In recent years, financial services have transformed due to evolving digital technologies. Like banking, trading process has become digital. Today, around 7.38 crore Demat accounts have been opened in India. The number of Demat accounts doubling in the last three years indficate the growing interest of investors in share market.
You can trade online easily by opening a Demat account. Trading has become 100% digital with the help of a Demat & trading account. It has not only reduced costs but has also made trading transparent and quick. The plethora of online research and analytical tools have created a new generation of tech-savvy and prudent investors.
What is a Demat Account?
A Demat account holds the securities in electronic form. You can open a Demat account online by visiting a DP’s (Depository Participant) website . Here, you will find an online application form that you need to fill and submit with the necessary documents.
If you are unaware of what is Demat account, it’s an account where you hold securities in digital format. Securities held digitally, they remain safe from thefts and damages. However, opening a Demat account is not enough to open doors to unlimited earning opportunities. Pick the right broker that can assist you in saving, investing, planning, and managing wealth.
How to create endless earning opportunities through a Demat account?
These are some ways through which you can create multiple earning opportunities with one Demat Account:
# Demat Account facilitates investment with a diversified portfolio
Build an investment portfolio with multiple asset classes. It will minimise the risks and allow you to stay shielded from market swings. In the stock market, you can invest in various assets, such as shares, ETFs, Bond, Futures, Options, etc. It is compulsory to open a Demat & trading account for trading. Demat Account helps you hold shares, government securities, mutual funds, and ETFs (Exchange Traded Funds) and thus helps you to maintain a diverse portfolio of securities.
The extent of diversification will depend on your investment goals. To achieve the desired diversification, open a Demat & trading account that allows you to invest across all the asset classes through a single platform.
# Reinvesting dividends
Most companies listed in the stock market pay dividends to their shareholders. Reinvesting the dividends might not seem a lucrative move at first, but it will surely help you gain higher returns in the long term. When you reinvest the dividend, the amount gets used to buy additional stocks. As you keep using the dividends to buy additional stocks, it creates the effect of compounding and multiplies your earnings.
# Opportunity to leverage ongoing market trends
A Demat & trading account provides you access to live price charts. You can compare the prices and create a watchlist of your favourite stocks in which you want to invest. Earning a significant profit margin becomes possible by keeping a close eye on the ongoing market trends and stock-specific news.
# Safety of Investment
Safety is one of the most important aspects of a Demat account. When you hold securities digitally, they are not prone to theft or damage. Also, tracking investments and monitoring the transactions is possible with a Demat account. You can also check your older transactions by downloading a detailed account statement from your Demat Account. It will help you monitor transactions closely, and you can report the inconsistencies to the broker to avoid any possible financial loss.
# Ease of investing with a Demat account
When you open a Demat account, you need not maintain a minimum balance in your account. Also, there are no restrictions regarding the minimum number of trades to be executed daily. You may also freeze your Demat Account for a particular period whenever you are not trading. You can stop debit or credit flow according to your requirement by freezing the Demat Account.
# Seamless investments in real-time
The transactions made through a Demat account get executed in real-time. It enables you to take advantage of changing market scenarios and stock prices.
# Lower charges & 100% digital
As securities are traded electronically, there is no need for paperwork. Also, it leads to lower charges associated with trading. You can trade in all kinds of securities without worrying about the volume.
# User-friendly trading platform
Once you open a Demat and trading account, the broker will provide access to a trading app. You can use it to invest in the stock market from any part of the world. Also, access information about the upcoming IPOs, corporate events, and market trends via the app to make smart investment decisions.
These are some ways through which you can create wealth with the help of a Demat account. Be inquisitive and find a broker who offers a wide range of services at a cost-effective brokerage. It will enable you to save more money on every trade.
Bajaj Finance Securities Limited (BFSL) offers a robust trading platform that enables you to buy and sell securities quickly. You can create a watchlist of your favourite stocks to track their latest price and details. BFSL has also partnered with PickRight* to provide thematic investment tips, research, and advisory alongside user-friendly investment tracking services to create a diversified investment portfolio. Theme-based investment packs are designed for students, retirees and women. Use trading platforms like these and build a diverse investment portfolio to achieve your long-term investment goals.
Investments in securities markets are subject to market risks, read all the related documents carefully before investing. *BFSL is the only distributor of this product (Pickright); These are not exchange-traded products and all disputes with respect to the distribution activity, would not have access to an exchange investor redressal forum or Arbitration mechanism. BFSL is not a registered Investment Advisory or Research entity. User discretion is required before investing.
