InvestorQ : Can I hold in mutual funds in demat and what is the process?
Mary Joseph made post

Can I hold in mutual funds in demat and what is the process?

Arya Nanda answered.
4 years ago

Not only bonds and equities, but you can also hold your mutual funds in demat form. All the mutual funds that have signed up for demat have a unique ISIN code that is assigned to them. Currently, it is possible to directly buy mutual funds in demat form through your trading account with your broker, assuming that your broker permits trading in those mutual funds. But what if you are already holding mutual funds in physical form (in the form of a statement of account issued by your fund AMC)? Not to worry, because you can also convert these physical MF holdings into demat holdings. Here is how you go about it.

If you are holding Mutual Fund Units in physical form, which are represented by Statement of Account, you can convert this Statement of Account into dematerialized form in your demat account with any Depository Participant (DP) of NSDL / CDSL. In case you do not have a demat account and wish to hold Mutual Fund Units (represented by Statement of Account) in dematerialized form, you will be required to open a demat account with any DP of NSDL.

Once your demat account is opened and operational, you need to go through the following steps. Firstly, obtain Conversion Request Form (CRF) from your DP. Then fill-up all the columns in the CRF and ensure that specific details like folio details are mentioned properly. Finally, submit the CRF along with the Statement of Account to your DP. After due verification, the DP would send the CRF and Statement of Account to the AMC / RTA. The AMC / RTA after due verification will confirm the conversion request and the Mutual Fund Units in your demat account will be credited. The process is quite simple and the entire process can be completed in less than one week.