In today's financial scene, there is a growing trend among retail investors—millennials in particular—to use demat accounts as a means of diversifying their investment portfolios with equities.
Here’s how you can use demat account for wealth creation:
Using your demat account, invest in a diverse portfolio of equities, bonds, mutual funds, and exchange-traded funds (ETFs) to spread risk and maximise rewards. However, be cautious of over-diversification.
Use your demat account to leverage rupee-cost averaging and invest consistently by implementing SIPs in mutual funds. This will help you maintain discipline and ease of use.
Use the resources in your demat account to undertake extensive research before making investments in firms that have the potential to expand and adhere to a buy-and-hold approach.
Stay updated with market trends, company financials, and economic indicators through your demat account, and be mindful of factors like government policies and geopolitical tensions that can impact investments.
The wealth of Oracle’s founder has risen by 107 per cent since March 2020 and totalled $145.5 billion. Jeff Bezos
If you want to potentially increase returns, think about margin trading carefully, but be mindful of the hazards involved and proceed with caution.
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