Honestly, I am not able to take my eyes off UPI / BHIM. There is so much possible on the platform – from payments to lending to MF to insurance…
This platform for sure can be used for on-boarding of customers on Mutual Fund and that too into direct funds. This will save fair amount of brokerage for the customers, which will positively impact the returns. This will also bring new set of customers, who are unable to onboard due to high cost / lack of knowledge.
Flow may look like:
Customer (Investor) can see the Mfs, in which he / she can invest based on risk profile.
Risk profiling would have to added to the platform.
Customer can then buy (or sell) MF online through NPCI platform.
To enable this, UPI platform on NPCI side has to be integrated with APIs of CAMS / Karvy / FT.
As the payment would be instant, MFs would be bought online. Infact, UPI can even help in instant redemption (for smaller amounts)
Higher investment in MF from newer customer segment
Higher returns for customers
No new app for the customer
What are your thoughts?
MF investment needs to get simpler and without forms.