Buying equity, is buying a share of a company. The rule of Farming is a good way to understand equity investments -

•  First sow the seeds
• Keep watering it for it to grow
• Wait for some time with patience
• With passage of time, you will get fruits of your hard work and patience.

It must be understood that investment in equity must be done with the intention of “wealth” maximization rather than immediate short-term profit maximization. Equity investments give good returns over a period of time only.    

Every investment has its equal share of risk. In the case of Bond/FD, a fixed return at the specified rate is guaranteed. When it comes to Equity, it is a return based on management decisions as well as price volatility. Is it riskier than FD/Bond market? Yes. But equity is going to allow you to be an active part of a company’s growth. There are several types of equity investments that a company may offer and each will come with attached rights and responsibilities.

What is meant by Demating of your Physical Share certificate?

Demating is a process of converting your shares in paper form to digital form

Benefits of Demat Account:

• Easy share transfers from one name to another name
• Automatic credit of split, bonus shares & dividends
• No fear of losing paper certificates
• Lesser transaction costs
• Trouble free transaction

Process of converting physical shares into demat form

• Investor surrenders the physical certificates to Sharekhan for Dematerialisation
• Sharekhan informs NSDL  about the request
• Sharekhan submits the certificates to the registrar of the Issuer Company
• Registrar communicates with NSDL to confirm the request
• Dematerialisation of the certificates is done by the registar
• Accounts updated by the registrar and NSDL is informed about the completion of  dematerialisation
• Accounts are updated by NSDL and Sharekhan is informed about the same
• Demat account of the investor is updated by Sharekhan.

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