Is Demat Account Mandatory In Mutual Funds?
A Demat account is mandatory for stocks but not for mutual funds.
You can invest in mutual funds directly with the fund house or through a broker without needing a Demat account. The fund house or broker will handle the paperwork and maintain your investment records electronically.
However, if you're interested in investing in stocks directly or through a stock SIP, a Demat account is essential. It's like a digital locker where your shares are stored electronically.