How to choose a demat account?

I am sure you must have heard your friends & family members talking about investing in shares. But have you ever seen what a share looks like? I bet you are wondering where your shares go once you buy them. Well, we no longer deal with share certificates in physical form like the olden days. Physical certificates can now be dematerialised and stored in electronic forms, hence the name "Demat account." When you purchase shares, they’re stored securely in this account.

The various reasons to have a Demat account:

1. No Need for Physical Share Certificates:

You no longer have to hold physical share certificates; instead, your shares are securely stored in electronic form.

2. Unlimited Storage:

Without the physical hassle of share certificates, you can hold and transact unlimited shares, all in one place.

3. Automatically Updated:

The shares in your Demat account are automatically updated when a company announces bonus issues or stock splits. You don’t need to notify your depository participant (who manages your Demat account) to reflect these changes.

4. Versatile Asset Storage:

A Demat account isn’t just for shares—you can also store bonds, mutual funds, government securities, and more.

5. Trade Anytime, Anywhere:

The biggest advantage is that you can trade from anywhere, anytime. Just open a trading terminal on your laptop or smartphone, and you’re ready to go.

6. IPO Investment Made Easy:

You can also apply for IPOs (Initial Public Offerings) directly and get shares at attractive valuations.

7. Efficient Settlement:

When you trade or invest, the settlement occurs on a T+2 business days through the exchange. However, now since everything is digitized, the process has become transparent and trustworthy for users.

How to Open a Demat Account

Opening a Demat account is straightforward! You simply need to visit a depository participant’s website, like ICICI Direct, and open your account. After KYC verification and in-person verification, your account will be ready. Then, you only need to link your bank account, and you're all set to start investing.

So, don’t delay your investment journey—start building your portfolio now!