Is it necessary to open a demat account to invest in mutual funds? Should I manage it personally? Which is the best option?
— Harshad
No. To invest in mutual funds you do not necessarily need a demat account. You can directly invest in a fund scheme with the AMC, use a distributor to invest or use third-party websites to do so. In all the options, the decision to invest rests with you. The advantage with electronic management is the convenience that it offers and easy monitoring compared to physical holdings.
This article was originally published on February 07, 2011.