Have You Opened Your Demat Account Yet?

Category: Business

The importance of savings and investment can barely be overstressed in today’s competitive day and age and there is no better place to invest than stock market for handsome returns. You may think that your savings bank account and fixed deposits would be good enough to bring you positive returns in the form of annual or periodic interest without any risk involved. However, what this line of thinking actually does is, expose chinks in your financial armour by neglecting the issue of purchasing power of money over time. With a rise in inflation, you cannot expect to put aside Rs 10,000 today in a fixed deposit and expect to get a return after 2 years which is even equal to the current purchasing power of the said amount. If you factor in inflation, even the rate of interest on a fixed deposit would not help much in retaining the purchasing power of your money. If you invest somewhere and at the time of maturity have to go in for tax deduction, it also affects the actual returns and the only real option left for your capital to grow is in stock market which can afford much higher gains depending on your approach to investment. To invest in stocks, first you would need to open a demat account which would allow for you to keep your financial securities including stocks, bonds or debentures in an electronic form. You can open this demat account with your bank or go to a stock broker which is registered as a depository participant (DP) with one of the national depositories. A demat account would not only help you invest and trade easily in the stock market but also remove the worries associated with safekeeping of financial instruments in their physical form. A number of stock brokers and financial advisors also offer expert advice for making the right investments depending on your risk tolerance and benefit from it. Ashlar Online is a reputed stock broking firm with which you can open a demat account for free and take advantage of expert investment advice.