What you need to be wary of before opening your demat account

Financial planning is one of the top priorities on everyone’s to-do list. We want to create sufficient wealth for our short-term goals such as travelling, buying a car, and long-term goals that include buying a house, higher education, and post-retirement life. To build a corpus for these milestones, we put ourselves under a tight budget and automate our monthly salaries into a savings account.

However, saving money alone cannot benefit in attaining our desired goals within a stipulated time frame. Here, investing can play a big role in wealth creation. By parking money in investment tools, we can generate stable returns and fulfil our financial goals.

There are various investment tools that can help in starting the financial journey. That said, you should have a fair knowledge about the financial markets before investing. So, if you plan to invest in mutual funds, bonds, Exchange Traded Funds (ETFs), or any other tradeable assets, here are few key pointers you should keep in mind:

It is mandatory to have a demat account before you begin investing in the stock market, mutual funds or bonds. An online demat account acts like a storehouse of all the information of all your tradeable assets where you can buy/transfer securities within seconds. You can convert physical share certificates into digital format, reducing the risk of losing any important document.

With a demat account, you also stay up-to-date with market-related information and can benefit from live dashboards, live charts, online payments, statements, etc.

You can open an online demat account with Stock Holding Corporation of India Limited (StockHolding) on both Central Depository Services Limited (CDSL) or the National Securities Depository Limited (NSDL). StockHolding is a pioneer of demat in India since demat account system was introduced. You can open a hassle-free demat account with StockHolding and get an advantage of their 2-in-1 account which helps you trade at low brokerage. Moreover, StockHolding  also facilitates easy access of its products through FastFwd, a single login portal  through which you can access different products such as demat and broking, National Pension Scheme (NPS), Mutual Funds (MF), Sovereign Gold Bonds (SGB), GoldRush and Bonds. Thus, you do not have to remember multiple passwords or keep your account open, increasing the risk of frauds or data leaks.

It is important to check and verify the details of the financial partner handling your hard-earned money. While discussing your financials with the advisors, look for red flags and counter question. Also, if the financial partner is aggressively asking you to put substantial sum on a particular asset, do your own homework first. To avoid any fraud or potential loss of money, always trust your finances with a SEBI-registered entity that is in business for substantial years. Here, StockHolding with over three decades of experience, believes in giving quality services to its customers with unbiased view on financial tools. The advisors analyse your history, milestones, net worth, etc., before making any recommendation.

Opening a demat account comes with small convenience fee. Before getting started with your demat account, read the document carefully for charges associated with it, such as demat account opening, maintenance, transaction and custodian fees. These charges are different for every financial partner, such as StockHolding gives free Annual Maintenance Charge (AMC) for the first year.

There have been instances of online frauds in the past. Therefore, it becomes important to open an account with a trusted financial partner who has a highly-secured ISO-certified infrastructure with secured payment gateways. StockHolding has a reputation of robust electronic demat system that verifies details before you make a transaction. It also believes in making timely payments to its clients.

It is noteworthy that StockHolding has been receiving the NSDL star performer award for highest asset under custody (AUC) for eight consecutive years with Rs 38 lakh crore AUC.

As your start your financial journey, it is crucial to have an unbiased view on investment tools that work in your favour. Here, certified professionals at StockHolding can help you with drafting a purposeful financial plan as they have been assisting more than five crore customers across over 200 branches in kick-starting and sustaining their financial journey.

As you set out on your financial journey, it is advisable to take a well-informed decision and partner with experts that don’t take your finances for granted.

For more information, visit www.stockholding.com