Every mutual fund you buy on Rupeezy is held in demat form — the units sit in the same demat account as your shares and ETFs, not in a separate account with the fund house. Funds you import only to track stay in their original Statement-of-Account form; more on that below.
Isn't a mutual fund a physical certificate?
No. Mutual fund units have always been electronic — there is no physical certificate to store (unlike the old paper share certificates). Units are held in one of two ways:
- Demat — the units sit in your demat account, held through your Depository Participant (DP), alongside your shares and ETFs.
- Statement of Account (SoA) — the units are held directly with the fund's registrar (an RTA such as CAMS or KFintech) and tracked by folio, outside any demat account.
So the real choice isn't "demat vs physical" — it's demat vs SoA.
How does Rupeezy hold my funds?
- Funds you buy on Rupeezy are held in demat form. You don't choose this or set anything up — it's automatic.
- Funds you import to track — investments you already hold elsewhere and add to Rupeezy for a single view — stay in their original SoA form. Rupeezy displays them so you can see everything in one place, but they aren't held in your Rupeezy demat account.
Why demat for funds bought on Rupeezy?
Holding your funds in demat keeps everything in one place and cuts the paperwork:
- One portfolio, one view — your mutual funds sit next to your shares, ETFs, and other holdings in the same demat account, so nothing is scattered across a separate folio with each fund house.
- One account and one KYC — the same demat account and KYC that cover your shares cover your funds; you don't open and maintain a separate folio with every AMC. See What is the mutual funds platform on Rupeezy?.
- One consolidated statement — your depository's holding statement lists your mutual funds alongside the rest of your securities, instead of a separate account statement arriving from each fund house.
- One nomination for everything — the nominees on your demat account apply to every security held in it, mutual funds included, so you set nomination once rather than folio by folio.
- Simpler transmission — in the event of the holder's death, everything in the demat account passes to the nominee through a single process, rather than a separate claim with each fund house.
- No depository transaction charges — there are no pay-in or pay-out (transaction) charges on your mutual fund units at the depository end, so demat holding adds no cost.
- Update details once — a change of address, bank, or contact detail on your demat account carries across your holdings, instead of being repeated with each registrar.
What are the limitations of holding funds in SoA?
Statement of Account (SoA) is fine for tracking funds you already hold elsewhere, but as a holding format it's more fragmented than demat:
- Spread across folios — each fund house records your units in its own folio through its registrar (CAMS, KFintech, and others), so your holdings live in several separate places rather than one.
- No single view — SoA units don't appear in your demat holdings or your depository's consolidated statement, so you can't see everything together.
- Managed fund house by fund house — nomination, bank, and contact-detail changes are done separately with each registrar or AMC.
- Transmission folio by folio — succession has to be handled with each fund house individually, rather than once at the demat account level.
Things to keep in mind
- You still buy only direct plans on Rupeezy, and investing stays free — holding in demat doesn't change that. See What are the charges for investing in mutual funds on Rupeezy?.
- Funds you import only to track remain in SoA form and are managed with the respective fund house or its registrar, not through your Rupeezy demat account.