Question 85 of 90
Which of these statements is true? A) If the mutual fund units are held in demat form, they cannot be converted into physical form. B) When a mutual fund is redeemed or when there is a dividend payout, the amount will be credited to the bank account linked to the demat account for investors who opt for demat units.
A
Only A is Correct
B
Only B is Correct
C
Both A & B are Correct
D
Both A & B are Incorrect
Correct Option:
B
Explanation
Mutual fund units held in demat form can be converted back into physical (statement of account/folio) form through the rematerialization process. When mutual fund units held in demat form are redeemed or an IDCW is paid, the proceeds are credited to the bank account linked to the demat account.
