Demat account protects your investments from fraud and reduces the risks of storage, theft, loss and malpractice. It also acts as a big store for all your investments. This makes it safe and easy to use. Furthermore, it enables you to track and access all your investments in shares, government securities, exchange-traded funds, bonds and mutual funds from anywhere in the world under one account in electronic format. There are many benefits of having this. Let’s understand it here.
10 benefits of demat account
protect holdings
When you open your demat account, your holdings are protected against loss due to breakage, misplacement or theft.
Protects investments from fraud
Before online settlement, there were many cases of copying of holdings using fraud or fake documents, but after demat accounts came into the market, it became impossible to fake the holdings or copy someone’s.
instant transfer of shares
One advantage of a Demat account is that the transaction not only becomes secure or easy, but the settlement is also instant. Faster settlements also reduce the risk of fraud.
Instant access from anywhere
It becomes easy to buy and sell shares from anywhere in the world through your laptop or mobile.
Unlimited Shared Storage
You don’t have to worry about the quantity of shares you collect. You can also trade in small amounts and monitor your account online.
can also get loan
One advantage of having a demat account is that the securities held in your online account can be used to avail loans from various banks. This can provide a lot of flexibility and convenience for those looking to get financing for different purposes.
Account can be updated automatically
If there is any change in the stock in your demat account, like bonus issue, stock split etc., you will automatically get the update in your demat account.
Enrollment becomes available
According to SBI Securities, in case of unexpected circumstances, your demat account ensures that your holdings are safe, and the appointed nominee will receive the shareholding.
reduction in transaction costs
The advantage of having a demat account is that you can enjoy low transaction costs, the charges are charged per ISIN, whether you transfer 1 share or 100 shares.
Eliminates bad delivery
In a depository environment, securities cannot be returned “under objection” for any reason, and hence the question of bad delivery does not arise, nor does the investor face any uncertainty about the securities purchased by him. Is.
