Groww, one of India’s largest digital investment platforms, has announced the introduction of a demat mode for mutual fund investors, allowing users to hold mutual funds in a dematerialised format. This new feature, launched in response to rising customer demand for a more integrated investment experience, enables investors to consolidate stocks, ETFs, bonds, and mutual fund units under a single demat account.
Previously, mutual fund holdings on Groww were maintained in the traditional Statement of Account (SoA) format, requiring updates to bank and nominee details for each folio separately. This often led to cumbersome management for investors who had to deal with multiple asset management companies (AMCs) individually.
The demat mode simplifies investment management by allowing users to update bank details and add multiple nominees just once, with redemption proceeds credited directly to the linked bank account. This shift aims to offer a more seamless experience for customers who prefer to manage all their investments in one place. Groww’s move mirrors existing practices for stocks, ETFs, and bonds already held in demat accounts, highlighting the platform’s commitment to enhancing user convenience through technology. By consolidating investments, users can enjoy a more streamlined approach to managing their portfolios, reducing the administrative burden significantly.
Groww, established in 2016, continues to expand its offerings, which include equity, debt, hybrid, and exchange-traded mutual funds alongside stocks, bonds, and ETFs. The option to use the traditional SoA format remains available for investors who prefer it, ensuring flexibility in investment management. With competitors like Zerodha and Paytm Money also making strides in digital investment solutions, Groww’s latest development underscores its strategic positioning in the evolving market landscape. This adaptability and focus on user-friendly solutions demonstrate Groww’s proactive approach to meeting the diverse needs of its customer base.