The AMFI MF Utility committee has
recently put a proposal to make the platform free for distributors and
The committee has suggested that there should be no
transaction cost for distributors or investors. The committee has proposed that
the operational costs should be borne by the AMCs depending on their folios,
AUM and the number of transactions. This means that smaller AMCs will have to
shell out less money compared to their bigger counterparts who record higher
MF Utility, which will be registered as a company, will
require an upfront development cost which could run into crores.
Initially, the platform will allow investors and
distributors to invest across schemes of all AMCs. In the second phase, it is
proposed to allow switches from one AMC to another. The platform will connect
with all five R&Ts.
“The business will increase if it brings convenience to investors,”
says a senior official from the industry.
V Ramesh, Deputy CEO of AMFI had recently made a
presentation on MF Utility to a gathering of top distributors. He told
Cafemutual on the sidelines of a
recently held event that the response from distributors has been great and they
are keenly looking forward to the launch.