Investors who have DEMAT accounts can use the same account to hold their mutual funds units also. It is however not mandatory to convert units into demat form. Investors can also use the electronic platforms of stock exchanges to transact in their mutual fund units through the brokers of the stock exchange.

For carrying this forward investors have to use a standard form specified by the depository (CDSL or NSDL) called the conversion request form ( CRF )) or destatementisation request form (DRF). This form is available with the depository participant (DP)/broker. The completed form, along with the statement of account (SoA) which shows the unit holdings of the investor, has to be submitted to the DP/broker. The DP/broker will verify and forward it to the registrar and transfer agent, who in turn will confirm the details of units held in the SoA. Units will be credited to the demat account after confirmation from the investor of his details.