Confused about Groww Demat Mutual Funds? Know should you ought to swap or stick with SoA, perceive prices, execs, cons, and protected options in easy language.
One in every of India’s common funding apps, Groww, just lately introduced that from June 2025 onwards, all new mutual fund investments via their platform might be held in demat kind by default. Present SIPs will proceed within the conventional format, however you may 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 follow the straightforward 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 kind.
Present SIPs will stay in SoA however will be moved to demat along with your consent.
You possibly can decide out of the demat format utilizing an OTP course of.
For those who want to revert your demat models to SoA, it’s attainable however includes paperwork and time.
What you need to be careful for
Restricted Entry:
Models held in demat kind can’t be accessed via MF Utility (MFU) or MF Central, that are free and sturdy 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 straightforward. However now, with MF Central, this has develop into easy. So, this profit exists even in SoA.
Speculative Use:
While you maintain mutual funds in demat, you may pledge them for margin and commerce within the inventory market. Whereas this will likely look engaging, it encourages dangerous behaviour that mutual fund investing ideally avoids.
SoA vs Demat: Which is best?
Seek advice from my detailed submit on this “Ought to You Maintain Mutual Funds in Demat Type? Execs & Cons“.
| Characteristic | SoA | Demat |
| Price | Free | Brokerage/DP expenses might 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 desire SoA
Having suggested 1000’s of buyers, I consider simplicity and adaptability 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 additional DP or brokerage expenses. In case your dealer’s demat platform goes down or should 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, you could discover it tougher to transact. Additionally, not all brokers totally help options like SWP (Systematic Withdrawal Plan) in demat but. For retirees, this can be a main disadvantage.
What do you have to do now?
Earlier than switching blindly, take into consideration why you spend money on mutual funds. For many, the purpose is long-term wealth creation, not frequent buying and selling. SoA retains it easy, cost-effective and clear. Demat is sensible should 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 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 well!