an individual can have multiple folios under DP or SOA? For pledging which would be better?
Hi @Vijitha Welcome to Dhan community.
Well, having Mutual Fund units in a single folio or multiple does not have any impact on ability to pledge. However it is suggested to have single folio for easy of management and keeping things simpler for transactions.
That aside, Dhan does not hold MF units in demat format. They are in SOA format, and are held with RTAs of AMCs.
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- I ask for multiple folios because I want to pledge only those that I’m sure about which is not possible in demat fifo. Is my understanding right?
How we can sell the mutual funds if they are held in SOA not in demat?
Can you please explain.
Thanks in advance
If they are not in Dhan demat holding how we can place the redemption request?
Hi @prince At this moment Dhan only allows to invest / redeem Mutual Fund units that are invested via Dhan.
We do not have MF in demat format, it is SOA only.
Can we pledge in SOA then?
I think it is possible. @PravinJ Can you please confirm and why Dhan chooses SOA over Dmat unlike other discount broker.
Will write about this sometime in detail. We don’t follow other brokers or anyone in our competition, we will build for large use-cases to solve for.
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For the start, with mf in soa form, it saves investors demat debit charge+gst every time you sell your mf units.