Dematerialising mutual funds: Is it worth the switch?

livemint.com:

Open a demat account: If you don’t already have a demat account, this is your first step. It’s similar to setting up an online account—simple, straightforward, and usually done with a depository participant (DP) such as a bank or brokerage firm. Obtain a conversion request form (CRF) from your broker: Your DP acts as the intermediary between you and the financial markets.

You can easily get a CRF from them, either online or from their branch. Fill the CRF and sign it: Ensure your signature matches the one your DP has on record. This is crucial for the process to proceed without hitches.

Ensure the holding pattern matches: The names on your SOA should exactly match the names in your DP account. For example, if Mr. A is the first holder and Mrs.

A is the second in your DP account, the SOA must reflect the same order. Submit the CRF along with a self-attested copy of your SOA: Submit the filled CRF and a self-attested copy of your SOA to your broker. The CRF must be submitted physically to the broker.

Mention the correct folio number: Enter the folio number from your SOA accurately into the CRF. This ensures the correct units are converted. DP sends the CRF to the registrar and transfer agent (RTA): Your DP will forward the CRF details to the RTA, along with your client master copy, which contains your account details.

RTA verifies and confirms the conversion: After verification, the RTA will process the conversion request. Once approved, your mutual fund units will be credited to your demat account. The entire process of converting your mutual fund units to demat may take 20-25 days.