The word Demat here stands for dematerialisation. The physical entities of the stock market like stocks, commodities, mutual funds etc. can be kept in a dematerialised or non-physical format via a Demat account. With the help of this account, people can hold securities in electronic form. In the past few years, it was not possible to keep securities in non-physical format, but the Demat account has helped us to overcome that barrier. All of us have a saving account in the banks either of our own or our parents, the Demat account works in the same way. People have realised the importance to open demat account over the years. Now they can invest in the stock market without any stress as Demat accounts takes upon themselvesa whole lot of responsibilities. According to a survey, because of the existence and discovery of the Demat account, even more, people have started investing in the stock markets. It’s rightly said that when people are given opportunities with security, they use them well.
Let us know about the importance of the Demat account in detail: –
- Ensures utmost safety
As we have listed above, that shares in earlier times were kept in a physical format. People were not aware of security then but now with the opening of the Demat account, they want their shares and investments to be secured. Your shares could have been damaged by physical uncertainties or by theft, but now with the help of a Demat account, you can invest without any security issue.
- Feature to hold multiple securities
Demat accountscan hold one or more securities. Not only shares but equity, bonds, debt securities and mutual funds too. To make things easier for people in general, such features were added to the Demat account. If you kept some of the securities in physical form while others in electronic form, it may become difficult for you to handle. Therefore, make the best use of this feature.
- Online track records
People were scared in earlier times to invest in such places because of the chances of theft and uncertainties. But the time has evolved now and so did the technology. People can keep an online track record of their securities. The online system aware the respective individual if there is any kind of threat to his securities. All the updates will be notified to you via your cell phone.
- Convenient mode to invest
You don’t have to hustle to maintain your Demat account. Once it is created, all the updates will be notified to you via your respective mail or cell number. You don’t have to visit every back and then to check if everything is on the track or not.
So these are the topmost important reasons that why should an individual open his Demat account. It comes with all the safety measures and helps your finances to grow. It’s the right time to invest in a Demat account with 5paisa. The demand for Demat accounts is going to rise in the coming years because of the salient features that it comes with.