What is MF Central? How will it make the life of investors easier?

Following the directive of the Securities and Exchange Board of India, the country’s two largest registrar and transfer agents, CAMS and KFintech, came together to set up the MF Central. The first phase of MF Central went live on September 23 and the platform will become fully functional by the year-end.

Investors can sign up using their PAN and mobile number. The first phase covers non-financial transactions, allowing investors to get a consolidated portfolio view in real-time, place service requests like change of phone number or bank account, update nominee details, download consolidated account statements (CAS), and view unclaimed payouts. Investors can also track all their service requests at one place.

The second phase will see the launch of a mobile app this month. The third and final phase will let investors buy, sell and switch mutual funds.

MF Central will also enable integration with ecosystem partners for several value added services. According to CAMS Managing Director Anuj Kumar, the platform will simplify mutual fund services and reduce turnaround time for investors. 

However, industry players have questioned the need for a new interoperable platform when three similar dashboards are already in existence providing similar services. Investment platform Kuvera’s CEO Gaurav Rastogi had in July said it is not clear why SEBI has mandated another such platform.

The National Stock Exchange’s Mutual Fund Service System, BSE’s Star MF and MF Utilities India, which is sponsored by the mutual fund industry, allow investors to make financial and non-financial transactions.

But MF Central promotes ease by requiring just the PAN and mobile number to see your investments. It remains to be seen how the new platform takes shape and whether it is as user-friendly as the current options.