In a recent development, Groww, a prominent digital investment platform in India, announced the integration of a dematerialised mode for mutual funds. This enables investors to store mutual fund units digitally in the same way as they do stocks, ETFs and bonds. The goal is to streamline the management of investments by bringing all assets together in a unified demat account.
Before this shift, mutual fund holdings on Groww were maintained in the Statement of Account (SoA) format. This required investors to manually enter their banking and nominee details for every individual folio. This process was not only laborious but also time-consuming, which created inefficiencies in the user experience.
Now, through the use of the demat option, these inconveniences have been eliminated. Users can fill in the details of their bank accounts and nominees once for all their portfolios. This enhancement includes a convenience of having redemptions being directed straight to the user’s linked bank account.
The impact of this change is especially significant for retail investors, who can benefit most from the streamlined portfolio management process. With the effort for updates reduced to a single process, users can now manage their investments much more efficiently.
This move by Groww corresponds with ongoing trends in the finance industry. It brings the platform in line with other competitors like Zerodha and Paytm Money, who are also creating ways to enhance digital investment options for their users.
Nevertheless, Groww is prioritizing on providing options to their investors. Thus, for those who still favour the old system, the Statement of Account format for maintaining mutual fund investments is still available, adding a flexible element to the new system.
Since its inception in 2016, Groww initiated by providing mutual fund investments and over years has evolved and broadened its scope. Now, it offers a wide variety of financial instruments such as bonds, equities, ETFs among others. This growth marks the platform’s recognition as a leading avenue for all-inclusive online investing in India.
The introduction of the demat feature is centred around removing bureaucratic obstacles that investors face. By focusing on providing expedited convenience to the users, the platform is set to attract more investors who value proficient, unified digital investment platforms.
The post Groww Unveils Demat Accounts for Mutual Funds appeared first on Real News Now.
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