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.
Other options like STP (Systematic Transfer Plan) and SWP (Systematic Withdrawal Plan) are also available online. Below are few screenshots of MFU platform.
You can also redeem mutual fund scheme units online.
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
- IDFC
- 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 .
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Screenshots Source & Courtesy : Freefincal.com)
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Hi Sreekanth,
I have started SIP in MFU 15000K per month in Birlasunlife frontline equity.
If I want to modify the SIP amount or stop the SIP in future, what is the procedure to be followed in MFU.I didn’t see any option in MFU website for the existing SIP modifications or stop SIP. Kindly advise on this.
Thank you.
Dear Narayana ..I do not use MFU and have never accessed it, so I do not have information on this.
Suggest you to contact their customer care.
hello sreekanth,
i have received around 7 lacs from lic maturity scheme on death of my husband.
i want to make lump sum investment in various long term, diversified schemes as suggested in your article in 2017 schemes of mutual fund.
i was told by my bank friends that STP-SIP combination would be best rather than going for lump sum.
plz help… you are my best advisor.
if i go for STP-SIP combination then plz elaborate by an example how do i invest.
thank you so much in advance.
shashi kumari
Dear SHASHI Ji,
May I know your investment objective & time-frame?
STP to SIP example would be , you can invest say Rs 1 Lakh lump sum investment in a liquid fund like HDFC Liquid fund and set up STP to an equity oriented balanced fund like HDFC Balanced fund.
The STP to SIP has to be set up between the schemes offered by the same Fund house.
Also, the units redeemed from debt fund are considered as normal redemptions, so any gains can be subject to taxes.
Read: MF taxation rules.