Dealing in mutual funds is about to get faster and easier. An electronic platform is being developed for trading in mutual fund units and this is slated to change the way in which investors have been looking at mutual funds for their investments. The way in which mutual fund units are dealt with today will undergo a change once the facility is up and running.
One of the main objectives of developing an e platform for mutual fund investments is to facilitate an investor to deal with various mutual fund schemes in an easier and faster manner. Different types of units in the market make it difficult for the investor to keep track of his or her dealings.
For example many close-ended schemes are traded on the stock exchange while open-ended schemes need to be tackled directly with the mutual fund. Even when it comes to transfer between schemes there is no compatibility between schemes of different mutual funds. All this involves a loss of time and additional effort in the process.
The biggest advantage of the new platform will be that the investor will be able to do and see everything at one single place. This makes the process of transacting that much easier. It also eliminates the need to keep records in the form of statements and other details. With all the details available at one place the retrieval of the information is also very easy and it makes the process smooth as far as the investor is concerned.
If there is any transaction that has to take place then again they can go to a single place and then put this through so that it is completed easily.
There will be a lot of refinement as the process goes along and investors would do well to keep abreast of the changes. There are close-ended schemes that can be dealt with on the stock exchanges plus some other schemes open for listing at specified points of time.
The manner in which these will be tackled along with the other open-ended schemes will be crucial for the investor. There is a need to get good facilities as well as the right price with a minimum of expenses for the route to become viable for the investor over the longer time period. The expense involved will also be crucial in determining the final position.