DHFL Pramerica is the third fund house to join MF Utility this calendar year. A few days ago, Mahindra Mutual Fund also joined the platform.
So far, 28 AMCs have signed up with the platform, including the top 15 fund houses in terms of assets under management (AUM).
With the addition of DHFL Pramerica, the AUM of the funds participating in MF Utility is over 96% of the industry assets.
In a press release, Suresh Soni, Managing Director & CEO, DHFL Pramerica said “Distributors are finding MFU as an easy and convenient system for them and their clients. All our distributors can now enjoy the paperless transaction facility called TransactEezz, ability to provide login facility to their customers through Distributor Initiated Login (DIL), and various other conveniences offered by MFU.”
Speaking about the transaction volumes, V. Ramesh, Managing Director & CEO, MF Utility, added, “Close to Rs2 lakh crore worth of mutual fund transactions are being put through MFU every month of which digital transactions account for 99.6%. In terms of number of transactions, digital transactions account for over 85%.”
MF Utilities claims that transaction of over Rs7.26 lakh crore was made through their platform last fiscal. As on March 2017, total AUM under MFU is over Rs57,000 crore, which is 5 times the AUM in March 2016. About 35% of the CAN holders are first time investors in mutual fund, the company said.
Most of the foreign fund houses are not signed up with MF Utility as they require a go-ahead from their sponsors. In addition, a few players find MF Utility expensive. A senior official from a private fund house said that AMCs have to shell out a yearly fee of Rs5 lakh apart from transaction fee, which is over and above the R&T charges.
