SOA vs Demat Account: Which Should You Use for Mutual Fund Investing?

Think of a Statement of Account (SOA) as a digital receipt that proves you own mutual fund units. It's similar to how your bank statement shows how much money you have - an SOA shows how many mutual fund units you own.

When you invest in mutual funds through the SOA route, the mutual fund company (called an Asset Management Company or AMC) maintains a record of your investments directly. Each AMC you invest with will provide you with a separate SOA for the funds you've bought from them.

For example, if you invest in mutual funds from Mirae and Quant, you'll get two different SOAs - one from each company.

Unlike other investment instruments, no middleman is involved. Your transactions are recorded and maintained by the AMC or their Registrar and Transfer Agent (RTA), such as CAMS or KFintech.

SOAs allow you to see all the mutual funds you own, how many units you have, their current value (Net Asset Value or NAV), and any purchases or redemptions made. However, you don't have to pay extra charges for maintaining this account.

It's entirely free—no account opening charges, maintenance fees, or hidden costs.

Check out how investing in SOA and Demat works and the key differences between them in our blog.

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