Explained: Why holding mutual fund units in demat form makes sense
iStock The system simplifies investing. NSDL highlights this as a transformative step in India's financial evolution.
We live in an age where everything is becoming digital — faster, smarter, and more transparent. The financial sector has been relentlessly trying to innovate to make transactions seamless and investment journeys more efficient.
Those who've witnessed the open outcry system of stock exchanges will gladly recall how the shift to online trading and the dematerialization of securities marked a defining leap. What once took days and physical paperwork, now takes just minutes — with a few clicks on a screen. And now, we are witnessing the logical evolution in this journey: Mutual Funds in demat form.
Over a decade and a half ago, the Securities and Exchange Board of India ('SEBI') enabled investors to hold Mutual Fund investments — earlier available only as Statement of Account ('SOA') — in demat form through the stock exchange infrastructure.Since then, the depository ecosystem has continually evolved, enabling investors to manage their Mutual Fund holdings with ease. Today, you can convert your Mutual Fund SOA into demat form through your existing account — without the need to open a separate one. This facility is available to the Non-Resident Indians too, offering a unified experience for all investors.
Each mutual fund scheme is assigned a unique ISIN, simplifying tracking and portfolio consolidation. Investors can subscribe to fresh units, Systematic Investment Plans, Equity Linked Savings Schemes, and/or New Fund Offers directly through their stockbroker and the units are credited straight into their demat account. Redemption is equally effortless—through your Depository Participants, broker, or electronically via NSDL's SPEED-e services.
Holding Mutual Fund units in demat form offers several advantages: a single consolidated portfolio view, automatic updates across all holdings, the ability to pledge for margin or loans, simple off-market transfers for gifting, and unified nomination—all within one digital framework.In a nutshell, this evolution aims to bring greater control, efficiency, and transparency to your mutual fund investments. While investors should factor in demat maintenance charges and brokerage fees.At NSDL, we remain committed to trying to enhance investor experience by building digital infrastructure that aims to support financial inclusion and investor empowerment. We believe holding mutual funds in demat form is not just a technical upgrade—it is the foundation of a more connected, secure, and simplified future of investing.
So, start your investment journey by holding mutual fund units in your demat account.
(The author Vijay Chandok is Managing Director and CEO, NSDL. Views are own)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
United News of India
34 minutes ago
- United News of India
Maha Guv urges Portugal to focus on select sectors to increase trade volume
Mumbai, June 10 (UNI) Maharashtra Governor C P Radhakrishnan on Tuesday suggested that Portugal should focus on select sectors such as infrastructure, information technology, tourism, and textiles, and make efforts to increase the current trade volume from USD 1.2 billion to at least USD 10 billion. According to a statement issued by the Governor's house, the suggestion was made during a courtesy meeting between Ambassador of the Republic of Portugal in India, João Manuel Mendes Ribeiro de Almeida, and the Governor of Maharashtra at Raj Bhavan, here. Stating that Portugal and India share a historical relationship, the Ambassador said Portugal is now focusing on the future and is keen to enhance cooperation with India across various sectors, including trade. In this context, he said, Portugal is also interested in signing a memorandum of understanding with Maharashtra. The Ambassador mentioned that this year holds special significance for both India and Portugal, as it marks the 50th anniversary of the re-establishment of diplomatic relations between the two nations. He informed that efforts are underway to strengthen bilateral cooperation in areas such as trade, tourism, textiles and information technology. He told the Governor that he was meeting over 100 business representatives in Mumbai. The Ambassador also informed that around 1.25 lakh Indians reside in Portugal and that they had integrated well into Portuguese society. He said Indians possess a wide range of skills and added that Portugal currently has a growing need for skilled manpower. Sharing that Portugal is ranked the fifth safest country in the world next only to the Scandinavian countries, the Ambassador added that Portugal is a leading destination in global tourism. He expressed Portugal's interest in increasing cooperation with India in the field of tourism. The Ambassador also shared that Portuguese is spoken in around 15 countries, including Portugal, Brazil, Mozambique, Angola, East Timor, among others. Welcoming the Ambassador to Maharashtra, Governor Radhakrishnan noted that Spanish and Portuguese are widely spoken languages across the world. He told the Ambassador that in his capacity as Chancellor of universities in Maharashtra, he has advised universities to offer at least one European language to the students. He noted that learning foreign languages would help students explore career and business opportunities internationally. UNI AAA SS
Time of India
an hour ago
- Time of India
Paramount Layoffs: Paramount Global Announces 3.5% Layoff Amid Cable TV Subscriber Decline, ETHRWorld
Industry 1 min read Paramount to lay off 3.5% of US staff in latest job cut, memo shows The layoff was communicated to its staff on Tuesday morning and it could affect some non-U.S. workforce over time, the memo from the office of the company's three co-CEOs showed.
India Gazette
an hour ago
- India Gazette
Piyush Goyal invites Swiss firms to join India's USD 30 trillion economy push by 2047
Bern [Switzerland], June 10 (ANI): Union Minister of Commerce and Industry Piyush Goyal addressed Swiss industry leaders and innovators on Tuesday at the prestigious Swissmem Industry Day in Switzerland. Highlighting India's transformative growth story and vast opportunities for collaboration, Goyal extended a warm invitation to the Swiss business community to be active partners in India's journey towards becoming a USD 30-35 trillion economy by 2047, the Ministry of Commerce & Industry said in a release. Speaking at an event, Goyal said, 'I come to meet you with the aspirations of 1.4 billion Indians who dream as high as your towering Alps and who desire a better future. I come with an arm of friendship to the talented engineers, innovators, and entrepreneurs of Switzerland.' In a symbolic gesture of partnership, Goyal proposed the creation of a dedicated Swiss Enclave in India--a zone tailored for Swiss businesses--to provide comfort and a sense of home for Swiss enterprises looking to establish a base in India. As per the release, the Minister highlighted India's remarkable transformation--from a USD 270 billion economy 30 years ago to a USD 4 trillion economy today--and its ambition to grow further to USD 30-35 trillion as the nation approaches 100 years of independence. He noted India's youthful demographic with an average age of 28.4 years and emphasised that the nation will continue to remain young and vibrant for decades to come. Goyal underlined the advantages of India as a trusted, rule-of-law-based, and democratic country where Swiss businesses can operate without fear of discrimination. 'Democracy, demographic dividend, decisive leadership, and diversity make India a dependable partner,' he said. Referring to the India-EFTA Trade and Economic Partnership Agreement (TEPA), Goyal termed it a 'Trust and Efficiency Partnership'--a relationship built on mutual confidence and complementarity. He expressed optimism that this partnership would mark the beginning of a new era of cooperation between India and the four EFTA nations, opening new avenues for trade, investment, and innovation. 'I particularly invite Switzerland's SME sector to witness India's remarkable evolution over the last decade. This will give you the confidence we aspire for,' stated the Minister. He highlighted that in the past 10 years, India has added 80 new airports, including a new one in partnership with Zurich Airport. 'Our port capacity has doubled, and national highways and expressways are now comparable to those in Germany. We've also added 104 new inland waterways and doubled our power generation capacity, with solar energy capacity growing 50 times. The government's annual expenditure of over $125 billion on infrastructure creates a powerful multiplier effect for India's growth story.' India's robust education ecosystem was also highlighted. The Minister pointed out that the country produces the highest number of STEM graduates globally, 43 per cent of whom are women. 'This talent pool, combined with scale and speed, makes India an ideal investment destination,' he said. Quoting World Bank data, Goyal noted that extreme poverty in India has fallen to just 5 per cent, down by 270 million people in the last 11 years, and is expected to be eliminated in the near future. He described India's growth model as a blend of welfare and consumption-led growth, backed by investments in manufacturing and technology. 'India today stands ready and willing to welcome global partners. We are a country on the move, full of opportunities,' he said. Goyal concluded by extending a personal invitation to the Swiss business community to visit India: 'Come discover India. Come experience Incredible India. Come witness the beauty and transformation of a nation that is emerging from the shadows and claiming its rightful place in the comity of nations,' added the release. (ANI)
