Online investment platform Groww has launched a new demat feature, marking a significant change for mutual fund investors. With this feature, all Groww users can now hold their mutual funds in demat format. This means mutual fund units will now appear in the same demat account where users manage their stocks, ETFs, and bonds.
Harsh Jain, co-founder and COO of Groww, shared information about the new feature through social media. He explained that the feature was launched in response to customer demand, making the investment experience even easier.
Change Implemented Based on User Demand
Harsh Jain stated that several users had expressed a desire to transfer their mutual funds to demat mode in recent months. According to him, Groww always develops products by listening to its customers, and this new change is also a part of this philosophy. Now, mutual fund investments on Groww will be made in demat mode by default.
Following this change, investors will have the convenience of managing all their investments on a single platform and account. Groww believes this feature will make portfolio management much easier.
What is a Demat Account and How Does it Work?
A demat account, also known as a dematerialized account, is an electronic account where investors can store their shares, bonds, ETFs, and now mutual funds in digital form. Previously, mutual funds were held in statement of account (SOA) mode, where investments were registered separately with each asset management company (AMC).
Now, under Groww's demat feature, mutual fund units will be directly visible in the investor's demat account. The biggest advantage of this is that all types of investments – such as stocks, ETFs, bonds, and now mutual funds – will be visible in one place, making them easier to manage than before.
Adding a Nominee Also Made Easier
The process of adding a nominee has also been simplified under this demat feature. Users can now add a nominee to their demat account once and apply it to all investments. Previously, in SOA mode, it was necessary to add a separate nominee for each mutual fund or AMC, which made the process lengthy and complex.
Now, this task can be completed in just a few minutes on the Groww platform, simplifying documentation and legal processes for investors.
Significant Benefits for Investors
This new change by Groww is especially beneficial for investors who want to view and control all their financial instruments on a single platform. Now, they will not have to rely on different apps or statements. By logging into Groww, a complete overview of mutual funds, stocks, bonds, and ETFs can be viewed on a single screen.
With this feature, investors will not only save time but also gain clarity and control over investment decisions.
How Will the Way of Investing Change?
Until now, for mutual fund investors, logging in to the website or registrar portal of each AMC to extract statements and understand the portfolio was a challenge in itself. Groww's new demat feature can eliminate this difficulty. Investing in demat mode saves all units in depositories like NSDL or CDSL, and they can be tracked at any time.
A Useful Step for Growing Digital Investors
Groww's decision is seen as an important initiative in light of the rapidly growing digital investor population in the country. Groww's popularity is already quite high in smaller cities and among young investors. Now, with the demat feature, this platform has become even easier for those who want to manage everything in one place, moving away from traditional investment processes.
