By Niveshkarlo
August 8, 2026
You can invest through an AMC, mutual fund platform or distributor and hold units in a mutual fund folio/account statement.
As of June 30, 2026, the industry’s AUM stood at ₹82.22 lakh crore, with 27.86 crore mutual fund folios.
They are different ways of holding and tracking investments. Mutual Fund Folio – No demat account needed – Units tracked by the mutual fund/registrar – Account statement available Demat – Securities held electronically – Managed through a Depository Participant – Can consolidate eligible holdings
A demat account is generally not needed for regular mutual funds. However, it becomes important when investing in ETFs, which are traded on stock exchanges.
Start with the investment—not the demat account. Checklist: ✓ Decide your financial goal ✓ Understand your risk level ✓ Check the fund category ✓ Review costs and documents ✓ Complete required KYC ✓ Choose how you want to hold your units