Other ways of investing in mutual funds other than opening the Demat account is to buy it directly from the company.
Contact the respective company directly and bypass the need for opening an account. Also, it prevents you from paying the brokerage charges.
Thus, skipping the Demat account you can avail many benefits like gaining extra control, taking responsibility towards your share, and accountability over the mutual fund.
But with the account, investors are able to keep their physical shares in the secure electronic form.
With this online gateway, it becomes easy for investors to review, select and compare funds easily thus helping them to manage their accounts.
Other than this, there are many reasons why to have a Demat Account:
1. Safe & Secure:The physical shares were difficult to maintain and have the risk of getting misplaced, but with the Demat Account, investors are able to maintain their shares in an electronic form thus making an investment much safer.
Other than this, it adds on an extra layer of securities, regulations and statutory compliances thus making the it one of the best and safer options for investors.
2. Indispensable for Trading:With the Demat account, you would be able to trade in the stock market and allow you to do stock trading electronically. It allows you to settle trade in Demat form on any of stock exchanges.
3. Reduces Hassle: Handling too many financial products like debt securities, mutual fund, equity, etc separately makes it difficult and confusing for investors. With the electronic account system, one can get rid of such hassle and allow them to preserve multiple securities in one single account.
Also, it makes it easy to keep track of all the financial products under one roof.
4. Lower Costs:To maintain and handle the physical certificates of shares you have to pay any additional costs like stamp duty etc. But with this, you can eliminate all such charges and reduces the cost of trading in shares.
5. Quick and Convenient: To deal with physical securities you need to visit your broker to buy or sell shares but with the electronic account system you can prevent yourself from making a frequent visit as the whole process can be done and managed online, eventually reducing the chance of manual errors.
Apart from the reasons, there are Demat Account features that are the attraction of entering into securities investments. And still unsure about the Demat account opening? You can read Demat Account Types and be sure about your decision.
Hope you all get to know why should you have a Demat account?
The reasons are many more, but in general, it makes trading tech-savvy and convenient.
So, now who wants to gain the experience of trading and share market can open a Demat account with any Depository Participant.
Make sure you have all the documents required to open the account.
In case you want to grab more details, feel free to contact us