7 Replies to “Is demat a/c necessary for investing in mutual fund? What is the minimum amount to invest?”

  1. No. For investment in mutual funds, demat account is not necessary. But most of the online brokers offer mutual fund units in demat form only.
    You can invest as much as you want.
    As far as the evaluation goes, you can first check up which “fund house” (which is just like promoters of a company) is offering the scheme. Check the NAV history of its previous mutual fund schemes. You can also check how other similar schemes (offered by its competitors) are performing. For example, DSP BlackRock comes out with a scheme that will invest mostly into real estate companies. Before investing in it, you will check how other schemes by DSP BlackRock have performed against their benchmark rates like Sensex or Nifty. You will also check how other real estate funds have performed.


  2. Yes a Demat account is necessary if you want to invest in stocks, that is want to buy them. there is no limits as such. for instance if a scrip is of 20 rs market value you can purchase even 1 number of scrip. The max limit may depends on the credit allowed by the demat account provider.

    Watch CNBC, Zee business etc to watch the best scrips to invest in. I generally look for track records before investing in MF, and simultaneously seek advise from industry experts. and then analyze the benitifs and risks and then invest.


  3. Demat account is for share trading. It is not required for MF investments.Regarding MF, always do SIP (minimum usually 1000 pm) and minimum of 3 yrs to reap good returns.
    I personally like SBI magnum Contra and HDFC Growth.
    One also interesting MF – Bharti-AXA Equity Fund with daily SIP(Minimum 300 per day)
    Regarding evaluating MFs check following web-sites for their 3-5yrs of performance
    http://www.moneycontrol.com/mutualfundindia/
    http://www.mutualfundsindia.com/index.asp

    BEST OF LUCK and HAPPY INVESTING.


  4. HAI ,
    DEMAT ACCOUNT NOT NECESSARY FOR MUTUAL FUND INVESTING ,(CLOSE ENDED FUND REQUIRED DEMAT ACCOUNT),
    DEPENDING UPON FUND HOUSES AND SCHEMES
    ELSS = 500
    SOME SBI FUNDS ONLY = 2000
    SOME OF THE TATA FUNDS = 10000

    BUT
    COMMONLY ITS ONLY = 5000



  5. No demat account is necessary for investment in mutual fund however PAN(permanent account number) of Income Tax will be required if the amount of investment exceeds Rs.50,000.For one time investment minimum amount is Rs.5000 while for the systematic investment plan even Rs.1000 per month is enough.


  6. no; Dmat is not required for mutual fund investment; MF investment can be as low as 500 Rs. per month on SIP (Systematic investment plan); take the help of financial consultants who will best guide you on how MF investment should be chosen





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