No, you don’t need a demat account to buy mutual funds. You can purchase mutual funds easily from anywhere, anytime through online distributors such as Groww.
It has become much simpler and easier to buy mutual funds now a days. You will need the following details to start investing in mutual funds:
Earlier it was mandatory to have a demat . account to buy mutual funds through exchange. But now mutual funds investors don’t really need a demat account. You can easily buy mutual funds using net banking. It is the most preferred mode of buying mutual funds for the majority of investors. Mutual funds provide a statement of account to investors which shows details of investor’s holdings, purchase value, number of units, current value,etc. Also there is a cost attached to the demat transactions such as transaction charges and annual fees. Considering all these factors of demat account, transacting in mutual funds without a demat account is more convenient for the investors.
To know more about mutual funds, please go through the below links:
You don't need Demat to buy mutual funds in India. Although, you can buy mutual funds through Dmat also, but most of the Dmat account has annual fee and transaction charges.
Investing in Mutual fund is much simpler. All you need is the following -
1. KYC verification (takes 2 documents - PAN and Address Proof)
2. Valid Bank account
Once you are are kyc verified, you can also invest in mutual funds through netbanking. You don't need to do any further paperwork. The investment proofs and details will be sent through the email.