Of late, investment enthusiasts have favored mutual fund investments over traditional investment types such as bank FDs, ULIPS, local investment schemes, etc. However, many do not opt for dematerialized (Demat) units for various reasons, such as low cost, freedom to make decisions as per their choice, and primarily a lack of knowledge on converting physical mutual fund units into demat.
Converting units into demat is pretty simple and involves “rematerialization”. Follow a few simple steps below, and you’ll be set with the dematerialized mutual funds units.
- Open a demat account with a Depository Participant (DP) with a brokerage firm or your preferred bank. You can also open a demat account online on a smartphone right at home.
- Download the Rematerilization Request Form from your broker’s/bank’s website or the Mutual Fund House’s registrar or transfer agent.
- Fill out the form completely and carefully with details such as your demat account number, folio number of the physical mutual fund units, scheme name, the number of units you want to dematerialize, etc.
- Attach necessary documents to the rematerialization form, including Aadhar Card, PAN Card, and physical certificates duly signed by all the unit holders.
- Submit the form at your DP office or the collection centre of the Mutual Fund House’s registrar’s office or the transfer agent.
The DP or the registrar will take a few business days to verify and process your request to turn physical mutual funds into demat. Upon successful conversion, the same shall be credited to your demat account.
Please note that there may be nominal charges by your DP or bank for converting the physical units to demat.
