What Is a Demat Account and Why Every Investor Needs One When someone starts investing for the first time, the term 'Demat account' shows up almost right away. Most beginners immediately begin comparing brokers, trying to figure out which one might be the best demat account in India , without really stopping to understand what a Demat account is or why it is needed at all. What Exactly Is a Demat Account? A Demat account is a digital account used to hold investments like shares, bonds, and exchange-traded funds in electronic form. Earlier, investors received physical share certificates, which had to be stored carefully and submitted during every transaction. This made investing slow and risky. With a Demat account, securities are held electronically. When you buy a share, it is credited to your account. When you sell it, the holding is reduced automatically. There is no paperwork involved, and transactions happen smoothly in the background. Why Demat Accounts Became Mand...