LIC Limited Premium Endowment Policy (Plan No:830)

Do I need Demat Account to invest in Mutual Funds ?

by Ashok Kuumar | Dec 7, 2019 | Investments, Mutual Fund

Mutual Funds Investment Don’t reqired DEMAT Account

Mutual fund companies do not require investors to use a dematerialization (DEMAT) account to buy mutual funds. A DEMAT account allows investors to electronically purchase and redeem securities, mutual funds, and other investments.

Why You Should Avoid Having A Demat Account For MF Investment?

1. There is a yearly cost associated with the maintenance of the demat account, which adds up for a long-term investor.
2. There is an upfront commission of 1% to 1.5% on funds that one buys through a demat account as it only allows you to invest in regular mutual fund schemes.
3. There is a trail commission of up to 1.5% on the funds you hold in a demat account. This is charged every year for the entire duration of your investment. It adds up to lakhs of rupees in the long run, depending on the amount and duration of the investment.
4. You can add only one nominee to your demat account. If you want to distribute your holding midst various family members, you cannot do it with the help of a demat account.

• Mutual fund companies do not require investors to use a dematerialization (DEMAT) account to buy mutual funds.
• A DEMAT account allows investors to electronically purchase and redeem securities, mutual funds, and other investments. 
• Instead of using a DEMAT account, investors can choose to buy or redeem mutual funds directly from the mutual fund company.
• Instead of Demat use MFU ( Mutual Fund Utility ) for all Online transaction.
• DEMAT accounts offer investors several advantages, including increased security of financial transactions, increased speed in processing trades, and the elimination of unnecessary paperwork.
  

One can buy and sell any mutual fund scheme directly through an asset management company (AMC), a bank, personal financial advisor, or various third-party portals. The only things mandatory for MF investment are:

1. Bank account (preferably with online banking facility, but not required)
2. KYC compliance

As mentioned above, a demat account is not necessary for a mutual fund investment, yet some people like to use it to manage all their investments from one place. Normally, people use the same demat account for their mutual fund investments that they have been using for investing in dematerialised equity shares.

Other Ways To Invest In Mutual Funds

Demat account is not the only way to invest in mutual funds. You can do it via your bank, a personal advisor, or through a third-party online portal like www.agindiaonline.com. You can use any of the following channels to invest your money in a mutual fund scheme.

Bank

You can walk into your local bank and meet your relationship manager to begin mutual fund investment including SIP.

Through CAMS

You can also visit a local CAMS office to start your mutual fund investment. Alternatively, you can visit myCAMS website or download myCAMS app to begin investing in various mutual fund schemes – both in direct and regular options.

Offline Through AMC’s Branch Office

In many cities, major fund houses have their branch offices. You can visit an AMC’s branch office in your locality and invest in one of its schemes. You will need to visit each AMC’s office individually should you wish to choose funds from different fund houses.

Online From AMC’s Website

Another way to invest in mutual funds is to visit each fund house’s website, register there, link the bank account with the portal, and begin investing.

For more details . You may call / whatsapp/ Msg to 9891423442 for wealth Manager Support or visit www.agindiaonline.com for instant start of SIP/Lumpsum etc.