Groww’s switch to demat MFs: What investors gain—and what they could lose

Last Update Date: 06-10-2026

Published by Mint

Abhishek Kumar's role: Quoted

Abhishek Kumar said the switch makes users more dependent on the platform, since demat units are harder to move elsewhere. He added that it could help platforms steer users towards products such as margin trading and derivatives.

The article looks at a large investment platform's move to hold new mutual fund purchases in demat form unless users opt out, rather than in the statement of account format. It sets out the conveniences of demat holding and the drawbacks, such as being tied to one broker and harder withdrawal plans.

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Groww’s switch to demat MFs: What investors gain—and what they could lose

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