Investing in the stock market can be exciting and rewarding, but it can also be time-consuming and costly if you requisition a broker. While a personal stockbroker can help you with their experience and professional acumen, they can also cost a lot of money in the form of hidden fees. That aside, how can you know if the broker is more focused on earning money themselves rather than offering genuine advice to contribute to your wealth gain?
Fortunately, with the advent of the internet, you no longer need to depend on a broker or any other third party to invest in stock. You can go ahead and invest in shares on your own by opening a Demat Account. Read on to find out how.
What is a Demat Account, and how is it useful when investing in shares?
A Demat Account is an online account where you store your shares. This account converts physical shares to an electronic format and can also be used for other securities such as bonds, mutual funds, IPOs, etc.
A Demat Account can simplify life if you wish to invest in the stock market. You can open a demat account online without the need to visit any authority in person. All you need to do is contact a Depository Participant (DP). All Demat Accounts are backed by Central Depository Services India Ltd (CDSL) and National Securities Depository Ltd. (NSDL) and regulated by the Securities and Exchange Board of India (SEBI). So, they are entirely secure.
Since a Demat Account holds all your securities in one place, financial management becomes that much easier. This single account can be used for varied investments such as mutual funds, bonds, exchange-traded funds, etc. And you can get account statements, rebalance your portfolio, and carry out transactions from anywhere on your smartphone or laptop.
Investing in stocks with a Demat Account
You can open a Demat Account on your own by directly contacting the Depository Partner. This process does not require a broker or any third-party authority. Here are the steps:
- Find a DP on the website of CDSL or NSDL.
- Once you have found a DP, contact them and request to open a Demat Account.
- The DP will provide you with an application form. Fill this form with the requested KYC information and submit it to the DP.
- Add a copy of proof of identity and address (PAN, Aadhaar, voter’s ID, electricity bill, ration card, etc.)
- Attach your bank account statements or passbook of the last 3 months.
The DP will verify all your information and open your Demat Account. You will receive an agreement that states your rights and duties as an investor. You will also receive the account number and password that you can use to operate your Demat Account.
HDFC Bank Individual DigiDemat Account
The HDFC Bank Demat Account is a safe and easy-to-use option that eliminates all the hassles associated with a broker. Read on for some key features and advantages of this Demat Account:
- You do not require any physical documentation or signature to open the account; it takes only five minutes
- The account number is shared with you immediately, and you can start investing right away.
- You can instantly redeem your investment returns to your HDFC Bank account
- You do not need to transfer funds to a broker pool account. You can earn interest on your HDFC Bank Savings Account till trade order execution
- You can hold investments in equity, mutual funds, IPOs, bonds, etc. with the same account
- All dividends, interest, and refunds are auto-credited to your account
- You can freeze certain securities or the entire account for a certain period if needed
- You can get a digital loan against your securities
Click here to open a Demat Account from HDFC Bank now!
Looking to invest on your own? Click here to read more about DIY investing!
*Terms and conditions apply. This is an information communication from HDFC bank and should not be considered as a suggestion for investment. Investments in securities market are subject to market risks, read all the related documents carefully before investing.
