How To Improve Your Bottom Line With The Right Demat Account

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Investing in stocks and shares takes a lot of strategy and planning. You will need to be very careful with each step you take before you invest. However, if you want to make this process easier, you can start with a demat account. This dematerialized account is a digital account that holds all the details of your investment and transactions. While it mainly holds all your equities, it also includes your mutual fund units, bonds, debentures, national savings certificate. It will soon also include your insurance policies.All you need to know is what to look for while opening an account. If you focus on the important charges and choose the right account accordingly, you are off to a great start.

Here are the aspects of a demat account you must focus on:

Transaction Fee:

Transaction fee is one major concern. With each transaction you make with your demat account, you will be charged a certain percentage as a fee. This percentage will vary with the value of each transaction you make. If the value is high, so will be the transaction fee for it. For small value investors, this may pose a problem. If you invest in a small amount, there is a high chance you will get only a small percentage of profit after all the charges have been deducted. Therefore, when making any transaction, always check the value and the probable transaction fee you will be charged for it before you make your purchase or sale.

Infrastructure:

With the changing pace of technology, many financial institutes are coming up with different user friendly options to manage this account with minimum charges. With options like online trading and mobile apps, you can easily make the transactions without contacting the bank or your stock broker. Not only will you have a stronger and more personal control over the transactions, which will allow you to make more accurate decisions every minute, you will also save more on the bottom line.

What to Ignore:

If you regularly make transactions using your demat account, you can opt for statement updates. Depending on how you want to receive your statement, you can always opt for a non chargeable one. Normally, statement submission by email is free as compared to approaching the branch or calling the centre. Additionally, in order to maintain your dematerialized account, you will be charged annual maintenance charges. These charges are fixed and you only have to pay them once a year.

From the above steps, you can easily strategize and plan to improve your bottom line. Even saving a small amount will go a long way in the long run.

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