In order to save or borrow money with a bank, it is necessary to have a savings account. Similarly, to invest in the stock market, you may open a dematerialization account.

Understanding dematerialization [Demat] account

A dematerialization account, also known as a demat account, holds shares in an electronic format. It holds certificates of financial instruments that you have invested in, such as mutual funds, government securities, shares, and Exchange Traded Funds [ETFs], among others.

Benefits of having a dematerialization [Demat] account

You may open a demat account and enjoy the numerous benefits it has to offer. Following are five major advantages of holding shares in the dematerialized form.

1. Through such an account, you may hold all your investments in a single account. It, therefore, acts as a common bank for your investments.
2. Another major benefit is the automatic update facility. Since it is a common account, it eliminates the need to give out your personal details every time you make a transaction. Your personal information will automatically be made available to the companies you are transacting with.
3. Holding shares in a physical format makes it susceptible to risks such as theft, loss of share certificates, or fake shares. Dematerialization, however, eliminates such risks. Upon approval of your trade, the securities get credited to your online demat account. Your securities are, therefore, safe and free from risks.
4. Traditionally, it was necessary to pay stamp duty while transferring securities. This cost is eliminated while transacting through your dematerialization account.

You may, therefore, avail of the above-mentioned benefits of a dematerialization account.

Procedure of opening a dematerialization account

Quite contrary to the popular belief that the process of demat account opening is a cumbersome task, the same is not true.

You may follow the below-mentioned steps and open an account easily and quickly.

1. The first step is to choose a Depository Participant (DP) of your choice.
2. You may then submit a duly-filled application form in the prescribed format. Along with the application, it is mandated to provide supporting documents such as proof of identity, proof of address, and PAN card copy, among others.
3. The next step is to sign an agreement on a stamp paper provided by your Depository Participant.
4. Upon successful opening of a demat account online, you will be allocated a unique beneficial owner identification number. This number is to be used as a reference in all your future transactions.
5. Once your dematerialization account is opened with the Central Depository Services (India) Ltd [CDSL], you may then trade securities using your unique demat account

A dematerialization account offers numerous benefits to traders who buy and sell securities on a regular basis. You may open such an account or even multiple accounts with the same DP or with different DPs. By doing so, you may execute transactions easily, and have full control over the transaction being executed.

Generally, your investment decisions are based on your personal needs and experiences. Proper planning is crucial for the financial security of you and your family.

There are several investment products to choose from. Making an accurate choice may be difficult and require enough time to conduct adequate research. Here are five financial decisions you must never delay to avoid issues in the future.

1. Investing a small amount

If you are like most young adults, you would prefer spending your income rather than thinking about savings for the future. You may think that financial goals, such as retirement are far away and planning early for them is not important. However, the consequences of such a delay may be catastrophic.

When you delay your investment decision, you lose out on the opportunity of accumulating a huge corpus through the power of compounding. The amount you invest earns certain returns depending on the type of investing. This income earns additional returns through compounding, thereby helping you accumulate a huge corpus over the long term.

When you are young and at the start of your career, your income may not be high. Therefore, you may not have a huge disposable amount for saving. The smaller amount may discourage you from investing; however, you must remember that through compounding, even a small amount accumulates to a larger sum.

2. Availing of life cover

A life insurance policy is important to ensure the financial security of your family in your absence. The life cover will pay the policy benefits to your beneficiaries in case of your premature demise. This money is able to ensure they are able to meet their expenses and sustain their lifestyle even in your absence.

It is recommended you avail of a coverage of at least six to seven times your annual income. However, you must not only consider your family’s financial needs but also take into account the outstanding loans while determining the insurance cover. When you consider life cover, consider certain goals, such as children’s education and marriage. A term insurance plan is an excellent way to procure higher coverage at an affordable premium.

You must not delay availing of life coverage because as you grow older, the risk of suffering from ailments increases. As a result, the premium on your policy also increases. It is recommended you compare different plans offered by various insurers to choose the best term insurance plan that suits your requirements.

3. Appointing nominees

This is a commonly overlooked financial decision that many people put off. However, you must appoint nominees when you invest in financial products, buy an insurance policy or open a bank account. This ensures your family does not have to deal with the stress of distributing your assets in case of your demise at a time when they are already dealing with emotional trauma.

4. Purchase critical illness coverage

You may be able to meet the fund requirements for a hospitalization or a surgery. However, if you are diagnosed with a critical illness, the treatment may take a long time and may be expensive. Therefore, you must purchase a critical illness cover in addition to your life and health insurance plan.

5. Estate planning

Life is uncertain, and therefore, it is recommended you make a will to avoid any issues after your demise. You must also list down all your assets, liabilities, and investments. It is recommended you include important information, such as maturity dates, starting date, premium payment dates, and maturity benefits for your various investments. You must keep your family informed about this information, which must be safely stored.

Financial decisions are important to provide security. It is, therefore, crucial that you never delay such decisions to avoid complications in the future.

As the earning member of your family, you understand the importance of having an insurance coverage. There are several types of life insurance policies, such as endowment plans, term plans, and money back plans. Term plans are pure life covers and are available for affordable premiums.

An important question is how much insurance coverage is needed to ensure the financial protection of your family in your absence. Here are seven factors you must consider while determining the insurance coverage.

1. Your age

If you are young and do not have too many responsibilities, minimum coverage may be adequate. However, if you are married with children, you need higher coverage to provide financial security to your family in the case of your untimely demise. However, it is recommended you purchase term insurance plans when you are young to get the benefit of low premium cost.

2. Current lifestyle

Your lifestyle depends on your income. As your income rises, your lifestyle is also enhanced. Therefore, your family is habituated to a certain lifestyle. In your absence, your family must be able to sustain their current lifestyles because downgrading is a difficult process. Consider your standard of living while determining the insurance coverage.

3. Debt obligations

You may have a home loan and other credit facilities, such as a car or personal loans. These are repaid in Equated Monthly Installments [EMIs] over a certain period of time. In case of your demise, you do not want your family to bear the burden of the outstanding EMIs. It is recommended you consider your total debt obligations while looking for term insurance plans.

4. Financial situation

When you purchase an insurance policy, you need to pay the premiums regularly to avoid discontinuation of the benefits. Although procuring high coverage is a good option, you need to ensure you have no difficulties in paying the premiums in a timely manner. It is advisable to use a term insurance calculator to know the approximate premium for a certain sum assured.

5. Financial goals

At different stages in your life, you will have various financial goals. When you get married, you may need to buy a home. When you have children, you need to plan for their education and marriage. Another important life goal is financial independence after your retirement. Insurance coverage is an excellent way to plan for these various financial goals where even in your absence, your family will not have to face any financial crunches.

6. Accumulated assets

Over the years, you build various assets that may be used to meet your financial needs. You must consider your accumulated assets while calculating the insurance coverage that is needed.

7. Term insurance riders

You may include a number of riders with your term plan. Some of these include premium waiver, accidental death, permanent disability, and much more. It is recommended you include relevant riders to your term policy to enhance the total coverage. However, you need to keep in mind that such riders come at an additional cost. Consider your specific requirements to decide on which riders you must include in your insurance plan.

Some individuals procure life insurance coverage to take advantage of the tax benefits. However, you must remember that insurance is not simply investment tool but is important for the financial protection of your family in case of your untimely demise. The returns, if any on your life insurance plans will be minimal. Nonetheless, including adequate coverage calculated with a term insurance calculator is crucial. Moreover, you must regularly reassess your life stage and increase coverage as and when required.

The oil & gas industry in India sector has been action-packed in a last couple of years. There have been many changes and new declarations by not only the organizations but also by the government. The results were both motivating and disappointing for different companies. Some gained big time while the others went into losses. Many factors were found responsible for creating the volatile market for example exchange rate fluctuations, sanctions on Iran, Euro Zone debt crisis, crude price movements, and many others.

As per the market news, the main factors that is going to create a massive effect on the performance of the oil and gas industry in India in the medium term are the following:

• There have been several Gas supply concerns which were highlighted in the medium term
• Increased gap in the demand-supply in the domestic gas market
• Volatility in the crude prices
• The Depreciating value of the rupee
• Muted outlook for gross refining margins
• Diesel, kerosene and LPG prices is still under government control
• Uncertainty over regulations
• Subsidy sharing pattern continue to be volatile
• Controlled gas prices
• Sustained strong demand for petroleum products in domestic market

These factors have influenced some of the companies. Here we talk about these companies along with our investment take. This will give you a peep into the share prices of some of the companies like Bharat Petroleum Corporation Ltd share price.

Beginning with Cairn India, it is the best proxy on the crude prices with a cheap valuation. Another one that deserves a highlight is the Oil India. Oil India seems to have a robust production growth which plays on reforms and also has a huge cash balance. Next in line is the Oil and Natural Gas Corporation that has an under valuation to international peers relatively that plays on reforms too. Talking about the Bharat Petroleum Corporation Limited, it has a big upstream value and is less sensitive to the vagaries of subsidy sharing. The Petronet LNG whereas has the increasing domestic gas demand with the expectations of weak LNG prices. Also, briefing about the Gujarat State Petronet Limited, it supposedly has long term growth in gas supplies with an attractive valuation.

Coming over to the Reliance Industries, it enjoys our Market Performer rating. Detailing more on the Reliance Industries, it has a basic business of refining & petrochemicals which is still found being in the stress and also its KG-D6 volumes are having a sustained fall. Now comes the GAIL [Gas Authority of India Limited], it has the risk to earnings from the regulations and also has a reduction in the petrochemical lucratively if the gas prices are increased. Talking about the Hindustan Petroleum Corporation Limited, it has an increased risk to earnings from the subsidy sharing mechanism with a high leverage. Lastly, we will talk about the Indian Oil Corporation, it has a limited upside potential. Hope we have given you some insight on the Best oil and gas stocks to buy this year.

Maintaining a physical record of every important piece of paper is exhausting. You have to store them for an infinite period of time, not knowing when you might need to use or refer to them. There is also the constant fear of files getting lost, misplaced, destroyed, or stolen. What’s more, keeping paper records is more time-consuming than simply using a computer. All these cons are amplified even further when the documents in question are as valuable and irreplaceable as shares and securities.

In order to sidestep the complication that arises from taking physical possession of certificates, shareholders in India use demat accounts. A demat account allows investors to hold their shares in an electronic format that is achieved through the process of de-materialization. Its functions are similar to those of a savings account – securities are debited or credited as per transactions made and you can check the value of your holdings. An individual can deposit different kinds of investments, including government securities, bonds, mutual funds, and exchange traded funds.

Importance of Demat Account

For investors, this form of paperless trading has become a necessity. This is because a Demat account provides the opportunity to invest in a variety of assets ranging from gold ETFs to commodity futures. And that’s not all. Having a demat account is also important for the following reasons:

1. Safe Repository of Shares

As mentioned earlier, the storage of stocks in their physical form is often difficult. Demat accounts help you maintain a safe and systematic record of all your transactions while eliminating the risk of loss or misplacement. Additionally, they keep you protected from threats like incomplete paperwork, bad deliveries, and fake securities. The numerous layers of protection and regulations attached to a Demat account unquestionably beat paper records.

2. Indispensable for Trading

The biggest disadvantage of not having a demat account is that you can’t trade in the stock market without it. Since stock trading is undertaken electronically, a demat account is indispensable for the purpose of buying and selling shares of companies that are publicly listed. At present, it is mandatory to settle trades made on any stock exchange in demat form.

3. Holds Multiple Securities at Once

It can get confusing for traders to properly organise different kinds of financial products like bonds and mutual funds. A Demat account solves this problem by preserving multiple securities in one place, which makes it easier for you to keep track of everything important. It’s one of the few instances when keeping all your eggs in one basket is actually a good idea.

4. Quick and Convenient

Dealing with physical securities can be a long and tedious process. It would entail you visiting your broker every time you have to make a trade. The delivery time of trading electronically is a fraction of what it would be otherwise, and you also receive your credit much faster after each transaction. Furthermore, you don’t have to be confined to your home or office while trading. You can trade on-the-go on your phone anytime. A demat account makes all of this possible.

When it comes to share market trading, the importance of a demat account cannot be emphasised enough. If you want to experience trading at its simplest and most seamless, then having a demat account should be on your list of priorities. The best part is that the procedure of opening the account is quite fast and straightforward!

Modern living puts you at a great risk of falling prey to critical lifestyle diseases. Studies show that one out of every four individuals suffers from a non-communicable illness, such as cancer or cardiovascular issues. Regular exercise and healthy eating habits are beneficial in reducing the risk of such ailments. Nonetheless, age and hereditary reasons may result in you suffering from lifestyle-related disorders.

Treating such critical illnesses is expensive and may result in financial difficulties. You may argue that you already have health insurance coverage and the treatment costs are covered. However, this cover may be insufficient and availing critical illness insurance is recommended.

Procuring critical illness coverage when you are around 40 years is advisable. If you avail of the insurance at an early age, you will have to pay a lower premium. Moreover, it ensures you complete the waiting period, if any, before the risk of lifestyle diseases increases.

Working of critical illness plans

The critical illness plan is different from medi-claim policies. This type of health insurance for critical illness pays a lump sum amount up to the sum insured in case you are diagnosed with an ailment that is covered under the plan. The lump sum payout may be used to pay for treatment expenses, recovery costs, or repay debt.

A critical illness cover is a defined benefit plan because the payout is fixed and predefined. On the other hand, mediclaim is an indemnity policy that reimburses the expenses incurred towards treating an illness.

Before you buy critical illness insurance, here are five things you must consider.

1. Survival period

In most instances, the insurance companies include a survival period of 30 days. However, based on the type of illness, the survival period may be more than 30 days. This means that you must survive for at least 30 days from the date of diagnosis to claim the benefits under the critical illness cover. The survival period is also different from the waiting period imposed by insurers when you purchase a health insurance plan.

2. Covered illnesses

This is an important factor that you must consider before making a buying decision. Insurance companies cover between eight and 20 critical illnesses. Therefore, it is crucial that you research the different options to make an informed decision.

3. Built-in cover

The primary objective of health insurance for critical illness is to provide freedom from financial distress in case you are diagnosed with an ailment. However, several insurers offer additional built-in covers such as hospital cash, personal accident coverage, and complimentary health check-ups.

4. Pre-existing diseases

Most insurance companies cover pre-existing conditions at the end of the waiting period, which may be up to four years. There are some insurers that do not cover pre-existing conditions at all. Therefore, you need to carefully analyze and assess to check for coverage for pre-existing conditions.

5. Free look period

Insurance companies generally offer 15-days free look period. During this period, you may evaluate and reconsider your decision and cancel or modify the policy, if required.

Because critical illness insurance is a defined benefit plan, it does not reimburse hospitalization expenses. Therefore, having a regular health insurance policy is also recommended. You may buy critical illness as a standalone plan or as a rider with your existing health plan.

Several companies offer different types of critical illness plans. You must research and evaluate the various options to make an informed decision. It is crucial that you read the terms and conditions and understand the inclusions and exclusions to avoid any issues in the future.

Critical illnesses generally progress slowly and last for longer periods. Therefore, financially protect yourself and your loved ones with a critical illness plan.