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You are here: Home / Mutual Funds / MF Utility Online platform for Mutual Fund Investments
MF Utility Online platform for Mutual Fund

Investments
Last updated: February 23, 2015 | by Sreekanth Reddy 34 Comments
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SEBI (Securities Exchange Board of India) has launched the much awaited MF Utility (MFU) on
21st Jan, 2015. Mutual Fund Utility is an AMFI (Association of Mutual Funds of India) initiated
online mutual fund investment platform.
Before knowing more about MF Utility Online

facility, let us understand different ways of
investing in Mutual Funds and Direct Vs Regular
plans of mutual fund schemes.
What are the different ways of investing in
SIP Investment
Plans
Invest as low as Rs
1000/month in Top
Performing SIPs. Free
Mutual Funds?
How to invest in mutual funds? If you are new to

mutual fund investments and want to start
investing, you need to know the various ways of investing in MFs.
Currently there are many ways through which you can invest in Mutual Funds (MFs), these are;
Individual agents or Investment Advisors
Banks
http://www.relakhs.com/mf-utility-mutual-fund-online-direct-amfi/
25-03-2016
Page 2 of 20
CAMS / Karvy
Demat Accounts (Ex ICICI Direct)
Online Distributor Platforms (Ex Fundsindia.com)
Mutual Fund house Websites
Regular Vs Direct Mutual Fund Plans
If you have been investing in mutual funds, you might have observed that there are two types
of plans of the same MF scheme are available now. One is a Regular Plan and second one is
Direct Plan.
Around two years back SEBI introduced Direct Plans. Now, AMCs (Asset Management
Companies) provide you with these two options for each and every mutual fund scheme. (Some
AMCs offer Direct plans only )

The main difference between Regular plans and direct plans is the Expense Ratio. What is
Expense ratio? Expense ratio shows the amount that mutual funds charge for managing the
investors money. A Regular Mutual fund scheme has higher expense ratio when compared to a
Direct MF plan. The main reason for this is, there is no intermediary involved between you and
AMC (Asset Management Company).
For example The expense ratio of HDFC Top 200 Fund Direct Plan is 1.65% and the expense
ratio of HDFC Top 200 Regular plan is 2.23%.
You can observe that the NAVs (Net Asset Values) of Mutual Fund Direct Plans are slightly
higher than the NAVs of Regular plans. So, over a long investment period you can certainly
benefit from investing in Direct MF schemes.
For example The NAV of HDFC Top 200 Fund Direct Plan (Growth) is Rs 359.72(as on 20-Feb2015) and the NAV of HDFC Top 200 Regular plan is Rs 355.32 .
The difference between accumulated corpus of a Direct Plan and a Regular Standard Plan will
be significant if your time horizon is say more than 15 years. (Kindly note that investment
portfolios of both regular and direct plans of a scheme are same)

How to invest in Mutual Fund Direct Plans?
25-03-2016
Page 3 of 20
If you are manually filling MF investment form (application form), you have to select the option
called DIRECT. You can also invest in Direct plans online (some MF houses provide this
facility) by visiting the respective AMC websites.
The main drawback of this is, if you have to invest in 5 different mutual fund schemes offered
by multiple mutual fund houses, you have to either visit respective AMC offices (offline) or visit
their websites. If there is a change in your KYC details (like change of address or bank account
number etc.,) then you need to inform all the AMCs. So, investing in Direct Plans is somewhat a
tedious job as of today.
This is set to change
What is MF Utility (MFU)?

MF Utility is a shared infrastructure of all AMCs in India to provide online investment facility to
mutual fund investors. MFU is sponsored and funded by the mutual fund houses.
The Association of Mutual Funds of Indias (AMFI) MF Utility is a single-window online platform
for investment in MF schemes across fund houses. It will work as a web-based transaction
aggregator.
MF Utility (MFU) is a browser-based application that connects investors to registrars and
transfer agent (RTA), bank, fund house, payment gateway KYC registration agencies (KRAs).
Investors can invest in Direct Plans and Regular Plans through MF utility. This platform will
definitely help investors of Direct MF Schemes. The MF Utility portal currently has 25 AMCs
which have signed up with MF Utility. Distributors and Investors can register with Mutual Fund
Utility.
How to Register with Mutual Fund Utility?
To access MF Utility, you need to get CAN (Common Account Number) activated. The
subscription to MF Utility is free of cost. Download the CAN registration form and submit the
completed form at MF Utility POS (List of MFU Points of Service). This is a one-time procedure.
If you are not KYC compliant then MF Utilties India will facilitate the KYC registration for
investors along with the creation of CAN. (Download KYC registration forms)
25-03-2016
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As of now, the online transaction facility is not yet activated. The investors may have to wait for
few more months to start investing in Direct Plans online. But, the registrations are open and
you can go ahead and register yourself as an investor with MFU.
Important points, FAQs & Benefits of MF Utility online facility :
Can I Invest in all Mutual Fund Direct Plans? As of now, 25 AMCs are participating in MF
Utilitiy platform. You can invest in all the schemes offered by these mutual fund houses.
You can choose to invest either in regular or direct plans.
You can submit Common Transaction Form to transact in multiple schemes at a time,
across Mutual Funds.
Can I transfer my existing Mutual Funds to MFU? Once your CAN is activated, all your
existing Mutual fund schemes (Direct / Regular plans) of the participating AMCs will be
mapped to your CAN account. You can view the details of your MF investments at one
place. You can switch from Regular plan of XYZ Mutual Fund Company to Direct plan of
same XYZ mutual Fund company. But switches between two different mutual fund houses
are not allowed. (Kindly note that MF switch may attract exit load and Capital gains taxes.
You can switch equity funds units which are more than one year old, to avoid Capital
gains tax)
Can I view consolidated statement of all my investments? Consolidated view of
investments across the industry using your CAN is possible.
Will I get alerts or reminders? Alerts, triggers and reminders for transactions, SIP expiry
etc. will be provided.
Centralized complaint management and tracking system to login complaints across the
industry is provided.
Investor can submit changes to Bank Mandate and other details in CAN to MFU POS, and
such requests will be appropriately processed in MFU and will be updated in all related
folios. Thus change of CAN level details, such as Bank Mandate, Nominees, etc., submitted
25-03-2016
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through MFU will reflect in all mapped folios with different AMCs and there is no need for
submission of such requests separately with different AMCs.
CAN will facilitate registration of one debit Bank Mandate for multiple SIP registrations
using a Common Transaction Form (CTF) in schemes across Mutual Funds participating in
MFU.
MFU enrollment is free for both distributors and investors. No charges are applicable.
How to transact through MF Utility? Online transactions facility is not yet enabled. So,
as of now you can submit a physical transaction form (from 4th March, 2015) at a MF POS
(or) through a distributor who is registered with MF Utilities India Pvt Ltd (MFUI). Once
the online facility is made available then you can execute all your MF transactions
paperless (online).
24/7 online access across mutual funds to access NAV and MF Scheme related
information.
So, MF Utility is a centralized mutual fund distribution
platform, which will facilitate transactions by
customers, distributors and financial advisers in
Franklin Templeton
MF
Range of Equity funds which

Suits Your Investment Needs.
platform. This initiative will help development of the MF Invest Now!
schemes offered by various fund houses on a unified
industry in smaller towns, besides providing

convenience and efficiency to all stakeholders.
( Image courtesy of Stuart Miles at
FreeDigitalPhotos.net ) (You may like reading my article on Top 15 Best Equity Mutual Funds.)
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Fund Funds
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MFUtility Invest in Direct Plans of Mutual Fund Schemes online.
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25-03-2016
Page 6 of 20
Sreekanth Reddy
Sreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner
(CFP), engaged in blogging, financial counseling & property consultancy for the last 6 years
through his firm ReLakhs Financial Services . He is not associated with any Financial product /
service provider. The main aim of his blog is to "help investors take informed financial decisions."
Connect With Me :
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Comments
Ishan says
March 1, 2016 at 12:27 pm
I have purchased mutual funds through my Demat Account which has two different MF
Channel Codes i.e. NSE & RTA.
My question is as below :
1. What would be difference between NSE / RTA?
2. Does RTA means I am purchasing direct plan of Mutual Fund house?
Consulted Demat Account Helpline but still not getting clear idea. If you can explain in
detail..
Thanks.
Reply
Sreekanth Reddy says

March 1, 2016 at 7:14 pm
Dear Ishan..May I know your dmat account is provided by which service provider? I
believe that you are investing in Regular plans.
Reply
Dev Arora says

February 16, 2016 at 3:53 pm
Dear Sir,
I want to buy 9 SIP of Rs. 1000 each for 20 years. Please guide me how i should move further
25-03-2016
Page 7 of 20
to buy Direct plan or how to start it online, so that my cost will be less and i get higher
returns. Kindly suggest me a platform from where i can buy different type of SIP from
different companies and I can view all of them with a single login.
Thanks in Advance
Reply

February 17, 2016 at 11:30 am
Dear Dev,
You can open your login account with MFU. Kindly refer to the points given in the
above article. Suggest you not to invest in too many funds, not advisable.
Also, read: Direct plans of Mutual funds & their benefits.
Reply
Gautam subudhi says

November 11, 2015 at 1:23 pm
Hi Srikant, After introduction of MF utility, what are business proposition or viability of
online portals like fun*********mart or myfirst*****.com?
In other words what, how these online MF portals will survive? as compared to online MF,
what MF utility offers additionally? please help understanding.
Reply

November 12, 2015 at 12:36 pm
Dear Gautam,
If MFUtility services are marketed well, it may surely take way business of some of
the top online portals. Investors from top tier cities who prefer to invest in Direct
Plans of MFs may prefer to invest through mf utility.
But it may not take away the entire market share as some of the online platforms are
of top class, provide good customer service, lot of value added features and also
wider choice (multiple product options not just MF). It is always good to have more
options as an investor.
Reply
25-03-2016
Page 8 of 20
SASHANT says
September 23, 2015 at 11:09 am
Hi,
Kudos for the excellent qualitative handholding provided.
I wish to start investing in ELSS this FY 15-16.
Decided on Franklin Tax Shield Direct plan.
My Query:
(1) Since primary objective it is avail Tax Benefits coupled with Equity Returns, DO YOU
Advise the Dividend Option so that atleast part of the Money is Received Bank by me Tax
Free?
(2) Any other ELSS scheme suggested or This one alone is good enough.
Best wishes,
SASHANT
Reply
Dhruv says
September 11, 2015 at 2:38 pm
Hello,
I want to start investing in MFs.
Can I do that with this utility directly?
Please give me the steps.
PS: I have KYC done with my demat acc provider
Reply
Dr Akhil Gupta says

September 6, 2015 at 10:09 pm
Your article is very good and thanks for sharing information.
I recently started investing in MF with very little knowledge. I have invested in 6 MF in
25-03-2016
Page 9 of 20
regular plans through MF agent.

Now i want to know how to go for online transactions and how to convert all my regular
plans into Direct plans.
My Investment plans are:
1. Axis long term equity fund SIP
2. HDFC Mid cap Opportunities Fund-G SIP
3. Birla Sun Life Banking & Financial Sevices Fund-G SIP
4. ICICI Pru Value Discovery Fund-Regular One time investment
5. Birla Sun Life MNC regular One time investment
6. Motilal Oswal Most Focused Mid Cap 30 Fund Regular plan growth- One time
investment
Please provide information:
1. Which plan is not so promising, so that i can invest in other plan.
2. Please give me websites to register for direct investment and also have scope for
withdraw of money in case of emergency.
Regards A. Gupta
Reply

September 8, 2015 at 10:10 am
Dear Akhil,
Switching from Regular to Direct plans will be considered as redemptions, so Exit
loads (if any) may be applicable as these are treated as fresh investments.
You can visit respective fund house websites and invest in Direct plans. You have to
submit Conversion Form available with respective AMCs.
Be aware of tax implications too..
Kindly go through below articles;
Top Equity funds
Top ELSS funds
Top Balanced funds
Mutual fund portfolio overlap tools.
Reply
SP Iyengar says
25-03-2016
Page 10 of 20
August 24, 2015 at 9:39 pm

Thanks for the good article. .I have come to know about MF Utility only through you. Good
service. Keep it up.
Reply

August 24, 2015 at 10:16 pm
Keep Visiting
Reply
Naveen says
July 31, 2015 at 3:49 pm
I started investing in mutual fund from this month only.. Just I bought axis long term equity
fund elss for 1000 rs directly from axis mutual fund online site in..I selected option is MF
direct growth.. My doubt is the way I did is it same as mutual fund utility what is can is it
different How can I show this investment for tax automatically will it reflect in my pan
Reply

July 31, 2015 at 8:04 pm
Dear Naveen,
Good to know that you have chosen to invest DIRECTLY.
You will get a MF statement from Axis and that can be your investment proof to
claim tax deduction under section 80c.
Reply
Sanjay says
July 17, 2015 at 10:39 am
Hi Sreekanth,
25-03-2016
Page 11 of 20
I am a NRI from USA since few years. When I was working in India I had invested in mutual
funds. But now due to FATCA and other regulations I am having touch time getting any
brokerage house / online portals / AMC which accepts investments from US NRIs. Are you
aware of any Fund houses or online portals which allow US NRIs to invest? Do you have any
other suggestions for me on investment in Indian mutual funds?
Thanks,
Sanjay
Reply

July 17, 2015 at 10:26 pm
Dear Sanjay,
Kindly check out this link..click here. Contact them.
Reply
Arun says
May 24, 2015 at 9:14 am
Hi sir,
I started investing on mf on April 2015 . I came to know about mf utilities only on may. I got
my kyc registered and also my CAN number. My question is if I want to invest using
CAN ,should i still contact POS ? And I have already using sip for my old mf . So for creating
a new portfolio using CAN should I use the CTF form . And I saw only 6 mf is allowed in that
form. So should I put my old mf also in that. Because I ll be giving only one cheque for all
fund which I ll be creating, so will my old fund also will be mapped with this cheque?
Reply

May 25, 2015 at 8:08 pm
Dear Arun,
As of now you need to contact POS to invest via MFU. Soon, they will launch online
facility to invest in regular & direct MF schemes.
Yes your existing MFs can be mapped.
25-03-2016
Page 12 of 20
Reply
Harish says
May 16, 2015 at 10:27 pm
Hi,
Typically direct fund options are not coming with any ratings (CRISIL etc..). Also they are
very recently launched which I understand is based on SEBIs direction to allow direct
option just few years back. Should we be concerned that there is no rating for the direct mf
options?
Ex: franklin tax shield regualar has a rating while the corresponding direct option does not
have any rating and it is recently launched.
Is there a difference in how a direct vs regular option funds are maintained ( from
performace and pirtfolio perspective)? Please advise.
Thanks
Reply

May 17, 2015 at 11:15 am
Dear Harish,
What are your financioal goals?
Whether a fund is a Regular one or a Direct one, the portfolios (funds investments)
are same. Its just the intermediaries are not involved in DIRECT schemes. So, you
can get slightly better returns (when compared to Regular one) from a Direct plan.
Reply
Harish says
May 17, 2015 at 2:37 pm
Sree,
Calculated an FV for education (assuming current value 15 L, 10% inflation for
20 years, rate of return 10%). Based on this Im looking for a target of 2 Crore
in 20 years (For two kids college education). Following are the reasons:
a) A daughter (1 and details years old , one more addition by end of this year.
c) Ive a insurance
Jeevan anandh started in 2008 for 25 years) 5 L sum assured
25-03-2016
Page 13 of 20
Jeevan Surabhi started in 2005 for 25 years) 1L sum assured

For my wife: started in 2007 for 25 years) 2L sum assured
d) Have a home loan for 23L, monthly EMI of 23K
I was planning to start the SIP on 1 Large cap, 1 diversified , 1 Mid & small cap
and 1 balanced.
UTI Equity fund (G)
Franklin India Prima PLus
HDFC Mid cap
Tata Balnced
was in my list.
Allocation of 20 K across these funds monthly , equally.
Can you please suggest.
Thanks
Reply

May 18, 2015 at 10:41 pm
Dear Harish,
I believe that you are under-insured and work on your life insurance
requirements on a priority basis. Is your wife an earning member of
your family?
Kindly read below articles;
How to get rid off bad insurance?
Top 7 best online term insurance plans
Is term insurance a waste of your money?
College education (Gradution) generally starts from 17th/18th year of
the kids age. So, you need to plan accordingly. All the selected funds
are good ones.
Reply
25-03-2016
Page 14 of 20
Satya says
May 12, 2015 at 3:13 pm
Hello Sreekanth
I want to invest 6k p/m into mutual funds. I am new to this. Please suggest me 2 to 3 Plans
so that I can divide the amount accordingly. I want to invest for more than 10 years.
Regards
Satya
Reply

May 13, 2015 at 10:08 pm
Dear Satya,
Suggest you to read below articles;
Top Balanced funds
Top 15 Equity mutual funds
Top 5 ELSS funds
Revert to me if your need any guidance
Reply
Satya says
May 13, 2015 at 10:59 pm
Thanks a lot Sreekanth
So will it be fine if I choose one Equity Mutual Fund and one ELSS Fund.
Can you please recommend me one Plan from both.
Thanks & Regards
Satya
Reply

May 14, 2015 at 12:40 pm
25-03-2016
Page 15 of 20
Dear Satya,
Start with HDFC Balanced fund or TATA Balanced fund.
If you want to save some taxes, invest in ELSS fund too (Axis long term
equity or ICICI Tax plan).
Reply
Mani Sri says

March 30, 2015 at 11:30 am
Dear Pradeep,
Very informative article on MFUI. But what is the difference between this service
aggregator and the CAMS, apart from the sponsors and the number of AMCs they are tied
up with? What specific advantages MFUI will bring that CAMS cannot or vice versa? Would
appreciate your feedback
Reply

March 30, 2015 at 10:27 pm
Dear Mani Sri,
There is an expectation that MF Utility will soon provide online investment option
across all funds schemes for direct plans too. Do you agree with me?
Reply
mannisri says
March 31, 2015 at 10:44 pm
Yes, I read that in a few months time they are likely to start the online
transactions for the AMCs they are tied up with. But then, CAMS is also having
the invest online facility. Hence I was not able to understand what is the
comparative advantage / disadvantage of the two service aggregators? (I only
note that at present 25 AMCs are tied up with MFUI whereas only 9 are tied
up with CAMS. AMCs like Reliance wants to play islanded)
25-03-2016
Page 16 of 20
Reply

April 2, 2015 at 11:39 am
Dear Mannisri,
Yes, MF Utility can be another online (free) option for investors.
Do CAMS provide an option to invest in all schemes? Since MFU is
industry sponsored, we can expect all AMCs to be part of it. What is
your view?
Reply
pradeep singh says

March 25, 2015 at 6:43 pm
sir i have 10000 thousand rupees ///and i want to invest this for maximum return from
shair market ////plz provide best compamy who will grow in 1-2 year
Reply

March 25, 2015 at 11:46 pm
Dear Pradeep,
I do not give any tips on direct equity (shares).
Reply
a.k.Mishra says
I am 58 ye are old I am retired on this month . I want to known where my pf amount
investment should be done .
25-03-2016
Page 17 of 20
Reply

Dear Mr Mishra,
It is very tough & not advisable to give advice based on limited inputs. Kindly contact
me at onlinefinancialplanner [at] gmail.com
Reply
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MF Utility - Online platform for Mutual Fund Investments

Loans & Credit

MF Utility Online platform for Mutual Fund

Share this article :

Before knowing more about MF Utility Online

What are the different ways of investing in

How to invest in mutual funds? If you are new to

MF Utility - Online platform for Mutual Fund Investments

Regular Vs Direct Mutual Fund Plans

AMCs offer Direct plans only )

portfolios of both regular and direct plans of a scheme are same)

MF Utility - Online platform for Mutual Fund Investments

This is set to change

What is MF Utility (MFU)?

How to Register with Mutual Fund Utility?

MF Utility - Online platform for Mutual Fund Investments

Important points, FAQs & Benefits of MF Utility online facility :

MF Utility - Online platform for Mutual Fund Investments

Range of Equity funds which

industry in smaller towns, besides providing

Tax Saving Fund

Best Index Funds

Direct Mutual Fund Plans : Details & Benefits

Mutual Fund Portfolio Overlap Comparison Tools

Debt Funds : Types, Benefits & Risk Vs Return

MF Utility - Online platform for Mutual Fund Investments

Sreekanth Reddy says

Dev Arora says

MF Utility - Online platform for Mutual Fund Investments

Sreekanth Reddy says

Gautam subudhi says

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

Dr Akhil Gupta says

MF Utility - Online platform for Mutual Fund Investments

regular plans through MF agent.

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

August 24, 2015 at 9:39 pm

Sreekanth Reddy says

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

Sreekanth Reddy says

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

Jeevan Surabhi started in 2005 for 25 years) 1L sum assured

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

Sreekanth Reddy says

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

Mani Sri says

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

Sreekanth Reddy says

pradeep singh says

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

Sreekanth Reddy says

MF Utility - Online platform for Mutual Fund Investments

e.g. Tax Planning