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
- 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)
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.
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.
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.
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.
I am investing through Invezta guys.
People think why should you pay fess on invezta or orowealth etc. But thing is that fees of just Rs. 79 is very nominal against loosing nearly 1.0 % due to commission on regular plans . Plus you get access to nearly all AMC and a nice interface at invezta. They also give all features free including robo services till your investment crosses 50K and also referral bonuses.I would suggest all to give this platform a try atleast once.
In case you want to try invezta you can use code”72745A” and get 25K bonus over initial 50K .
DEAR SHRIKANT SIR.
FIRST I WOULD LIKE TO APPRECIATE YOU FOR CREATING THIS BLOG FOR NEW INVESTORS.REALLY YOU ARE GIVING REALISTIC SUGGESTION AND VALUABLE GUIDANCE TO ALL PLZ KEEP IT UP ! I AM VERY HAPPY AND CLEAR ABOUT MY INVESTMENT AFTER READING YOUR BLOG OF DIRECT MFU .THIS BLOG HAS GIVEN ME A VERY VALUABLE GUIDANCE.
THANK YOU VERY MUCH.!!!! AND KEEP ENLIGHTING THE LAMP OF KNOWLEDGE. IN MIND OF INVESTORS.
Thank you dear Anil. Keep visiting and kindly share the articles with your friends 🙂
Can you please guide how do I connect my existing MF investments in MFU. I read MFU FAQ but could not understand the response. Can you please elaborate the method of connecting my existing investments (which I did before I know abt FU) in detail.
Thanks in advance.
Once your CAN is activated, all your existing Mutual fund schemes (Direct / Regular plans) of the participating AMCs will be mapped to your CAN account. You can view the details of your MF investments at one place.
You can also switch from Regular plan of XYZ Mutual Fund Company to Direct plan of same XYZ mutual Fund company. But switches between two different mutual fund houses are not allowed.
Who will map? I am not getting any option of mapping. That was my doubt at the first place. How to do the mapping of my existing investments (which I made before CAN allotment through my HDFC trading account)
Dear vishal ..The mapping happens automatically based on your PAN and holding pattern (joint-account).
Does it take time…it is already a week since i open the account and there is no mapping.
Dear vishal ..Kindly contact the customer care of MFU.
I am planning to invest 10000 /month for tax saving purpose via sip mutual funds. Can you suggest best 5/6 mfs and any locking period for withdrawal? If i invest online is it beneficial? How to claim tax benefit? is it sufficient to submit montly sip form to my employer?
Dear radha krishna,
Investments in ELSS funds have lock-in period of 3 year and advisable to invest in these funds only if you have long time-frame (say >5 years or so).
one or two ELSS funds can be considered. Ex – Franklin Taxshield or Axis Long term equity fund.
Read : Best ELSS Tax Saving MF Schemes.
If you are comfortable investing online, do consider Direct plans.
What are Direct plans of MFs?
Direct plans Vs Regular plans.
You can claim tax benefit by submitting MF statement of holdings to your employer.
IT declaration on investments.
Form 12BB to claim tax benefits. .
Thank you very much for your valuable detail reply.
E radha krishna
Hello Mr. Reddy,
Very well explained article.
In CAN form, there is a requirement of proof of KYC compliance. I am already investing in MFs through HDFC trading portal and the KYC was done at that time. Now again, Do I need to fill KYC form with CAN form ? If no, what proof is required to be given with CAN form to show that I am KYC compliant?
Awaiting your reply.
Dear Nidhi ..If your PAN is KYC complied then not required to submit kyc form. They will check at the back end about the status by using your PAN.
How are you,My query is – I had invested lump sum amount and sip over past one year on the hdfc balanced fund (g) through the bank and ith was not direct fund, now is it advisable to switch to direct fund as I will be extending my SIP date, as in th future years the amount through sip I expect it to be a regular fix inivestment..
shall I switch my older fund amount also to new as there will be a new child folio created if i move to direct now..
You can switch, but it will be treated as Redemption and applicable taxes (if any) are levied.
Kindly note that you can invest (new investment) with the same folio number but you can choose DIRECT option.
My CAN has been generated on 06.08.16 and I have mailed MFutility for providing online access on the very day. So far I haven’t got any reply…any idea as to how long it takes to create the userid/pwd??
Sorry!..the date would be 06.06.16
I am running my portfolio with FundsIndia and invested in 8 different funds via SIPs (covering LARGE, MID &SMALL CAP, HYBRID, BALANCED, ELSS and DEBT funds). If i go direct through MFutility will i get same ease of operation ? Also will i be able to shift to Direct Plans of same funds i am having with FundsIndia with same portfolio no.?My investment horizon 10+ years.
Also Pls tell about portals you mention through which we can invest in direct plans like Invezta, ORO Wealth. Are therse portals trustworthy and safe .?Would you recommend it or not.
I want user friendly Investment Management.
and i am a DIY investor
can we do this CAN registration online.
Dear Justin..Kindly check this link…
It seems that the mfutility will not allow to buy direct plans now. We need to contact CAMS/karvy for purchasing direct plans. is that right? Have you got a chance to check? When I contacted CAMS they replied so. That is why asking.
Also in mfutility is there any brokerage involved?
Suggest you to kindly contact MFU instead of CAMS. I believe that they are now accepting investments in Direct plans too.
Dear Sreekanth Reddy,
I am new to MF, I am planning to buy Axis Long Term Equity Fund – Direct Plan –Growth founds worth of 50k as lump sum, and from next financial year I am planing to invest 5k through SIP, is it possible to buy on this using MF utility, I don’t have CAN and KYC to apply this how long it will take?
Thanks in advance.
Suggest you to apply for CAN at the earliest. I am not sure about the time-line, you may check with them.
Regarding KYC, you can now get it online if you are tech savvy..Read : How to get eKYC done for Mutual fund ivnestments?
Dear Sreekanth Reddy,
Thanks you for response.
Is there any different between buying Axis Long Term Equity Fund – Direct Plan –Growth from Axis website and MF Utility? for the first time i am investing from Axis website then using this CAN can i do further purchase using utility ? or is required any other procedure?
Thanks in advance.
There won’t be any difference in terms of returns & NAVs. You may do so.
Read : What are direct plans?
I have two questions:
1. Do I have to/can I give my ICICIDirect as my Demat a/c in CAN registration form? Can MFU directly debit/credit DEMAT a/c of other brokers like ICICIDirect? Just want to understand the implication. So if I buy some DIRECT funds via MFU which gets credited into my ICICIDirect demat a/c, will ICICIDirect start showing me those funds to redeem/STP etc??
2. It is not very clear from the resources on the web if and why should I register with their PayEezz service. I thought the bank details I provide in my CAN form will be used by MFU to debit/credit my account when I purchase/sell Mutual funds via SIP or lumpsum. Slightly confusing as what happens if we don’t do PayEezz registration is not clear from their site. Do you know the process?
Thanks for your guidance.
1 – Yes. You need to register your Depository (DEMAT) Account in CAN. During the transaction, you can request for crediting the units in the Depository (DEMAT) Account. MFU will send the instructions along with the transaction and the AMC/RTA will credit the units to your Depository (DEMAT) Account. This is the reply which is given in MFU FAQs list.
2 – Suggest you to read FAQs on ‘PayEezz’.
Did registration with MFU on Saturday. As per them, my CAN shud get activated by Monday(Today) but PayEezz will take time 🙁 (they should make it as quick as CAN generation activity 1 month is too long.) Let hope my journey of venturing into the Wild Wild world of direct MF without any easy intermediatary like ICICIDirect is as easy. :fingerscrossed 🙂 BTW, are you aware if using MFU + PayEezz we can start SIP in Direct funds “online”? I read that for starting SIP it has to be done offline but only for redeem, checking credits, etc is possible online.
Dear Rakesh..i believe that they have now activated the facility to invest (SIP) in Direct plans online.
I have one question I hope you can address. I want to go for Direct-Dividend plans for FY 2016-2017. Now when going thru funds, I recently saw something like Dividend Monthly, Dividend Quaterly and plain Dividend options(might mean as an when fund house declares) for most of the funds I was shortlisting.
I am aware about Growth and Dividend and had seen these monthly, quarterly etc stuff mostly for Debt funds but seeing it for the first time for Equity funds.
My question if which ones are better to opt for when opting for Dividend options? Is there inherent benefit in selecting one over the other say Qtrly over Monthly over Just Dividend option?
Dear Rakesh..Why do you want to opt for ‘Dividend’ option of Equity funds if your investment horizon is long term (assuming)??
Actually during market crashes(esp. like 2008, 2010 and mayb this time), most fund mgr cannot predict the same and the NAV goes into tailspin. I invested all my money into growth but since the recent fall, most of the profits were almost wiped off(I am investing since 2007). Componding using Growth MF is a myth(my opinion) since there is no real increase in unit only in price. But I want to set up a cycle wherein my income from Dividend goes into same or different fund till I want and if I dont want, I can use it for my other expenses either now or in future when I retire. I want to do all this WITHOUT selling any units. What other way than Dividends mode which helps me invest till I want else use the dividends to supplement my income if I want to in future.
Could you please explain what is meant by ‘no real increase in unit only in price’?
So, you mean to say that dividends can be used to meet daily expenses or for future goals. But you need to invest in some investment options for your future goals right? So, what are the options that you consider to meet long-term goals like ‘retirement’?
“no real increase in unit only in price” means that when mkt go up OR over a period of time(say 10 yrs+), only the price(NAV) will go up but not the # of units 10 unit bought today will remain 10 unit even after 10 or 20 yrs. Compounding happens only when units also increase which is what people like John D. Rockefeller or many gr8 investor do i.e they buy more unit of their favourite stocks/MF by re-investing their dividends.
Reg. your second part of the question, all I can say at this point in time is that I want to build my corpus which can 1. fight inflation, 2. pay me good dividends which can pay my bills when I become old. Currently, I earn so I invest that money in MF to help meet that objective. Cannot disclose much in open forum at this point.
Kindly note that there is no RIGHT or WRONG strategy in managing personal finances. If you have the conviction that your strategy can meet your requirements then do follow it. It is PERSONAL Finance.
My queries are;
1 – How can you beat inflation? Which products can generate inflation adjusted positive real rate of returns? Kindly note that I am not asking you to disclose your personal Portfolio (investments).
2 – Also, say if a MF scheme (growth) option can generate say 12% returns in 10 years then where does that GROWTH coming from??
Kindly share your views..
We have exhausted reply limit discussing this!! 🙂 Just reply to my own post to answer your questions:
1. In my opinion Equities.
2. It comes from increase in the price of underlying stocks + Dividends decl. by them.
But MF GROWTH funds != COMPOUNDING. (In my view). It is only increase in price of the stocks just like price increase in real estate or gold. Being a financial planner yourself, you know all these things better than me 🙂
I read this from MFUtility FAQ section.
Switching between one AMC to another AMC is not possible.
Can you please elaborate it.
I am planning to open an account with MFUtility to start a SIP.
Can I change the funds if needed online ?
Also, is the payment online?
Yes, payments can be made online.
Mostly they are referring to ‘regular plan’ to ‘direct plan’ switch. If you have folio in regular plan with XYZ AMC then you can switch to ‘Direct plan’ within same AMC.
Thanks Sreekanth for the info.
I have one more question.
I have 2 trading cum demat accounts with Ventura Securities and Angel Broking.
I am planning to close both of them.
For SIP, do I need to maintain any demat account or just MFUtility CAN is enough?
Please let me know
Dear Deepak..Dmat account is not mandatory.
I have got the CAN; however I am not able to find the login page!! am I missing something? what/where is the login page? what is the URL
Kindly visit the MFUtility login page i.e., http://www.mfuonline.com
Is there anyway to convert my regular plans to direct plans and then continue to invest in them in SIP manner.
The reason i ask is, i do not want to maintain both regular and direct plans of the same schemes, i would rather consolidate and take advantage of direct plans due to low expense ratio
You can invest through MFUtility in Direct plans using the same Folio nos. You may also invest by visiting respective fund house websites too.
Read : How to switch from regular plan to direct plan of MF scheme?
Dear Sreekanth, wish you a happy and progressive year in 2016.
I’m adding one personal question below. I work in an MNC and have salaried income+Adsense income+FD interest. Now I want to open a bank a/c for my mom who is family pensioner having no IT return or taxes(having PAN). I want to transfer 5 Lakh from my a/c to her new a/c and make FD in her name to avail senior citizen FD interest rate. Her pension + FD int income together will be < 3 lakhs PA. Now will she need to pay tax in her income and file ITR?
Will this be treated as tax evasion for me? And how will I show this transaction while filing my ITR this fin year?
And I show my adsense income in 'other income' while filing ITR, is this correct?
Let me know your mother’s age?
You can treat this as a GIFT. There wont be any tax liability on you when you gift Rs 5 Lakh to your mother.
Read : Gifts & Tax implications.
Which ITR form have you used to file your taxes?
She’s 59, will complete 60 this year.
Q1. Is there any documentation for gift ? Like in A4 paper on top I write I’m giving gift of 5 lakhs and sign and below she’ll write I receive 5 lakhs with sign?
I use ITR-1 using cleartax.com. Just upload form-16 and fill in asked details. Mentioning FD interest+Adsense income+Affiliate income added together as ‘income from other sources’. Now I heard that Adsense income should be shown under “Profits or Gains of Business or Profession”.
Q2. Now being a salaried person, can I show both income; salary and Adsense+Affiliate income under ‘Business & Profession income’ ? And also FD income?
Q3. And for my mom, if her FD income+pension together < 3 lakhs in a FY then she can submit form 16H and need not file ITR, right? As TDS is not deducted given 15H.
Thank you for your response.
1& 2 -Gift deed is not compulsory. But you may get it done on bond paper mentioning the cheque/fund transfer details.
Ideally you should file ITR-4 i guess.
3 – If less than Rs 3 Lakh then need not file ITR.
Can you Please send the investor login link for mfu online transactions…
Dear Lakshmikant…it’s http://www.mfuonline.com
MF utility online platform is now launched for online transactions for investors. Now we can buy direct plans through this platform. I have opened CAN long back. Now got online credentials. I will shortly create a SIP through this route & update you.
Can you please suggest an SIP portfolio for Rs.20,000/ for a period of 5 years with at least one ELSS fund!!!
Suggest you to kindly go through below articles;
Best Equity mutual funds for 2016.
Best ELSS mutual funds for 2016.
Dear Sir I recently retired from defence. then I invested my PPF amount to Senior Citizen Acct with post office. it is correct or there is some change in this system bacause intrest rate of post office schme is 9.9%. sir gide. Regards.
The product choice should be based on your financial goals. There interest rates are in downward trend.
Dear sir I registered my self with SMC Global Security services and they have allotted me a registration No in Dec 2015, it is fruitful to me pl guide about SMC. Regards.
Dear Satish..What registration no?