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Nitin Narkhede | Answer |Ask -Follow

MF, PF Expert - Answered on Sep 03, 2025

Nitin Narkhede, founder of the Prosperity Lifestyle Hub, is a certified financial advisor with eight years of experience in helping clients design and implement comprehensive financial life plans.
As a mentor, Nitin has trained over 1,000 individuals, many of whom have seen remarkable financial transformations.
Nitin holds various certifications including the Association Of Mutual Funds in India (AMFI), the Insurance Regulatory and Development Authority and accreditations from several insurance and mutual fund aggregators.
He is a mechanical engineer from the J T Mahajan College, Jalgaon, with 34 years of experience of working with MNCs like Skoda Auto India, Volkswagen India and ThyssenKrupp Electrical Steel India.... more

Question by Bhogu on Sep 01, 2025Hindi

Money

Sir - Kindly let me know which is safe for holding my MFs - in physical or demat form. Thanks and regards

Ans: The Dmat form is easy to liquidate and manage, allowing for the use of instruments such as systematic transfers to more efficient funds or systematic withdrawals if required regularly, without hassle.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Ramalingam Kalirajan |11062 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 24, 2024

Question by Bhogu - May 20, 2024Hindi

Money

Sir - Is having MFs in Demat form advantageous rather than in physical possession? I shall be grateful for your advice.

Ans: Demat vs. Physical Mutual Funds: Which is Better?
Let's delve into the advantages and disadvantages of holding Mutual Funds (MFs) in Demat form versus physical possession to help you make an informed decision.

Understanding Demat Accounts
Demat Account Advantages
Convenience: Demat accounts offer a single platform to hold various financial securities, including stocks, bonds, and mutual funds.
Electronic Transactions: Allows for easy buying, selling, and transferring of mutual fund units, eliminating paperwork and manual processes.
Demat Account Disadvantages
Annual Charges: Demat accounts typically incur annual maintenance charges, adding to the overall cost of holding investments.
Transaction Charges: Each transaction (buying, selling, or transferring units) attracts transaction charges, increasing the cost further.
Opting for Physical Mutual Funds
Advantages of Physical Mutual Funds
No Annual Charges: Unlike Demat accounts, physical mutual funds do not entail annual maintenance charges, reducing overall expenses.
No Transaction Charges: Physical mutual funds eliminate transaction charges associated with buying, selling, or transferring units.
Conclusion: Which Option to Choose?
Given the disadvantages associated with Demat accounts for holding mutual funds, opting for physical possession seems more advantageous in the long run.

Recommendation
Considerations for Holding Physical Mutual Funds
Convenience: Physical mutual funds offer ease of ownership without the hassle of account maintenance charges or transaction fees.
Cost-Efficiency: By avoiding annual charges and transaction fees, you can minimize expenses and maximize returns on your investments.
Simplicity: Holding physical mutual funds simplifies your investment portfolio management and reduces the administrative burden.
Making an Informed Decision
While Demat accounts offer convenience and electronic access to financial securities, the associated costs may outweigh the benefits, especially for mutual fund investors.

Seek Professional Advice
Consult with a Certified Financial Planner (CFP) to assess your individual circumstances, risk tolerance, and investment objectives. A CFP can provide personalized guidance and recommend the most suitable investment approach aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ramalingam Kalirajan |11062 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jun 23, 2025

Question by Bhogu - Jun 22, 2025Hindi

Money

Sir - I have invested in a few MFs. All these are in physical form. In case, I have to redeem them, should I have to open a demat account? Will the brokers from whom I purchased these MFs help me? Kindly let me know.

Ans: You have asked an important question.
Many investors still hold mutual funds in physical format.
Let us break this into smaller points for better clarity.

Do You Need a Demat Account?

No, a demat account is not mandatory to redeem physical mutual funds.

Mutual funds are not shares.

You can redeem them without a demat account.

Mutual fund units are not traded on the stock exchange.

Hence, demat is not needed unless you hold ETFs.

For regular mutual fund units, you can redeem directly through the AMC.

How Can You Redeem Physical Mutual Funds?

You have the following options to redeem:

Visit the AMC or registrar (like CAMS, KFintech) office.

Submit a physical redemption request form.

Mention the folio number, units to redeem, and bank details.

Redemption amount will be credited to your bank account.

Keep your PAN and ID proof when you go to the office.

Can the Broker Help You in Redemption?

If you bought the MF from a broker or MFD (Mutual Fund Distributor), they can assist.

A good MFD with CFP credential will help with paperwork and tracking.

They will guide you on form filling and submission.

Some may also do the submission on your behalf.

They may charge a nominal service fee for their effort.

Why You Should Move from Physical to Digital Mode

Here are reasons to shift from physical to online mode:

Easy tracking and monitoring of portfolio.

Faster redemption and transaction processing.

Reduce risk of losing physical statements.

Avoid paperwork every time you redeem or invest.

Get consolidated view across funds.

You can convert physical MF units to digital through “dematerialisation” or “statement of account” mode.

Dematerialisation vs SOA (Statement of Account)

You have two options if you want to go digital:

1. Dematerialisation Route:

You open a demat account.

Submit conversion form with depository participant.

Units get credited to your demat account.

But demat route involves annual charges.

Also, brokerage firms may push other products.

2. SOA Route (More Ideal):

Keep units in non-demat digital format.

Can be viewed using common platforms like CAMS, KFintech, or MF Central.

No demat charges or brokerage intervention.

Preferred for long-term investors and retirees.

Role of MFD with CFP Credential

Working with a certified MFD brings the following advantages:

Ongoing guidance on fund performance.

Help with timely redemptions and switches.

Monitor your goals and suggest changes.

Help in nomination, transmission and FATCA updates.

Avoid common investor mistakes.

Provide 360-degree financial planning support.

Many investors holding direct funds miss this help.
That leads to confusion and missed opportunities.
Direct plans only suit highly experienced investors.

Disadvantages of Direct Plans

Let’s explore why regular plans through MFDs are better:

No personalised guidance or support in direct plans.

Difficult to know when to redeem, switch or hold.

No goal-based fund selection.

No handholding during market falls.

Many direct plan investors chase returns and exit early.

If you value time, clarity, and peace of mind, regular plan through a CFP-backed MFD is better.
The cost difference is small, but value delivered is huge.

Useful Tips Before Redeeming Mutual Funds

Please check these before redeeming:

Know the exit load, if applicable.

Understand if fund has any lock-in period (ELSS has 3 years).

Ensure your bank details are updated in folio.

Avoid redeeming in panic due to market fall.

If the fund is still good, better to stay invested.

Discuss with your MFD before redeeming.

Link PAN, Aadhaar, and nominee if not already done.

Tax Rules on Mutual Fund Redemption (2024 onwards)

Mutual fund redemption is taxed based on fund type and holding period:

Equity Funds:

If held for more than 1 year:

LTCG (Long Term Capital Gains) above Rs 1.25 lakh taxed at 12.5%.

If held for less than 1 year:

STCG (Short Term Capital Gains) taxed at 20%.

Debt Funds:

No indexation benefit anymore.

Both STCG and LTCG taxed as per your income tax slab.

Tax impact should be reviewed before redeeming.
A CFP-backed MFD will help you plan this smartly.

Final Insights

No, you do not need a demat account to redeem physical mutual funds.

Your broker or MFD can definitely help you with the redemption process.

Try to shift to digital format via SOA for ease and safety.

Avoid direct plans if you need personalised service and fund strategy.

Plan redemptions smartly with exit load and tax in mind.

Stay invested if the fund is aligned with your long-term goal.

A Certified Financial Planner partnered with an MFD can give you the right guidance.

You deserve worry-free investing with a reliable expert by your side.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Naveenn Kummar |264 Answers |Ask -Follow

Financial Planner, MF, Insurance Expert - Answered on Sep 11, 2025

Question by Bhogu - Aug 12, 2025

Money

Sir Ji - Holding Mutual Funds- which is safe- in physical form or demat form? Thanks and regards

Ans: Dear Sir,

Good question ????. Mutual funds in India can be held either in physical (statement of account/folio-based) form or in demat form. Both are safe, but here’s the comparison for clarity:

???? Physical (Folio / Statement form)

Units are held directly with the AMC / Registrar (CAMS, KFintech).

Safety is very high — backed by SEBI & AMFI regulations.

Easier to transact via AMC website, MFU, or through your MFD/Distributor.

No demat/DP charges.

Recommended for long-term investors.

???? Demat Form

Units are held in your demat account (NSDL/CDSL).

Convenient if you want to see MF + Stocks + Bonds in one place.

But, annual maintenance charges (AMC) & transaction charges apply.

If you stop maintaining the demat account, it can cause unnecessary hassles.

? Which is better?
For most retail investors, Physical (Folio-based / SOA) is simpler, cost-effective, and equally safe. Demat makes sense only if you are an active stock investor and want everything consolidated in one account.

???? So, both are safe, but if you want to avoid extra costs and keep it flexible, stick with folio-based (physical form).

Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
https://members.networkfp.com/member/naveenkumarreddy-vadula-chennai

Reetika Sharma |600 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Sep 24, 2025

Question by Bhogu - Aug 23, 2025Hindi

Money

Sir - Kindly let me know which is safe for holding MFs- either in demat or physical form. Thank you.

Ans: MFs can be held either in demat or non-demat form but not in physical form. Both the options are equally safe.

You can connect with a a professional Certified Financial Planner - a CFP to start investing in Mutual Funds with proper guidance and strategy. A CFP will guide you with exact funds to invest in keeping in mind your age, requirements, financial goals and risk profile.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Latest Questions

Ramalingam Kalirajan |11062 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Mar 14, 2026

Question by Visu - Mar 14, 2026Hindi

Money

I am 61, minimalist with no bad habits in the life style of NO PILL; NO ILL. Now, the market is down and NAV falls down. my investments are comfortably positive even in the negative market. becuase the investment started very early and unis purchased at very low price. Now, the question is should I withdraw the funds; a portion of profit and invest in the downward trend so that I will get more units and i will not loose the capital because I am planning to withdraw only the portion of the profits. Please guide me should I need to reshuffle by withdrawing and re investing ..!!

Ans: Your disciplined lifestyle and long investing journey are truly inspiring. Starting early and holding investments patiently has created a comfortable cushion for you. Even when the market is falling, your portfolio remains positive. That itself shows the power of long-term investing.

Now your question is about withdrawing profit and reinvesting during the market fall. Let us examine this carefully.

» Understanding What You Are Trying To Do

Your idea is:

– Withdraw only the profit portion
– Reinvest when NAV is lower
– Get more units
– Protect original capital

This approach looks logical on the surface. But in practice it becomes very difficult to execute consistently.

» The Challenge of Timing the Market

To succeed in this strategy two things must happen correctly.

– You must sell at the right time
– You must reinvest at the correct lower level

Predicting market movement precisely is extremely difficult. Even experienced investors struggle with this.

If markets suddenly recover after you redeem, you may lose the opportunity of further growth.

» Impact of Taxes on Withdrawal

Whenever you redeem equity mutual funds:

– Long term capital gains above Rs 1.25 lakh are taxed at 12.5%
– Short term capital gains are taxed at 20%

So withdrawing profit may trigger tax liability. This reduces the benefit of trying to buy more units.

Frequent reshuffling can quietly reduce long-term wealth.

» Your Age and Investment Objective

At 61, your goal should shift slightly.

Earlier the focus was:

– Maximum growth

Now the focus should be:

– Capital protection
– Controlled growth
– Income stability

So instead of frequent buying and selling, gradual portfolio balance is more suitable.

» A Better Approach for Your Situation

Rather than timing the market, consider this approach:

– Keep the core long-term equity investments untouched
– If equity allocation has grown very large, slowly shift small portion into safer assets
– Continue enjoying compounding from existing units purchased at low prices

This maintains growth while protecting accumulated wealth.

» Systematic Withdrawal Planning

If you need regular income later:

– You can withdraw small amounts periodically
– This reduces market timing risk
– Portfolio continues to grow while providing income

This is usually more comfortable for retired investors.

» Emotional Discipline

Your biggest strength so far has been patience.

The temptation to reshuffle during market movements often disturbs long-term success.

Many investors lose wealth not because of bad investments but because of unnecessary switching.

» Finally

Since your investments were made early and units were bought at very low prices, the best strategy is usually to stay invested and allow compounding to continue.

Avoid frequent profit booking and reinvestment based on market movements.

Instead:

– Maintain a balanced asset allocation
– Protect capital gradually
– Allow long-term equity investments to keep growing

Your disciplined journey has already created strong financial security. Preserving that strength is now more important than trying to capture short-term opportunities.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Radheshyam Zanwar |6851 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 14, 2026

Asked by Anonymous - Mar 14, 2026Hindi

Career

I scored 93.442 percentile in jee mains 2026 Jan attempt and 77 % in class 12,98% in class 10 , which college should I go for , also should I go for cse or any govt institute with lower branch

Ans: I hope you will appear for the 2nd attempt also.
Based on the first attempt score, it is challenging to get a seat in CSE at any government college. Chances with lower NITs seem possible. Generally, it’s better to choose CSE/IT in a decent private college rather than a very low branch in a government college.

Good luck.
Follow me if you receive this reply.
Radheshyam

Ramalingam Kalirajan |11062 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Mar 14, 2026

Question by neelam - Mar 14, 2026Hindi

Money

I am a retired doctor with 1lac pension kindly suggest to invest 30000per month

Ans: Your disciplined habit of investing even after retirement is very encouraging. With a pension of Rs 1 lakh per month, planning to invest Rs 30,000 shows that you are thinking about preserving and growing your wealth in a structured manner.

At this stage of life, the focus should be balanced between safety, regular growth, and liquidity.

» Understanding Your Financial Stage

You are a retired professional receiving steady pension income.

This means:

– Your regular expenses are already supported
– Investment goal is wealth preservation and moderate growth
– Liquidity for health and family needs is important

So the investment approach should be balanced and not aggressive.

» Emergency and Medical Reserve

Before starting monthly investment, ensure:

– At least 12 months of expenses kept in safe liquid instruments
– Adequate health insurance coverage

Medical expenses increase with age. Having a dedicated medical reserve prevents disturbance to investments.

» Balanced Investment Approach

For a retired person, full equity exposure is not suitable. But avoiding equity completely also reduces growth.

A balanced structure is ideal.

For the Rs 30,000 monthly investment:

– Around Rs 15,000 in actively managed diversified equity mutual funds
– Around Rs 10,000 in short duration or conservative debt mutual funds
– Around Rs 5,000 in gold allocation for diversification

This structure provides growth with stability.

» Importance of Actively Managed Funds

Actively managed mutual funds are suitable because:

– Fund managers actively select strong companies
– They adjust portfolio when market conditions change
– Aim to generate better returns than the market

This professional management helps investors who prefer not to monitor markets regularly.

» Investment Horizon and Liquidity

Even after retirement, investments can continue for 10 to 15 years.

So:

– Continue SIP regularly
– Review portfolio once every year
– Keep sufficient liquidity for emergencies

Avoid locking large amounts into instruments with long lock-in periods.

» Tax Awareness

If you redeem equity mutual funds:

– Long term capital gains above Rs 1.25 lakh taxed at 12.5%
– Short term gains taxed at 20%

Debt mutual fund gains are taxed as per your income tax slab.

Planning withdrawals carefully can reduce tax impact.

» Finally

Your plan to invest Rs 30,000 monthly is a strong step toward maintaining financial independence.

A balanced portfolio with equity, debt, and gold can help:

– Preserve your wealth
– Provide moderate growth
– Maintain liquidity for future needs

Regular review with a Certified Financial Planner can ensure that your investments remain aligned with your lifestyle and health needs during retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Nayagam P P |10943 Answers |Ask -Follow

Career Counsellor - Answered on Mar 14, 2026

Asked by Anonymous - Mar 12, 2026Hindi

Career

I apperead for all 5 subject firv12th cbse improvement then bitsat will consider best if narks for pcm subject?

Ans: Yes. Upload both marksheets during the BITSAT application; they verify the best eligible aggregate. Check the final BITSAT 2026 brochure (expected April 2026 for May Session) for any tweaks, but the current criteria clearly supports your case. Have 4–5 backup plans ready, in addition to BITSAT. All the BEST for Your Prosperous Future!

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Jinal Mehta |105 Answers |Ask -Follow

Financial Planner - Answered on Mar 13, 2026

Question by SANJAY - Mar 10, 2026Hindi

Money

I HAVE BORROWED A SUM OF RS. 7.50 LACS FROM MY FRIEND AS LOAN ON INTEREST @ 7% PA, I AM GETTING A MUTURITY OF NSC AMOUNTING TO RS, 9.00 VERY SOON. SHOULD I RETURN THE LOAN AMOUNT OR SHOULD I CONTINUE WITH LOAN AND REINVEST MY MATURITY TO MUTUAL FUNDS ETC. PLEASE ADVICE.

Ans: Hi. It largely depends on your financial goals. While it is always advisable to aim to be debt-free, if you require liquidity for other investments, you may consider repaying a portion of the loan and reinvesting the remaining amount.

For instance, you could repay half the loan and deploy the balance into investments aligned with your goals. Also, keep in mind that if you repay the loan to your friend, they may be able to utilise those funds to meet their own financial goals.

Mayank Chandel |2647 Answers |Ask -Follow

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Question by Abhinav - Mar 11, 2026Hindi

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I have a doubt Sir, I did my class 12 cbse 2025 from bihar state failed result, but if I again do 12th from Delhi cbse school as a regular student or private candidate for cbse 2026 board exam , again 12th, will I be able to have delhi home state quota ?

Ans: Hello Abhinav
Your home state will be delhi

Jinal Mehta |105 Answers |Ask -Follow

Financial Planner - Answered on Mar 13, 2026

Question by Salam - Mar 11, 2026Hindi

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Hi Ma'am, This is my second question after one and half years. I am running 37 years old. My inhand salary after all deductions is 77k. I have loan emi 32k which is going to end in feb 2027. I don't have any savings and mutual fund. How do i start financial planning and investment? I have my wife,6 years old son and 4 years old daughter. No other dependents. I would like to plan investment for house building after 7 years( my own plot around 1500 sq ft). Kindly advise.

Ans: Hi, you can start by saving a small amount before pursuing this goal. Personally, I would suggest prioritising your children’s education before planning to build a new home. In my opinion, this should be the priority, especially considering that education inflation is currently in double digits.

Since you already own a home, it would be prudent to begin with small investments and gradually increase the investment amount over time to work towards these goals. Once your existing loan is repaid, you can redirect the same EMI amount towards funding these goals.

Mayank Chandel |2647 Answers |Ask -Follow

IIT-JEE, NEET-UG, SAT, CLAT, CA, CS Exam Expert - Answered on Mar 13, 2026

Question by Rohit - Mar 11, 2026Hindi

Career

Sir I got failed in class 12th in 2024 and 2025 but past my class 12th for first time successfully in 2026 would I am eligible for jee advanced 2027

Ans: Hi
you are only eligible for mains.

Radheshyam Zanwar |6851 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 13, 2026

Asked by Anonymous - Mar 13, 2026Hindi

Career

"Bro, I'm also in class 10th, my 10th exams are over, and I'll be joining 11th in 16-17 days. My dream is to become a software engineer and launch my own app that's really good. How can I do it? What should I do after 10th, and what after 12th? I've studied in Hindi medium till now, will it be a problem? Guide me, I'm a Hindi medium student. What should I do so that I don't face any issues in further studies or work

Ans: Take PCM in 11th, start learning coding (Python/C++), practice English gradually, prepare for engineering entrance exams like JEE Main after 12th, join a good CS college, and keep building small apps/projects along the way. Hindi medium is not a big hurdle to build a career in computers. You only need to take some extra effort to learn English if you wish to achieve your goal.

Good luck.
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Radheshyam

Radheshyam Zanwar |6851 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Mar 13, 2026

Question by Shrikant - Mar 12, 2026Hindi

Career

Hello ! I have 2 queries regarding NEET application 1) They did not asked for 12th marsksheet to upoload as the student is passed last year and reappearing for neet, is there something I have missed or just they don't need now? 2) Not uploaded APAAR ID because it has wrong birthdate and not matching with 10th marksheet yet filled the form without APAAR ID will it be ok? Thank You!

Ans: (1) NEET (UG) application doesn’t require the 12th marksheet upload at this stage. (2) APAAR ID is optional, so submitting the form without it won’t cause any issue. However, it is highly recommended that you make all necessary corrections to your 10th marksheet and Aadhar Card to ensure uniformity in the name and address before the counselling process begins. Right now, focus only on studies and aim to score at least 650+ in the examination.

Good luck.
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Radheshyam

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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