Investments in Mutual Funds can be done through Demat or without Demat Accounts (Ocean Finvest). In both scenarios, the Asset Management Companies (AMCs or Mutual Fund Companies) keep a record of your investments. Both modes are completely safe, and for both, investment and redemption (withdrawal) happen from your bank account. In our case, the payment gateway is BSE.
Ocean Finvest is better on two fronts.
One, there are no transaction or annual maintenance charges with your ocean finvest account. Most Demat account service providers levy these charges, and over the long-run, these costs would result in substantial reduction in your net-worth.
Second, investing through Ocean Finvest is not just about buying Mutual funds. That is just the start. Our on-going portfolio management service ensures that you know when to sell, switch or rebalance your portfolio.
In short, based on the goal that you've set, a portfolio of funds is created. These funds and the allocation of money within these funds change based on market conditions. Hence, what you are tied to is the monthly investment amount, not the fund.