Is a Demat account required for SIP?

Short Answer

No, SIPs doesn't require any demat account. One can start SIP by completely minor documentations such as KYC, FATCA etc.

Detailed Answer

No, you don't need a Demat account to invest in a mutual fund, including SIPs. Demat accounts are only mandatory for executing online transactions of shares on the stock market.

If you are just looking to invest in a SIP, you can do so by directly visiting the website of the fund you are looking to invest in. Apart from that, you can also have a broker or financial advisor to help you sort out the initial process to start a SIP.

Nowadays, various platforms are available where you start your SIP on your own by completing very minor formalities such as KYC, FATCA, and so on.

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Categories: Demat
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Related FAQs

Is a Demat account required for mutual funds?

No, a Demat account is not required for investing in mutual funds in India. However, having a demat account can be beneficial for some investors.

What are documents required for Demat account opening online in India?

To open a demat account, users will require a filled applciation, Aadhar card, PAN card, address proof, photographs, bank statement, and income proof.

How to invest in mutual funds with or without demat account?

Investors looking to invest in mutual funds without a Demat account can invest through financial institutions, independent financial advisors, AMC, and online portals.

How much money is required to open a Demat account in India?

Many Indian brokers allow you to open your Demat account for free, whereas some charge a nominal fee of Rs 200 to Rs 500. Although there are some recurring charges that you have to bear such as annual maintenance charges, Demat charges, etc.

Can a student open a demat account?

Yes, a student can open a Demat account. In case of minor student, the student's account is operated by a guardian and if the student is 18 or above, he/she can manage the account independently. Overall, there is no age requirement.

Can I transfer shares from CDSL Demat account to NSDL Demat account?

Shares can transferred from CDSL demat account to NSDL demat account by using the Inter-Depository option as the transfer mode.

Can I open 2 demat accounts with the same bank account?

Absolutely, you can open two or more demat accounts with one single bank account. You can, later on, add other bank accounts to your demat account as per your requirements.

What is the difference between Demat account and trading account?

Trading Account is used for buying and selling securities while Demat Account is for holding various securities in electronic format.

Can I have two Demat accounts in India? 2 or multiple accounts

Yes, you can have multiple demat accounts with different stock brokers in India. But, what's the need to have 2 demat accounts? Just have a single demat account with a good popular broker. That's it!

What is SIP in mutual funds? How to start SIP online?

The introduction of Systematic Investment Plan (SIP) in the mutual fund is regarded as one the major breakthrough in the financial sector. It has helped to attract a new class of investors in the sector who were not comfortable to invest a lump sum at a time.