MoneyRadar

Investing

Demat account

Also known as: Dematerialised account

An electronic account that holds your shares, ETFs and bonds in digital form.

A demat account stores your stocks and other securities electronically, the way a bank account stores money.

You need one to buy and sell individual shares or ETFs. It is usually paired with a trading account.

Regular mutual funds don't strictly need a demat account, but ETFs and direct stock investing do.

For example

To buy shares of a company or a Nifty ETF, you first open a demat plus trading account with a broker like Zerodha or Groww.

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