Difference Between Demat and Trading Account

How to Apply for a Demat Account in any Bank?

While it is not typically 'mandatory' for you to have a Demat or dematerialization account to buy mutual fund shares - but you have to know that there are quite a lot of benefits to having one. It lets you buy mutual funds or shares just through an electronic transfer of funds without the assistance of a broker. It also ensures that you would not have to hold your physical fund certificate when redeeming shares. But - before that, let us get to know what a Demat account really is.