Multiple mutual fund transactions have become easier with the industry body-the Association of Mutual Funds in India (Amfi)-launching a new transaction platform which enables investment in multiple schemes with a single form without writing multiple cheques.
At present, if you want to invest in multiple schemes of even the same fund house, you have to fill separate forms and write separate cheques for each scheme.
You won't have to do it now if you submit your transaction through Amfi's new platform called Mutual Fund Utility (MFU).
Transactions through MFU are forwarded to the respective asset management company (AMC) or its registrar and transfer agent (RTA) for processing. To gain access to the platform, you will have to get a common account number (CAN), an industry-level folio allotted to an investor-by submitting the CAN registration form at any point of sales of MFU or a distributor signed up with MFU or a participating AMC branch.
Investors will be then provided login access to MF Utility, where they will be able to access information across all mutual fund investments.
This will provide individuals 24X7 access to common account statements online, composite portfolio information, portfolio holding and other scheme-related information.
It will also offer industry-level value-added services such as alerts, triggers, reminders, etc, allowing investors to monitor and manage their investments more effectively.
"It is basically a transaction aggregator which will help save on time and cost by avoiding duplication," says V Ramesh, managing director & CEO, Mutual fund Utility. At present, 25 AMCs have signed up with MF Utility, and the transaction facility will be opened from March 4, 2015.
The new platform is basically a shared infrastructure of AMCs to reduce duplication and increase efficiency.