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Securities & Investments: What Can You Hold In A Demat Account?

When it comes to building wealth these days, millions of people are looking to invest in the share market. While some lean towards investing in money market instruments, others are interested in stocks and IPOs. But regardless of whatever you choose, you will need a demat account in order to make your transactions happen. A demat account in simple terms is an account to contains securities and shares in an electronic manner. Let’s explore the diverse range of assets that you can hold in your demat account.


One of the primary assets that find a home in your demat account is equities, commonly known as stocks or shares. Whether you’re eyeing established giants or promising newcomers, your demat account facilitates the seamless buying, selling, and tracking of these ownership instruments in the stock market.


Beyond stocks, demat accounts accommodate bonds, offering a stable avenue for investment. Bonds, representing debt instruments issued by governments or corporations, pay periodic interest and return the principal amount at maturity. Holding bonds in your demat account simplifies the management of your fixed-income portfolio.

Mutual Fund Units

Mutual funds, a popular choice for diversified investments, can be conveniently held in your demat account. These funds pool money from multiple investors to create a diversified portfolio of stocks, bonds, or other securities. Your demat account streamlines the process of managing and monitoring your mutual fund investments.

Exchange-Traded Funds (ETFs)

Exchange-Traded Funds (ETFs), akin to mutual funds but traded on stock exchanges, offer exposure to various asset classes. Whether you’re interested in equities, commodities, or bonds, your demat account acts as a digital vault for holding ETF units, providing liquidity and ease of trading.

Government Securities

demat accounts also cater to the secure holding of government securities, including treasury bills and bonds. These low-risk instruments find a digital home in your demat account, providing stability and a reliable investment option.

Initial Public Offering (IPO) Allotments

Participating in Initial Public Offerings (IPOs) becomes more straightforward with a demat account. IPO allotments, which involve receiving shares directly in electronic form, eliminate the need for physical certificates and offer a seamless entry into new stock issuances.

Gold and Silver ETFs

For those inclined toward precious metals, Gold and Silver Exchange-Traded Funds (ETFs) allow you to invest in gold and silver without the hassle of physical storage. Your demat account acts as a digital repository for these precious metal ETF units.


So that was a look at what a demat account is and what you can contain. Always remember that having your assets in electronic form through a demat account app will not only make things convenient for you but also guarantee a safe and efficient way to navigate the world of securities and investments that is constantly changing. So if you have questions regarding this, make sure to share them in the comments below.