Do I need a demat account to invest in mutual funds?

I want to invest in mutual funds. But I don’t have demat/trading account. How do I invest?

No. You do not need a brokerage account to invest in mutual funds. You can invest through different online platforms like Funds India or Groww, where you can create an account within minutes–

No, you dont need demat account.
You can either invest through mycams online portal (14 AMC’s) are there or you can directly invest through AMC website.

Dematerialisation is holding financial securities in an electronic form in a demat account. While stocks sold via exchanges need to be held compulsorily in the demat format, for mutual funds (MFs), this is not so. MF Utilities is owned by the AMCs and is reliable and safe. You can buy MFs through a distributor directly through a fund house’s website or through your broker on stock exchanges. Earlier, to buy through an exchange, a demat account was necessary. But now you can transact in MFs on exchanges (via a registered adviser or a broker) without opening a demat account.

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For investing in a mutual fund you don’t need a demat account but if you are investing in a stock then you must have a demat account. If you start SIp (Systematic Investment Plan) then you require only your Aadhar Card, Pan Card, Passport Photo, Nominee Pan Details, Margin Cheque of that amount where you start like 2,000 monthly or 5,000 monthly. Your cheque must be your name printed otherwise first copy of your passbook is required.

No, you do not need any demat/trading account for investing in mutual funds.
I generally do my investment in Mutual funds & my SIPS through RupeeVest. Its a user friendly website.It has saved me from the hassle of meeting the broker and having long discussions regarding the choice of investments.
You just need to sign-up on their website by providing your details. They will send you a follow-up email mentioning the documents required.

You don’t need a Demat account to invest in mutual funds. You can apply for a SIP investment plan - Mutual funds online. It’s the best plan. Visit the link of Kotak Mutual fund, know your KYC, fill up the form by entering the correct details.submit the form and Link your bank account.

No. You dont need a Demat account to invest in mutual funds. I’d suggest that you invest in direct mutual funds instead of regular plans. Direct plans have lesser expense ratio and thus they help you generate better returns. is one of the best sites you can find to invest in direct mutual funds plans.

Demat Account is mandatory for trading in the stock market. It is not required for Mutual Fund investments of any kind including SIP. Mutual Fund investors don’t really need to open a demant account. Transacting in Mutual Funds without a demat statement is convenient and so far remains the preferred choice for majority investors.

No, demat account is not required to buy mutual funds, you can buy them directly. But a demat account could be helpful to you as you can held and manage most of the instruments like bonds, stocks, tax free bonds, NCDs with a single account.

My friend you do not need a demat account. There is a mutual fund in which you have to invest. To invest in mutual funds you just need to fill KYC ( know your customer). If you want you can contact banks or trading companies to guide you about the mutual fund schemes. I would advise you to contact trading companies as they will assist you with everything and can even advise you regarding the mutual fund schemes and fund managers.

No, you do not need a demat account to invest in mfs. However, it’s easier to monitor your stocks and funds if you use a single demat account for all. You can use Zerodha Coin platform to invest in direct mutual funds.

Zerodha Coin is India’s largest direct mutual fund platform that lets you buy direct mutual funds online with no commission passback, directly from asset management companies. Your mutual funds, stocks, currencies, bonds, and more, all in your Demat account. Here’s the link:


If you interested to invest in Mutual Fund, no need to open demat account you can directly invest in Mutual Fund.

Mutual fund companies do not require investors to use a DEMAT account to buy mutual funds.

No its not required for a mutual fund to open a demat account.
Types and Features of Mutual funds:

  • Equity Mutual Funds : Invests in various stocks.
  • Debt Mutual Funds : Invests in fixed income securities.
  • Hybrid Mutual Funds : Invests in stocks and fixed income securities.
    But while investing in mutual funds we need to keep these four important things:
  • Risk

There is always a certain amount of risk in any type of investment made by an investor. However, the extent of risk may vary.

  • Return

When we talk about return, ideally, a long-term return, say 5 years and beyond is usually considered. Another important thing which needs attention is whether the return on the investment can beat inflation or not. If the return on investment is less than the inflation or it is not able to reach the inflation rate, then investors consider it to be a bad investment as they look at it as a means of making losses.

  • Volatility

Volatility tells about the fluctuation seen in the return. Precisely, volatility expresses how high or low is the return during the period. This is important while making an investment decision because in case the investment generates a very low return during the period and the investor requires the money, then it would be a dicey case.

  • Liquidity

Liquidity tells how easily an investor can get money from the investment. In other words, how quickly the investment can get converted to cash.

Hope this helps!!