Insights and good valuations are the dearest friends of every investor. Well, here’s a personalized insight for you. The Indian stock markets were trading and reaching new all-time highs every quarter when the COVID-19 struck. As the outbreak gripped our nation, the benchmark indices lost approx. 40% of their value until the lockdown was announced on the 23rd of March. Now, here’s another piece of insight that you might be interested in.
Ever since the lockdown came into force, the stock markets have rallied by about 30%. And, they are still breaching new levels – this time, month after month. After all, the buck never stops! Yet, these markets are far from their true potential as the COVID-induced lockdowns continue to stay in force. Any seasoned investor will tell you that this is the perfect time to book your longs (or long-term investments).
However, before you roll up your sleeves and prepare to embark on your trading journey, you will need a Demat account first. Unless you have it already, here’s a quick guide on how you can set it up from the comfort of your home.
1. Like your trades, pick your broker wisely
Look for a digital broking firm (app or web-based) that offers a seamless onboarding process, best brokerage charges, and value-added investment services. Some broking houses have zero brokerage fees on certain trades and flat rates on others. Both of these factors are lucrative since they offer you the much-needed cost advantage while trading.
Also, since you are going to trade digitally, take an extra effort to ensure that there have been no technical glitches with your preferred platform. This is because any such glitch can put your investment in direct peril. In-depth research and personalized investment recommendations are also key features to look forward to in a broking firm.
2. Register yourself; time is of the essence in trading
All digital broking firms have an online customer onboarding process. Fill the digital account opening form and upload the mandated identity and address proofs. These KYC documents include PAN Card, Aadhaar Card, Passport, etc. Broking firms also assist you via their helpline if you face any difficulties.
3. Complete the Verification Process
An executive will be assigned to verify the credentials submitted by you. The simple yet crucial process can be carried out either through a phone call or a physical visit from your broking firm’s representative. A tele-verification is highly likely given the current circumstances. Some brokerage firms can complete the entire process in less than an hour from the initial application.
4. Get account details
Once verified, your account will be officially approved for share trading. You will receive a welcome kit containing account details such as a unique ID and a password to access your account.
5. You’re ready to trade
At last, it’s time to make your first trade! Since you are new to trading, make sure you go through the reference materials and attend webinars around trading fundamentals. You can also link multiple bank accounts to your trading account if needed. Doing so helps you in quick top-ups for your time-sensitive trades.
With this new account, you have just embarked on a journey towards evolved investment habits and superior ROIs. Make sure you stay disciplined while investing and, while the world sits back in lockdowns, see your investment going Ka-ching. Godspeed!