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Rohan Saha

Founder - Burn Inves... • 1m

Okay, let me clarify my mutual fund post a bit some people might be getting confused. When we invest in mutual funds, there are basically two ways it works: 1. You place an order, the money goes to the clearing corporation, which then sends the order details to the AMC (Asset Management Company). After that, the AMC transfers the units to your DEMAT account. The same process is followed when you sell your units. 2. In the second method, your order goes directly to the AMC. The AMC takes care of the unit allotment and everything else. In this process, some intermediary service providers may be involved who help manage the flow. Both methods are completely safe and SEBI regulated For example: Zerodha Coin works on a DEMAT-based model. Groww works on an SOA (Statement of Account) based model. This is the simplest explanation I can give. There are a few more technical details, but they’re not really necessary to understand the basics.

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