Here's what you've to keep in mind before opening your demat account

There are various investment tools that can help in starting the financial journey. That said, you should have a fair knowledge about the financial markets before investing. So, if you plan to invest in mutual funds, bonds, Exchange Traded Funds (ETFs), or any other tradeable assets, here are few key pointers you should keep in mind:

Opening a Demat account

It is mandatory to have a demat account before you begin investing in the stock market, mutual funds or bonds. An online demat account acts like a storehouse of all the information of all your tradeable assets where you can buy/transfer securities within seconds. You can convert physical share certificates into digital format, reducing the risk of losing any important document.

With a demat account, you also stay up-to-date with market-related information and can benefit from live dashboards, live charts, online payments, statements, etc.

How to get started

You can open an online demat account with Stock Holding Corporation of India Limited (StockHolding) on both Central Depository Services Limited (CDSL) or the National Securities Depository Limited (NSDL). StockHolding is a pioneer of demat in India since demat accounts made a debut in 1998. You can open a hassle-free demat account with StockHolding at low brokerage. Moreover, StockHolding also facilitates easy access of its products through FastFwd, a single login portal through which you can access different products such as demat and broking, National Pension Scheme (NPS), Mutual Funds (MF), Sovereign Gold Bonds (SGB), GoldRush and Bonds. Thus, you do not have to remember multiple passwords or keep your account open, increasing the risk of frauds or data leaks.

Do backgrounds check of the broker and financial partner

It is important to check and verify the details of the financial partner handling your hard-earned money. While discussing your financials with the advisors, look for red flags and counter question. Also, if the financial partner is aggressively asking you to put substantial sum on a particular asset, do your own homework first. To avoid any fraud or potential loss of money, always trust your finances with a SEBI-registered entity that is in business for substantial years. Here, StockHolding believes in giving quality services to its customers with unbiased view on financial tools. The advisors analyse your history, milestones, net worth, etc., before making any recommendation.

Re-look at maintenance charges

Opening a demat account comes with small convenience fee. Before getting started with your demat account, read the document carefully for charges associated with it, such as demat account opening, maintenance, transaction and custodian fees. These charges are different for every financial partner, such as StockHolding gives free Annual Maintenance Charge (AMC) for the first year.

Safeguard against frauds

It becomes important to open an account with a trusted financial partner who has a highly-secured ISO-certified infrastructure with secured payment gateways. StockHolding has a reputation of robust electronic demat system that verifies details before you make a transaction. It also believes in making timely payments to its clients.

It is noteworthy that StockHolding has been receiving the NSDL star performer award for highest asset under custody (AUC) for eight consecutive years with Rs 38 lakh crore AUC.

Getting some professional help

As your start your financial journey, it is crucial to have an unbiased view on investment tools that work in your favour. Here, certified professionals at StockHolding can help you with drafting a purposeful financial plan as they have been assisting more than five crore customers across over 200 branches in kick-starting and sustaining their financial journey.

Note: It is advisable to take a well-informed decision and partner with experts that don't take your finances for granted.