How to rematerialize mutual fund from demat form

Step-by-step guide on how to re-materialize demat units of mutual fund.

Intro πŸ’«

There can be some disadvantages and inconveniences for having the mutual funds in dematerialized (aka demat) form.

Some of these are

  1. Difficult to change the investment platform or DP (Depository Participant)

  2. Vendor lock-in, where you are locked to the brokerage platform and its subset of functionalities.

  3. You will have to pay various charges like annual charges, depository charges etc.

Often, you might find it more cost effective to sell your demat holdings through your broker, and re-buy units in non-demat mode in same fund's direct plan; than going through this process.

You should consider the alternative course of action and estimate your costs for both these processes.

Below steps will help you to understand how to convert your mutual funds in demat form.

Steps to re-materialize πŸ‘©πŸ½β€πŸ«

  1. Get 2 copies of Re-materialization Request Form for re-materialization from DP for each ISIN (International Securities Identification Number) / scrip / mutual fund.

  2. Submit the form signed by all the holders along with SOA (Statement of Account), Self attested address proof and PAN to the DP.

  3. DP does the verification and process the request.

  4. RRN (Re-materialization Request Number) is generated for tracking.

  5. On confirmation of details provided, the corresponding accepted balance in the BO’s (Beneficiary Owner) account is reduced from that ISIN balance in the BO’s Account.

  6. The AMC / RTA sends the SoA/certificate in physical or electronic form directly to the Registered Owner.

  1. Charges for re-materialization may apply (as decided by the DP).

  2. Partial conversion may not be possible.

  3. Re-materialization of lien-marked units cannot be done.

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