The mutual funds (MFs) and other financial intermediaries have begun to explore the online option to derive benefit from the Sebi?s new norm on direct online investments. The fund houses have started floating a separate online trading platform for the investors to buy or sell in the various schemes. Retail investors can save 1 or 2% in entry loads while buying online in the existing or new schemes.
It may be mentioned here that Sebi unveiled new guidelines in December 2007 according to which an asset management company (AMC) will not charge any entry load on the direct investments in the open-ended funds. The direct investment include investments made online. These guidelines have come into force since January 4.
Fidelity India is one of the first AMC to take advantage of this new guideline and launched Fidelity Online, which will help investors learn and plan their investments in Fidelity funds.
Commenting on the new initiative Ashu Suyash, country head and managing director, Fidelity Fund Management, said that the online platfor m will be investor-friendly. They will be able to view and transact under one single ID by linking all folios. The online platform will have payment gateway with 14 banks for lumpsum investments and 10 banks for systematic investment plan (SIP) investments for a direct debit facility, she said.
Recently, Bonanza Portfolio Ltd, a leading broking company has launched online MF investment platform for all its customers.
According to market sources, another major player, UTI Mutual Fund is also working on similar platform which will enable investors to invest online apart from imparting market education to retail investors. Other fund houses, ICICI Prudential MF and Reliance MF are also working to strengthen their online platforms for their customers.