Most people have conflicting views regarding how to open Demat Account and its benefits. It is no surprise anymore that any person who wishes to trade in the stock exchanges, buy and hold share certificates need to have a trading and a Demat Account linked to their general savings account. But for regular traders, it can become hectic to manage all their assets and shareholding certificates in one Demat Account. Thanks to the CDSL (Central Depository Securities Limited) and NSDL (National Securities Depository Limited) that they allow one trader to have multiple Demat Accounts. Yes, it is possible to have numerous accounts either with one Depository Participant or with several others.
But the general point of concern is – is it convenient to have several Demat Accounts? The traders can consider discovering how to open Demat Account with IIFL and learn the nitty-gritty of maintaining numerous of them. The company has been in business for over a decade and has severed millions of traders across the country. Therefore, it is better to rely upon experienced minds to manage several Demat Accounts and trade in an organised manner.
Managing shares and stock trading together can become more apparent with proper management.
For traders who are new to the investment sector and are still learning the nitty-gritty of the stock market, knowing how to open Demat Account is more vital than opening numerous of them. However, for the ones who have been in the business for a long time, this action can be profitable. So, traders can consider opening numerous accounts without risking their flow of investment or existing shareholdings. It is just about finding the best ones in the market and utilising their offerings in the best way possible. However, just like any other investment choice, this one also has its share of pros and cons.
There are many valuable advantages of knowing how to open Demat Account and using that knowledge to open multiple of them. However, one should also know how to consolidate multiple Demat Accounts after they have served their purpose. Traders have to be very active with their trading actions and activities without compromising their secluded commitments.
With multiple Demat Accounts, traders can keep their different types of shareholdings in an organised way. For instance, one can keep his long-term shares in one account, frequently used in another and so on. This process will help to utilise time and manage all the assets efficiently.
IPO (Initial Public Offering) securities and investments are not offerable to every investor in the market. There are very specific portfolios that qualify for this one. Therefore, the traders who have several accounts and know how to open Demat Account in the right places can take advantage of this investment.
Wise traders always keep their past investment and trading records in-check before making their next move in the stock market. With organised management of Demat Accounts and a clear vision of existing shareholdings, making investment strategies will become much easier and time-saving too.
After knowing how to open Demat Account, if an investor opens only one account, he will get access to the service of one Depository Participant. However, to avail the benefits of all the leading names in the market, one can consider opening accounts with each one of them and take the advantage of diversification!
The trading portfolio is the most vital document that an investor can easily get access to after realising how to open Demat Account and trading account. Most of the leading Depository Participants offer the portfolio service. So, with multiple accounts, traders can segregate their portfolios into different classes.
Although the advantage of understanding how to open Demat Account with multiple Depository Participants far outweighs the liabilities, wise traders should be well-aware of them. Any kind of negligence in this field can cost them more than just a few bucks!
Although opening a Demat Account is mostly free of cost these days, there are a few mandatory charges that the account holders have to bear. AMC (Annual Maintenance Charges), dematerialization and rematerialisation charges, redemption costs, etc. are a few of them. Multiple accounts will mean paying extra AMCs than the investors who have only one.
Multiple Demat Accounts can help individuals in tracking the profits and losses from investments.
Managing different Demat Accounts will require more time than usual as one has to constantly keep checking the updates and statements of all of them, maintain the payment records and verify the balance. Therefore, traders who are low on time and cannot commit long hours to their investment activities might find it a bit difficult to cope up.
Multiple Demat Accounts means having several statements and managing them simultaneously. One cannot leave an account unchecked as the consequences of inactivity can be more impactful than we assume. One needs to keep verifying all the statements without failure.
Yes, it is no secret that investors who have a lot on the line to manage and handle tend to forget these minor details. So, to manage multiple accounts, traders have to be active and remember or note down the login details of all of them.
Account record-keeping is a tactful task that some traders enjoy while most of them try to escape claiming it demands efforts. Therefore, one has to be mindful of this fact as managing several accounts is not as easy as knowing how to open a Demat Account.
Multiple Demat Accounts are beneficial and useful if traders know how to open Demat Account and make the most of their availability. It is just about channelizing the efforts in the right direction and making the most-beneficial choice out of all. If one wants to try the services of more than one Depository Participant, there is no better option than having multiple accounts. It is just about the right time and specific needs!
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