The much awaited MF Utility (MFU) an transaction aggregating portal was launched by Securities and Exchange Board of India (Sebi) Chairman, UK Sinha on Wednesday. The platform will facilitate the investors with a Common Account Number (CAN) which will enable them to transact in multiple schemes of various fund houses participating in MFU through a single transaction and consolidated payment.
Essentially, MFU is a shared infrastructure of all asset management companies (AMCs) in India to reduce duplication and increase efficiency, thereby, reducing costs and provide customer convenience. It also automates many activities and creates a conducive environment to move from paper based transaction to digitised transactions.
The MF Utility portal currently has 25 AMCs which have signed up with MF Utility and the transaction facility will be opened from March 4, 2015. At the launch, the Sebi chairman said, “The mutual fund industry’s initiative, MF Utility platform, will help development of the industry in smaller towns, besides providing convenience and efficiency to all stakeholders.”
MFU offers 24/7 information access including Online Common Account Statement, Composite Portfolio information, Portfolio holding and scheme related information. It also offers industry level value added services like alerts, triggers, reminders etc., allowing investors to monitor and manage their investments more effectively. Sundeep Sikka, chairman of Association of Mutual Funds in India (Amfi) and CEO at Reliance AMC said, “Amfi initiated platform being one of its kind in the world, will help augment penetration and geographical reach, particularly in B-15 cities.”