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Trading volumes on the mutual fund platform of the NSE have doubled last fiscal to ₹16,563 crore against ₹7,624 crore logged in FY16, on the back of investors’ renewed interest to tap into the bull-run in equity markets.
The NSE mutual fund platform (NMF) is only for Association of Mutual Funds of India-registered MF distributors and Registered Investment Advisors. The number of distributors registered on the NSE has increased to 2,150 against 1,500 in March, 2016.
Thanks to the efforts put in by MFs, the number of transactions on the platform more than tripled to 26.94 lakh from 7.69 lakh in FY16. Interestingly, the number of systematic SIPs registered on the platform have almost quadrupled to over 2.30 lakh (60,000).
Mukesh Agarwal, CEO — Mutual Funds, NSE, said apart from the wide reach the exchange commands, the volumes on the mutual fund platform were boosted by the convenience it provides to distributors, particularly in rural regions where reaching out to different mutual funds separately becomes an issue.
‘One-stop-shop’“We aim to develop the platform as a one-stop-shop for mutual fund houses and distributors while striving to improve the efficiency in the mutual funds space by introducing new facilities,” he said.
Of the existing 42 MFs registered with the AMFI, 35 are listed on the NMF. While there are no specific charges on distributors for trading on the platform, individual distributors have to make a deposit of ₹15,000 and it is ₹25,000 for corporate distributors. The platform also reduces the IT infrastructure expenses substantially for the distributors.
Instant redemptionAgarwal also said the platform is aiming to speed up redemption. “Our aim is to speed up the redemption process for investors. Currently, we are providing instant redemption on a specific fund floated by Reliance MF and will be open to list more such schemes,” said Agarwal.
SEBI has mandated instant redemption up to ₹50,000 per investor in liquid funds. Reliance Mutual Fund and DSP Black Rock provide instant redemption facility.
Just like offer-for-sale done by corporates, the NSE is planning to introduce ‘Sovereign Gold Bonds’ on the NMF platform.
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