When investors compare the best demat accounts in India, one of the biggest factors they consider is the Annual Maintenance Charge (AMC). The Annual Maintenance Charge (AMC) is a charge that is paid to brokers to hold your holdings electronically. Although at the onset this fee might appear minimal, in the long term it can have a great influence in investment returns, particularly to beginners, small investors and passive investors.
Why AMC Matters to Investors
AMC is normally paid on an annual basis and varies between 0-1,000 of the broker. Some stockbrokers offer free AMC, and others offer discounted AMC during the initial year or in a specific type of investment, such as students, women, the elderly, or inactive account holders.
The Demat account with low or no AMC is particularly advantageous in cases:
- You make little deposits regularly.
- You are a passive investor
- You do not trade frequently
- You are a first-time investor or a student who needs to spend minimal money.
- Best Demat Accounts having the lowest AMC.
Understanding Low AMC and Zero AMC Accounts
Low AMC means reduced annual expenses, whereas zero AMC accounts eliminate maintenance charges. Several of India’s top Demat service providers offer free AMC to attract long-term and passive investors. Before selecting, it’s important to compare brokers beyond AMC, considering trading platform quality, mobile app speed, customer support, and transparency.
Top Demat Platforms Offering the Lowest AMC
The following are the top low-AMC and zero-AMC Indian Demat accounts:
- Groww — Zero AMC
Zerodha is an extremely reliable site that is transparent in pricing. Their 300A M is also one of the lowest in India, and their brokerage is not charged when investing in the long-term. That is why it is good to use with novices and SIP investors.
- Groww — Zero AMC
Groww is one of the brokers that provides 100 per cent free AMC. This will render it very economical, particularly to the passive or long-term investors. Its interface in the form of an app and easy creation of an account are key benefits.
- Upstox -Zero AMC (Offer-Based)
Upstox usually gives out promotional packages in which the AMC is absolved. It is extremely low, even when compared with other brokers, even with the implementation of AMC. Upstox is distinguished by a high-speed and consistent mobile application and low commissions.
- Angel One — Zero AMC
Angel One offers zero AMC full-service, such as free research reports, advisory, and fancy charting software. It is mostly used by long-term investors as well as traders.
- Paytm Money — Zero AMC
Paytm Money has low prices and is easy to use by beginners, and offers zero AMC in most of the stock markets, mutual funds, and IPOs.
Which Account Truly Has the Lowest AMC?
Currently, Groww, Angel One, Upstox (offer-based), and Paytm Money offer no AMC at all, which is why they are the most preferable ones among those investors who do not want to spend money on annual fees at all.
Conclusion
Demat account with low AMC helps new investors to begin their financial journey without paying any hidden costs and helps investors to invest passively, which lowers the long-term costs. Although you need to take into consideration AMC, platform stability, the ease of use, the quality of mobile apps, and the customer service should also be considered before deciding.