MFU: How to use MF Utility to Invest Online in Mutual Funds

The MF utility simplifies the investment process by eliminating any intermediaries. The direct route would mean abstaining from brokerage and commissions, reducing the cost as a whole. This is quite useful for experienced investors who understand the dynamics of the market and are quite capable of exercising complete control over one's investment decisions. Additionally, this platform's single dashboard view for all your investments helps the investor stay updated with the latest news and happenings of his or her portfolio. And over a period of time, the cost saved can compound to earn better returns. Thus, MF Utility is cost-effective and efficient for investing in mutual funds.

What is mutual fund utility?

MF Utility stands for Mutual Fund utility. It is the platform developed for making mutual fund investing much easier and hassle-free for every kind of investor. It is a service through which an investor can manage and largely carry out all activities pertaining to mutual fund investments under one roof. You are basically buying new mutual fund units, selling your existing units, and switching between various mutual fund scheme categories on MF utility. It also gives a single view of all your mutual fund investments, thereby making it easier to track the performance of your portfolio. You can generate statements and reports, change your personal details, or even register for SIPs/SWP. The MF utility is user-friendly and aims to streamline the mutual fund investment process, saving investors time and effort.

How to use mutual fund utility?

1. If you invest through mutual fund utility, then you would need a Common Account Number (CAN) issued by MF utilities. You can register for CAN online or by submitting a form to a participating AMC branch or distributor.

2. After submitting the CAN Registration form, you will get an SMS and an email regarding the confirmation of the allotted CAN within a week.

3. After getting the login credentials, visit MFUOnline.com to complete transactions. You can invest in multiple Mutual Fund schemes across various fund houses with a single payment.

4. Remember to sign up for online access using the portal https://www.mfuonline.com/ after creating your CAN. Create a User ID and password for the account

Conclusion

MF Utility is a centralised mutual fund distribution platform that will allow customers, distributors, and financial advisers to transact in schemes offered by different fund houses on a single platform. However, before you begin investing through MFU Online, make sure you select the right MF schemes based on their long-term consistency. The right scheme will go a long way in determining the final corpus amount for DIY investors in the long run.

MF Utility FAQs

Does MF Utility charge any fees for its services?

MF Utility itself typically doesn't charge investors fees for using the platform to transact or invest in direct plans. However, some fees might still apply depending on your chosen investment option and bank. It's best to check with your fund house or bank for any additional charges.

Are there any limitations on the types of mutual funds available through MF Utility?

No, MF Utility itself does not restrict your choices of mutual fund types. However, MF Utility works with various fund houses, and there could be some fund houses which may restrict some schemes available through MF Utility. Check with your chosen AMC/fund house for details.

How secure is MF Utility for online transactions?

MF Utility does mention strong safety features being in place regarding user data and transactions. This shall include encryption and other protocols. Still, it's always wise to practice safe habits online and be cautious of suspicious links or sharing personal information.

What are the key steps to invest using MF Utility?

The key steps to investing with MF Utility involve obtaining a Common Account Number (CAN) first. You can apply online or through a distributor. Once you have your CAN and register online with MF Utility, you can invest in various mutual fund schemes. Choose your plan (direct for lower costs), investment amount, and set up SIP (regular investment) or lump sum options.

How important is choosing the right mutual fund plan when using MFU?

Choosing the right plan with MF Utility is crucial. While it simplifies transactions, focus on the fund itself (equity, debt, etc.) and its performance. Research and pick a plan aligned with your goals and risk tolerance, not just because it's on MF Utility.