For SIP which is good DMAT or individual MF house account?

POSTED BY Deepali ON July 14, 2011 7:48 pm COMMENTS (4)

I want to start SIP in HDFC and sundaram funds. Is it good to have DMAT account for SIP or is it good to have account with MF house.
As far as I know MF house does not charge any entry load but DMAT service provider does charge entry load.
Can you tell me which would be good choice for SIP?

4 replies on this article “For SIP which is good DMAT or individual MF house account?”

  1. prabeesh says:


    In my personal and many well known investors opinion Direct with Fund house is good way for SIP.
    Why do you want to pay for a thing that comes with no charges. Demat holding form is glorified with some justification as one place for all holdings and selling in exchanges.

    For small SIP like 2-5K Demat upfront charge like Rs 15 (ICICI) is too much. Instead you can look for online agents like Fundsindia. Where you can open account and invest without paying anything.All they receive is the Trail commission which you cant save in anyway.

    You can either invest directly visiting the individual fund house site or open account with fundsindia like sites and maintain all your holding in one place.

    Demat form for MF units is utter non sense and waste according to me.

    1. Deepali says:


      agree regarding the per transaction charges of DMAT. I dont have much knowledge about the MF house account. Can you clarify below doubts?
      1. If I want to skip SIP contribution for say 2 months in SIP and then again regularize it. Is it possible with MF house account? what would be the process?.
      2. I want to increase SIP amount. what would be the process for DMAT account and MF house account?
      3. I want to stop current SIP and invest in some other new fund of the same Fund house? What would be the process for DMAT and MF account?

      It would be great help to me if someone can clarify these doubts.

  2. Deepali says:

    Thanks Nandish. I know we dont need to have DMAT account for investing in MF. We can do the same using MF house online services like I know HDFC has online facility to invest and maintain your MF investments similiar to DMAT. But I am confused which is good way to do the SIP: DMAT or the MF house online services? Which is cheaper and more efficient option? Would like to know pros and cons of both the sides.

  3. Hi Deepali,

    Happy to see you have made a decision of starting your investments. You will be happy to know that you do not need a demat account for starting your SIP investments.

    You can make the investments through your simple savings account. I suggest you to invest into mutual funds through some online platform so that you can simplify your investments and monitor them properly.

    Demat would be required if you want to invest in direct stocks or ETFs, where you pay an annual fee as demat account maintenance and brokerage on transactions .(As of now this does not apply to you).

    HDFC AMC you can invest through their website they have also introduced mobile tracking and investing recently.

    Hope this information will be of use.

    Happy investing.

    Do share with us once your investments start

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