Prajna Capital - An Investment Guide

IN a move that could revolutionise sale and purchase of mutual fund units by investors across the country, the Association of Mutual Funds in India (AMFI) is working towards setting up an electronic platform. This would not only benefit unit holders, but also distributors and fund houses. The electronic platform will bring paperwork to a bare minimum, improve operational efficiency, provide transaction convenience and reduce cost. The proposed electronic platform will help investors trade even in open ended-mutual fund scheme units, like in the case of shares, switch between schemes of different fund houses, and also enable mutual fund investors to view their entire portfolio on a single portal. The modalities of the platform are being worked upon by an Amfi-appointed committee. At present, if an investor wants to buy units of a scheme, online, he has to go to the web site of that fund house. He can switch between the schemes of that particular fund house, but not among schemes of d...