Confused about Groww Demat Mutual Funds? Know in case you ought to change or stick with SoA, perceive prices, professionals, cons, and protected alternate options in easy language.
Certainly one of India’s widespread funding apps, Groww, lately introduced that from June 2025 onwards, all new mutual fund investments by way of their platform will probably be held in demat kind by default. Current SIPs will proceed within the conventional format, however you’ll be able to select to transform them too.
This sudden change has confused many traders — must you 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.
Current SIPs will stay in SoA however might be moved to demat together with your consent.
You possibly can choose out of the demat format utilizing an OTP course of.
In case you want to revert your demat items to SoA, it’s doable however entails paperwork and time.
What you will need to be careful for
Restricted Entry:
Models held in demat kind can’t be accessed by way of MF Utility (MFU) or MF Central, that are free and sturdy 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 kind wasn’t simple. However now, with MF Central, this has grow to be easy. So, this profit exists even in SoA.
Speculative Use:
If you maintain mutual funds in demat, you’ll be able to 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 healthier?
Consult with my detailed submit on this “Ought to You Maintain Mutual Funds in Demat Type? Professionals & Cons“.
| Characteristic | SoA | Demat |
| Price | Free | Brokerage/DP prices could apply |
| Nomination | Separate for every AMC | Single nomination for complete demat |
| Entry | MFU, MF Central, RTAs | Dealer platform solely |
| Gifting/Switch | Allowed by way of MF Central | Allowed |
| SWP/STP | Totally supported | Totally supported |
| Margin | Not accessible | Can pledge for loans/margin |
Why I favor SoA
Having suggested hundreds of traders, I consider simplicity and suppleness matter most. SoA provides you that. You possibly can straight transact by way of the AMC’s personal web site, CAMS, KFintech or MF Utility — all with none additional 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 items are straight with the AMC.
In demat kind, in case your dealer or DP has points, chances are you’ll discover it tougher to transact. Additionally, not all brokers absolutely assist options like SWP (Systematic Withdrawal Plan) in demat but. For retirees, it is a main downside.
What must you do now?
Earlier than switching blindly, take into consideration why you spend money on 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 sensible in case you’re already utilizing it for shares and ETFs and need to consolidate the whole lot in a single place — however for purely mutual funds, SoA continues 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 well!