MF holding - SOA or Demat - Dhan's planning

Mutual Fund Investing
1

Zerodha provides MF holding in Demat form.

  1. Can you share whether other top brokers also do the same ? like groww, upstox, 5 paisa, mstock, angelone, etc

  2. Dhan is also planning to introduce MF holding in demat instead of SOA. So after that, will Dhan provide 2 methods simultaneously or SOA shall be discontinued.

2

@PravinJ Please have a look

3

Hi @krishag Not sure how I missed responding to this post, my apologies.

Every platform makes choices for themselves, so I am unsure why respective platforms you have mentioned have made their choices for Mutual Funds on SoA or Demat format.

Our decision for MF in SOA format was simpler:

  • it makes no difference from returns perspective for the end user.
  • we have observed that there are delays at times in executing transactions via demat, units for example have to be processed by RTA and the demat/remat by the DP.
  • There are costs incurred for investors, AMC charges for demat, DP sell, etc and more possibly.

On point 2, we are still exploring so no hard answers yet. We still have to get our existing mutual funds experience right and open it for all users. We will come to this post few of our features and developments that we are building.

4

@PravinJ inorder to pledge mutual funds (whenever it comes) shouldn’t be these in the demat account ?

5

Yes, @t7support . Pledging mutual funds does typically involve users to hold MF in Demat form. For now we provide only SOA format due to which you cannot pledge mutual funds on Dhan.
We are still in early access for MF. Once we open it for all we will evaluate bringing in MF in the demat format.

1 Like
6

You are lying here,

  1. If we have mutual fund in DEMAT format instead of SOA we can pledge it and can earn more through F&O trading.
  2. There is no delay in redemption of mutual fund in SOA or demat format
  3. There is no cost for redemption of MF from demat ac.

Dhan is incompatible or may be they are not aware what is happing in market.

7

Hey @peeruverma09 ,

It was a business call to go live with SOA format considering most people that invest in mutual funds are doing it from an investing perspective and not for pledging. That being said, as @PravinJ has already mentioned , we have not made any hard decision to NOT include it as part of our product roadmap. It is just that our priority remains perfecting our MF product experience before we go ahead and launch an entirely new method of investing in them.

Please be assured, we understand your use case and are already evaluating its feasibility.

Thanks,
Pranita
Product @ Dhan

8

I have seen some where written that DHAN ( Made For Trading & Investing) trading word it before investing means you are focusing on traders and when a trader invest in mutual fund it’s for pledging and trading.

But instead on focusing on trader you are saying that you have launched MF for investor only.

This is ridiculous and contradicting with your own policies.

clear first, if I am trader on zerodha platform having investing amount of 1 cr 50% in liquid mutual fund and 50% in equity mutual fund and remember I am earning on both.

What you have to get me on Dhan platform will i be able to get the same return through dhan on mutual fund?

Oh no you have SOA format for mutual fund.

1 Like
9

HI @Saurav.P , @Dhan,

Is there any updated on this? When Dhan will include Demat form for Mutual funds? Or Can I pledge mutual funds in SoA format on Dhan then also it will be good. Please update us.

10

Hi @ER3SHIVAM

The finish line isn’t too far now! We’re making strides and wrapping up our testing phase. Every step is getting us closer, and we’re as excited as you are to share what’s next. :crossed_fingers:

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11

Me and my friends are finalising on demat account with mutual funds that allowed pledging. We have stocks/mf of 40L each that we are planning to deploy. Will the functionality that Dhan is working to enable MF’s and Pledinng on MF’s will be live by March 2025? The reason why I’m asking is because we don’t want to hold our portfolios in different places. We want all investments as well as option buying/selling in one place on Dhan. Currently we are only using Dhan for option buying…

Please answer in yes or no so that it will help us decide otherwise frankly soon, near, closer are not helping us.

12

Hey @ER3SHIVAM ,

While we cannot commit to timelines , we are positive that we will be live with Demat MF by Mar 2025. Since it is a big change, we need to thoroughly check all test scenarios before we can commit to anything.

Thanks,
Pranita
Product @ Dhan

13

Thanks @Pranita ,
Recently Upstox also launched few features including MF pledging therefore we were thinking to migrate. However March 2025 is near, we will sure wait for it.

14

Please consider Mutual Funds for HUF - whether in SOA form (preferred) or demat form.

15

Doesn’t dhan allow HUF accounts to invest in MF’s right now?

16

Yes, right now no MFs for HUF accounts.

17

Please provide options for MF’s in HUF accounts as well @PravinJ

18

Yes needed for corporate account also like zerodha does.