How to Convert your Mutual Fund in Demat form ?

Mutual fund units can be held in the same demat account that you use to purchase and sell shares. It means you may buy and sell mutual fund units electronically and keep track of all of your capital market investments in single statement.

By submitting a conversion request form which you can get from your broker or depository, (NSDL or CDSL) you can convert mutual fund units into demat form.

The depository will transmit the paperwork to the asset management company or its registrar and transfer agent, or RTA, after verification, which will confirm the conversion request. All subscriptions and redemptions will have to go through the broker after the conversion. On the stock exchange platform, the broker will purchase units and credit them to your demat account.

A depository is a financial institution that acts as a safekeeper of securities and settles transactions between parties in the capital market. An RTA processes mutual fund unitholders'' application forms, redemption requests, and account statements.

Advantages of holding 

Mutual Funds in demat account

·Paperless transactions.

·In a single demat account, you can own stock, debt instruments, government securities, and mutual fund units.

·Your DP will provide you a single transaction statement that lists all of the stocks and Mutual Fund Units in your demat account.

· All companies / Asset Management Company (AMC) / Registrar and Transfer Agent (RTA) in which you hold shares / Mutual Fund Units will electronically register your change of address with DP. As a result, there will be no need to communicate with each of them separately.

·Through a single internet login, you can access the most recent balances and transactions in your demat account.

How to redeem Mutual Funds from demat form

· You have two options for redeeming your dematerialized Mutual Fund Units: through your DP or through a stock broker.

· You can submit a redemption request form to the depository, which will then transmit the request to the fund house and its RTA after verification.

Additional benefits when you hold MF units in demat form

· The nomination in a demat account will apply to Mutual Fund Units held in that demat account as well.