There can be some disadvantages and inconveniences for having the mutual funds in dematerialized (aka demat) form.
Some of these are
Difficult to change the investment platform or DP (Depository Participant)
Vendor lock-in, where you are locked to the brokerage platform and its subset of functionalities.
You will have to pay various charges like annual charges, depository charges etc.
Below steps will help you to understand how to convert your mutual funds in demat form.
Get 2 copies of Re-materialization Request Form for re-materialization from DP for each ISIN (International Securities Identification Number) / scrip / mutual fund.
Submit the form signed by all the holders along with SOA (Statement of Account), Self attested address proof and PAN to the DP.
DP does the verification and process the request.
RRN (Re-materialization Request Number) is generated for tracking.
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.
The AMC / RTA sends the SoA/certificate in physical or electronic form directly to the Registered Owner.