10 things to consider while opening a Demat account | Mint
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Business News/ Brand Stories / 10 things to consider while opening a Demat account

10 things to consider while opening a Demat account

Stock Holding Corporation of India Limited (StockHolding) offers an exhaustive range of financial products and services to meet all your investment needs.

Learn more about opening a demat accountPremium
Learn more about opening a demat account

Thinking of opening a Demat account to make your foray into the financial markets? With the returns from some investment products tapering and the advent of technology-driven online platforms to enable efficient trading; diversifying your investments to include financial markets has become a lucrative opportunity that must not be missed.

But, for a newbie in the world of trading and equity markets, the process of opening a Demat account can seem to be a daunting task.

Mint believes that StockHolding as an organization fulfills all these criteria that are essential for choosing the right platform for opening a demat account.

1. Legacy and Trust

You must look for a platform with a strong investor base and a good presence across the country. This will weed out the fly by night operators who make promises of good returns but are not always able to deliver results. Take the time to do some due diligence on the depository participant’s legacy, including customer base, years of operation and the geographical footprint in terms of number of branches. StockHolding with a strong pedigree and experience of more than 34 years is the pioneer in DP.

It also has a PAN India presence with more than 200 branches and trusted by over 5 crore happy customers.

2. Security

The virtual world has its ease but also comes with a security risk which needs to be considered, especially when one is dealing with hard-earned savings. Your Demat account must be equipped with the highest levels of security in terms of data encryption when it moves between computers and servers. This is particularly beneficial seeing the recent spurt in cyber-attack cases. To ensure the highest levels of safety for your data, StockHolding uses High Grade Encryption (RC4 128 bits) to ensure that client data is fully encrypted during transmission making is safe from attacks by unauthorized people as it travels between different computers and servers.

3. Paperless account opening

The process of opening of the Demat account should be as hassle-free and contactless as possible, especially in the changing times of today. Most depository participants today have made the process online with the simple application form and submission of documents. Opt for a service provider that offers paperless account opening with minimum documentation. At StockHolding, the process to open a Demat account is simple and completely paperless with help of eKYC. To know more click here.

4. Online access

Using technology as an enabler, a host of depository participants offer online access to your Demat account ensuring hassle-free operations and trading. This means that your online platform can offers details about your holdings, valuations, transaction statements, portfolio, etc. Some of these even offer instant notifications on your investments and smart investing tips. You can access and operate your StockHolding account from any smart device and initiate transactions at the simple click of a button.

5. Choice of Broker

As per government guidelines, you can have a Demat account and trading account with different brokers. But you should look for a financial partner who can offer both services for ease of operations. This makes transacting much more efficient as process like issuing Debit Instruction Slips, resolving issues around trading becomes convenient as it can be executed by one entity. StockHolding offers both Demat account and trading account services through their subsidiary SHCIL Services Limited (SSL), making it the perfect choice in this regard.

6. Product Range

A financial partner that offers robust trading platforms and allows you to invest in a diverse range of financial products from Stocks, Derivatives, Government of India (GOI) bonds, Fixed Income (FI) products, Mutual Fund , National Pension Scheme, investment in Gold, Insurance solutions from one unified account is good. This enables you to view and track all your investments from one platform making it easy to compare and manage, which is seamless to do with a company like StockHolding, as it offers a whole host of financial products for you to choose from, by facilitating right kind of diversification for your investment portfolio. It also offers a unique FastFwd account which enables the customer to view/transact multiple accounts with a single login.

7. Charges

It is important to assess the charges that will be levied for creating and operating the Demat account, which can vary from one depository participant to another. These include account opening charges, which can be free for some providers. In addition, there are annual maintenance charges levied for online and other services offered on the account throughout the year. Some even levy a transaction fee for specific trades, with the option of discounted brokerage. If you open an account online at StockHolding, Annual Maintanence Charge (AMC) for the first year is FREE.

8. Nature of Accounts

Legally, one can hold more than one Demat account but there should be a justification for having multiple accounts. If you open multiple accounts, take care to keep a track of your transactions. Similarly, you need to also consider whether you want a single account or a joint account and prepare for the documentation accordingly. StockHolding offers different kinds of accounts as well as a choice of getting a two-in-one account.

9. Certified Professionals

Your money must go into the hands of the right advisors, who are certified professionals qualified to offer the correct advice to you that can enhance the return on your portfolio. The depository participant also must have a backend in terms of a learning and development centre which offers the right ambience for training and skill upgradation for their staff. At StockHolding, you can be assured that certified professionals will guide you with their expertise in providing the right investment solutions for you.

10. Demat for Children

To help your child understand the financial market and investment planning early in life, you can opt for a minor Demat account, meant for those under the age of 18 years. The child will also have early exposure to the idea of investment and it will help you segregate the funds you want to allocate for them. You will need to have a PAN card for the minor and ask your broker the process for account opening, as the requirements and guidelines are different from those for Demat accounts for adults.

StockHolding Corporation of India Limited offers a one stop solution to all your investment needs with a wide range of products ranging from Stocks, Derivatives,Government of India (GOI) bonds, to Fixed Income (FI) products, Mutual Fund , National Pension Scheme,investment in Gold and Insurance solutions. Started in 1986, it is India’s first and one of the most trusted depository participants.

It has a large online presence and state of the art infrastructure make it one of the country’s largest depository participants, with a strong pedigree of certified professionals on board who promise trustworthy servicing. StockHolding has won “Highest assest under Custody" for 8 consecutive years from NSDL.

Look no further, when you plan to open your demat account!

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Published: 11 Feb 2021, 12:39 PM IST
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