Now you can convert your mutual fund units to online form through a demat account. If you have invested with NSDL, you can convert them using an online or offline option, while CDSL still requires an offline process. Before converting, do ensure that the mode of holding (single or joint account) matches the physical and demat units, and track investments by receiving the Consolidated Account Statement (CAS).
There are two ways to hold mutual fund units: in physical form or through a demat account. If you want to transfer your mutual fund units from physical form to a demat account or vice-versa, it is now easy and convenient to do so.
Earlier, this process was entirely offline, requiring a visit to the mutual fund house’s branch to submit a request. However, one of the depositories now offers an online process exclusively for its account holders.
If your demat account is with the National Securities Depository Limited (NSDL), the process of converting mutual fund units can be done both online and offline. On the other hand, if your account is with the Central Depository Services Limited (CDSL), the conversion process remains offline. Therefore, it’s essential to first confirm which depository holds your account before initiating the conversion.
If you are looking to convert your mutual fund holdings from physical to demat or vice-versa, you have two options:
- The Offline Process: Available with both NSDL and CDSL, the traditional method involves visiting the depository or RTA’s office.
- NSDL’s Online Platform: This fully digital process is available exclusively for NSDL account holders and can be accessed via NSDL’s e-CAS platform, making it easier to manage your mutual fund units without the need for physical paperwork.
Before you initiate the process, there are a few steps to ensure a smooth conversion:
Receive the Consolidated Account Statement (CAS):
The CAS, provided by NSDL, covers all mutual fund investments and is sent monthly to your registered email ID or physical address. This statement is crucial for tracking both demat and physical holdings. NSDL’s CAS includes a customized link for conversion, which can be accessed via NSDL e-CAS by entering your CAS ID and PAN.
Ensure the Mode of Holding Matches:
For the conversion to be seamless, make sure the mode of holding (single or joint account) matches between your physical holdings and your demat account.
Step-by-Step Guide to Converting Mutual Fund Units From Physical to Demat
Online process (Only for NSDL demat account holders)
Step 1: Open the NSDL e-CAS received on your email.
Step 2: There is a dedicated link in the NSDL e-CAS. This link can be found on top of mutual fund details.
Step 3: A new tab will open on your screen. Enter your PAN details and fill in the verification captcha code. Then click 'Generate OTP'.
Step 4: Enter the OTP received on the NSDL demat account registered mobile and email ID (the same OTP is received on both) in the designated box on a new webpage. Click 'Submit' once OTP is typed.
Step 5: Now select the demat account where the physical to demat converted mutual fund units will reside. Click 'Submit' once the demat account is selected.
Step 6: A new webpage detailing every mutual fund scheme held in physical units' mode and are eligible for conversion to demat mode will be displayed. Click on the small box next to the scheme name and then choose to convert them to demat mode. Click 'Review' once selection is finalised all units of the mutual fund scheme will be dematerialised. Dematerialisation of partial mutual fund units is not allowed using the online process. This can be done using offline process only.
Step 7: The final step is the review step. Check carefully if the selected mutual fund schemes for conversion (in Step 6) is shown here. If not, then go back and select them again. If they are selected, click on 'Apply for conversion' button.
By confirming these details and utilizing the appropriate online or offline method, you can efficiently manage your mutual fund units, regardless of whether they are in physical or demat form.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
