The Demat account helps its investors to keep their shares digitally. It helps to keep their security properly as well as systematically. This is the reason it is in demand nowadays. There are two types NSDL and CSDL. It helps to keep maintained records of all the shares, in a well and organized manner. It eliminates the risk of securities getting misplaced which is its biggest advantage. The benefits of this account are as follows:-
1) Physical certificates are eliminated
Earlier the paper certificates were in trend. The document consists of thousands of paperwork. These papers are required to be kept properly as they can get damaged or can get lost by robbery. The Demat account keeps this in electronic and digital form.
2) Easy transfer facility
One can keep the number of shares so easily it also helps to trade in high volume. It helps in the quick transfer of shares and bonds over the network. This has made the work so easy and swift. But in the case of transferring physical certificates, it was difficult as well as time-consuming for shareholders.
3) Easy accessibility
One can access his account from any part of the world and that too anytime. One only needs to have access to the internet and a laptop. One can easily buy, sell, or transfer share over the network by sitting at the comfort of his home.
4) Multiple investments are stored
It helps in storing multiple types of investments like mutual funds, bonds, shares, government securities, etc. You can store multiple investments so easily in your Demat account. It is the biggest advantage offered by it.
5) Transferring amount
In case of death of the shareholder it offers the facility of transferring the amount to the nominee whose name the shareholder has given while buying the shares. This is the person who will receive the amount in case the shareholder dies. So, the nomination is one of the best things provided by the Demat account.
It provides you with the facility of automatic update. All the bonuses and every other thing will get automatically updated in your account. One is not required to calculate anything on its own.It is a time saving technique for its shareholders.
The Demat account comes with a lot of advantages other than the discussed above. It has eliminated the physical requirement of share certificates. It has become a necessity because of the easiness it provides. 5paisa allows you to open up your Demat account easily. You just have to enter Pan Details, fill in personal details, E-sign form and you are done with your work. The shares are kept in a systematized manner thus saving time for the shareholder. It helps in the easy transfer and sale of securities. If you are not having this account open it and enjoy the facilities. Demat account is useful in the times of internet as everything is done online. There is no requirement of physical buying, selling and transferring of shares.