Managing your mutual fund investments just got a whole lot easier. In a move that aligns with major industry shifts, Groww has introduced the option to hold mutual funds in demat format—bringing simplicity, flexibility, and powerful new tools for today’s investors.

Why Groww’s Demat Mutual Fund Feature Matters

Starting in June 2024, mutual fund houses began enforcing a new rule: redemptions must go directly to the bank account tied to each folio. For investors with multiple folios across various fund houses, this has created a real headache.

To solve this, Groww rolled out a feature that lets users choose to hold mutual fund investments in demat form—just like stocks or ETFs. It’s completely optional and reversible at any time, giving users total control.

Top Benefits of Holding Mutual Funds in Demat on Groww

1. Hassle-Free Bank Updates: Update your bank details once, and it applies across all your mutual fund holdings in demat. Redemptions go straight to your linked demat account, saving you the trouble of updating each folio separately.

2. Streamlined Nominee Assignment: Add multiple nominees to your entire mutual fund portfolio with ease. You can even allocate percentages to each nominee—all with a few taps.

3. Pledge Mutual Funds for Margin: Use mutual fund units held in demat form as collateral when trading. This isn’t possible with traditional SoA (Statement of Account) holdings.

4. All-In-One Investment View: Consolidate your mutual funds, stocks, ETFs, and other assets into one unified dashboard within your Groww demat account. Managing your portfolio has never been simpler.

What’s more, Groww isn’t charging users for this service. There are no account creation fees, no redemption-related DP charges, and no ongoing maintenance fees to convert from folio to demat format.

FAQs: Key Questions Around Groww’s Demat Mutual Fund Option

Is this mandatory? Not at all. You can continue with your traditional folio-based investments if you prefer.

Will my current holdings move to demat automatically? No. You’ll need to opt in using OTP-based verification if you choose to switch.

Any extra charges involved? None. Groww has made this a completely free feature.

Can I still redeem via MF Central or other platforms? Not if your mutual funds are held in demat. You’ll need to redeem them directly via the Groww app using TPIN, OTP, or DDPI (if enabled).

Can I track external mutual fund holdings? Yes, Groww supports external folio tracking within the app.

Is pledging available? Yes, but only for mutual funds held in demat format—not in SoA.

This update positions Groww as a forward-thinking investing platform that caters to the evolving needs of users. If you’re seeking easier portfolio management, faster bank updates, and greater control, the demat option could be your next smart move.

For more details, visit the official Groww support page at groww.in/help.