What if you could buy your Mutual Funds just like you go on the e-shopping drive? For instance, using prominent e-commerce sites like Flipkart, Snapdeal, Scripbox, and so on for the purpose of exploring some new Mutual Funds in the market.
The market regulator Securities and Exchange Board of India (SEBI) is finally planning to launch the guidelines whereby the sale of mutual funds would become accessible through some prominent ecommerce sites. According to the guidelines, a host of ecommerce sites like Flipkart, Snapdeal, Scripbox and others would now be able to work as the online marketplaces. Till date, the selling of mutual funds was restricted to the domain of brokers, banks, and familiar people. The suggested regulations are estimated to release by January 2016. The SEBI chief UK Sinha has also suggested the reduction in the cost structure of mutual funds.
How will the entire process take place in the online marketplace?
Though nothing has been finalized yet, still it is said that SEBI will only allow balanced and exchange-traded funds on the online platform, firstly waiting for the response of the customers and then taking a step further. According to the Economic Times, the commission that SEBI will attach to the mutual funds product from the online market would be anywhere around 0.5 percent. Right now, an investor can only buy mutual funds from the banks and 3rd party distributor. While fund houses provide mutual funds without any commission, the 3rd party distributors charge anything in between 1 to 2 percent fee. By bringing mutual funds online, SEBI is determined to make the process hassle-free and convenient for the buyers.
Easing the ‘Know Your Customer’ (KYC) and transaction process, the online domain with make the entire things inexpensive and hurdle-less. With the online selling of MF, SEBI is determined to link KYC with central bank.
It is notable that the regulation is coming into practice at the right point in time. The ecommerce market is booming in India and people from all across the nation are increasingly using the sites.