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The Association of Mutual Funds of India (Amfi) on Wednesday launched MF Utility, a single window for investment in multiple schemes. Here is all you need to know about the new online intiative by Amfi:
What is MF Utility?
What is MF Utility?
MF Utility (MFU) is a 'shared services' initiative by the mutual fund industry under the aegis of Association of Mutual Funds in India (Amfi). This is nothing but a 'transaction aggregation portal' through which a MF investor can transact in multiple schemes across fund houses using a single transaction.
How does it work?
It provides browser-based access to MF investors, with connectivity to Registrars and Transfer Agents (RTA), banks, AMCs, payment gateways and KYC registration agencies or KRAs.
For Distributors
What charges does a distributor have to pay?
MFU is free of cost facility for the distributors signing up with the utility. Distributors will have to fill up the sign-up form and submit it to MF Utility India of MFUI (Arm of Amfi) for a free registration. MFUI will provide login access to the distributor.
How will the existing folios/investments be migrated/linked to MF Utility?
MF Utility will not migrate the existing investments of the investors. However, upon creation of a Common Account Number (CAN), MFU will map the existing folios of the investors across fund houses to the CAN, based on the PAN and the holding pattern.
What would be the brokerage for transactions submitted through MF Utility?
Transactions submitted through MFU are forwarded to the respective AMC or its RTA for processing. There is no change in applicability of brokerage or its processing.
How confidential is the data submitted through MF Utility?
MFU will only accept and forward transactions to the respective AMC/RTA. No transaction data will be stored in MFU for beyond a certain period. Besides, MFU infrastructure has multi-layered security features with state-of-the-art security appliances.
For Investors
How does an investor gain access to MF Utility?
Investors will have to get themselves a Common Account Number (CAN) by submitting the CAN registration form at any MF Utilities India arm or a distributor signed-up with MFUI or a participating AMC branch. Investors, then will be provided login access to MF Utility where they can access the information across all MF investments.
How can investors change the bank mandate and other details in CAN?
Investors can submit changes to bank mandate and other details in CAN to MFU point of sale. Such requests will be appropriately processed by MFU and will be updated in all related folios.
Will an investor be able to get his/her KYC registration done through the MF Utility?
MFU will not enable standalone KYC registrations like KRA. However, MFU will facilitate KYC registration for investors along with creation of CAN.
Can KYC non-compliant investors get a CAN created?
KYC compliance is compulsary for CAN creation. If an investor is not KYC compliant, MFU will facilitate KYC registration.
What if an investor does not create a CAN?
Common Account Number (CAN) provides a lot of benefits/facilities to the investors and distributors. Without a CAN, these benefits will not be available.
Will the folio number be redundant after CAN creation?
Ideally CAN will be a single reference number for all your investments and transactions in the MF industry. However, if an investor has multiple folios for the same combination, within the same fund house, the folio number under which the transaction is required to be processed should be also be quoted while transacting.
Is CAN transferable?
No. It's not transferable. In case of eventualities like demise of one or more holders in the CAN, the surviving holders have to request for transmission with MF Utilities India.
