What is MF Utility?
The Association of Mutual Funds in India (AMFI) has started a single-window Platform, which acts as a “Transaction Aggregation Portal” through which a Mutual Fund customer is enabled to transact in multiple schemes across Mutual Funds using a single form/payment. It’s a “Shared Services” initiated by AMFI subsidiary MF Utility India Pvt. Ltd.
MF Utility (MFU) is a browser-based application that connects investors to registrars and transfer agent (RTA), banks, fund houses, payment gateway and know your customer (KYC), or KYC registration agencies (KRA).
MF Utility (MFU) is operated by MF Utility India Private Limited (MFUI) which is equally owned by participating AMC’s.
What is CAN?
Common Account Number is an industry level Folio allotted by MF Utility to an Investor. It is the combination comprising of the following,
- Number of Investors – i.e., 1 or 2 or 3.
- Order of holding – i.e., No of holders.
- Mode of holding – i.e., Single, Joint and Anyone or Survivor.
- Social Tax Status – i.e., Individual, Company, Non-Resident, etc.
What are the different transactions enabled through MF Utility?
- Common Account Number (CAN) registration for Investors.
- Submission of documents to KRAs for KYC Registration for those investors who are seeking CAN creation.
- Commercial Transactions like Purchases, Redemptions and Switches.
- Registration of Systematic Transaction Plan (SIP), Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP).
- Non-commercial transactions (NCT) like Bank Account changes, facilitating change of address through KRA’s etc. based on duly signed written requests from the investors.
What are the features of MF Utility?
MF Utility (MFU) provides a whole lot of features to the Mutual Fund customers like:-
- Provides Common Account Number (CAN) facility to Investors.
- Provides standardization of forms, processes and MIS across the industry.
- Provides multiple modes of access and transaction submission options.
- Provides broad and neutral Points of Service (POS) footprint for enhanced coverage.
- Enables transactions through a common transaction form.
- Enables single payment for multiple scheme investments across various Mutual Funds.
- Provides CAN based consolidated view of investments across the industry.
- Provides industry level alerts, triggers, reminders etc.
- Provides a centralized complaint management and tracking system.
MF Utility (MFU) is an innovative initiative of the Indian Mutual Fund Industry that brings significant benefits to all stakeholders, i.e., Investors, Distributors, Registered Investment Advisors (RIA’s) and Asset Management Companies, by leveraging technology, MFU has brought many conveniences to the investors and distributors /RIA’s and allowed Mutual Funds to significantly enhance their reach and presence in the country to further the goals of retail penetration. MFU has helped remove duplicities in the system and reduce the inherent risks in the industry.