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Advantages And Disadvantages Of Demat Account

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In India, people tend to invest their money to secure their future or earn some extra income. Some invest their money in gold or diamonds, while some prefer the options like mutual funds. At present, the share market is a great option to invest your money in. If you have enough patience and capability of taking the right decision without getting influence or panic, this is the perfect way for you to earn more.

What is Share Market?
The share or stock market is a virtual marketplace where shares of registered companies are sold and bought. Apart from shares, other market products such as mutual funds, bonds, derivative contracts, etc. are also traded. The share market can be divided into two types. The types of share market are explained below.

Primary Share Market: The primary share market is for the …show more content…

If you are a beginner, you should inform your broker about the share and quality that you wish to buy with your investment amount. Likewise, at the time of selling your stocks, always discuss with your broker for the best suggestions.

How to Open a Demat Account?
Almost every investor needs a Demat account for trading. This account does not need any minimum balance to keep. Here are the further steps that you need to follow to open a Demat account.

Step 1: The very first you need to do is approach a DP. While approaching them, ask them about their fees and method of charging the fee. Both private and government banks provide the Demat account services, however, their charges may vary and the method too. Some banks ask for the monthly fee while some charges whenever transaction is done by the investor. Therefore, keep all the elements in mind to select a DP.

Step 2: Once you find a DP, collect the form and fill it. Attach the copies of all the required documents and submit it. PAN card is mandatory, so do not forget to attach a copy of your PAN card with the

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