How to demat mutual fund units

Many investors want to bring all their investments in stocks, shares, bonds and mutual funds under a single demat account, so they can get a complete view of their investments.

To do this, mutual fund investments that are held in physical form need to be converted to demat format.

Form

A conversion request form (CRF) must be obtained from the depository participant
(DP).

Following details are required:
• DP ID and client ID
• Name of holders
• Folio number
• Number of units held

ISIN can be obtained from the fund house or DP. The form should be signed by all demat account holders

Documents
Statement of account which includes the names of mutual fund units to be converted to demat form needs to be attached with the conversion request form.

Process
The duly completed form along with documents must be submitted to the DP for conversion. The DP, after verification, will send the form to the AMC/RTA. The AMC/RTA, after verifi cation, will confi rm the conversion request. After this, units will be credited in the investor’s demat account.

New investments
In case of new investments made in mutual funds, the investor simply needs to indicate that the units are to be held in demat form and write the DP ID and client ID in the application form while making investments

Points to note

1. Pattern of holding must be same in demat account and mutual fund folio to be able to convert to demat.

2. Separate conversion request forms will have to be filled in for locked–in and free units

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)