Porting & Vendor lock-in: Demat folios (folios where your units are purchased through a broker in demat mode), don't let you easily port these into other platforms. In non-demat mode of holding (also known as Statement of Account mode, or SOA mode); your units are only with the RTA, and you can purchase through one platform (INDMoney, for example), and sell those units through another platform (say, MFUtility); while track your portfolio in a third platform (Kuvera or PayTM Money, for instance). You get best of all platforms, when you invest in SOA or non-demat mode. Compared to that, investing in demat mode means you must transact on those units, only via your broker.