Suggestion on the platform for Buying MF

Personal finance
1

Hi, I have been using Kotak securities since last 5 years, holding some equities. I am planning for SIP’s in mutual funds. I explored zerodha, groww and other apps

Zerodha offers mutual funds in DEMAT form same as Kotak securities.
I am planning to go with Kotak securities itself instead of opening another account with Zerodha. Kotak securities charge zero for mutual funds (same as zerodha) and some yearly maintenance fees which i am ok to pay.

Also, kotak securities offers both direct and regular mutual funds

Any problems if we buy mutual funds in DEMAT form?

2

Depends on how you want to buy, Demat units or not.

I think Demat is more of a convenience, having all investments in one place, having the same nominees etc, also you can convert Demat units to physical units.

If you want to invest in physical units, you can very well use CAMS or Kfintech the RTAs for MFs, check if the fund houses you want to invest are served by one RTA, then you can use their services, if you need both RTAs, then you should create account with both of them.

Then there is MF Utility, it was created a few years ago, I think it has all fund houses listed.

If you want Demat units, then you can use your own stock broker or other, depending upon the charges, your experience with them, easy of purchase etc.

3

Thanks. Yeah, one point which i like is having all investment in one place.

I think few brokers charge rs.14 for SELL transaction as DP charge. But i think that is OK because MF’s are for long term investments and not for trading where there is lot of SELL transaction.

4

Yes, DP charges exist with every broker, they cannot be waived, unlike brokerage.

So be clear of how you want to have the units, physical or Demat, and if Demat, also know about the process of converting Demat to physical, in case you want to do that in the future, and then go with your choice of service provider.

5

Absolutely no issues. Demat is the way to go forward. Never knew, MF are still being sold on physcial format.

6

MFs are sold in physical form more than demat form. There has been great increase in demat accounts these past couple of years, but they are opened for stocks and not for purchase of MF units. Who already have a stock PF may want to buy MF units too in demat form, but generally no one opens a demat for purchasing MF units, as physical units are more simple and straight forward for both purchasing and redeeming.