Demat Accounts: Common Myths and Facts Every Investor Should Know
Gone are the days when investing and trading were accessible to few people. The growth and popularity of online tools and platforms have made trading and investing available to the masses; all one needs is to open a demat account. However, with the growth of online trading, there is widespread misinformation about demat accounts, so let's address the common myths and facts of demat accounts.
Common Myths and Facts About Demat Account
Myth 1: Demat Account Holds Only Shares
When it comes to open demat account online India, many investors think that a demat account holds only shares and no other securities can be held in it.
Fact: Demat accounts can be used to hold various types of securities. It can be used to hold stocks, bonds, mutual funds, ETFs, and government bonds.
Myth 2: Only One Demat Account Per Person
Many investors assume that one person can open only one demat account and cannot hold more than one account.
Fact: You can open multiple demat accounts, as there is no restriction on how many accounts an investor can open. Traders can create demat accounts with depositories like CDSL and NSDL with the same PAN card.
Myth 3: Securities are Prone to Risk as They are in Electronic Form
Many investors believe online trading can put their data at risk, so they tend to avoid trading through online platforms.
Fact: There are various safe platforms that allow free online demat account opening in 5 mins. SEBI has made it mandatory for every stock broker to add firewalls to ensure secure trading. This makes sure your data and transaction details are safe.
Myth 4: Demat Account is Complex
Another common myth is that many investors believe that a demat account is challenging, time-consuming, and is not for smaller investors.
Fact: One of the best benefits of demat account is that it makes buying and selling shares easy and inexpensive and is suitable for all types of investors.
These are some of the common myths and facts about demat accounts so you can start investing without any misleading information. Aaditya Wealthon is leading share market broker in India that can help you create a demat account, allowing you to invest in multiple securities. For more information, call us today.
Also Visit:- Why Demat Account is Necessary?
