Hi @LovishGupta,
Currently, we offer Mutual Funds in SOA (Statement of Account) format, and we’re thrilled to let you know that Mutual Funds in Demat format are in the final stages of development, and launching very soon! 
Here is a preview - https://private-poc.madefortrade.in/t/here-s-early-look-at-what-we-ve-been-working-on-coming-this-april/45627
Kindly note: Units under lock-in periods such as ELSS (Equity Linked Savings Schemes) can be transferred, but cannot be redeemed until the lock-in period is over.
Once Mutual Funds in Demat format go live, the process for transferring these units will be exactly the same as it is for stocks and ETFs. We’ve explained the entire process for your convenience - https://private-poc.madefortrade.in/t/move-shares-to-dhan-how-to-transfer-shares-from-one-demat-account-to-another/825