Mutual Funds in Demat Form

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Rony asked 8 years ago

Hi Sreekanth, Can you please tell us what are the advantages/disadvantages of holding mutual fund units in demat form? My broker is persuading me to open demat account citing reasons of easy online transactions without having to contact broker each time I want to do anything with my Mutual Funds.

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Sreekanth Staff answered 8 years ago

Hi, Having a demat account is not mandatory to invest in mutual fund schemes and it offers very few benefits. If you are not planning to invest in stocks, may be demat account is not required. The demat route has lot of costs associated with it. You can invest in direct plans of mutual funds through platforms like MF Utility (industry sponsored), invezta, jama etc (or) by visiting respective fund house websites too. Kindly go through below articles : Article - 1 Article - 2 https://www.relakhs.com/mutual-fund-direct-plans-vs-regular-plans/ https://www.relakhs.com/mfutility-invest-direct-plans-mutual-fund-schemes-online/