The AMFI MF Utility committee has recently put a proposal to make the platform free for distributors and investors.
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 transactions.
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.
