Demat Account

#Demat Account #mutualfund

Transcript

00:00Whether it's a share market or a mutual fund, you need a DMAT account to invest in both.

00:06But do you know how much you can invest through a DMAT account?

00:12Is there a limit to this?

00:14Or can investors invest as much as they want?

00:17In addition, many people may not even know about the annual fees for a DMAT account.

00:25A DMAT account is, in a way, a multi-task account.

00:29With this account, a user does not need to keep their assets in a physical form.

00:35In fact, they are electronically secured in this account.

00:40In addition, a user can invest in many types of assets from a single account.

00:45Whether it's a stock, a mutual fund, a bond, or a derivative,

00:50a user can easily buy and sell through this account on an online trading platform.

00:56Who manages an account?

00:58Central Depositories Services Ltd., CDSL, and National Securities Depositories Ltd., NSDL manage your DMAT account.

01:10As soon as a user buys a share through a broker, it is credited to their DMAT account.

01:16Similarly, when you sell a share through a broker, the same share is debited from your account.

01:23There are two types of DMAT accounts.

01:25Depending on the needs of the DMAT account user, there are two types of DMAT accounts.

01:30The first is the Basic Service DMAT Account, or BSDA, which has an annual investment limit of $200,000.

01:37This account was started by Sebi in 2000.

01:40Its purpose was to attract small and self-employed investors to exchanges such as share markets and mutual funds.

01:48You can also invest in ETFs through this account.

01:51To manage these accounts, you have to pay $100,000 and GST every year.

01:56How much can you invest?

01:58In the Basic DMAT account, as soon as the amount exceeds $200,000, it automatically changes to the Full Service DMAT account.

02:06Such accounts do not have an investment limit.

02:10You can make any amount through this account.

02:14Its annual maintenance charge is close to $1,000 plus GST.

02:19With this type of account, you get all kinds of funds up to DMAT.