Are you confused about whether or not to invest in CDSL shares? If yes, then this post is for you.
Central Depositories Services Limited or simply CDSL is one of the two most well-regarded and trusted depositories in India besides NSDL. It is a SEBI (Securities Exchange Board of India) certified company that handles Demat shares in an electronic and decentralized form. Over the last few years, CDSL has undergone significant growth due to nationwide digitalization and increased mobile penetration. Further, the CDSL share price has also grown positively in recent years.
Having said that, below are some reasons to invest in CDSL shares.
1. Strong financial background
CDSL is a reputed company with a stable revenue generation. The main reason behind this stability is the repeat businesses the company indulge in with numerous financial services and national securities. It collects transaction-based charges from DPs and fixed annual fees from other registered companies, which helps it generate continuous revenue.
Further, CDSL is among the leading security depositories in India with a comparatively higher incremental growth of the BO accounts. [To know more, click the below link:
2. Growing scope of electronic securities
Almost a decade ago, there used to be a system where brokers had to manually fill the form, attach necessary documents, attach signs and photos to manually open your Demat account. This was a lengthy and time-consuming process in which most of the part was played by the broker.
But with digitalization, depositories like CDSL have become very popular as they offer instant services and allow customers to invest in the share market in a safe and secure way.
Another reason behind the futuristic growth of CDSL is the growing demand for decentralized securities. So, you can stay assured that the company will perform well in the upcoming future.
3. Decreasing interest rates
Over the last few years, the interest rates of bank fixed deposits (FDs) have come down from 12-15% to just 3-5%. This means there is no benefit of putting your money into FDs. Instead, you can invest in CDSL shares which are not only safe but also offer good returns. In fact, you can check out CDSL share price yourself to find out its growth and stability.
4. Performance of Sensex
The performance of Sensex has improved to a great extent over the last couple of years. More specifically, the returns are looking much better than other investment tools. So, if you’ve invested in the stock markets before, it is the right time to begin your share marketing journey with a safe stock like CDSL.
5. CDSL share price
The current CDSL share price is ₹1,378, which has grown almost 26% (average value) in the last three years. So, if you ignore this share now, you might regret not investing in it, later.
6. Less risk
CDSL is comparatively a safe haven for investors. The financial performance of the company is great, plus its debts aren’t also very significant.
7. Good for beginners
If you don’t have any experience of investing in the share market and don’t want to expose your hard-earned money to stock marketing risks, then CDSL is a great option to start with. It is safe and offers good returns.
8. It is an easy process
There is absolutely no reason not to invest in CDSL shares. It is a simple and easy process. You can start in just a minute.
CDSL is a great company to invest in.
So, grab your pen and paper, do your own research and make an informed investment decision. We hope this blog helps you in this process.