Equity delivery refers to the process of buying or selling shares and holding them in your Demat account for a period of time. The transactions follow a T+1 settlement cycle, which means that if you purchase a stock on Monday, those shares would be delivered to your Demat account on Tuesday. Once the shares are delivered to you, you can keep them for as long as you wish in delivery trading. You own the stocks that you purchase outright and can sell them at any time.
Tips to invest in equity delivery
Investing in equity delivery requires careful consideration and strategic planning. Here are some tips to help you make informed decisions and potentially maximise returns:
- Research and analysis:
Before investing in any stock, conduct thorough research and analysis. Evaluate the company's financial health, performance, management, and growth prospects. Utilise financial statements, annual reports, and other relevant information to make informed decisions. - Long-term perspective:
Equity delivery is ideally suited for long-term investors. Instead of trying to time the market, focus on the fundamental strength of the companies you are interested in. Long-term investments provide the opportunity to ride out market fluctuations and benefit from the rupee cost averaging. - Diversification:
Diversifying your portfolio is a fundamental strategy to manage risk. Spread your investments across different sectors and industries to avoid being overly exposed to the performance of a single stock or sector. Diversification can help mitigate the impact of adverse market conditions on your overall portfolio. - Stay informed:
Keep yourself updated on market trends, economic indicators, and global events that may impact the stock market. Regularly monitor the performance of your portfolio and stay informed about any news or developments related to the companies you have invested in. - Risk management:
Assess your risk tolerance before making investment decisions. While equity delivery can offer significant returns, it also involves a level of risk. Determine the level of risk that you are comfortable taking and allocate your investments accordingly. Set stop-loss orders to limit potential losses. - Avoid emotional trading:
Emotional decision-making can lead to impulsive actions that may not align with your investment strategy. Stick to your research and investment plan, even during periods of market volatility. Emotional trading can result in buying high and selling low, which can negatively impact your returns. - Cost management:
Be mindful of transaction costs and fees associated with equity delivery trading. High transaction costs can eat into your profits over time. Compare brokerage fees and choose a platform that offers competitive rates while providing reliable services. - Stay patient:
Patience is a virtue in equity delivery trading. Avoid making knee-jerk reactions to short-term market movements. Allow your investments the time to potentially grow in value. Regularly reassess your portfolio, but avoid unnecessary, frequent buying and selling.
Benefits of equity delivery
- Ownership rights: Investors have ownership and voting rights in the companies they invest in.
- Long-term wealth: Opportunity for substantial returns and compounding over time.
- Dividend income: Eligibility for dividends provides an additional income stream.
- Flexibility and control: Investors have control over buying and selling decisions.
- Tax benefits: Potential preferential tax treatment for long-term capital gains.
- Economic growth participation: Align investments with the growth of the economy.
- No time pressure: Unlike intraday trading, investors are not bound by time constraints.
Equity delivery offers these benefits but involves market risk. Investors should align their strategy with their goals, risk tolerance, and time horizon, staying informed about market conditions for successful long-term investing.
What is equity delivery charges?
Equity delivery charges refer to the specific brokerage fees deducted by a brokerage firm when you execute buy orders for shares in the equity delivery segment. The brokerage charges incurred during equity delivery transactions are determined by the brokerage firm facilitating the trade. Some brokers offer discounted rates through subscription models, providing cost-saving options for investors.
Demat account – Subscription plans
Charges |
Demat account - Subscription packs |
||
Freedom Pack |
Professional Pack |
Bajaj Privilege Club |
|
Subscription charges |
Free for 1st year; Rs. 431 p.a. 2nd year onwards |
Rs. 2,500 p.a. |
Rs. 9,999 p.a. |
Brokerage charges (Intraday and Future and Options) |
Rs. 20 per order |
Rs. 10 per order |
Rs. 5 per order |
Margin Trade Funding interest rate |
18% p.a. |
14% p.a. |
10.75% p.a. |
With Bajaj Financial Securities Limited (BFSL), you can get the benefit of low brokerage rates for equity delivery trading. Through our affordable subscription plans, you can trade at a flat fee per order and save significantly on brokerage costs. Below are the brokerage charges under the three subscription packs offered by BFSL, open your Demat and Trading account now.
Conclusion
Remember that investing always involves risks, and there are no guarantees of profits. It is crucial to develop a well-thought-out investment strategy based on your financial goals, risk tolerance, and market understanding. If needed, consider seeking advice from financial professionals or advisers to enhance your investment decisions.
