The holding statement is an essential document from your free Demat account because it shows you detailed information about your transactions. If you don’t know how to read and use it, you are going to lose money in trading. This article will help you get familiar with the holding statement no matter what kind of financial data remains involved.
What is a Demat Account?
A dematerialized account, or Demat account, is an electronic platform that allows you to hold securities in electronic form. It’s commonly used by investors who want to own shares of a company but don’t want the hassle of storing physical certificates.
When you buy stocks or bonds through a dematerialized account, you don’t receive any physical papers or certificates. Instead, your name gets added to a database maintained by your broker. When you sell those securities, they’re transferred back into the electronic database and removed from your ownership.
How to Read a Demat Account Statement?
Here are some vital details that will help you understand the various aspects of a Demat account statement.
Your Demat account statement will include personal details related to your name, address, and contact. The information in this section should remain accurate at all times. If there are any changes, you should notify your stock broker immediately and get it changed immediately.
- Folio number
Every Demat account holder receives a folio number, which is the unique identification measure. Folio numbers are unique, and no two accounts can have the same number. You can check the folio number displayed on the statement and make a note of it.
- Transaction summary
A transaction summary is a list of all your transactions in a Demat account statement. It usually shows the date and time when the investment was bought or sold, and how much money was invested. It also displays any taxes that you paid on these transactions.
- Mutual fund details
The mutual fund information in your Demat account statement contains all the details you need to know about your mutual funds. Here’s what you’ll see:
- Name of the mutual fund: This is the name of the mutual fund, which will help you identify it in your online account or on paper statements.
- Sector: The sector that this mutual fund invests in. For example, financial services or technology.
- Investment Objective: A description of what type of investor this fund is designed for and the returns it can provide them (e.g., growth or income).
- Dividends: You can track your dividend payments by checking the relevant section in the Demat account statement. There, you will find all the details of your recent dividend payments, along with the amount you received.
- Latest balance
It includes the details of your current balance in the form of securities you hold. You will also get an overview of the number of securities you hold, which indicates your overall balance.
- Free balance
It is the amount that you can readily use to buy new stocks. This amount is free from other investments, which act as a locked-in balance.
- Locked-in balance
It denotes the number of securities you hold currently. The locked-in balance remains unavailable for trading and transfers. All you can do is take part in pledging and unpledging activities.
- Pledged balance
It indicates the securities that you have pledged currently. You can use these securities as long as you release the pledge.
How to open a Demat Account?
Opening a Demat account is a simple process that you can complete in minutes. First, you will need to log onto our platform. You should be able to do this through our website or trading platform. Once you have logged in, you can then go to your account settings and find the option for opening a Demat account.
Once you have clicked on this option, it will take you to a page where you can fill in the required details. You will need to confirm that the details are correct before proceeding further. Once we verify everything, we will send an email with instructions to proceed further with your account. So open your Demat account today with Choice India.