Top Mistakes to Avoid While Using a Demat Account – Investor Guide 2025

Common Mistakes to Avoid While Using a Demat Account

Opening a Demat account is just the first step in your investment journey. Managing it correctly is just as important. Whether you’re new to the market or an active trader, avoiding common Demat-related mistakes can help you save money, reduce risks, and stay compliant.

In this blog, we highlight the top mistakes investors make while using a Demat account—and how to avoid them.

1. Keeping Multiple Unused Demat Accounts

Many investors open multiple accounts with different brokers and forget about them. This leads to:

• Unnecessary Annual Maintenance Charges (AMC)

• Confusion during tax filing

• Risk of losing track of holdings

Tip: Keep only one or two active Demat accounts and close inactive ones.

2. Not Monitoring Your Holdings Regularly

Your Demat account reflects all your securities. Not checking it frequently may lead to:

• Missing corporate actions (dividends, bonuses)

• Overlooking unauthorized transactions

• Poor portfolio decisions

Tip: Log in weekly or monthly to track holdings and activity.

3. Ignoring AMC and Brokerage Structures

Investors often forget to review fee structures, leading to:

• High brokerage deductions

• AMC piling up on inactive accounts

Tip: Choose brokers like One Solution with low brokerage and transparent pricing.

4. Not Linking Bank Account Correctly

If your bank details are incorrect or not linked, it can:

• Delay fund settlements

• Lead to failed IPO or mutual fund transactions

Tip: Double-check your linked bank account and update it if needed.

5. Using Wrong DIS or ISIN While Transferring Shares

While transferring shares manually, a wrong ISIN or account detail can:

• Cause transfer rejection

• Delay portfolio movement

Tip: Always use verified CMR (Client Master Report) and cross-check all details.

6. Not Updating Contact Information

If your email or mobile number is outdated:

• You’ll miss trade alerts and OTPs

• Your account could be locked for security

Tip: Keep your contact info updated with your DP.

7. Not Enabling or Using CDSL/NSDL Alerts

Investors who don’t enable SMS/email alerts:

• May not notice unauthorized activity

• Miss real-time confirmations

Tip: Activate CDSL/NSDL alerts for better control and security.

8. Applying for IPOs Through Third Parties Without Demat Access

Some users rely on others to apply for IPOs, without accessing their own Demat accounts.

Tip: Learn how to apply via UPI and track allotments directly.

Why Choose One Solution?

At One Solution, we help investors avoid these common issues with:

• Easy-to-use platforms

• Personalized onboarding and support

• Low-cost structure with zero hidden fees

• Regular updates, alerts, and expert assistance

Final Thoughts

Small mistakes with your Demat account can lead to lost money, missed opportunities, or even compliance issues. By staying informed and choosing a supportive platform like One Solution, you can invest smarter and stay protected.

Start your journey right. Open a Demat account with One Solution today.