1. Investors can hold their mutual fund units in dematerialized form if they own a demat account, although it is not mandatory.
2. Investors can also use the stock exchanges to transact in their mutual
fund units through their brokers.
3. For holding mutual funds in a demat account, investors have to complete the process specified by the depository (CDSL or NSDL).
4. Once units are dematerialized, investors cannot transact in them directly with the mutual fund
or investor service centres.
5. ADVANTAGES
a) You get a consolidated view of holdings and valuation across all schemes.
b) Transaction is paperless and no further documentation needed.
c) It simplifies the nomination and transfer of units.
d) A single entity has to be notified in case of change in details.
6. DISADVANTAGES
a) There are additional costs every year for maintenance and a fixed charge per transaction.
b) The nomination in physical mutual fund units will not be applicable when these are dematerialsed, and only those in the demat account will.
2. Investors can also use the stock exchanges to transact in their mutual
fund units through their brokers.
3. For holding mutual funds in a demat account, investors have to complete the process specified by the depository (CDSL or NSDL).
4. Once units are dematerialized, investors cannot transact in them directly with the mutual fund
or investor service centres.
5. ADVANTAGES
a) You get a consolidated view of holdings and valuation across all schemes.
b) Transaction is paperless and no further documentation needed.
c) It simplifies the nomination and transfer of units.
d) A single entity has to be notified in case of change in details.
6. DISADVANTAGES
a) There are additional costs every year for maintenance and a fixed charge per transaction.
b) The nomination in physical mutual fund units will not be applicable when these are dematerialsed, and only those in the demat account will.