Investing Guide #52: What is a Demat Account & Why You Need It

 

Want to Invest in Stocks? Your First Step is Opening a Demat Account

Before you buy even one stock or mutual fund — you need a Demat account. Here’s what it is, why it’s needed, and how to open it.

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📘 What is a Demat Account?

Demat = Dematerialised
It’s like a bank account for your stocks.
Instead of physical shares, everything is held digitally in your Demat.

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🏦 What Can You Hold in a Demat Account?

• Stocks
• Mutual funds (if from broker)
• Bonds
• ETFs
• IPO shares
• Sovereign Gold Bonds

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🧾 Documents Required

• PAN card
• Aadhaar + Mobile linked
• Signature (digital or scanned)
• Bank details (for linking)

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📱 How to Open It Online

Apps like:

• Groww
• Zerodha
• Upstox
• Angel One

Process takes 5–15 mins via Aadhaar eKYC.

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💡 Charges to Know

• Account opening fee (mostly free now)
• Annual maintenance charge (₹0–₹500/year)
• Brokerage (per trade or delivery)

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✅ Conclusion

A Demat account is your gateway to wealth creation. It's simple, safe, and takes just a few minutes to set up — don’t wait.

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