The fast growing Indian economy offers immense potential for the Mutual Fund Industry. The experience of the developed world and other emerging markets has shown that the share of Mutual Fund investments to GDP / Savings has grown significantly over the years. This has been possible through a combination of various factors that include investor awareness, product innovation, robustness of distribution and quality of market infrastructure
India can be no different, if the above elements come together and a conducive environment is created. For the Government of India, financial inclusion is an objective of high priority. Therefore, market players should endeavor to help in achieving this national objective.
Keeping the above in view and looking at the current infrastructure with specific reference to Mutual Funds, Association of Mutual Funds in India (AMFI) has been taking various initiatives from time to time. One of the most ambitious initiatives has been to create an enabling infrastructure for Mutual Funds that is future ready, scalable, cost efficient, provides national & global reach and provides benefits to various stakeholders.
MF Utilities India Pvt Ltd (MFUI) is the Mutual Fund Industry’s “Shared Services” initiative formed by the Asset Management Companies (AMCs) of SEBI registered Mutual Funds under the aegis of AMFI, with an objective of investor empowerment, distributor / RIA convenience, consolidation of information to various agencies, operational efficiency for RTAs and benefits to AMCs, thereby benefitting all stakeholders in the industry. The prime objective of MFUI is to consolidate all “Transaction Requests” received by the industry from multiple sources and transmit it to the “Fulfiller” of the request (Transfer Agent), thereby bringing in operational efficiency by reducing multiplicity and duplication of activities. Towards achieving this objective, MFUI has developed the Portal, MF Utility (MFU), which operates as a “Transaction Aggregating System” for transactions in Mutual Funds.
MF Utility (MFU) is an innovative initiative of the Indian Mutual Fund Industry that brings significant benefits to all stakeholders, i.e. Investors, Distributors, RIAs and Asset Management Companies, by leveraging technology, MFU will bring many conveniences to the investors and distributors /RIAs and allow Mutual Funds to significantly enhance their reach and presence in the country to further the goals of retail penetration. MFU will also help remove duplicities in the system and reduce the inherent risks in the industry.
MFUI is equally owned by the AMCs of SEBI registered Mutual Funds in India.