Majority of the top 15 fund houses have joined the platform.
Around 23 AMCs have signed up with the much awaited MF Utility platform, majority of them being the top 15 fund houses in terms of assets under management (AUM).
V Ramesh, Chief Executive Officer, MF Utility said, “22 fund houses have signed up for MF utility, one fund house has recently given its approval while other fund houses are likely to come on board very soon.”
Over 90% of industry’s assets is managed by the top 15 players.
Industry players expect more fund houses to come on board soon. Most of the foreign fund houses have not signed up with MF Utility as they require a go ahead from their sponsors. A national sales head of a foreign fund house said, “We want to be part of this platform; however, we have to take approval from our promoter.”
Each AMC is said to be shelling out Rs. 5 lakh to AMFI for MF Utility. Some fund houses have already disbursed this money to AMFI. The capital expenditure for this platform is said to be Rs. 5 crore. AMCs have to bear the costs of running the platform depending on their respective assets under management, number of transactions, etc.
Some key features of the MF Utility:
- A common account number will be allotted to an investor which can be used to log in and invest across all mutual funds
- An investor can invest in multiple schemes with a single cheque
- Distributors can get industry wide consolidated MIS
- Distributors can make data entry in the portal
- The portal will have five bank mandates for individual investors and seven for corporates
- Distributors will have access to account statement based on their ARN
- The portal will generate different types of alerts
· Distributors have to scan and upload the forms on the portal which they can submit to the R&T later. Time stamping will be done immediately once the forms are uploaded