What are the disadvantages of holding mutual funds in demat?
mutual funds over the past one year, and many more are expected to join in the coming months. They have an option to buy and hold units in the same demat account where their stocks are held, or they can buy units from the fund house without the need for a demat account.
What are the various ways to buy mutual fund units? Do you need a demat account?
Once you have chosen a mutual fund scheme, there are several ways it can be bought. It can be through fund house websites, RTA websites, third-party platforms and stock brokers. In such cases, an investor gets a statement of holding. If units are bought in demat form, they are reflected in the demat statement. Some brokers only offer mutual funds in demat form, while few offer a mix of the two. An investor can choose between the two ways based on needs, comfort and ease as both modes have. At any point, units bought in physical form can be converted to demat form by submitting a request to the depository participant, and units bought in demat form can also be rematerialised.
Is there any advantage of buying mutual funds in demat form?
One big advantage of buying mutual fund units in demat form is that you can get a consolidated view of your investments in one place. Investors often buy stocks, gold bonds, ETFs and NCDs which lie in the demat account. With mutual fund units too there, investors can get a consolidated view of their portfolio. All investments are kept in one location for convenience and consolidation, which helps in making portfolio management simpler. Investors can monitor and track their assets, transaction history, and portfolio performance on a single statement. A big benefit of holding mutual funds in a demat account streamlines the transfer of units to
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