Distributors have been increasingly using online transaction platforms like BSE Star MF, NSE NMFII and MF Utilities, according to their own data.
BSE Star MF claims that, in absolute terms, it is the largest distribution platform for mutual funds in India. The value of transaction in BSE Star MF increased from Rs44,000 crore in FY 15-16 to Rs75,000 crore in FY 16-17, a growth of 70%. Currently, there are 3,400 members registered with the platform of which 1,340 member are active.
The value of transactions through NSE NMF II went up by 117% to Rs16,563 crore in FY 2016-17 from 7,624 crore in FY 2015-16. NSE NMF II has 2,200 members of which over 1,550 are active.
MF Utilities claims that transaction of over Rs7.26 lakh was made through their platform last fiscal. However, the company did not disclose the break-up of this transaction between distributors and investors.
While MF Utility facilitates transaction facility to both investors and distributors, BSE Star MF II and NSE NMF II give such facilities to the mutual fund distributors.
In a press release, MF Utilities said, “As on March 2017, total AUM under MFU is over Rs57,000 crore which has increased 5 times the AUM as on March 2016. About 35% of the CAN holders are first time investors in mutual fund.” V Ramesh, CEO MF Utilities, told Cafemutual that 1,800 distributors are actively using his platform.
Experts attribute increasing popularity of online transactional platforms to the introduction of its mobile application and integration of Application Program Interface (API).
“The mobile application has helped advisors execute transactions on the go. In addition, these platforms provide API through which distributors can place an order on behalf of their clients. Also, distributors can link this transaction facility to their websites through which their clients will able to do transactions on their own,” said a Mumbai based distributor, who uses both BSE Star MF and NSE NMFII.
“The easy and convenient transacting options like TransactEezz, Distributor Initiated Login (DIL) and the integration options (API & White Labelling) helped in significant increase in digital transactions during the financial year. About 85% of the transactions in MFU were through digital means, whereas the previous year it was about 33%,” MF Utilities stated.