Investing in mutual funds through Dmat account is equally safe as without Dmat. The only favorable thing by investing through dmat is when an investor dies. Many people dont know. When we invest in different AMCs , when investor is no more, the nominee has to apply to each and every AMC separately to get the inheritance of mutual funds proceeds. But in case of Dmat investing, they dont have to run after each AMCs, but just to the DP of that AMC and he gets all investments transfered in his name. That a huge benefit of investing through Dmat.

Hi,

I am pretty confused about the safety of mutual funds when I invest via Zerodha vs HDFC mutual fund Sahi Hai platform. Both the platforms give me a direct plans to invest in the mutual funds, but Zerodha has a DMAT account associated with it. (CDSL)

Does a DMAT ensure a safety that AMC will not do bogus transactions on behalf of the investor? How does SEBI ensure safety in mutual funds? (I know for stocks, SEBI allows to change broker if the current one goes bust, is there any safety net like this for the mutual funds via AMC as well? )

I am really cautious about the investment frauds, so just wanted to know.

Hi,

I am pretty confused about the safety of mutual funds when I invest via Zerodha vs HDFC mutual fund Sahi Hai platform. Both the platforms give me a direct plans to invest in the mutual funds, but Zerodha has a DMAT account associated with it. (CDSL)

Does a DMAT ensure a safety that AMC will not do bogus transactions on behalf of the investor? How does SEBI ensure safety in mutual funds? (I know for stocks, SEBI allows to change broker if the current one goes bust, is there any safety net like this for the mutual funds via AMC as well? )

I am really cautious about the investment frauds, so just wanted to know.

Thanks for this. Would you mind sharing what % of your portfolio is in this position?