New Delhi, July 22 -- You can hold mutual fund units in two ways - through a Statement of Account (SOA) or a demat account. In the SOA format, units are recorded directly with the AMC or its registrar, while in the demat format, they are held electronically in a demat account.

SEBI has recently released a circular to allow SWP and STP standing instructions for mutual fund units held in demat accounts. Earlier, such standing instructions were available only for SOA-held mutual fund units, where the AMC or its registrar could execute these automated transactions.

Shweta Rajani, Head of Mutual Funds, Anand Rathi Wealth, said, "This removes a key challenge for investors holding units in demat form, who earlier had to manually initiate every...