Best demat account for mutual funds India

Which demat account is best for buying mutual fund in India

With the rise of digital financial technology, there are more and more options to buy mutual funds online with ease and flexibility. Rather than finding where to purchase mutual funds from a local broker, many investors are turning to digital platforms that let you invest in mutual funds directly online. Before deciding the best platforms for online mutual fund investments, research the different brokerages and advisors to determine fees, minimum investments, user interfaces, and fund variety. Platforms like Upstox, Zerodha, fyers allow you to buy direct mutual funds online by creating a simple account on their secure websites or mobile applications. You can build a customized portfolio by selecting mutual funds to invest in online across equity, bonds, ETFs, and more. When you invest online through an established platform, your mutual fund purchases can be as small as a Rs.500 contribution with automated recurring deposits. If you understand your financial goals and risk tolerance, purchasing mutual funds online yourself gives more control over an essential part of your investing strategy for the future.

Before buying mutual funds, you have to learn a few terms related to mutual funds. First one is direct vs regular 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. We have explained the best direct mutual funds platforms in India below.

Best direct mutual fund platform

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. 

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. 

Best demat account for direct mutual funds

Some brokers like zerodha and fyers have dedicated platforms for buying direct mutual fund plans and keep it in demat form in your demat account. We will discuss about these two platforms today.

Zerodha Coin - India's Largest Free Direct Mutual Fund Platform

Zerodha Coin has emerged as India's largest direct mutual fund investment platform allowing investors to buy direct mutual fund plans for zero commission.

While Coin earlier charged a nominal subscription fee, the platform is now completely free to use for all. Investors can seamlessly purchase direct mutual funds with no platform charges or hidden costs.

With an intuitive interface providing in-depth analytics and research tools on thousands of mutual funds, Zerodha Coin aims to revolutionize wealth management in India.

Key Features

  • No Subscriptions or Commissions - Invest in direct mutual funds absolutely free
  • Fund Comparison Tools - Evaluate and compare funds based on historical returns, risk metrics and more
  • SIP Calculator - Plan SIPs and model lumpsum vs SIP returns
  • Complete Portfolio View - Full overview of investments across asset classes
  • Simplified Transactions - Paperless purchases via integrated Zerodha Kite account

So if you're looking to build your mutual fund portfolio in a transparent and cost-effective manner, Zerodha Coin is definitely worth exploring. The platform offers unmatched access to direct funds with zero fees and a wealth of analytics for informed decision-making.

You need a zerodha account to buy direct mutual funds through zerodha coin. 
Open a zerodha account with our link. You can contact us for any account opening related help.

Investing in Mutual Funds Through Upstox

Upstox has emerged as one of the top online discount brokers in India that offers a convenient platform for investing in stocks, ETFs, IPOs and mutual funds. This article provides an overview of the mutual funds investment capabilities offered by Upstox.

Introduction to Upstox

Founded in 2009 and headquartered in Mumbai, Upstox started out by facilitating equity investments. Over the years, it has expanded into other assets like mutual funds while focusing on a digital-first, low-cost model suited for millennials.

Some key highlights of Upstox:

  • Offers web, Android and iOS investing platforms
  • Over 40 lakh customers served
  • Commission charges as low as ₹20 per equity trade
  • Received funding from marquee investors like Tiger Global and Ratan Tata

Investing in Mutual Funds on Upstox

In addition to stock investing, Upstox allows investing in mutual funds across categories - equity, debt, hybrid, solution-oriented and tax saving.

Key features include:

  • Access to direct plans of mutual funds to save on commissions
  • Invest in Growth and Dividend options
  • Start SIP investments on any date
  • Zero charges on transactions
  • Track NAVs and monitor investments
  • Avail premium research and analysis for informed decisions

Upstox offers investments into funds offered by top AMCs like ICICI Prudential, Axis, Kotak Mahindra, HDFC, Aditya Birla Sun Life etc.

Types of Mutual Funds Available

Whether you are a conservative first-time investor or an aggressive equity participant, Upstox offers a wide gamut of mutual fund schemes:

Equity Funds

From multi-cap funds, large & mid-cap funds, sectoral funds, dividend yield funds to focused equity funds.

Debt Funds

Liquid, ultra-short duration, dynamic bond funds, banking & PSU funds, gilt funds, credit risk and more.

Hybrid Funds

Equity savings, balanced advantage, dynamic asset allocation, multi asset allocation and other funds.


Retirement, children's education and marriage, tax savings and other specialized funds.

So whatever your financial goal, risk appetite or ideal investment horizon - you can find a fitting mutual fund scheme on Upstox backed by trusted fund houses.

By leveraging technology and minimizing costs, Upstox makes accessing mutual funds simplified. Sign up through their mobile apps or website to invest in direct plans conveniently. You can start SIPs seamlessly, track portfolios, avail research assistance - all needed to meet your investment objectives smartly.

You need a upstox demat account to buy direct mutual funds through upstox mutual fund platform. 
Open an Upstox account. You can contact us for any account opening related help.

Fyers direct

Fyers also offers commission-free Mutual Fund investing through their direct mutual fund platform - fyers direct. We have a detailed post about this platform in our blog itself. Check it to know more about it - Fyers direct - all details you wan to know

Its main feature include,
  • One-click Investing - Invest in mutual funds through DEMAT account.
  • Portfolio Tracker - Get all the details of your MF portfolio holdings.
  • Instant Redemption - Redeem your mutual fund corpus in a single-click. 

How can I invest in Mutual Funds with FYERS?

You can invest in Direct Mutual Funds in our exclusive mutual fund platform of Fyers Direct at Zero Commissions. The investments can be in Lumpsum or Systematic Investment Plan (SIP). The procedure to Buy Mutual Funds is as follows:

  • Login to Fyers Direct (If you’ve already logged in to FYERS Web, then you’ll automatically be logged in)
  • Explore the different mutual funds available from the ‘Explore’ option
  • Select the mutual fund you wish to Buy..
  • Select ‘Lumpsum’ for one-time investment and ‘Start SIP’ for investing a fixed amount at regular intervals
  • Once the required details such as amount, frequency (SIP), bank (SIP), etc., are entered, place the order.
Fyers demat account

We have written a post about top stock brokers of 2024 and made a list of to demat account providers in India.
To get a rough idea about returns of your mutual fund SIP returns you can use our mutual fund SIP return calculator.

To know more about systematic investment plan and how to invest in mutual funds in India, you can find posts on respective topics in this blog.

Frequently asked questions

Which is the cheapest demat account for mutual funds in India?
Brokers dicussed above, Zerodha Coin, fyers and upstox lets you invest directly for free, while most of other brokers charge flat per-transaction fees. Compare and choose what suits your investment frequency.

Zerodha Coin vs Groww vs 5paisa for mutual funds?
Zerodha Coin boasts advanced tools and research, Groww shines with its sleek interface and ease of use, and 5paisa brings the lowest overall fees. Consider your priorities when comparing.

Is it better to invest in mutual funds through a bank or a demat account?
While banks offer limited options, demat accounts open doors to a wider range of funds and let you hold all investments in one place. Investing in mutual funds through stock brokers have other advantages and dis advantages also, which I have explained in above article in detail.

Best demat account for beginners in India for mutual funds?
Both Upstox and fyers direct have a simple platform which any user can use easily. Zerodha Coin will have more options to choose from. Choose a broker based on your needs.

Can I invest in all mutual funds through one demat account?
Yes! Most demat accounts offer access to a vast selection of mutual funds, eliminating the need for juggling multiple platforms.

How to track mutual fund investments through a demat account?
Demat platforms typically have dedicated sections for tracking your mutual fund holdings, displaying performance, and enabling transactions. Explore your chosen platform's features to get comfortable.

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Rupesh said…
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.