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
2 hours ago
- United News of India
LIC's Group Premium grows 14 percent for May
Kolkata, June 9 (UNI) Life Insurance Corporation of India (LIC) on Monday reported a 13.79 percent year-on-year (YoY) increase in group premium for May 2025. According to data released by the Life Insurance Council, group premiums grew 13.66% for the first two months of fiscal 2026. In May 2025, LIC collected Rs14,374.87 crore in group premiums, up from Rs12,632.26 crore in May 2024. The new business premium grew 10.27 pc from Rs 16,690.39 crore for May 2024 to Rs 18,405.04 crore for May 2025. The overall life insurance industry garnered Rs30,463.20 crore, marking a 12.68 pc rise over Rs 27,034.14 crore collected in the same month last year. In the Individual Premium category, the insurance behemoth posted a decline of 0.69 pc, collecting Rs 4,030.17 crore in May 2025 compared to Rs 4,058.13 crore in May 2024. During May 2025, total policies issued by LIC fell to 10.68 lakh from 12.51 lakh in the same period last year. While individual policies numbered 10.67 lakh for May 2025 from 12.48 lakh policies forMay 2024, group policies declined to 1,389 in May 2025 from 2,279 for May 2024. Total premium collected by the company for April-May 2025, went up to Rs 32,015.68 crore from Rs 29,074.03 crore for the same months last year. The individual premium segment showed a slight decrease to Rs 7,191.04 crore, compared to Rs 7,233.61 crore in the same period last year. The group premium segment amounted to Rs 24,824.64 crore for April-May 2025, from Rs 21,840.42 crore in the previous year. LIC issued a total of 17.94 lakh policies for April-May 2025, a drop from 21.07 lakh policies in the same period last year. Policies for the Individual category also declined to 17.91 lakh in April-May 2025, from 21.03 lakh in April-May 2024. Continuing with the trend, group policies went down to 2,558 in April-May 2025 from 3,704 policies in April-May 2024. LIC reported a robust 38 pc YoY growth in Q4FY25 consolidated net profit, reaching Rs 19,039 crore, and announced a final dividend of Rs 12 per share. While net premium income saw a slight dip, the full financial year witnessed an 18% increase in PAT to Rs 48,151 crore. A bonus of Rs 56,190.24 crore was declared to policyholders, demonstrating the company's continued commitment to delivering value. Value of New Business (VNB) rose by 4.47 percent year-on-year to Rs 10,011 crore, with VNB margin (net) expanding by 80 basis points to 17.6 percent. The share of Non-Par Annualised Premium Equivalent (APE) within the individual business grew by 937 basis points year-on-year to 27.69 percent, while Non-Par APE itself surged by 50.28 percent year-on-year to Rs 10,581 crore. UNI PC SSP
The Wire
3 hours ago
- The Wire
Ahead of G7 Summit, Canada Lists ‘Foreign Interference and Transnational Crime' as Key Priority
Menu हिंदी తెలుగు اردو Home Politics Economy World Security Law Science Society Culture Editor's Pick Opinion Support independent journalism. Donate Now World Ahead of G7 Summit, Canada Lists 'Foreign Interference and Transnational Crime' as Key Priority The Wire Staff 7 minutes ago Last week, Prime Minister Modi announced that he had received and accepted the invitation to attend the G7 summit. It was an unusually late invitation, considering other non-G7 states had got it by the first half of May. Canada Prime Minister Mark Carney. Photo: AP/PTI Real journalism holds power accountable Since 2015, The Wire has done just that. But we can continue only with your support. Contribute now New Delhi: Canada has identified countering 'foreign interference and transnational crime' as a key priority for the upcoming G7 Summit, which Prime Minister Narendra Modi is set to attend after accepting a late invitation last week. Unveiling the host country's agenda ahead of the summit's opening on June 15, Prime Minister Mark Carney outlined three 'core missions.' The first, titled 'Protecting our communities and the world', includes strengthening peace and security, coordinating efforts to combat forest wildfires and, notably, 'countering foreign interference and transnational crime'. The second priority focuses on 'building energy security and accelerating the digital transition' by strengthening supply chains for critical minerals and leveraging artificial intelligence. Carney also said Canada would seek 'securing the new partnerships in the future' aimed at unlocking large-scale private investment to develop resilient infrastructure, generate better-paying jobs and expand access to competitive, high-growth markets. As the Canadian media observed, these outlined 'core missions' are aligned to Carney's domestic agenda. It remains unclear how prominently Canada's stated priorities will feature in the G7 summit discussions, but traditionally, the host nation's agenda tends to receive significant emphasis in the summit's joint declaration. Canada's emphasis on foreign interference and transnational crime also carries particular diplomatic weight. Ottawa has been outspoken about attempts by foreign governments to meddle in its domestic affairs – especially election processes. The pairing of 'foreign interference' with 'transnational crime' was also seen as a signal that Ottawa is referring to efforts by foreign governments to target individuals on Canadian soil. Last Friday, Prime Minister Narendra Modi announced that he had received and accepted the invitation to attend the G7 summit during a phone call with the Canadian prime minister. It was an unusually late invitation, as it was just over a week before the summit was to begin, while other non-G7 states, like Mexico, Brazil, Ukraine and South Africa had got their invitation by the first half of May. Carney's invitation to India has drawn some domestic criticism, forcing him to clarify the decision publicly. 'We have now agreed, importantly, to continued law enforcement dialogue,' he said. 'There's been some progress on that, which recognises issues of accountability. I extended the invitation to Prime Minister Modi in that context, and he has accepted.' Among the G7 outreach invitees, India is the only country whom the host, Canada has accused of both 'foreign interference' and involvement in 'transnational crime'. Ties between India and Canada nose-dived in September 2023 after then-Prime Minister Justin Trudeau accused Indian government agents of being involved in the killing of a Canadian citizen, Hardeep Singh Nijjar, whom India had labelled as a Khalistani terrorist. New Delhi firmly rejected the charge, arguing instead that the real concern was Canada's tolerance of groups it considers anti-India and separatist in nature. In October 2024, Royal Canadian Mounted Police Commissioner Mike Duheme alleged that Indian officials were linked to a wider effort to intimidate or target Canadian nationals. The diplomatic rift deepened when Ottawa expelled six Indian diplomats, including High Commissioner Sanjay Kumar Verma. India reciprocated, prompting a further freeze in official engagement. Besides, a public inquiry led by Justice Marie-Josée Hogue into foreign meddling later identified China and India as key actors attempting to influence Canadian political processes. In its January 2025 report, the commission noted: 'Intelligence holdings also reveal that a government of India proxy agent may have attempted to clandestinely provide financial support to candidates from three political parties in 2021,' adding that 'the source of any such financial contribution could have been unknown to the candidates.' Responding to the report, India's Ministry of External Affairs issued a sharp statement that it was Canada that had been 'consistently interfering in India's internal affairs.' The ministry also claimed that such interference had encouraged 'illegal migration and organized criminal activities'. In the run-up of the snap parliamentary polls in April that was won by Carney, a senior Canadian intelligence official said in a public briefing that India, along with China, has the potential to interfere in the country's upcoming general elections next month. Meanwhile, Indian officials are working against the clock to finalise logistics for the prime minister's visit, rushing to obtain visas and secure accommodation for the delegation on short notice. The Indian team is also preparing for possible confrontations from pro-Khalistani groups, despite protest zones being restricted to three designated areas away from the main summit venue. In addition, Indian diplomats are hurriedly coordinating two stopovers for Prime Minister Modi's travel to and from Canada. On the outbound leg, he will transit through Cyprus, marking the first visit by an Indian prime minister to the country since 2002. On the return journey, Modi is scheduled to pass through Croatia, a visit that was originally planned as part of last month's Europe tour but had to be cancelled following the Pahalgam terror attack. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments. Make a contribution to Independent Journalism Related News Canada Placed Law Enforcement Conditions Before Modi for G7 Summit Invite: Report Marking Turnaround in Ties, Modi Accepts Late Canadian Invitation to Attend G7 Summit Next Week As the G7 Clock Ticks, Silence over India's Invite and What it Means Nijjar & After: Facing Flak, Canadian PM says Progress in 'Accountability' Paved Way for Modi G7 Invite India's Disastrous Isolation Around the World As India and Canada's Foreign Ministers Speak Over Phone, Signs of a Further Thaw in Ties Has Development in Northeast India Undermined Its Environmental Sustainability? Israel Allows Limited Aid To Enter Gaza; France, UK, Canada Call Move 'Wholly Inadequate' G20 Is Too Elite. There's a Way To Fix That Though – Economists View in Desktop Mode About Us Contact Us Support Us © Copyright. All Rights Reserved.
The Hindu
4 hours ago
- The Hindu
Consumers complain of long waiting time at fair price shops due to cards being classified as Priority House Hold
People are complaining of long waiting times at fair price shops due to a section of family cards being classified as Priority House Hold (PHH). 'I was asked to place my palm on the scanner twice. The first time was for rice and wheat and the second was for sugar, palm oil, and dal. Since the scanner did not work properly, I had to place my palm a few more times, which took time,' said Viswanathan of Pattabiram, and a PHH card holder. If a PHH card holder needs more time to ensure the biometric data matches what is in the records, other customers are also forced to wait their turn. 'Why is there a need for two bills and scans. All of us get the same items. The government should allow iris scans if the palm print data does not register properly,' said S. Vaidehi, a homemaker. Viswanathan of Chitlapakkam said that at the fair price shop in his area, there were only 100 PHH cards, and if internet connectivity was slow, the shopkeeper would ask consumers to bear with him. 'Since there aren't many PHH card holders, people don't have to wait long,' he said. Consumer activist T. Sadagopan said some other system should be implemented to reduce the waiting time for those with non-PHH cards. 'Even with PHH cards, visiting the local fair price shop is not a very pleasant experience for many. The scanning devices need replacement,' he said. A retired official of the Civil Supplies Department said the Centre was supplying rice and wheat to PHH cards holders, which was why there were two bills. Officials could not be reached for a response.
