InvestorQ : How does a demat account benefit me as an investor?
Ria Jain made post

How does a demat account benefit me as an investor?

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Rutuja Nigam answered.
3 years ago
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Demat account overcomes most of the hassles of holding and handling physical share certificates. But that is not all! It also scores on simplicity and user-friendliness. Here is how.
It lower risks. Physical securities are risky due to thefts, loss, or damage. In addition, bad deliveries or fake securities pose further risks. These risks are completely eliminated with the opening of a Demat account.
Demat holdings are in electronic form and hence a lot easier. Maintaining physical certificates is a tedious job. File them; monitor them, just too much. Moreover, keeping a track on their performance is an added responsibility. With a demat account, you can see values in real time and monitor at any point in time with an online interface.
Do you remember odd lots in the old days; they do not exist any longer. With physical certificates, buying and selling were possible only in the specified quantities. The convenience of dealing with odd lots or single security was also not available. Demat accounts eliminate this issue. Now you can even buy one share in the open market. There are literally no entry barriers.
Demat is also economical and cuts down on costs. Physical certificates involved several additional costs, such as stamp duty, handling charges, and other such expenses. These extra expenses are completely eliminated with Demat accounts. Demat accounts are simple, fuss-free and extremely lucrative. In today’s day and age, they are a must for scientific investing.
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