Confused about Groww Demat Mutual Funds? Know when you ought to change or stick with SoA, perceive prices, professionals, cons, and protected options in easy language.
One among India’s standard funding apps, Groww, not too long ago introduced that from June 2025 onwards, all new mutual fund investments via their platform might be held in demat type by default. Current SIPs will proceed within the conventional format, however you may select to transform them too.
This sudden change has confused many buyers — must you actually transfer your mutual fund holdings to demat? Or persist with the easy Assertion of Account (SoA) format? Let’s break this down in plain language.
Groww Demat Mutual Funds: Ought to You Change or Keep?
First, what does this shift imply?
New investments on Groww are by default in demat type.
Current SIPs will stay in SoA however may be moved to demat together with your consent.
You’ll be able to decide out of the demat format utilizing an OTP course of.
In case you want to revert your demat items to SoA, it’s potential however entails paperwork and time.
What you have to be careful for
Restricted Entry:
Items held in demat type 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 items 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 items in SoA type wasn’t simple. However now, with MF Central, this has turn out to be easy. So, this profit exists even in SoA.
Speculative Use:
Whenever you maintain mutual funds in demat, you may pledge them for margin and commerce within the inventory market. Whereas this may occasionally look engaging, it encourages dangerous behaviour that mutual fund investing ideally avoids.
SoA vs Demat: Which is best?
Check with my detailed publish on this “Ought to You Maintain Mutual Funds in Demat Type? Execs & Cons“.
| Characteristic | SoA | Demat |
| Value | Free | Brokerage/DP fees could apply |
| Nomination | Separate for every AMC | Single nomination for whole demat |
| Entry | MFU, MF Central, RTAs | Dealer platform solely |
| Gifting/Switch | Allowed through MF Central | Allowed |
| SWP/STP | Absolutely supported | Absolutely supported |
| Margin | Not accessible | Can pledge for loans/margin |
Why I favor SoA
Having suggested hundreds of buyers, I imagine simplicity and suppleness matter most. SoA provides you that. You’ll be able to straight transact via the AMC’s personal web site, CAMS, KFintech or MF Utility — all with none additional DP or brokerage fees. In case your dealer’s demat platform goes down or when you lose entry, you’re not caught as a result of your items are straight with the AMC.
In demat type, in case your dealer or DP has points, you might discover it more durable to transact. Additionally, not all brokers absolutely assist options like SWP (Systematic Withdrawal Plan) in demat but. For retirees, it is a main disadvantage.
What must you do now?
Earlier than switching blindly, take into consideration why you put money into mutual funds. For many, the aim is long-term wealth creation, not frequent buying and selling. SoA retains it easy, cost-effective and clear. Demat is smart when you’re already utilizing it for shares and ETFs and need to consolidate every little thing in a single place — however for purely mutual funds, SoA continues to be the cleanest selection.
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!
