POSTED BY June 11, 2012 3:56 pm COMMENTS (4)
ONI am starting SIP’s in 2 equity div. funds. Wanted to check if I should have my units in Demat form in my Demat a/c or sign up with some online service like FundsIndia?
Pros and cons of both?
Are there any expense related considerations for both options?
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i have recently started using fundsupermart which is also good.
Thanks for your inputs BanyanFA & Ashal.
Dear Rohit, there are no transactions charges in case of fundsindia, where as in case of Demat account, yes the charges are applicable. Also, keeping units in demat form is your personal choice & not at all mandatory.
Disclosure – I’m investing through fundsindia for my personal investments.
Thanks
Ashal
Rohit,
When it comes to mutual funds, it makes no sense to go for Demat option. This is because, there is no advantage associated with dematerialising your units of MF. They are already dematerialised and your account statement can be used as an evidence of you holding your units. Go to any branch of CAMS / Karvy or the respective AMC and you can quote your folio number and transact in your units.
Having MFs in Demat would add to your costs of Demat account rather than adding any flexibility. Further, you may end up bearing for demat transaction charges if in future you want to sell your funds.
FundsIndia – I have heard from many people that you can transact online for your MFs via them and there are no charges.
Alternatively, you can transact via manual paper forms which is not a costly option as well.
Regards
BanyanFA