When you buy mutual fund units, you can choose between getting your units in a statement of account (SOA) or in your demat account. Both forms are digitized; there are no paper certificates. But the demat units are held in your demat account with your depository participant (DP). Which one should you go for?
Buying on stock exchanges
In December 2009, when mutual funds first started being made available on stock exchanges, thanks to a ruling by the Securities and Exchange Board of India’s (Sebi), units were available only in demat format if you bought them from stock exchanges. But since the demand for demat units was low, Sebi eventually allowed investors to buy units in SOA format too, from exchanges.
