Mutual Funds Could Soon Be Traded Online

Tags: MF, Mutual Funds, Online Trading, Sebi,

The Securities and Exchange Board of India (Sebi) is planning to introduce an online mutual fund (MF) platform by March 2010. Implications. The proposed platform will be more like a share trading floor where investors can buy and sell their MF units without a broker, just by accessing the requisite web portal. After the abolition of entry load, brokers are no more interested in selling MFs. Says the marketing chief of a Mumbai-based fund house: “This new move will help fund houses that are incurring losses by paying the distributor out of their own pockets, and investors who are being dumped by their distributor because of no load.” It will also help investors in that they can view their entire portfolio on a single portal and switch between schemes of different fund houses.