People who invest in mutual funds would know the fact that in order to invest in five or six different mutual funds; they need to provide 5-6 different application forms and cheques. However, things are set to change now. You only need to provide one single application form and cheque to get this done. The cheque has to be drawn in favour of ‘MF Utility’. Money will go to an escrow account and then disbursed to the concerned AMCs.
MF Utility (MFU) is an innovative initiative from the Mutual Fund Industry which offers convenience and empowers the investors of Mutual Fund schemes. MFUI is equally owned by the AMCs of SEBI registered Mutual Funds in India. It facilitates the investors with a Common Account Number (CAN) which enables them to transact in multiple schemes of various Mutual Funds participating in MFU through a single transaction and consolidated payment. MFU provides a 24×7 universal online access across Mutual Funds to investors to access NAV and Scheme related information and content. Through MFU, investors will be able to have a consolidated view of their holdings and transactions at industry level. MFU will also provide value added services like Common Account Statement (CAS), Alerts, Triggers, Reminders etc., to investors.
What other benefits do you get?
This portal will be allocating you a Common Account Number (CAN) and this will be a unique one. It would be linked to your PAN. This enables you to directly transact in new mutual funds. However, you may not be able to transfer your existing units to this account. These are some of the other benefits that this platform provides:
- Single point industry access
- Common order form
- Single cheque for multiple requests
- Cost efficiency
- Neutral Points of Service (PoS)
- Automated Interfaces
- Data digitized at source
Is there any charge for using this utility?
The good news is that this utility is available free of charge.
How many AMCs are participating in this?
About 25 AMCs initially would be participating in this utility platform. This includes top AMCs such as HDFC, Birla Sun life, Axis mutual fund, DSP blackrock, UTI, Kotak and so on.
Finally, this is a great platform to use for all investors. It will not only make your life easy while investing in mutual funds but also give you access to Statement of Account (SOA), portfolio information, alerts, etc. Moreover, your data will be pretty much safe.