21-01-2022, 11:54 AM
A Demat account is a repository which stores Stocks or Shares in digital format. The shares that investors buy from the Stock Market are stored in the Demat account. The Demat accounts are held and maintained by organisations called Depositories. To invest in stocks it is mandatory to have a Demat account The stocks that investors buy are stored in their Demat account. Everything is digital, so they are a very safe way to hold stocks, mutual funds, Exchanged Traded Funds, etc. There is no fear of theft or forgery. Physical documents are prone to damage over time. Digital stored data doesn't have such risks. All your investments are available at one place making it easier for you to manage them. You can buy or sell shares, update your nominee details, change addresses online with much ease. A Demat account thus has many benefits. There are a lot of financial institutions providing Demat accounts. It is better to open a Demat account with a reputed firm that offers quality service. Consider opening a Demat account with IIFL Securities if you are planning to get one for yourself. They offer trading at 0 % brokerage. There are no Annual maintenance charges for the first year. The IIFL App enables opening a Demat account online. The process is completely paperless and consists of a few steps. Many more financial solutions offered by IIFL are also available on the app. You can avail the services and make immense gains.