SOA vs Demat Mutual Funds
When you invest in a mutual fund, your units have to be stored somewhere. Most investors never think about this — the app just works, and the money goes in. But the choice of where your units are held affects your costs, your flexibility, and what you can do with your investment down the line. There are two modes: SOA (Statement of Account) and Demat. SOA is the traditional, default mode — your units are held directly with the respective AMC (Asset Management Company), with no broker in the middle. Demat mode stores your mutual fund units in your demat account, the same place you hold stocks and ETFs. ...