All fine. Hance proved holding MF units are advantages compared to non-demat form.
Though it’s upto once choice whether he wants to hold it in demat or not. I am quite sure that I’m not going to die in next couple of years.
Now, I don’t want to hold all the MF units bought in Zerodha coin in my Demat account. And also I don’t want to redeem(as ELSS funds can’t be redeemed) them. Folio switching is a options which is possible and should be available for customers. Can you put some light, how one can achieve this?
This just a simple query. Please consider it in same way.
this assumes that the nominee will also have a demat account.
Even if the nominee has a demat account, things aren’t straightforward. My father had demat MFs and stocks with Geojit which got transmitted to my ICICIDirect acc after he passed away. However ICICIDirect-the-great does not support demat MFs. My options are:
Visit branch to Remat each folio (Rs.25 per folio) and transfer-in
Visit branch to redeem the units (which may run into the fractional units problem)
It is almost same as demat mode.
You don’t need to keep physical shares.
They are also held in electronic format just like demat.
Demat is a type of electronic format used by Depositories.
There can be multiple ways to maintain your books.
So MF industry uses this SoA format.
Yup…
Thats y I prefer MFU.
Anyways its always better to separate your Investements, Trading, MFs & FDs.
Like a portfolio diversification.
Service Provider diversification.
I am not an expert in MF investing, so I don’t have an opinion on demat vs. SoA etc. However, I found the below comment interesting:
Correct me if I am wrong, but aren’t demat accounts registered with CDSL, which is controlled by BSE along with several banks? Doesn’t this mean that there is no risk with investments held in one’s demat account from any possible illegal/unethical actions by the intermediary (like Zerodha), since CDSL’s systems are presumably well designed to protect investors from such possibilities?
Is there any risk with high service provider concentration - having only one service provider? If I rely on Zerodha’s services (demat, Kite, Coin, etc.) for 100% of my investments, is there any risk in case of extreme unlikely events like Zerodha going bankrupt, or the promoters (I am sure they are wonderful people in reality!) suddenly going bonkers and committing fraud, etc.?
I know such cases are very very unlikely, but I am interested in having an idea of what are the possible, theoretical risks, however unlikely they may be.
I am also not 100% sure here.
But let me take an educated guess.
Yes Demat with CDSL/NSDL are extremely safe. There are indeed minuscule chances of any fraud on account of Zerodha or other brokers. But I assume that you have given PoA to Broker and hence he have all powers to remove your MFs etc from your demat - ethical, unethical, illegal - that will be matter of investigation.
Why I said diversification.
Just to make use of various facilities by various services.
To save bucks on services
Easy visualizing the investments.
The MFU have more advanced and more efficient platform, services, facilities than Coin.
You need not pay 50 per month.
Also with zerodha there is always chances of some mishap or the other. consider a situation in which you are not able to exit a position, sell MF because N is busy accepting some award?
I have Direct MFs with MFU. Let me tell you the Apps from which I can access all those MFs
goMF -by MFU
myCAMS - by CAMS
KTrack - by Karvy
Individual Apps of various AMC
Website of MFU, CAMS, Karvy & individual AMCs
Now i can access, transact in any MF from any of these platforms.
For eg SBI MF can be accessed from goMF, myCAMS, SBIMF Invest APP.
But this is possible only if you have SoA MF. If your MF is in Demat format, you can see your folio from the app but cant transact. So in case you have coin based MF only gateway to your folio is Coin - which may crash any time just like kite.
So yes its way safer to have SoA MF.
PS - once N himself put forward this line of argument while defending coin vs MFU
And guess what, same things happening with zerodha. Can’t keep pace.
More the facilities, more the complex GUI will be!
Coin has no STP/SWP, SIP from Bank, mobile app, CAGR or XIRR
It can’t get clean & simpler than this.
Hi Mady, where can I find CAGR or XIRR etc in the MFU app? I have never seen anything like that. It does not show the price you bought or the returns. All I have seen is the current value.
Not sure if I am not looking at the right places. Thanks slight_smile:
MFUtility doesn’t show XIRR / CAGR. It displays your asset holdings by percentage (equity / debt / cash); and it doesn’t show invested cost either.
I use Valueresearch for this; but since MFUtility has these issues, have since moved to <-- Text Cannot Be Displayed —>. <-- Text Cannot Be Displayed —> displays absolute returns for investments less than a year; and XIRR for investments longer than a year.
For that you can use MyCAMS app and CAMS website.
CAMS and Karvy cover almost all the MFs, hence you can transact from any of the website or app by :
MFU 2.CAMS 3.Karvy
No hassles here. Just download the apps or go to website and register yourself there as well - they will automatically fetch the holdings. folios etc.
Consider a case when some person is doing SIP of RS. 1000 per month in two different ELSS fund for three years. Now if one has to rematerialize those units as he can’t sell ELSS schemes before 3 years, he has to pay:
, doesn’t look as polished as Zerodha.
