We launched Groww in 2016 to make investing simple, transparent and delightful for our customers. Initially, it was just a simple SIP investing in mutual funds. Over time, we kept building more features to provide more tools for investing and advanced options to our customers. Over the last year, we started getting many requests to hold Mutual Funds in Demat format. We did not have this option. And it was inconvenient for customers who move from other platforms and have their Mutual funds already in Demat.
To enhance the experience for our users, we are now also offering Demat to hold your Mutual Fund investments. However, you are free to opt out of demat and continue with AMC Folio (SoA) to hold your Mutual Fund investments.
If you wish to opt out of demat for mutual funds, you can do so easily here.
Existing investments will continue to be in SOA format, and there will be an option to move to demat if the customer wants to do so.
Starting June 2024, fund houses process mutual fund redemptions only to the bank account linked to the folio. If you had multiple folios with different bank accounts, updating details for each one was a time-consuming and tedious task.
Additionally, for those holding mutual funds in AMC folios, updating nominees has to be done separately for each folio, which can also be a hassle.
Demat simplifies this by consolidating all your investments—mutual funds, stocks, and ETFs—into one account.In the above case, you don’t need to manage bank accounts across folios saving the account management hassle for you.
To address this, Groww will now offer the option to hold mutual funds in demat form, with no extra cost for investors.
Read more: How to Know Your Demat Account Number?
Given the benefits mentioned above and more, many users have requested the option to hold mutual funds in demat format for these reasons and more.
We will slowly start rolling out Demat for new accounts. In case you want to opt for AMC folio, you can do it here anytime. For our existing users, we will start rolling this later and will keep you informed. For early access, please reach out to our customer support at [email protected].
Here are answers to some common questions you might have.
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