There is no need to have a demat account when investing in mutual funds
07-Feb-2011 •Research Desk
Is it necessary to open a demat account to invest in mutual funds? Should I manage it personally? Which is the best option?
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.