MFUtility, an online mutual fund investment platform jointly run by mutual fund houses was launched exactly a year back in January, 2015. As of now, investors can invest in mutual fund schemes either through the distributors who are registered with MFUtility platform (or) can invest in Mutual Fund Schemes through offline mode only. Online transaction facility to invest in Direct Plans of Mutual Fund Schemes is not available.
If an investor wants to invest in or redeem mutual fund direct plans online, the only option which is available as of now is to visit respective mutual fund house website and invest online.
Good news is that investors can now invest in Direct plans of Mutual Fund Schemes offered by 25 AMCs (Asset Management Companies) online starting from today (01-Jan-2016) via MF Utilities.
What are Direct plans of Mutual Funds?
Direct mutual funds plans are those where AMC / mutual fund Houses do not charge distributor expenses / trail fees / transaction charges. ‘Direct’ means no intermediaries.
Direct mutual fund schemes have lower Expense Ratio than that of Regular plans. This is the main reason why the NAV of a direct plan will be higher than the NAV of a regular plan of the same scheme.
In the case of both regular and direct mutual funds, the investment objective, asset allocation pattern, risk factors and the investment mix are same. A scheme’s portfolio will be the same for both, Regular plan and Direct Plan.
(You may like reading : ‘Direct Mutual Fund Plans : Details & Benefits‘)
What is MFUtility Platform?
MF Utility is a shared infrastructure of all AMCs in India to provide online investment facility to mutual fund investors. MFU is sponsored and funded by the mutual fund houses. This platform covers almost 95% of the MF industry’s schemes and products.
The Association of Mutual Funds of India’s (AMFI) MF Utility is a single-window online platform for investment in MF schemes across fund houses. It works as a web-based transaction aggregator.
MF Utility (MFU system) is a browser-based application that connects investors to registrars and transfer agent (RTA), bank, fund house, payment gateway KYC registration agencies (KRAs).
(You may like reading : ‘How to register with MF Utility online platform? FAQs’)
How to invest in Mutual Fund Schemes online via MFUtility platform?
To access MF Utility, you need to get CAN (Common Account Number) activated. The subscription to MF Utility is free of cost. Download the CAN registration form and submit the completed form at MF Utility POS (List of MFU Points of Service). This is a one-time procedure.
If you are not KYC compliant then MF Utilities India will facilitate the KYC registration for investors along with the creation of CAN. (Download KYC registration forms)
Kindly note that you can invest in both Regular & Direct plans of Mutual Fund schemes through MF Utility online platform. You can invest in MF schemes by creating SIPs (Systematic Investment Plans) or by making lump sum investments.
The participating AMCs list on MF Utility platform is as below. You can now invest / transact in Regular & Direct Plans of all Mutual Fund Schemes offered by below fund houses;
- Axis Mutual Fund
- Birla Sunlife Mutual Fund
- DSP Blackrock Mutual Fund
- Edelweiss Mutual Fund
- Franklin Templeton
- HDFC Mutual Fund
- ICICI Prudential AMC
- IDBI Mutual Fund
- IIFL AMC
- Indiabulls Mutual Fund
- Kotak AMC
- L&T Mutual Fund
- Motilal Oswal
- Peerless Mutual Fund
- PPFAS Mutual Fund (Parag Parikh Financial Advisory Services Pvt
- Principal Mutual Fund
- Quantum AMC
- Reliance Mutual Fund
- Religar Invesco Mutual Fund
- SBI Mutual Fund
- Sundaram Mutual Fund
- TATA Mutual Fund
- Taurus AMC
- UTI Mutual Fund.
For more details & FAQs on MFUtility, kindly click here .
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