Gone are the days when investing was left to adults and pros. Today, investment has become a real-life skill that not only millennials but Genzs are also diving into. If you’re a young trader looking to get started with opening a Demat account for teens in India, we’ve got just the thing.
Today, we will get into the nitty gritty of how to open a Demat account, the pros and cons of having a Demat account, the process and much more.
So without any further ado, let’s dive right into it 👇
But first, what exactly is a Demat account?
To put it simply, a Demat account is a digital account that holds your stocks, shares, and other securities in electronic form. In other words, it’s like a digital locker for your investments.
You can trade and invest in the stock market via your Demat account without the hassle of physical share certificates. That’s right, say hello to the easiest way of spending 😎
But that’s not all. Having a Demat account will also eliminate the risk of theft, damage or loss of physical certificates. Meaning, you can have access to all the data in your phone and open it in a tap.
Can under 18 teen open a Demat account?
Anyone can open a Demat account in India. However, if you’re a teen looking to open a minor Demat account, you must be below 18 years of age.
Getting a Demat account for teens is rather easy. But as you know there’s always a hook. In this case, this Demat account has to be operated by your guardian till you turn over 18.
Now how can a kid open a Demat account online?
The best part about the entire thing is that there is no minimum age to get a Demat account. However, there are a set of rules carved out that you must have to follow.
Like, in order to open a Demat account online, the teens must –
- Tap on the website of a stockbroker linked with Central Depository Services Limited (CDSL) or National Depository Services Limited (NDSL)
- Provide basic details like your name, email ID, number and some more details to the broker.
- Next up, you will have to complete the KYC details along with some documents.
In case you are wondering what all documents do you need, we have got you covered as usual. Make sure to be ready with the following to open a Demat account for the young lads 👇
- Proof of Identity aka PAN Card
- Proof of address, Aadhar Card both of the parent/guardian and the kid
- Birth certificate of the kid
- Bank account details of the parents
Once you have presented all these documents and the broker has verified them, the Demat account will be opened 🥳
A small point you must know, a Demat account can never be opened as a joint account. Meaning, the account will only belong to one individual.
What happens to the Demat account when the kids become 18 or above?
When you become 18 or above from a teen, your account will not be operational. So you will need to put a fresh Demat account opening request along with the documents mentioned above.
The account creation process will be entirely different from the previous one. Unlike before, you would not need your parent’s or guardian’s signature to open the account.
And goes without saying that you can freely trade or invest at your own will.
Pros of having a Demat account for teens
Having a Demat account can be an absolute game changer. Here are some of the advantages that you can expect:
Say Adios to the traditional way of investing 👋
Getting a Demat account will help you wave goodbye to the hassle filled and time taking process of dealing with physical share certificates. This is an era of all things digital, making investing a piece of cake for you.
Say hello to a safe and secure way 🔑
Furthermore, you do not need to sweat about your stock certificate getting lost or stolen. The Demat account will ensure a safe process and store your investment in digital format. How? It’s quite simple actually. It protects the details with passwords and other security measures to ensure that you can view your shares anytime, anywhere with a tap. So if you are a clumsy teen who loses the document, fret not! Demat has got your back.
Easy access to your portfolio 📈
Whether you are travelling in a metro or hanging out with your friends. You can take a check on your portfolio pretty much anytime you want.
Accessing your holdings and transaction has never been easier. You can just open the portfolio online and have a bird’s eye on your investment.
Ditch the hassle of the old paperwork process 📝
It’s 2023 and we have left the days of paperwork behind us. A Demat account will process all your transactions online and chuck the need of filling out tedious paper works.
And lastly, save that money 💸
If you have already grown to be fond of the idea of having a Demat account, we are sure this one will just have you drooling.
A Demat account will help you in saving on the transaction costs and stamp duty fees, making investing in the stock market more affordable for teens on a budget.
To Wrap things up
If you have reached this part of the blog, congratulations, you have already made it half way through.
But we have reached to the end of the horizon for now.
So what are you waiting for? Go and get a Demat account for yourself today.
We’ll see you in the next one with an all fresh topic.
For now, toodles friends!
About Akudo
We are the smoothest payments app for teens in the age of 11 to 18 years. With an aim to make shopping rewarding, we are giving the best cashback and rewards in town.
Moreover, we also give a super cool card so that you can make the payment and flaunt it everywhere.
So, if you are in the winners club, go get yourself an Akudo card and experience shopping in the most rewarding way.
Till then, buh bye frens.
