MFCentral: Single platform for all mutual fund transactions

Mutual Fund
Sep 24, 2021 by MFCentral | Mutual Fund | 0 Downloaded

KFin Technologies and CAMS in association with AMFI have jointly launched MFCentral (MFC) an online platform for all mutual fund services for the investors. It will provide access to all fund houses in the mutual fund industry. MFC will be launched in different phases:-

  • Phase 1, which was launched on 23rd September 2021, will enable investors to do all types of non-financial mutual fundtransactions. Investors will also get a single view of their portfolio across all fund houses (asset management companies), consolidated account statement and unclaimed dividends etc.

  • Phase 2, will be the launch of the mobile app. All the MFC functionalities provided in Phase 1 will be available on the mobile app in Phase 2.

  • Phase 3 will enable investors to make online transactions (buying and selling MF units) using MFC.

  • Subsequent phases will provide mutual fund distributors (financial advisors) with the capability of executing these services on behalf of their clients.

What are non financial transactions?

Using MFC you can update your email address and phone number, change bank mandates of mutual fund folios, consolidate folios, change nominees, get your consolidated account statement etc. Nominees of deceased investors can also request transmission of units bequeathed to them through MFC. AMCs do provide these services but different AMCs have different processes. The greatest benefit of MFC is the standardization of these processes across all AMCs on a single platform.

Any investor can access MFC

Unlike other online portals, you do not need to setup an account and fulfil KYC requirements to avail the services of the portal. Using MFC, you can fetch details of all your mutual fund investments, by entering your Permanent Account Number (PAN) and mobile number.

How is MFC different from MFU?

Mutual Fund Utilities (MFU) is an initiative by 40 mutual fund companies (AMCs) which provides similar services which MFC provides or intends to provide in subsequent phases. MFC not only covers all the AMCs (there are 44 AMCs in India), but more importantly, is much faster and simpler to use compared in MFU at this point in time. In MFU you have to open an account known as CAN and then separately map your existing mutual fund folios in that system. In MFC, you can fetch all your MF investments by simply entering your PAN and mobile number.

However, MFU facilitates mutual fund distributors to on-board their investors digitally and transact seamlessly across AMCs, both for financial and non-financial transaction.

A good start.....

MFC is an online investment solution which investors and distributors have been seeking for a long time. The initiative launched by KFin Technologies and CAMS, in collaboration with the mutual fund industry has taken an important step forward in standardizing investor services process across the industry. Phase 1, which covers all non financial transactions, is a great start but the success in terms of adoption rate of MFC by investors and distributors, will depend on how quickly other phases are implemented and made available to investors.

Brighter future for mutual funds

The future potential of in terms of adoption by investors is huge not only in the T-15 cities where there may be more awareness about digital adoption, but more importantly in B-15 and smaller cities and towns across India where there may be less awareness about online / digital adoption at present but there is growing huge growth potential for the mutual fund industry in these cities and towns. If MFC is able to drive greater digital adoption and a higher percentage of digital / online transactions compared to physical transactions, it will drive down costs for the AMCs and ultimately benefit mutual fund investors when cost savings are passed on to investors.

(Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)

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