Equity Investment: Why it’s never too late to open a trading and demat account

October 08, 2021 7:05 PM

You can begin your investment journey right from the moment you think of attaining your financial goals by investing your money in multiple asset classes.

stock markets, equity, equity investment, trading and demat account, investment journey, financial goals, digitisation, investment planningGone are the days when investment was only about growing your money during youth so as to have a secured future in old age.

By Palka A Chopra, Senior Vice President, Master Capital Services

Financial planning and wealth building have always been the matters of crucial concern. The question that often does the rounds is: ‘When is the right time to invest?’ The answer to this is ‘Always’. You can begin your investment journey right from the moment you think of attaining your financial goals by investing your money in multiple asset classes.

The market opens its doors for all

People live for years without realising the power of investing in the stock market. Many times, they miss out on the opportunities marred by the myth that one needs to be highly equipped with technical knowledge of the stock markets to master the art of investing in stocks. However, what needs to be understood is that the stock market is for everyone, including those who do not possess the knowledge to analyse the markets and evaluate the fundamentals of companies’ stocks.

Gone are the days when investment was only about growing your money during youth so as to have a secured future in old age. In the present times, irrespective of whether you are young or old, student or a professional, retired or working, successful entrepreneur or a highly paid corporate job-goer, if you have never thought about investing in the stock markets but are keen to do it now, then you should begin your journey right away by opening a Trading & Demat account! Technology has further helped in giving the concept of online trading a boost. Investment has become accessible to all and this process has also been streamlined due to digitisation. However, the first step to tread on the investment path is to have an account with a well-established broking house.

The need for a Trading & Demat account

The broking houses offer services of both Trading and Demat accounts. Having a trading account is an essential tool to seamlessly invest in stock market. It helps in purchasing and selling equity shares in the market. A Demat account on the other hand acts as a depository that keeps the shares in digital or electronic form.

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Benefits of a Trading and Demat account:

1. Lowered Risk

The risk of damage, robbery or theft is eliminated when the securities are stored online and not in the physical form. Dematerialised securities offer safer trades as they are electronic in format.

2. Minimal Charges

Now investors enjoy one of the major benefits of Trading & Demat accounts, which is the cost effectiveness that comes with it. Zero physical securities are involved in the trading process now a days. Thus, minimal charges are applicable on online trades.

3. Hassle Free Process

The entire process of opening a trading & demat account has never been so seamless before. Now the transactions are a lot more efficient and quick as the account can now be opened in a few simple steps via simplified verification process to ensure utmost security.

4. Spread your investment

A Trading and Demat account helps to spread the investment across a wide range of asset classes such as Equity, Debts, Corporate Bonds, etc without having to visit multiple distributors or investment platforms for the same.

Thus, makes the investment process a lot simpler when it comes to preparing a diversified portfolio.

Summing Up

Due to unawareness of the opportunities which come by investing in stock markets, people refrain from investing in it. Nevertheless, this is an effective way to grow wealth over a period of time. And as the saying goes, ‘It is never too late’ to begin your investments in stock markets. Open your trading and Demat account and execute your investment planning right now.

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