Demat account is a lot more about simplicity and having a single point of reference for all your investments. Normally, you would be maintaining different files for bonds, equities, mutual funds etc. All that can be avoided by dematerializing your mutual funds too. It makes the process a lot simpler and smoother as everything is now inside your demat account. You can now get a single point view of all your assets in one place. You can also map the demat account to an online portfolio and see all values in real time. These things are only possible if you have a demat account which includes all asset classes.
You can hold securities such as equity, debt instruments, Government securities, and Mutual Fund Units in a single demat account. You will receive a single transaction statement from your DP, which will display all the securities and Mutual Fund Units held in your demat account. The bigger advantage is the administrative changes as the change in address recorded with DP will get registered electronically with all companies / Asset Management Company (AMC) / Registrar and Transfer Agent (RTA) in which you hold securities / Mutual Fund Units. This will eliminate the need to correspond with each of them separately. This useful when you want to do a shift in address or even in your bank mandate! Once the change is made centrally at your depository, the changes will get reflected in all your investments automatically.