A Demat account app is a digital platform that securely stores shares in electronic format, eliminating the need for physical certificates. It simplifies share market trading by automatically crediting when buying shares and debiting when selling them. Numerous Demat account apps offer this service. Some apps also provide features for investing in mutual funds. Today we will focus on using a share market demat account app in this article.
How to Open a Demat Account
Opening a Demat account is a straightforward process. Here’s how you can proceed.
- Download the App: First, download the Demat account app on your smartphone. You can find these apps on the App Store or Google Play Store.
- Sign Up: After downloading, open the app and sign up. You will need to enter your details, such as your name, email address, and phone number.
- Verify Your Identity: To ensure security, you will need to verify your identity. This may involve uploading a photo ID, such as an Aadhaar card or passport.
- Link Your Bank Account: Link your bank account to the app. This step is essential for transferring funds easily when you buy or sell shares.
- Start Trading: Once your account is set up and verified, you can start buying and selling shares. The app will guide you through the process.
Using the App to Manage Shares
After setting up your account, you can use the app to manage your shares effectively. Here’s how to do it.
1. Buying Shares
To buy shares, follow these steps:
- Open the app: Launch the app and log in to your account.
- Search for Shares: Use the search feature to find the shares you want to buy. Search by the company name or stock symbol.
- Enter the number of shares: Decide how many shares you want to purchase. Enter this number in the app.
- Confirm Your Order: Review your order details and confirm the purchase. The Demat account will receive the credited shares.
2. Selling Shares
Selling shares is just as easy.
- Log In to the App: Open the app and log in to your account.
- Go to Your Portfolio: Navigate to your portfolio to see all your shares.
- Select Shares to Sell: Choose the shares you want to sell. You can select multiple shares if needed.
- Enter the number of shares: Specify how many shares you wish to sell.
- Confirm the Sale: Review the details and confirm the sale. The linked bank account will receive the credited funds.
If you’re also using a mutual funds app, the process is similar when you decide to sell your mutual fund units.
3. Tracking Your Portfolio
Tracking your investments is crucial for making informed decisions. The app allows you to:
- View Current Value: Check the current value of your shares at any time.
- Monitor Price Changes: Stay updated on changes in share prices. This information helps you decide when to buy or sell.
- Evaluate Overall Performance: The app provides insights into your portfolio’s overall performance. You can see how your investments are doing over time.
4. Setting Alerts
Many Demat account apps allow you to set alerts. This feature can be very helpful as they offer the following.
- Price Alerts: Set alerts for specific price levels to stay informed. This way, you will be notified when a share reaches a certain price.
- Market News: Stay informed about important market news. The app can send you notifications about significant events that may affect your investments.
- Upcoming IPOs: Get alerts for upcoming IPOs (Initial Public Offerings). This allows you to explore new investment opportunities.
5. Exploring Mutual Funds
If you are interested in diversifying your investments, you can explore mutual funds. Many Demat account apps also function as mutual funds apps. Here’s how you can use it:
- Browse Available Funds: Look through the different mutual funds available in the app. You can filter them based on your risk appetite and investment goals.
- Invest Easily: Investing in mutual funds through the app is simple. You can choose the amount you want to invest and complete the transaction with a few taps.
- Monitor Performance: Just like shares, you can track the performance of your mutual funds. This helps you make informed decisions about your investments.
6. Learning Resources
Most Demat account apps offer valuable learning resources. These can help you understand the share market better:
- Educational Articles: Read articles about investing strategies, market trends, and tips for beginners.
- Video Tutorials: Many apps provide video tutorials that explain how to use the app and understand the share market.
- Expert Tips: Some apps feature insights from financial experts. These tips can guide you in making better investment decisions.
Conclusion
Managing your shares through a Demat account app is an efficient way to stay updated on your investments. With features that allow you to buy, sell, and monitor your shares, these apps simplify the entire process. You can also explore additional investment options like mutual funds within the app. Reputed financial houses like HDFC SKY offer a platform that makes navigating the share market straightforward and accessible. This approach ensures that you have the tools you need to manage your portfolio effectively.
