It is not mandatory to have demat account for investing in mutual funds. But if you wish to do so, explore best demat account in India for Mutual Funds.
It is possible to hold the mutual funds units in the demat form in the demat account provided by your stock broker.
Holding the units in demat forms offers some benefits too, which we will talk later in this article.
If you are new to Mutual funds, you can visit here to know more about it.
Different Ways to invest in Mutual Funds In India
One can invest in mutual funds through various channels. Each one has its own advantages and disadvantages.
- Directly with AMC
- Through Demat Account
- Through Mutual Fund aggregator Platforms
Best Demat Acocunt for Mutual Funds in India
If you have decided to invest in mutuals funds (either through SIP or lumpsum), make a list of top demat accounts in India suitable for mutual funds.
List of Demat Account best suited for Mutual Funds:
- Sharekhan Demat Account
- 5Paisa Demat Account
- SBI Demat Account
- Upstox Demat Account
- ICICI Direct Demat Account
- HDFC Demat Account
- AxisDirect Demat Account
- Kotak Securities Demat Account
- Religare Demat Account
- Angel Broking Demat Account
Mutual funds in demat account pros and cons
Benefits of Holding Mutual Funds in Demat:
- Paperless transactions and single statement for all investments through stock exchanges
- Mutual Funds units can be freely transferred to the accounts of nominees or legal heirs
Drawbacks of Holding Mutual Funds in Demat:
- The transaction costs becomes larges as more and more intermediaries are present in the chain
- All the schemes are not available in stock exchange and you may miss out your favorite fund house and scheme
- One can not go for Systematic Withdrawal Plan (SWP)
- Joint account mutual funds not feasible in case of single holder demat account
Best Mutual Funds investment Demat Accounts of India – Conclusion
If you do active investment in mutual funds, probably you will have a fair idea of terms related to it. Hence you dont need much guidance.
But if you are a beginner, select the best demat account in India for mutual funds which will help you in selecting the best suited scheme.