With launch of mutual fund utility, the ease of investing has arrived. Why I say so? Because mutual funds investment is probably the only avenue where online investing hasn’t gathered much pace. This is primarily due to the absence of a viable platform for investors. Some companies like FundsIndia introduced online platform and have been quite successful. But the most dissatisfied were investors in direct plans who have to take all the hassle of visiting respective companies website to invest in the scheme of their choice.
Even then the process varies among AMCs and so implementing your investment plans takes few weeks.
Now mf utility will allow all investors to invest in different mutual fund schemes across multiple companies through a single window. Going forward there will be no need to go to different companies website and spend days to invest your money. You will now make decision on your investments and login through this utility to invest across various mutual funds scheme. It’s an interesting development as the utility goes much ahead of giving you flexibility of investing in multiple schemes with a single payment.
Let’s understand the utility and how you will benefit from it:
What Is A Mutual Fund Utility?
Mutual Fund utility is an online Transaction Aggregating Platform for investors. Through this platform you can invest in multiple schemes across multiple AMC through a single common transaction form. For distributors it allows them to give their investors an ease of transacting in through a single window. The utility will provide investors access to information including Online Common Account Statement, Composite Portfolio Information, Portfolio Holding and scheme related information. It also gives them flexibility in monitoring and managing their investment through various value added services such as alerts, triggers, reminders, etc..
How Does It Work?
To invest through mutual fund utility you have to register for a CAN i.e. Common Account Number. This number is unique to every investor and will be used to map all your existing portfolios across mutual fund schemes participating in the utility. As per MF Utility website this CAN will carry your name, KYC Status, your income details, mode of holding you have selected, whom you have nominated in your investments, what is your tax status, primary holder details, bank accounts you have registered at CAN, depository details if it is there, Power of Attorney details if you have given, guardian details if investments are for minor, FATCA etc.. If you look at this information then it captures all your details at one central location i.e. at MF utility, thus giving you an ease to update it as and when required. Post registering for CAN you will able to transact for your investments by logging at www.mfuonline.com with credentials you have received.
How to Apply?
To apply for CAN you have to fill a Common Account Number registration form which you can download from here-
You need to complete the application form with all the information which is being asked. You can give multiple bank accounts so that in future if you wish to change your bank mandate you can do so easily through this utility. Once you have filled the CAN registration form you would have to submit at Point of Service centers at the addresses mentioned on utility website. The link to it can be seen here-
Benefits of CAN
There are multiple benefits which CAN is providing. Once you are registered and have received your CAN you can transact with any of the mutual fund schemes who are participating in MF Utility. You don’t have to fill up the common application form each time you wish to invest. Through CAN you can transact online in any of the scheme of your choice. The other and larger benefit it provides is that with a single payment you can invest in multiple mutual funds schemes. So now no need to make payment separately for each purchase. Just fill a common transaction purchase form and make a lump sum payment adding amount for all your transactions to invest in various schemes. It also facilitates SIP purchases through this utility. Again, with a common bank mandate you can do purchasing in multiple SIPs which is an advantageous move for all investors.
So in a nutshell the utility eliminates many procedures you have to follow for investing in mutual fund schemes and most importantly it reduces the documentation you have to do now for every investment.
Direct Investor Benefits
It surely is a welcome news for direct investors as they haven’t been able to avail benefit of online investing in absence of a viable platform. The mutual fund utility facilitates investing in direct plans of mutual funds schemes participating in this platform. I personally have written to the utility and below is the response by the team-
Thank you for the interest shown in MFU and writing to us.
Kindly note that the investors can invest in Direct Plan through MFU portal.
Please feel free to write / call us for any further clarifications.
Thanks & Best Regards,
So for all investors who wish to invest in direct plans for the benefit of low cost investments, this utility gives them a much needed platform for making all their transactions through a single window.
How To Invest?
Once you have received your registration details you have to logging through www.mfuonline.com for making your purchase transactions. I haven’t explore the system yet and so not able to provide more information on this aspect. As i do I will be updating the entire process of making a purchase through this Utility. But surely it’s a game changer for every investor which will provide a much needed ease for online investing in mutual funds. So avail the opportunity and register for your Common Account Number.
For any information you need on any aspect of this platform write to Mutual Fund Utility by visiting their Write to Us page. I am sure you will receive a favorable response from the team for all your queries.
As you register share your views about the utility in the comments section..