When you begin your investment journey, you are bound to come across two common tools: mutual fund apps and demat apps. To most people, they appear to offer the same function and understandably so. Both are used for investing, both are digital solutions, and both promise to help you grow your money. However, the way they operate, what they offer, and how you use them are quite different.
Before you start using any app and trusting it with your money, you must understand what each one is designed to do and which fits your goals better. Get all the insights below.
What is a mutual fund app?
A mutual fund app focuses purely on helping you explore, research, invest in, and monitor mutual fund schemes. You can utilise the app to:
- Browse schemes: Access thousands of mutual funds across top asset management companies and invest via Systematic Investment Plans (SIPs) or lumpsum investments.
- Track portfolio: Monitor performance, returns, and portfolio value in real time.
- Switch or redeem: Transfer money between funds or exit positions when required.
- Get fund insights: Check ratings, past performance, expense ratios, and risk level.
- Save taxes: Invest in Equity-Linked Savings Schemes (ELSS) to claim tax deductions under Section 80C.
- Invest as per your goals: Link investments to targets like kids’ education, retirement, buying a house, or wealth-building.
What is a demat app?
A demat app serves a broader purpose. It holds all financial instruments like mutual funds, shares, bonds, and Exchange-Traded Funds (ETFs) in one digital space. The term ‘demat’ comes from ‘dematerialised’, which means your physical certificates are converted into electronic form. It supports the needs of investors as well as traders.
Look at what features a demat account typically offers:
- Multiple investment options: Invest in Indian equities, mutual funds, bonds, gold ETFs, Sovereign Gold Bonds (SGBs), and Real Estate Investment Trusts (REITs).
- US stocks: Through fractional investing, many platforms allow you to buy a portion of expensive global stocks.
- Margin Trading Facility (MTF): Offers 4x leverage to help you increase your stock buying capacity and amplify profits.
- Access to corporate actions: Participate in buybacks, dividends, rights issues, and bonus shares.
- F&O trading: Trade in futures and options for more advanced strategies.
- Advanced tools: Check stock screeners, technical charts, volume trends, and analyst ratings.
- Real-time portfolio tracking: View live prices, historical performance, and gain/loss status.
You can open a demat account without stepping out of your home. The process is 100% digital, and only your PAN, Aadhaar, and bank details are enough to get started.
Demat vs mutual fund app | Key differences
Look at this demat account vs mutual fund account app table to understand their key differences:
| Feature | Mutual fund app | Demat app |
| Focus | Only mutual fund investments | Covers mutual funds, equities, ETFs, F&O, bonds, SGBs, IPOs, US stocks |
| Account type | No demat account needed; KYC via PAN and Aadhaar | Demat and trading account setup is part of the onboarding process |
| Technical tools | Limited; mostly mutual fund performance graphs | Advanced charts, indicators, stock screeners |
| Time sensitivity | NAVs updated daily; portfolio holdings often disclosed quarterly | Real-time tracking across all holdings, including intraday movements |
| Best for | Beginners or mutual fund-focused investors | Investors seeking long-term diversification under one platform and traders |
Mutual fund vs demat app | Which one should you choose?
If your goal is to invest only in mutual funds and you prefer a straightforward, hassle-free experience, a mutual fund app could be ideal. However, if you plan to explore other options like stocks, bonds, REITs, or ETFs in the future, then using a demat app from the start can save time.
If switching between multiple apps sounds tiring, there is a way to bring all your investments and trades into one place. MO Riise by Motilal Oswal lets you explore mutual funds, equities, bonds, commodities, F&O, US stocks, and more from a single, feature-rich app.
Backed by the legacy of a SEBI-registered public entity, MO Riise is trusted by more than 40 lakh investors and traders. You benefit from multiple asset classes, UPI-based payments, expert-backed research, technical analysis tools, high-quality security, no hidden charges, educational content, and 24/7 customer support.
Open a demat account on MO Riise today!