The best demat account in India can be compared to a bank account. You are going to hold your cash in a bank account whereas the latter holds the securities in a physical form. The securities could be in the form of cash, bonds or ETFS. If you are planning to invest in shares then a demat account is mandatory. In our country there are two DPS, CDSL and NDSL. There are some benefits of a demat account that are as follows
Flexibility along with convenience
By the accounts there is flexibility in order to invest in a wide range of securities. You can go on to invest in shares, bonds, mutual funds or initial offerings. Even you can trade in derivatives with the aid of this account. Because of this you go on to enjoy the convenience of investing in multiple accounts at the same time.
Seek out beneficial information
The main benefit of a demat account is you do have access to beneficial information. Live share market updates can be obtained and even your different investments can be analysed. The service provider could hold, buy or even hold recommendations to reap in the benefits. Even investment decisions can be made on the basis of market capitalization and other benefits.
To be updated
Often you end up overlooking important announcements made by companies. With a reliable account you are up to date with the latest investments and even market shares as per your investments are provided. In fact the DP is expected to provide you with regular information about merger, buyer and other information. Apart from this you do have access to company reports based on the performance. Even historical information is provided that enables you to make concrete decisions.
An important aspect of the investment strategy is to track down your investment portfolio. With the aid of an online demat account you are able to track down your investment portfolio that is spread across various sectors. This enables you to make a decision on the basis of your risk profile and expectations of returns. You are able to make smarter decisions with the aid of a demat account.
In order to maximize returns on your investment opting for timely decisions is the key. You could be busy and might find it difficult in order to track down the investments. With the aid of a demat account you can go on to set alerts that makes the process of decision making an easy one. The best part is that you can enable automated instructions in terms of buying or selling at specific prices.
The main reason why you are going to need a demat account is trading in physical securities is hardly allowed. Ever since 2014, SEBI has gone on to certify that only digital form of securities would be traded. For this reason if you are planning to buy or sell shares you might need a Demat account.