Demat Account: Is it right to have multiple demat accounts? Understand the advantages and disadvantages here..

It is necessary to have a Demat Account to invest in the stock market or Mutual Fund. Without this, you cannot invest in all these. Let us tell you that the full form of a Demat Account is a Dematerialisation Account.

You can easily gain access to the Demat account on all your electronic devices like laptops, tablets, and smartphones. However, the internet is necessary for its access. Apart from this, to log in to the Demat account, login ID and password have to be entered every time.

Many investors have a question in their mind regarding Demat account whether more than one Demat account can be opened. If an investor opens more than one account, what are its advantages and disadvantages? We will answer all these questions below.

Can more than one account be opened?

Market regulator SEBI has not yet issued any guidelines regarding the Demat account. This means that there is no rule regarding how many Demat accounts a user will have. However, it is mandatory to have a demat account for investing in stocks or market-linked funds.

Benefits of multiple demat accounts

There are not many benefits of having more than one demat account. Rather, it is a stressful task, because it becomes very difficult to manage multiple accounts simultaneously. However, if you open a demat account with different brokerage firms, then you can take advantage of many facilities. Apart from this, you can also make different types of investments due to having two accounts.

If you want, you can use one of the two accounts for long-term transactions and the other account for short-term transactions. However, in this, you may also have confusion regarding the purchase and sale of shares. However, after having multiple accounts, you can diversify your portfolio.

Also read EPFO ​​New Rule: Claim and Tracking Made Easy, new rules for Provident Fund have been implemented.

Disadvantages of Multiple Demat
If you have more demat accounts, the maintenance cost increases. Brokerage firms charge transfer fees for trading. In such a situation, if you have more than one account, this fee can increase because every brokerage firm has different rules. In such a situation, if you are not an active investor, then you should not keep multiple demat accounts. Tracking more than one account is also a bit difficult.