Issues with holding mutual fund units in demat form

I think when we hold mutual fund units in demat form, there are communication issues between the brokers and the mutual fund AMCs/ RTA. Even after I updated my email ID, nominee with my broker, the AMCs/ RTA simply do not update mobile no/ email ID/ nominee in the demat folios. When asked, they just say “it’s a demat folio, we can’t update anything” and wash their hands off. Broker can’t update it either - broker says they have told the RTA, and it’s up to the AMC/ RTA to update it in their records.

Once you pass away it is the opposite. Your nominee has to go to different AMCs and claim one by one.

In demat, they can claim the whole account at once.

You can also pledge units in demat form.

There are also severe issues like not being able to redeem instantly with liquid funds, which is a much needed feature.