Difference between all these accounts!

nik1

New Member
#1
Hello, I'm a young planning-to-be-first-time-investor. I'm here hoping that you could help me determine my way ahead.

I'm planning to start with investing through DIY SIP from HDFC in ELSS. I have salary account with them and was looking at there website for the products they offer. I came accross these and i'm not sure what accounts are required for my investment plans-

Demat
Trading
Investment Services Account (ISA)

What is the difference in these and which ones should I get opened? Specially whats the difference bw trading account and ISA? I know Demat would be required.
Also any difference b/w opening account through bank and through hdfc securities?

Thanks a lot for helping a newbie!
 
#2
Answer: With the Investment Services Account you have complete control over your mutual funds, to purchase, redeem and switch funds and investment preferences at will. For a nominal, flat quarterly maintenance fee, enjoy the freedom to Invest as you please with the added convenience of investing from the comfort of your home through NetBanking.
You can perform the following transactions for Mutual Funds through NetBanking:
Purchase
Redemption
Switch
HDFC Bank Savings Account is linked to Investment Services Account, which is debited on purchases of Mutual Funds
B) Bank Open only Saving Account or current account but demat and other account will be open by brokerage firms it can be Bank subsidiary like ICICI Direct, or any securities firm.
 
#3
Well to tell you my part of the story, i did jump into mutual funds after i got a full time job as i could not track the market consistently and i burnt some money doing some very elementary mistakes.

  • Buying mutual funds randomly…
  • Not adjusting your overall allocation to debt, equity and liquids…
  • Focusing too much on returns and too little on risk…

After getting my portfolio de-valuation by almost 30% in 6 months (5.5L to 4L) I got to straigthen my wrongs. I started looking multiple investor guidance and brokers unlike earlier. I signed-up with 3: Kotak sec, Angel broking and BMA. Started getting acquainted with debt markets. My 2 cents is to keep a track of your investments whether equity or MF or ELSS. They tend to move with the direction of the market swing
 
#4
But you didn't respond to him about DEMAT accounts and something like that really. I clearly do not understand all that yet. I see only something like ISA account explanation, all else is still somewhat secret or so, please make it real here. I seen that name very often.
 

traderhardrock

Well-Known Member
#5
If you want to invest in MF (ELSS), you dont need a Demat or Trading account

I dont know how much, HDFCB is charging for ISA, if reasonable then okay, otherwise you may manage it yourself, not difficult.
You may contact respective Fund House for your investment in MF
 

stoch

Active Member
#6
Hello, I'm a young planning-to-be-first-time-investor. I'm here hoping that you could help me determine my way ahead.

I'm planning to start with investing through DIY SIP from HDFC in ELSS. I have salary account with them and was looking at there website for the products they offer. I came accross these and i'm not sure what accounts are required for my investment plans-

Demat
Trading
Investment Services Account (ISA)

What is the difference in these and which ones should I get opened? Specially whats the difference bw trading account and ISA? I know Demat would be required.
Also any difference b/w opening account through bank and through hdfc securities?

Thanks a lot for helping a newbie!
Why don't you consider FX products? They offer higher returns and more trading flexibility. Moreover you will improve your understanding in finance and economics trading on international markets because they require deeper knowledge than passive investing.
Personally I decided to move away low-return products because I don't consider it serious earning opportunity.