I want to know in detail about demat <span title="a/c,shares,debentures,mutual">a/c,shares,debentures,mut...</span> funds?

Question

I want to know in detail about demat a/c,shares,debentures,mut... funds?

Answer 1

call me

Answer 2

Demat refers to a dematerialised account.

.So it is just like a bank account where actual money is replaced by shares.

Stocks are held in electronic form in a place called Depository. There are two Depositories in India, (i)NSDL - National Securities depository ltd.) and (ii) CDSL Central depository Securities Ltd.). They are like head offices where all the technologies are available and Stocks are held in electronic forms.

The portfolio of Shares held by an Individual will be stated in the Demat account of the individual. Also all transactions of sale, purchase, transfer Will be entered in the Dmat a/c, like in a Pass Book of a bank A/c.

.

So you don&#039;t have to possess any physical certificates showing that you own these shares. They are all held electronically in your account.

Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions.

Is a demat account a must?

Nowadays, practically all trades have to be settled in dematerialised form.

Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of up to 500 shares to be settled in physical form, nobody wants physical shares any more.

So a demat account is a must for trading and investing.

Shares are known as Equities and they represent the money invested by an Individual. Shares give rights to vote and a shareholder has a decision making capacity in the affairs of the company where his shares are held. Shares can be purchased when there is an open issue calling for investment.The issue price may be same or sometimes will be at a premium. shares can be purchased through Stock Exchanges or thru&#039; Brokers and the price will be decided as ruling at the time of purchase.

Debentures are securities and equivalent to loans. The debentures may not be secured but in the event of liquidation of the company , debenture holders are sure to get their money unlike share holders because  Share holders own the Company  to the extent of shares held by them.

Mutual Funds are money pooled from the investors and Agents of Mutual funds manage the mutual funds by discretely reinvesting them in multi caps, term equities with dividend options. Mutual Funds don&#039;t attract Income tax if sold after one year after purchase. Net asset values (NAV) of mutual funds are declared on day to day basis. Mutual funds fetch benefits when kept on a long term basis say 3 to 5 years. They are safe generally.

Share Certificates are issued with full details from the companies. dividends are declared as and when the Company decides in line with the profits earned.

debentures attract fixed interest and they have to be paid in line with the tems of the Debenture issue.

Mutual funds fetch dividends but in mutual funds the risk factor is more. The investor is advised to study the brochures and ascertain the NAVs from time to time and decide whether to hold the funds or dispose them off. Recognized mutual funds are not only safe but earn high returns.

Answer 3

It is better to get in touch with a broking company in your area, as the most lucid description here is bound to evoke some supplementary questions.

Answer 4

try wikepedia ... also try to read releant literature published by RBI for da same ....... in shrt if u need

a debenture is a long-term debt instrument used by governments and large companies to obtain funds. It is similar to a bond except the securitization conditions are different. A debenture is usually unsecured in the sense that there are no liens or pledges on specific assets. It is however, secured by all properties not otherwise pledged. In the case of bankruptcy debenture holders are considered general creditors.

A mutual fund is a form of collective investment that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments, and/or other securities.[1] In a mutual fund, the fund manager trades the fund&#039;s underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding.

a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT&#039;s. In British English, the usage of the word share alone to refer solely to stocks is so common that it almost replaces the word stock itself. The income received from shares is called a dividend and the name given to anyone who owns shares is called a shareholder.

In India, a demat account, the abbreviation for dematerialised account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialised account is used to avoid holding physical shares: the shares are bought and sold through a stock broker.

Answer 5

go get a financial textbook. all of those are explained in detail.