What are online Demat accounts and the benefits of having a Demat account with Klevertrade?
Understanding Demat Account: Meaning and Benefits Opening a Demat account online, similar to an online bank account, is a significant financial decision that enables financial independence and control over investments. While you hold cash in your bank account, the former has securities in an electronic format, which is one of the key features of a Demat account. The securities can be bonds, shares, mutual funds, or Exchange-Traded Funds (ETFs).
If you want to invest in equities, a Demat account is mandatory, with Central Securities Depository Limited (CDSL) and National Securities Depository Limited (NSDL) as the two depositories in India. An account is opened with a DP (Depository Participant), like Klevertrade, that connects you with the two depositories.
Benefits of Demat Account Online
- Convenient and Flexible
Demat Account provides flexibility to invest in various financial instruments to the users. It provides flexibility to invest in equities, fixed deposits, mutual funds, insurance, government and corporate bonds, and IPOs. One can also trade in derivatives through a Demat account with Klevertrade. Hence, making the convenience of investment in multiple instruments a click away.
- Stay Updated
An account with a reliable DP will ensure you are updated with timely share market news in cohesion with your investments. A DP like Klevertrade will also share periodic messages about dividend declaration, results, mergers, and buybacks. Furthermore, you can access analyst reports based on company performance, financial projections, and historical data to aid informed investment decisions.
- Provides Beneficial Information
A Demat account allows you access to beneficial information. It lets you check live share market updates and further analyse your investments. The DP may also provide buy, sell, or hold recommendations to help you maximise your benefits. You can also use market capitalisation charts, shareholding patterns, promoters and retail holdings, etc., to make investment decisions.
- Set Alerts
Time and timing are of prime importance in the stock market. Knowing the right time to enter, hold, and exit the stock is crucial to maximising profits on your investment. Another essential feature of the Demat account online is that it enables access to timely information without being glued to a screen via alerts. You can further enter automatic buy and sell instructions at a pre-specified price to keep yourself away from constantly checking the price.
- Easy Transfer of shares
A Demat account enables easy transfer of shares for its user in no time. Hence, making the whole process faster and easier. Additionally, the transfer of securities from one account to another can be done conveniently through a DIS (Delivery Instruction slip) or RIS (Receipt Instruction Slip).
- Track Portfolio
While traditional DP’s didn’t provide, an online Demat account offers the ease and convenience of tracking the investment portfolio in just a click. Tracking the portfolio is an essential aspect of financial planning as it provides a peek into the performance of different investment products across your portfolio. Hence, making room for modifications to minimise risk and maximise returns.
While a Demat account is mandatory today, if you are looking forward to investing in the share market, choosing a DP that provides the maximum benefits of demat account with them is imperative. Users can take advantage of the capital market by investing in equities, mutual funds, and commodities. Open a Demat account online with Klevertrade to maximise reward and minimise risk.
A Demat account is the first step towards financial independence and comes with in numerable benefits. Hence, open your Demat account online with Klevertrade now.