Stocks, Bonds, and Mutual Funds are common examples of financial securities. Trading in these financial securities is smart as it earns you good returns and allows you to enjoy high liquidity. You can trade for these financial securities in the open financial markets. In fact, now you can trade in all leading financial markets online, which means you do not miss out on any good trading opportunities.
You should hold a Demat Account to trade in various financial markets. A Demat Account holds all your financial securities in a dematerialised format. This ensures safekeeping and provides you with instant access to your financial securities. If you are wondering how to open Demat Account, it is very simple. You can open an account with any leading Depositary Participant (DP) in India. You can open an account both offline and online.
If you want to open multiple Demat Accounts, you can do that. There is no bar limit to the number of Demat Accounts you can open. Following are the top benefits and rules of multiple Demat Account openings:
- Facilitates segregation
You will likely have several different goals as you trade in financial securities. For instance, you may have purchased some financial securities for quick trading while some for long-term investment. You can use multiple Demat Accounts to segregate your financial securities as per your goals and track them better.
- Avail of various services
As mentioned, for how to open Demat Account, you can reach out to any leading DP in India. Every DP has a different service offering. A few DPs offer services specialising in intraday trading, sectoral, long-term investments, etc. You can benefit from various DPs' services by opening multiple Demat Accounts.
- Widen your investment portfolio
You get to widen your investment portfolio by opening multiple Demat Accounts. This helps you maximise returns and mitigate associated risks. You also get a better shot with an Initial Public Offering by applying through multiple accounts. Even if one account is allocated IPO stocks, it will earn good profits for you. If all accounts get IPO stocks allocated, nothing like it.
Rules for multiple Demat Account openings
- You can open multiple Demat Accounts if every account is opened with a different DP.
- If you want to open multiple Demat Accounts with the same DP, you can do it with another account holder.
- You are liable to pay the Annual Maintenance Charge for all accounts, whether you use the account or not.
- You can link multiple Demat Accounts to a single Trading Account and make seamless trades on the go!
