Confused about Groww Demat Mutual Funds? Know in case you ought to change or stick with SoA, perceive prices, execs, cons, and secure alternate options in easy language.
Considered one of India’s widespread funding apps, Groww, lately introduced that from June 2025 onwards, all new mutual fund investments via their platform will probably be held in demat kind by default. Present SIPs will proceed within the conventional format, however you possibly can select to transform them too.
This sudden change has confused many buyers — do you have to actually transfer your mutual fund holdings to demat? Or keep on with the easy Assertion of Account (SoA) format? Let’s break this down in plain language.
Groww Demat Mutual Funds: Ought to You Swap or Keep?
First, what does this shift imply?
New investments on Groww are by default in demat kind.
Present SIPs will stay in SoA however may be moved to demat together with your consent.
You possibly can choose out of the demat format utilizing an OTP course of.
For those who want to revert your demat models to SoA, it’s doable however entails paperwork and time.
What you have to be careful for
Restricted Entry:
Items held in demat kind can’t be accessed via MF Utility (MFU) or MF Central, that are free and strong platforms to handle a number of AMC folios at one place. SoA models are simply trackable and manageable utilizing RTA web sites like CAMS and KFintech, or the MFU portal.
Gifting & Switch:
Earlier, gifting or transferring mutual fund models in SoA kind wasn’t simple. However now, with MF Central, this has turn into easy. So, this profit exists even in SoA.
Speculative Use:
Whenever you maintain mutual funds in demat, you possibly can pledge them for margin and commerce within the inventory market. Whereas this will look enticing, it encourages dangerous behaviour that mutual fund investing ideally avoids.
SoA vs Demat: Which is best?
Confer with my detailed publish on this “Ought to You Maintain Mutual Funds in Demat Kind? Professionals & Cons“.
| Function | SoA | Demat |
| Price | Free | Brokerage/DP prices could apply |
| Nomination | Separate for every AMC | Single nomination for total demat |
| Entry | MFU, MF Central, RTAs | Dealer platform solely |
| Gifting/Switch | Allowed by way of MF Central | Allowed |
| SWP/STP | Absolutely supported | Absolutely supported |
| Margin | Not accessible | Can pledge for loans/margin |
Why I choose SoA
Having suggested hundreds of buyers, I imagine simplicity and suppleness matter most. SoA provides you that. You possibly can straight transact via the AMC’s personal web site, CAMS, KFintech or MF Utility — all with none further DP or brokerage prices. In case your dealer’s demat platform goes down or in case you lose entry, you’re not caught as a result of your models are straight with the AMC.
In demat kind, in case your dealer or DP has points, it’s possible you’ll discover it tougher to transact. Additionally, not all brokers totally help options like SWP (Systematic Withdrawal Plan) in demat but. For retirees, it is a main disadvantage.
What do you have to do now?
Earlier than switching blindly, take into consideration why you put money into mutual funds. For many, the objective is long-term wealth creation, not frequent buying and selling. SoA retains it easy, cost-effective and clear. Demat is smart in case you’re already utilizing it for shares and ETFs and need to consolidate all the pieces in a single place — however for purely mutual funds, SoA remains to be the cleanest alternative.
Personally, I by no means belief these brokers or third-party web sites. As a result of we don’t know after they change their color 🙂
Select correctly and make investments neatly!
