Do we need a demat account for investing in mutual funds
Do we need demat account for mutual funds? Many of you have asked me this through whatsapp. I want to make clear that its not a compulsary to have a demat account to buy mutual funds. We can buy mutual funds unit directly from fund house portals or mutual fund selling platforms like kuvera, groww.
But having a demat have some additional benefits. Mutual fund units you purchased through them can be transferred directly to demat accounts and save there. You can see and manage all your holdings like shares, mutual funds and all in a single place. The mutual funds saved in the demat form in your demat account makes it convenient to maintain a diversified portfolio. Saving all your investment in one place helps to avail a single capital gain statement for your different investments. It also helps to keep a single profit and loss visualization for all your investments in various segments.
Which demat account is good for mutual fund
There are different types of mutual funds. You might have seen a "direct" tag at end of some mutual fund names. They are direct mutual funds. We have explained about difference between direct and regular mutual funds in our previous post about fyers direct. You can check that to know more about these two category of mutual funds. Direct plans are bought directly from fund houses and have less expense ratio than regular plans. Since no intermediary is involved, it helps to save commission and thus earn higher return in long term. Below we have listed some broker platforms which lets you buy direct mutual fund plans and save it in your demat account.
Almost all leading brokers like sharekhan, geojith, have mutual fund platforms. But normally full service brokers sell only regular plans through their platforms. Only a few brokers let you buy direct funds using their mutual fund platform.
Best demat account for direct mutual funds
Zerodha Coin
Upstox
We have written a post about top stock brokers of 2021 and made a list of to demat account providers in India. |
1 Comments
Hi, Can you please confirm that on Fyers, both buy and sell orders for "other than liquid and overnight funds" have cut-off 3 pm? Will I be able to place a buy order at 2:59 pm and get the same-day NAV? Thank you.
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