing and credit of securities
Earlier, the process of buying shares and receiving the share certificates was long and tedious. Months could pass before you got your share certificate. With a demat account, the timeline has been reduced to a few days (T+2 days to be specific). You can get your shares credited to your demat account within two days of transaction.
Elimination of stamp duty
If you make transactions through an electronic demat account, you don’t have to pay stamp duty.
Benefit of corporate actions
Publicly listed companies announce benefits like dividend, bonus issue, buyback, stock split from time to time. All of these can be processed through a single demat account.
Having a demat account is as vital as having a bank account if you want to invest in markets and create wealth.
