Do I need a Demat Account for investing in mutual funds?

No, is the answer. Demat account or dematerialized account is used by shareholders for the purpose of trading. In case of mutual fund investments, you are not required to have to have a demat account. However, make sure that your KYC is done.
Hope it helps.

Demat account is mandatory for trading and not required for investing in mutual funds. You can use your normal bank account for the transaction purpose. In case of SIP, the monthly investment will be directly deducted from your bank balance.