How to use mutual fund utility to invest online in mutual funds

Mutual fund investing in India has grown significantly in recent years, with many turning to digital platforms for convenience. Looking at this trend, the mutual fund industry has come up with Mutual Fund Utility, which simplifies and centralises the investment process by reducing paperwork, consolidating accounts, and allowing easy tracking of portfolios.

In this article, we will understand how to use Mutual Fund Utility to invest online in mutual funds, understand its key benefits, and discuss the registration steps you must undertake.

• Table of contents

• What is mutual fund utility?
• How to use mutual fund utility
• How does MF utility benefit an investor?

What is mutual fund utility?

MF Utility (MFU) is a centralised platform that makes Mutual Funds investment simpler and more efficient. Approved by the Association of Mutual Funds in India (AMFI) and regulated under the guidelines of the Securities and Exchange Board of India (SEBI), the utility acts as a one-stop solution for investors.

Whether you’re new to mutual funds or an experienced investor, MF Utility offers an accessible way to invest in the markets. By connecting investors with Registrars and Transfer Agents (RTAs), banks, payment gateways, Asset Management Companies (AMCs), and KYC Registration Agencies (KRAs) through a single platform, MF Utility eliminates the need to switch between multiple websites or deal with cumbersome paperwork—especially if you invest across different AMCs.

How to use mutual fund utility

Now that you know what Mutual Fund Utility is, let's understand how to use it. Here are the steps you should follow:

1. Create a CAN

The first step to get started with Mutual Fund Utility is to register for the Common Account Number (CAN) on the official MF Utility website—by downloading the form and submitting it online.

• Provide your PAN, KYC details, and bank information, ensuring your KYC is up to date. Once processed, you’ll receive a unique CAN, which serves as your main identifier for all MF Utility transactions.

2. Link your bank account

• After receiving your CAN, link your primary bank account for online transfers. Ensure the bank details are accurate, as all purchases and redemptions will be processed through this account.

3. Choose a plan

• Regular plan: If you prefer expert guidance, you can invest under a Regular Plan. Your distributor may suggest suitable funds and assist with portfolio reviews.
• Direct plan: If you are confident in selecting and managing your own funds, go with a Direct Plan. Both options are available through Mutual Fund Utility; the choice depends on your comfort level and advisory needs.

4. Explore the MFU portal

• Log in using your CAN credentials. You will see a dashboard displaying various fund categories like equity, debt, hybrid, and more, along with each scheme’s current Net Asset Value (NAV).
• The interface typically provides user-friendly dashboards to track your portfolio’s value, access account statements, and set up systematic transactions like SIPs, STPs, or SWPs.

5. Initiate your first purchase

• Under the "Purchase" tab, select the mutual fund scheme you want to invest in. Use filters like category (equity, debt, hybrid), AMC, or past performance rankings to refine your search.
• Enter the investment amount, verify the payment method, and confirm the transaction. The amount will be debited from your linked bank account, and the units will be added to your mutual fund portfolio.

6. Track and monitor your investments

• Regularly log in to check your portfolio performance. You can instantly view gains, losses, or reallocate investments as needed.
• One of the major perks of Mutual Fund Utility is the consolidated statement feature, which provides a snapshot of your entire investment landscape.

How does MF utility benefit an investor?

You must be wondering how this investment approach enhances your mutual fund experience. Let us look at how it benefits investors in tangible ways:

1. Unified platform

Managing multiple AMC accounts can be a headache. MF Utility provides a single login to consolidate all your mutual fund schemes, simplifying monitoring and transactions for greater ease.

2. Paperless convenience

Through the platform, everything from account setup to buying or selling units can be done digitally. This eliminates the need for physical paperwork, thereby saving time and reducing errors.

3. Centralised tracking

It is easier to fine-tune your investments when you have a birds-eye view. An overall statement helps you review your portfolio’s growth, asset allocation, and risk distribution at a glance.

4. Regulatory safeguards

Since Mutual Fund Utility is governed by SEBI and AMFI norms, you can be assured of a fair and transparent system. The platform also uses secure payment gateways and encrypted data transfers to secure your information.

5. Systematic transactions

You can schedule SIPs, STPs, and SWPs directly through your account. All these features work seamlessly once your bank account is linked.

6. Flexible cost structure

The core services of MF Utility often come free of charge for investors (unless specified under special circumstances). However, a distributor or advisor may receive commissions under a Regular Plan.

Conclusion

Investing in mutual funds does not have to be complicated or time-consuming. With the streamlined approach offered by Mutual Fund Utility, you can enjoy a single point of access for multiple schemes, track performance, and easily set up systematic transactions. This platform is designed to take much of the hassle out of mutual fund investment, letting you focus on aligning your portfolio with your financial goals.

However, remember that even though MF Utility streamlines the process, your choice of funds still requires careful consideration. Different schemes serve different goals and risk levels. If you’re unsure, consult a qualified financial advisor. Always review scheme documents thoroughly and be aware of potential risks. If used wisely, MF Utility can help you invest more efficiently online in mutual funds.

FAQs:

Does MF Utility charge any fees for its services?

Typically, no direct MF Utility charge is imposed on investors for opening a CAN or performing basic transactions. If you invest under a Regular Plan, the distributor may receive commissions from the AMC.

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

You generally have access to a wide variety of SEBI-approved mutual fund schemes—equity, debt, hybrid, and more—across multiple AMCs. However, ETFs are not available on MF Utility as they are listed on the stock exchange. Verify the availability of your preferred scheme on the MF Utility portal before investing.

How secure is MF Utility for online transactions?

MF Utility is secure as it operates under SEBI and AMFI regulations, and adheres to industry-standard encryption protocols, regulatory audits, and secure payment gateways.

What are the key steps to take when investing in MF Utility?

• Register and obtain a CAN by completing KYC requirements.
• Link your bank account for seamless transactions.
• Choose funds and select a plan
• Transact online for purchasing, redeeming, or switching funds.
• Monitor your portfolio using the centralised dashboard.

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

Selecting the right scheme and plan is crucial. While Mutual Fund Utility streamlines the technical steps of buying and selling, the responsibility of picking a suitable fund rests on the investor. Consult a qualified financial advisor if you are unsure about which scheme to invest in.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.