Today, when the whole securities market is digital, it is in your favour to proceed with the SOA to Demat conversion. This will make your investments paperless and easily manageable. Let’s first understand what these accounts convey to you and how you can switch from SOA to Demat.
What Is a Statement of Account (SOA)?
Mutual fund houses or their registrars issue a Statement of Account (SOA). It contains:
- Your folio number and fund details
- Units held and their current value
- NAV (Net Asset Value) at the time of each investment
- Record of transactions (SIP, redemption, switches)
What Is a Demat Account?
A Demat (dematerialised) account holds financial securities like stocks, bonds, ETFs, and sometimes mutual funds in digital form. It’s opened through a Depository Participant (DP), which could be a broker or bank.
Let’s look at the 5 easy steps to convert SOA to Demat.
How to Switch from SOA to Demat?
You can switch from SOA to a demat account by following these 5 easy steps. Let’s take a glance.
Step 1: Open a Demat Account
To convert your SOA to a Dematerialized format, you will need the details of an existing demat account. So, the first step is to open a demat account for investors. This account can be with either the CDSL or NSDL. Also, the demat account must be active.
Step 2: Obtain and Fill the Conversion Request Form
Once you have an active demat account, you can ask the Depository Participant (DP) to provide you with the Conversion Request Form (CRF). This form formally requests to convert your physical mutual fund holdings into dematerialised versions. You will also have to sign the CRF.
Step 3: Submit CRF and SOA to Your Depository Participant
Provide details like:
- Your Demat account number (DP ID)
- Name of the mutual fund and folio number
- Type of holding (single or joint)
After filling in all the data and signing the CRF, you must submit it along with your Statement of Accounts (SOA) to your DP.
Step 4: DP sends CRF for verification.
Then, the DP will send your CRF and SOA to the Depository for verification. Once the Depository verifies it, they will send it to the Registrar and Transfer Agent (RTA).
Step 5: Confirmation of Rejection
In the last stage of switching from SOA to a Demat Account, you will receive either the confirmation or rejection from the RTA. In case of confirmation, the mutual fund’s units are credited to your demat account. However, they will communicate the reasons with you if it’s rejected.
When Can Investors Switch from SOA to Demat?
Any time you choose to convert from SOA to a Demat account is the right time for the conversion process. You will just have to follow the process as mentioned above. Here are some circumstances where you can choose between Demat vs. SOA.
| Circumstance of Conversion | Reason |
| Safety | A demat account makes your entire investment paper-free. So this also reduces the stress of misplacing or damaging your important documents. Moreover, with the NSDL and CDSL involved, the holdings are stored securely, eliminating the risk of fraud. |
| For Transactions | If you want to trade your mutual funds on platforms like BSE or NSE, conversion to a demat account for investors is necessary. |
| While Applying | If you apply for IPOs or NFOs through any exchange platform or a broker, you will need a demat account. |
| Accessibility | Demat holds all your different types of securities in one place. Be it mutual funds, stocks, bonds, or even your EFTS. You won’t have to manage different SOAs with each Asset Management Company (AMC). |
| Voluntarily | You can start the conversion process whenever you feel like it. |
| Consolidation of Reports | With a SOA, you’d have to get separate reports for each AMC holding. However, with a consolidated account statement from the Demat, everything will be in one place. You will get updates about everything, like crediting dividends and more. |
Important Factors to Consider Before Conversion
Before switching from SOA to demat account for your investments, consider the factors in the table below.
| Important Factors | Points to consider |
| Transaction Process | Once your units are dematerialised, you cannot redeem them from any AMC. You will need to transact through your broker or the DP. |
| Charges | There are no annual charges for a SoA. But, for demat, there are annual maintenance charges. |
| Irreversible | After you switch from SOA to Demat, you will not be allowed to re-switch it to SOA. |
| Broker | With a Demat Account, you need a trustworthy broker to manage your investments. Make sure he or she is SEBI registered to maintain safety. |
| Holding Pattern | The holding pattern for all your units will be the same. This means the name and number of the holders, the order in which information is mentioned, etc., remains uniform. |
Start Your Conversion Process Today
Conversion of SOA to a Demat account makes your investment portfolio digital. This is also the major reason demats is a preferred choice, even for SEBI. So, if you want to invest in more than just mutual funds, have secure and easy transactions, with easy access to real-time information about your investment portfolio, start the conversion process today to switch from SOA to Demat Account!
