A step forward by Mutual Funds Industry

 -Dr. Virendra Tatake

The Indian mutual fund industry has changed over time. Initially, the investment forms were required to be completed in writing and submitted to the concerned mutual fund office. Since then, many banks   ventured into the field and many advisors also  started offering their services, making it a bit easier for investors to fill out the form and scrutinize it every time a new investment is made. If there were any mistakes in filling up forms , there would be obstacles in investing. In the subsequent period, mutual fund transactions were facilitated on demat accounts, which eliminated the hassle of handling documents and facilitated transactions.

Recently , SEBI has taken another step towards making mutual fund transactions even easier for ordinary investors . The new platform is called Mutual Fund Central (MFC). In July this year, SEBI had appealed to all the mutual fund companies in the country to do so, which is being implemented. The total assets of our mutual 

fund business have recently crossed the Rs 36 lakh crore mark. Every month many new investors are being added to this investment which includes investors from big cities as well as small towns and  villages. Of course,  many of these investors are not familiar with online transactions. MFC will help such investors . In the first phase, investors will be able to carry out non-financial activities. For example, downloading  mutual fund investment statement, updating  email and mobile number, registering changes in  bank account, updating  changed address, etc.

 The second phase of the facility is expected to be launched in December this year in which investors will be able to conduct all financial transactions such as buying and selling of their mutual funds from this platform. Using this facility, the investor can do all the transactions in any mutual fund in one place. The transaction will be possible by giving the investor his mobile number and bank account details. In addition, in the event of an unfortunate death of an investor, the MFC will make it easier for the investor to accumulate investments in the mutual fund in the name of the heirs. There is no doubt that SEBI, which gives top priority to safeguard   interest of investors, will ensure that transactions made with this new facility are completely secure.

There are indications that MFC will be a platform to cater to all the needs of Indian mutual fund investors in the years to come. This is an important step for the Indian mutual fund industry.

(The author is associated as Director at IGBS )

Blog By

Dr. Virendra Tatake 

Director

Indira Global Business School, Pune.