Kindly advise me whether it is financially wise to have one Dmat Acc? I am investing in ELSS–2K in AXIS LONG TERM EQUITY FUND 2K in BIRLA SUNLIFE tax plan 3)1K in SBI MAGNUM TAX PLAN. Dmat acc has some annual maintainence charges. So i feel it wont have much activity and usage if i dont trade in stock. And for that i will be requiring strong knowledge of Stocks plus time, which i dont have. Thats why i went for MFs. But one of my family member suggested to open Dmat acc and purchase some Bluechip Company Shares as and when possible in order to get long term benefit. Kindly throw some light on how decide to choose between this two options from normal investors point of view.
Ajinkya-For your mutual fund investments, Demat account is not at all a necessity. Regarding direct equity investment, it is hard for retail investors to diversify properly in all types of stocks. Equity is not an asset class, where you invest today and open your eyes after 10 years or so. It requires constant monitoring. Current bluechip stock may not be BLUECHIP stock in long term.
But at the same time, I am not suggesting you to stay away from direct equity. However, if you are ready to spend time and learn many things, and investing for long term then definitely go ahead. I personally feel not required.