The clean-up in the mutual fund industry has just added another investor-friendly feature. The stress and pain of filling up application forms for investing in various mutual fund schemes would soon be a thing of the past. Coming soon will be a one-stop-shop where investors can make their investments.
If things go right, from next year, one would have a common platform which would provide easy access to investors and distributors, aside from saving on cost and ensuring access to a wider clientele.
The Association of Mutual Funds of India (AMFI), from March 2010, says that filling up these forms would be just a click away as an easy-to-use website is on the anvil. AMFI’s advisory committee has chalked out a proposal of formulating such a platform which would reduce cost, lessen time taken and increase efficiency in doing so reports Business Standard.
According to AMFI, there would be a designated agency in which investors would have to register after which the former would be provided with special identification numbers. This may either be their password and personal account number. Therefore, anybody who wants to get some information or even do a transaction which might also include finding the value of all their mutual fund investments can be done just by logging on to the website.
Top AMFI officials maintained that the move is being initiated in order to increase the reach of the investors and cater to a larger audience.
A few days ago, the Pension Fund Regulatory and Development Authority (PFRDA) too has come up with a similar platform where one can register for the New Pension Scheme (NPS). Once an investor is registered, he is given a Permanent Retirement Account Number which allows the tracking of investments, whose records are centrally maintained.
As of now, while submitting applications, investors have to go to mutual fund offices or distributors or even franchisees. The applications are then forwarded to the registrar and transfer agents for processing. It is after that, that the account statements are being sent.