The Association of Mutual Funds in India (AMFI) has initiated a study to form a common online platform which would facilitate investors and distributors in mutual fund transactions, A.P. Kurian, Chairman, AMFI, said here on Saturday.
The association is also looking to simplify the process of application for different mutual funds by introducing a common application form for all asset management companies, he said. Talking to reporters on the sidelines of a Mutual Fund Summit organised by the Indian Chamber of Commerce, Kurian said: “A committee of seven-eight members is currently exploring the formation of an industry-wide common online platform which would help in buying and selling of all types of mutual funds available in the market.”
The new system would take a few months to be implemented, he said. In response to a question whether the mutual fund brokers would become redundant in such an arrangement Kurian said the role of brokers would still be essential in providing investment advisory services.
Application forms
In regards to the introduction of a standardised application form across all mutual funds he said the investors currently faced a lot of complication in filling up forms of varied formats for different funds and the new system would simplify the process.
A committee formed by AMFI is currently looking into the matter. The application forms should also categorically mention the amounts of commission to be paid for different services, he said, adding, “This would lead to a more transparent and open way of commissioning.”
AMFI has recently submitted a proposal to the Security and Exchange Board of India to introduce variable pricing of distribution. This would ensure that the investors also had a role in deciding the commissions depending upon the service availed by them, he added.
The association is also looking to simplify the process of application for different mutual funds by introducing a common application form for all asset management companies, he said. Talking to reporters on the sidelines of a Mutual Fund Summit organised by the Indian Chamber of Commerce, Kurian said: “A committee of seven-eight members is currently exploring the formation of an industry-wide common online platform which would help in buying and selling of all types of mutual funds available in the market.”
The new system would take a few months to be implemented, he said. In response to a question whether the mutual fund brokers would become redundant in such an arrangement Kurian said the role of brokers would still be essential in providing investment advisory services.
Application forms
In regards to the introduction of a standardised application form across all mutual funds he said the investors currently faced a lot of complication in filling up forms of varied formats for different funds and the new system would simplify the process.
A committee formed by AMFI is currently looking into the matter. The application forms should also categorically mention the amounts of commission to be paid for different services, he said, adding, “This would lead to a more transparent and open way of commissioning.”
AMFI has recently submitted a proposal to the Security and Exchange Board of India to introduce variable pricing of distribution. This would ensure that the investors also had a role in deciding the commissions depending upon the service availed by them, he added.
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