To begin with you can always opt to hold the mutual funds in demat form and it will be there in your demat account. However, even if you hold it in statement form there is nothing to worry about at all. Well, you are right in one way that you do not get any title documents. For example when you purchase an apartment there is a sale deed. Similarly, when you buy equities, you either get physical shares or a demat credit. When you buy a bond, you get a bond deed with the stamp of the issuer. That is because a mutual fund holding is not an identifiable asset unlike the above. A mutual fund statement is proof enough of your holdings. You need not worry because mutual funds are regulated by SEBI and have to adhere to strict compliance requirements. Of course, if you do insist, you can ask for your MF units to be held in demat account like equities.