Tomorrow, on September 23, a new Mutual Fund Central (MFC) platform will be launched to ease the challenges related to mutual fund investments. In the present day, a large number of investors are moving forwards towards mutual funds and SIPs, rather than traditional FD. Keeping them in mind, the Mutual Fund (MF) industry is going to launch the MFC. Different fund houses follow different rules and procedures for investors for a mutual fund. The young population of India and digitally sound people find it easy to invest in mutual funds online. But some people shy away from this opportunity, although they are interested. As of now, any change in the bank mandate or transmission of units follows different processes for different fund houses. But the new MFC will help investors to overcome the situation. Accepting the orders by the Securities and Exchange Board of India (SEBI), the MF industry is going to launch the new platform.
Easy access through MFC
In the MFC, an investor will not require to open a new account, rather the Permanent Account Number (PAN) and mobile number linking will automatically fetch all the investment details - across a statement of account format and Demat in a consolidated list. In a Common Account Statement (CAS) the investor can check all the mutual fund investments. In case of any investment, the PAN details, mobile number, and KYC are mandatory, and the MFC will derive the information from there to make the investment procedures easy. In the case of other online portals, the investor is needed to open a new account and fill up forms from the very first step.
In the first phase of MFC, the platform can be utilized to make non-financial transactions on the website, CAS, and unclaimed dividends. And in the second phase, the MFC will launch a mobile app, and in the third phase, through the mobile app, an investor can buy and sell mutual funds. For the first phase, the non-financial transaction will mean changing bank mandates, update on of mobile numbers, etc., which are not always possible on other platforms.
On the other hand, an investor can also register complaints or initiate a service request with any fund house on MFC. The same platform will also fetch all the previous complaints to give a consolidated picture of complaints filed with SEBI and other fund houses.