MF Utility: Investor FAQs

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.
mf-utility-2
Image courtesy: MF Utility
 
 MFU provides a 24x7 universal online access across Mutual Funds to investors to access NAV and Scheme related information and content. Through MFU, investors will be able to have a consolidated view of their holdings and transactions at industry level. MFU will also provide value added services like Common Account Statement (CAS), Alerts, Triggers, Reminders etc., to investors.
mf-utility-3
Image Courtesy: MF Utility
 

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.

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.

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37 thoughts on “MF Utility: Investor FAQs

  1. Anonymous

    Dear Pattu Sir,

    thanks for the post, could you please clarify on the following

    1.do we need to pay any subscription fee for availing this facility or AMC will be taking care of that,

    2.do we get capital gain statement (common) from all AMC

    3.Which AMC will not be participating with this MFU (like Franklin now does not add to CAMS or Karvy)

    Thanks in advance...

    Reply
  2. Anonymous

    Dear Pattu Sir,

    thanks for the post, could you please clarify on the following

    1.do we need to pay any subscription fee for availing this facility or AMC will be taking care of that,

    2.do we get capital gain statement (common) from all AMC

    3.Which AMC will not be participating with this MFU (like Franklin now does not add to CAMS or Karvy)

    Thanks in advance...

    Reply
  3. Balwant Jain

    Thanks Mr. Pattu. This is indeed good news ,specially the facility to apply in direct schemes. One query
    1. Can one tranfer the existing holdings to MFU? It will rally a boon as one can do away with multiple accounts,logins and passwords.
    Balwant

    Reply
    1. Meena Shivram

      I also have the same query. I currently have 10 folios across 5 AMCs. Reason I am hesitating to go for direct option is the cumbersome process of having to manage 10 login Ids. If we can transfer our existing holdings to MFU, it will be a boon for existing investors like me.

      Reply
  4. Balwant Jain

    Thanks Mr. Pattu. This is indeed good news ,specially the facility to apply in direct schemes. One query
    1. Can one tranfer the existing holdings to MFU? It will rally a boon as one can do away with multiple accounts,logins and passwords.
    Balwant

    Reply
    1. Meena Shivram

      I also have the same query. I currently have 10 folios across 5 AMCs. Reason I am hesitating to go for direct option is the cumbersome process of having to manage 10 login Ids. If we can transfer our existing holdings to MFU, it will be a boon for existing investors like me.

      Reply
  5. Fasil

    So this is really a good news for Direct Investors. Will this be a threat to MF umbrella providers like (fundsindia, fundsupermart and the likes)

    Reply
  6. Fasil

    So this is really a good news for Direct Investors. Will this be a threat to MF umbrella providers like (fundsindia, fundsupermart and the likes)

    Reply
  7. sundararajan

    Thanks it is good to know this. Yes, I have some questions which are already asked. Fee , if no fee, who is going to pay for the service? How funds are transferred from MF to banks or vice versa? Are there any charges? I assume once funds are purchased, the investor can directly deal with MFs - if required. This is very important if this company goes down.
    One big question never answered or people in India never aware of is, identity theft. We all want on line access for ease of access, but what are the protections of our identify like PAN etc when we use 3rd partly like this? I was offered a similar service by fundsindia or some one like this, but no direct option and they charge a service whenever you buy or redeem mfs. I don't like both and I am hesitant to deal with 3rd parties, rather deal with more logons with MF companies. I am talking about identity theft not only regarding this company, now we are forced to provide all our personal information to every one, really not sure how safe is that. At least some banks / fund house need authentication using unique number sent to mobile number for transactions.

    Reply
  8. sundararajan

    Thanks it is good to know this. Yes, I have some questions which are already asked. Fee , if no fee, who is going to pay for the service? How funds are transferred from MF to banks or vice versa? Are there any charges? I assume once funds are purchased, the investor can directly deal with MFs - if required. This is very important if this company goes down.
    One big question never answered or people in India never aware of is, identity theft. We all want on line access for ease of access, but what are the protections of our identify like PAN etc when we use 3rd partly like this? I was offered a similar service by fundsindia or some one like this, but no direct option and they charge a service whenever you buy or redeem mfs. I don't like both and I am hesitant to deal with 3rd parties, rather deal with more logons with MF companies. I am talking about identity theft not only regarding this company, now we are forced to provide all our personal information to every one, really not sure how safe is that. At least some banks / fund house need authentication using unique number sent to mobile number for transactions.

    Reply
  9. JD

    Great to hear this and It is like dream come true. but does it not sound like "ALL EGG IN ONE BASKET" situation ?
    After all who will be regulating authority for web? some time ago, One website "Moneysight" started who provide online transaction to investors as basket investing in different amc and suddenly it stopped due to their internal reason. What are the chances of shut down of this(mfutility) services in long or near future?

    If we adopt this route, it will be same like we are investing in DIRECT PLAN OF AMC? ( expense )

    and yes , how it will be supportive with different folios, bank , holding pattern?

    I will be happy if it is true but it looks too good to be true.

    thanks Guru for sharing,

    nJoy

    Reply
    1. pattu

      expense ratios of funds will change because of this. If the facility shuts down, we simply revert back to the user account of the amc. I dont think that will happen.

      Reply
  10. JD

    Great to hear this and It is like dream come true. but does it not sound like "ALL EGG IN ONE BASKET" situation ?
    After all who will be regulating authority for web? some time ago, One website "Moneysight" started who provide online transaction to investors as basket investing in different amc and suddenly it stopped due to their internal reason. What are the chances of shut down of this(mfutility) services in long or near future?

    If we adopt this route, it will be same like we are investing in DIRECT PLAN OF AMC? ( expense )

    and yes , how it will be supportive with different folios, bank , holding pattern?

    I will be happy if it is true but it looks too good to be true.

    thanks Guru for sharing,

    nJoy

    Reply
    1. pattu

      expense ratios of funds will change because of this. If the facility shuts down, we simply revert back to the user account of the amc. I dont think that will happen.

      Reply
      1. JD

        Dear,
        Does this mean , it will be no longer a direct fund? If expense ratio going to change means same what it is called regular fund. Well In short , we will have 3 category for same fund investment ( i presume ). Direct , Direct with MFU and Regular and all will have different expense ratio. If that is true, i will still prefer to stick with the AMC .

        Well, may be this is only my horrific presumption 🙂

        Regards

        Reply
  11. Narendra

    Write now they are only creating CAN. For userid and password and online transaction it will take 6 to 8 months. I created CAN. This is what the response for userid/password query

    Dear Sir,

    We thank you for writing to us.

    Please be informed that the transaction facility using a Common Transaction Form (CTF) will be available from 4th March 2015. This Common Account Number (CAN) allotted, will enable you to transact in multiple schemes of various Mutual Funds participating in MFU by submitting the physical CTF to your distributor / MFU Point of service (POS) location post 4th March 2015.

    Online transactions for investors will be initiated in Phase II which will be 4-6 months post launch of Phase I. Log-in id will be issued prior to the commencement of online transactions.

    For any further clarification/ information, please feel free to call us 022 39526363 or write to us at clientservices@mfuindia.com.

    Thanks & Best Regards,

    Team MFU
    MF Utilities India Pvt. Ltd.
    103-105, 1st Floor Orion Business Park,
    Ghodbunder Road, Kapurbawdi,
    Thane (West) - 400 607.
    Ph. 022 - 395 26363

    Reply
      1. CAN user

        I have CAN, but I can not do any online transaction, even they do not have any system/facility for online. If you want to buy MF using physical application then its ok else its CAN but you can`t.

        Reply

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