Archive · 1 Jul 2025
Groww Switches to Demat Mutual Funds: Impact on Investors
Imagine you buy stocks or mutual funds on Groww.
Usually, they're kept in a special account called SoA.
Groww has now started putting them in a demat account, like a digital locker.
This means your funds are linked to Groww.
It's like moving your toys from one box to another.
Some people don't like it because it's harder to switch platforms.
But, demat can make things easier, such as managing your investments in one place.
Some experts think it might make it easier for Groww to offer you other investments too.
Before this change, you were not automatically enrolled in this.
Now, you are.
So, you might want to double-check if it's right for you.
Groww, an investment platform, has switched to processing new mutual fund purchases in demat form by default.
This change, effective June 5th, stores mutual fund units in investors' demat accounts instead of the traditional Statement of Account (SoA) format.
The shift has caused user complaints due to the lack of upfront consent and the complexity of managing funds across two formats.
Demat holdings offer conveniences like unified views, easier transfers to heirs, and asset pledging, but can tie investors to a single broker.
Experts suggest that this move could increase platform dependency and enable cross-selling of other financial products.
- Who
- Investors using Groww, and Groww itself.
- What
- Groww has shifted to demat mode for mutual fund investments by default.
- When
- Starting June 5th.
- Where
- On the Groww investment platform in India.
- Why
- Experts suggest increased platform dependency and potential for cross-selling.
Arguments Against Demat Default
Arguments For Demat Default
Platform Dependency
Arguments Against Demat Default
Demat can tie investors to a single broker, limiting flexibility to manage funds across different platforms.
Arguments For Demat Default
Demat offers conveniences like a consolidated view of holdings and easier asset transfers.
- Platform
- Groww
- Change
- Default demat for mutual funds
- Effective Date
- June 5th
- Previous Format
- Statement of Account (SoA)
- New Format
- Demat
- User Reaction
- Complaints regarding lack of consent and platform lock-in