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IPO participation in India is on the rise. So far, in 2024, 60 companies have raised ₹63,985 crore via mainboard IPOs. This shows that more and more people are eagerly investing in new companies. And getting started on this investment journey is easier than you may think. All you have to do is open a Demat account with a broker that supports IPO investments.
But how will you know which broker offers the best Demat account for IPO? That's where we come in! In this article, we will cover 3 such brokers to help you make the most of the IPO wave. Let's begin!
Coverings
- What is a Demat Account?
- The Importance of a Demat Account
- Top 3 Best Demat Accounts for IPO Investment
- Factors to Consider When Choosing the Best Demat Account for IPO Investment
What is a Demat Account?
As a newbie in the market, it is important for you to know what a Demat account is. It is short for a dematerialised account and works like a digital locker for your stocks and securities. When purchased, the shares directly go into your Demat account, and when sold, they are deducted from the account in the same manner. This completely eliminates the need for physical share certificates, which have the limitations of paper.
If you want to know the benefits of opening a Demat Account; click on the link to read about it.
The Importance of a Demat Account
If you want to participate in the stock market, you need a Demat account. It simplifies the buying and selling process while making the transactions faster and more secure. A Demat account allows you to:
- Manage your investments online
- Track your portfolio easily
- Receive dividends automatically
Additionally, you can also use your securities as collateral for loans and transfer shares between accounts easily.
Top 3 Best Demat Accounts for IPO Investment
Deciding if a Demat account is best for you depends on many factors, including the investments you are interested in. For those who want to ride the IPO wave, you need to make sure that you choose a broker that supports IPO investments. Here are 3 of the best!
1. Zerodha
It is one of the top choices when opening a Demat account, especially if you are thinking of investing in IPOs. As of September 2024, it had around 79 lakh active users and is known for its user-friendly interface as well as a low-cost trading model. It charges a flat fee of just ₹20 per trade, making it affordable for frequent traders. Plus, opening an account is also quite cost-effective!
|
Category |
Charges |
|
Account Opening |
₹0 |
|
Account Maintenance Charges (AMC) |
₹300 + GST |
Applying for an IPO is straightforward; you can use the UPI method or the ASBA process. And the best part is you do not need to pay any charges to apply for an IPO via Zerodha This way, you can focus on your investments without worrying about the hidden fees.
2. Upstox
With 28 lakh active users as of September 2024, Upstox is also a viable option. It makes investing in IPOs accessible and easy. Moreover, it allows you to apply for IPOs without any brokerage fees. Upstox is also cost-effective because:
|
Category |
Charges |
|
Account Opening |
₹0 |
|
Account Maintenance Charges (AMC) |
₹0 |
That means opening an account on Upstox is completely free. Additionally, the process to apply for an IPO is easy and fully digital. You can invest in an IPO using UPI for quick transactions. You can even apply before the IPO opens through their "Pre-IPO" feature. Upstox also offers a user-friendly mobile app and website, making it simple to track and manage your portfolio. This combination of features makes Upstox a reliable broker for anyone looking to dive into IPO investments.
3. Angel One
Another option for you is Angel One. This full-service broker had over 73 lakh active users till September 2024. It has 25+ years of experience backing it up, and the fact that there are no charges to apply for IPO investments only adds to its value.
|
Category |
Charges |
|
Account Opening |
₹0 |
|
Account Maintenance Charges (AMC)* |
₹240 + GST |
*AMC is free for the 1st year.
Investors can easily apply for IPOs through its user-friendly mobile app or website. To make the process quick and hassle-free, it also offers various features like:
- Real-time updates on upcoming IPOs
- Ability to modify or cancel applications
The platform makes investing in IPOs accessible and straightforward for everyone. These features and its cost-effective model make Angel One a considerable option for IPO investment.
Factors to Consider When Choosing the Best Demat Account for IPO Investment
If you want to explore other options besides the 3 mentioned above, here are some factors that will help you make the best choice:
- Brokerage Fees: Look for accounts with low or no brokerage fees. This means you'll get to enjoy more of your profits. Some accounts charge a flat fee per trade, while others might take a percentage. Choose what works best for your budget.
- Access to IPOs: Make sure that you choose a Demat account with access to IPOs. You want to be able to invest in the ones that hold your interest and growth potential. Also, make sure that the IPO application process is easy and straightforward.
- Research and Analysis Tools: Having access to research reports and analysis can help you make better investment decisions. Look for accounts that offer tools to help you understand the market and upcoming IPOs.
- Customer Support: If you have questions or run into issues, you will require help quickly. Check if the broker has multiple ways through which you can reach them, like phone, chat, or email.
- Ease-of-use: Make sure that the platform (whether it is a website or a mobile app) is easy to use. This will help you manage your investments without any confusion.
- Additional Investment Options: Consider whether the Demat account offers other investment options like equities, currencies, F&O or commodities. This can help you diversify your portfolio beyond just the IPOs.
By keeping these factors in mind, you'll be better equipped to choose a Demat account that suits your needs for investing in IPOs!
Conclusion
Finding the best Demat account for IPO investment is not that difficult. Start by comparing your options. But you know what? You don't have to spend hours doing research, as Finology Select has done all the work to make your decision easier. Find out if a broker supports IPO investments out of 25 top choices. Other information, such as the pros and cons, customer reviews and charges, are all listed for your convenience.
This way, you can easily:
- Check for any hidden charges or AMC
- Evaluate each platform's ease of use
- Find accounts that simplify the process
You can even find out if the broker offers any additional features, such as notifications about upcoming IPOs and real-time updates, which can help you stay ahead. However, make sure that the Demat account you choose also offers other investment options to help you diversify your investments and mitigate market risk.
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