Investing In Mutual Funds Through Demat Account: Process, Pros, And Cons



Mutual funds serve as one of the most sought-after investment vehicles that allow individual investors to create wealth. For retail investors, mutual fund investing is a great way to build a winning portfolio and be benefited in the long run. Retail and small investors who do not have time to track financial markets, prefer leaving their investment choices on professionals. Mutual funds give retail investors a platform to diversify investments according to the risk appetite. 

A demat account is a one-stop solution for all financial securities. Financial securities such as bonds, equities, commodities, and many more can be stored digitally in an online demat account. Demat accounts also help in transferring financial securities from one account to another. The Indian stock markets have only two depositories; National Securities Depository Limited (NSDL) and Central Depository Securities Limited (CDSL) that maintain all demat accounts. 

Also read:- Topic How Many Types of Charges Are Applicable For Demat Account?


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