Thanks for bringing this question. Even i am looking for a Non Demat based folio app for new account for my family members. I hit this issue recently https://tradingqna.com/t/problem-with-mf-units-in-demat-form/136362
I have shortlisted Groww and Kuvera. Since I am investing only in MF’s and no direct stocks. I have finalized with Kuvera.