MF Central, a common transaction platform for mutual fund (MF) investors, has had a modest start. The platform, jointly developed by the two registrars and transfer agents (RTAs) in India, KFintech and CAMS, has recorded only 350,000 registrations in the first year, shows data shared by KFintech.
The registrations on the platform is just one per cent of the 34 million unique MF investors in India.
KFintech cited phased rollout of features and low digital penetration as the reasons for the low user base.
"Given the phased rollout of the platform, we did not expect it to have a huge user base from the get go. We also have to be cognisant of the fact that it will take a little time for investors to adapt to such initiatives given that digital penetration is still on the lower side, with a lot if investors still preferring old school methods," said Sreekanth Nadella, MD and CEO, KFintech.
The platform, which was launched in September 2021, initially offered only non-financial transactions like change in bank account details, email address, mobile number and to update nomination details. Financial transactions like investing in schemes and redeeming MF holdings went live in June 2022. In the next phase, the RTAs plan to open the platform for MF distributors and investment advisors, who have been demanding a common transaction platform for some years now.
According to KFintech, around 10,000 investors login to the platform every day and they have downloaded over 180,000 common account statements (CAS) in the first year i.e., September 2021 to September 2022. Commercial transactions have topped 100,000 despite the service being added only a few months ago, according to the RTA.
MF Central was envisaged as a common MF platform where investors can transact across mutual fund holdings even if the fund houses are associated with different RTAs. The platform was developed by the RTAs in association with the Association of Mutual Funds in India (Amfi) on the Securities and Exchange Board of India's directions.
Yet to pick up
Launched on September 23, 2021
Developed by KFintech and CAMS
Platform offers both financial and non-financial transactions
So far 180,000 MF account statements downloaded
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