Last Updated on January 6, 2016 at 3:20 pm
MF Utility is a web-based transaction portal through which investors can invest in direct mutual funds offered by 25 (as of now) fund houses. Mr. V Ramesh, Managing Director and CEO of MF Utility, answers some common questions investors ask about the facility.
This is the website of MF Utility: www.mfuindia.com
Extract from investor page:
MF Utility (MFU) is an innovative initiative from the Mutual Fund Industry which offers convenience and empowers the investors of Mutual Fund schemes. MFU facilitates the investors with a Common Account Number (CAN) which enables them to transact in multiple schemes of various Mutual Funds participating in MFU through a single transaction and consolidated payment.
Now to the FAQ. I have covered the basic, important questions in our minds. If you have more questions, I will request Mr. Ramesh to answer them. In any case, more details will soon be available on their site.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
1. Cafemutual recently reported that that the distributor leg of mfuindia will be operational from May. Now that SEBI has greenlighted it, can you please give us a tentative date when the facility will open for investors?
We are working out the date of launch. We will be launching very soon. We are looking to launch around March 2015. Date to be finalised yet.
2. What is the procedure of applying for CAN? How should new investors apply?
MFU will have “CAN Registration Form (CRF)” which the new investor should fill up and submit for creating the CAN. In case the investor has not completed the KYC procedure, the investor shall submit the KYC form as well.
3. Once the Common Account Number (CAN) is allotted, will I be able to consolidate all my existing holdings, buy and sell units freely from the funds of all participating agencies via mfuindia like I do from individual AMC portal?
CAN is issued for an investor combination. Once CAN is issued, all the folios held in the participating agencies will be mapped to the CAN. Subsequently, the investor will be able to transact in all those folios quoting the CAN that is issued. Further, in case the investor is looking to invest in a new MF, they will be able to simply transact instead of opening a folio in that Mutual Fund. When the investor transaction is enabled, the investor will be able to transact in all the participating AMCs.
4. Will I be able to switch holdings between funds of the same AMC and also between different AMCS – that is from fund A of amc X to fund B of amc Y without having to redeem and reinvest?
Switches between funds of the same AMC will be allowed as it is being allowed today. Switch from one AMC to another is not permitted.
~~~~~~~~~~~~~~~~~~~
Do join me in thanking Mr. Ramesh for his time and effort in answering these questions. Please share this post to increase awareness about this facility.
My understanding now is, once the MF Utility opens shop for investors,
1. We need to apply for a CAN (details awaited)
2. Wait for all folios to be consolidated with the CAN and transaction rights to be enabled
3. One can then conveniently invest in direct mutual funds and switch units in regular-option funds to direct option funds within the same AMC.
4. I think inter-amc switching will never be allowed.
5. I think it is pretty decent for a start. If more and more investors start using this facility, hopefully, more features will be added.
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)