Digital platforms are essential for Mutual Fund Distributors (MFDs) to stay competitive and meet the demands of modern investors. The mutual fund industry has changed significantly, with digital transactions rising to 60% in 2022-23, compared to 45% in 2012-13.
Such facts show a significant drift toward convenience and efficiency in the industry. This is due to the younger tech-savvy investors who want seamless investment solutions.
The industry's AUM, which was 10.51 trillion in 2014, reached ₹ 66.93 trillion as of December 2024. According to the Association of Mutual Funds in India, the industry's AUM has increased more than sixfold in the last decade.
“AMFI vision 2025 of 100 trillion crores is very much possible, and digital platforms will be the key drivers for the same if they take their platforms to the next level.” Ganesh Ram, Head – Mutual Fund Ops & Digital Products at KFintech (RTA).
Thus, choosing mutual fund software becomes more strategic than a technical decision that can make or break mutual fund businesses. Let us look at some key elements of a digital platform that must be considered before settling on the best one!
Key Features to Look for in a Platform
When choosing mutual fund software, looking for the following features is crucial:
1. Convenience
Look for a one-stop solution that offers all functionalities ranging from account opening to investment tracking and transaction processing.
2. Simplified Investing
A strong platform will enable online account opening, Systematic Investment Plans (SIPs), and other integrated services that simplify investing. A user-friendly dashboard will allow investors to begin their journey with just a few clicks.
3. Enhanced Decision-Making
An efficient digital platform would provide multifaceted tools for comprehensive portfolio analysis, comparative studies, and goal-based planning. This would further empower MFDs and clients with the basis for informed choices backed by information and data in real-time.
“With the structural growth story of the Indian economy remaining intact and India a bright spot in the global economy, the domestic mutual fund industry is expected to witness multi-fold growth in the coming years,” said Ashwini Kumar, Senior Vice President and Head Market Data, ICRA Analytics.
5. Personalization
A site that bases its recommendations and strategies on an individual's financial goals and risk profiles is priceless. Personalized features help MFDs serve clients according to their specific needs and provide the most relevant investment advice.
6. Portfolio Tracking
A digital site should allow portfolio tracking, showing all necessary metrics in one place and making them easy to understand.
7. Research and Analysis
Platforms should have the financial news, market updates, and opinions from experts so investors can have that knowledge in their hands to make well-informed decisions.
Why Integration and Ease of Use Matter
Ease of navigation of digital platforms enables MFDs to cater to clients' needs more effectively. The tighter the integration will be, the smoother the workflow. Integration and ease of use within digital platforms ensure:
Synchronization of the client’s portfolio with the bank's systems for receiving payments via SIP
Accessibility by various devices
Access to real-time information.
Transition from one financial service to another
Provision of high-quality services for their customers.
How to Select a Digital Platform for Mutual Fund Businesses
It is imperative to know what factors will help in the selection of the best digital tools for MFDs:
1. Easy-to-Use Interface
When choosing an online platform, ease of use must be the top priority. User-friendly interfaces contribute to productivity while reducing errors. With drag-and-drop tools, interactive charts, and customizations based on individual preferences, effortlessly manage client portfolios.
A system such as AssetPlus offers an easy-to-use interface that is highly navigable for experienced MFDs and novices who can easily be trained on it.
2. Reputation and Trust
A platform's reputation plays a pivotal role in its long-term success. The well-established and proven platforms invoke confidence and trust within the minds of MFDs.
User feedback should be evaluated before deciding on a digital platform. Positive reviews and ratings reflect user satisfaction and the credibility of the platform.
3. Wider distribution of Funds
MFDs must consider funds from various Asset Management Companies and help clients with a diversified source of investment opportunities.
The platform must support a wide range of funds, whether clients seek equity funds, debt funds, hybrid options, or niche sectors. For example, MFDs can use AssetPlus's Fund Finder feature to help investors find the best funds.
4. AMC Relationship
Strong relationships with AMCs allow an investment platform to offer competitive commissions, exclusive products, and support. These connections further help smoothen the process of distribution, making the whole transaction much more efficient.
5. Transparent Pricing with Lower Charges
The right competitive advantage is maintained when the correct platform is chosen, which offers transparent and cost-effective prices.
As noted by CA Manish Mishra, Virtual CFO, and Growth Advisor, "Those who are good with online tools and are searching for cost-adequacy could choose online platforms or direct investments."
6. Ease of Transactions
Paperless and digital KYC eases client onboarding while saving time. AssetPlus gives access to the best digital tools for MFDs, keeping transaction management easy and smooth, even for distributors with large portfolios.
7. Strong Research and Analysis Tools
In-depth research and analysis are crucial, especially when informing clients about recommendations. Look for digital platforms that offer features such as fund fact sheets, performance data, comparison tools, and risk assessment tools.
8. Secure and Reliable
MFDs should have the assurance that their client's sensitive information and transactions are safe and sound. AssetPlus has addressed these security issues by providing a safe and reliable environment with the highest level of encryption and compliance, ensuring that businesses and clients are secured.
9. Customer Support
A responsive and informed support team is priceless when navigating complex systems or troubleshooting an issue. Find total operational support; any challenges faced must be resolved quickly through their dedicated support team.
10. Regular Updates and New Features
As technology continues to evolve, the platform should keep pace with innovation. Ensure that the platform offers regular updates and new features to keep the platform functioning with the best functionality and advantages.
Making the Right Choice: AssetPlus Evaluation
Now that we have gone over what to look for in a digital platform, let's take a closer look at how AssetPlus stands out in meeting these requirements:
With more than 13,000+ mutual fund distributors trusting them, this elite digital platform efficiently services clients under one umbrella.
Access to All Fund Houses—AssetPlus empowers MFDs to empanel with 42 AMCs in one go. With AssetPlus MFDs can offer their clients various investment options including mutual funds, insurance, fixed deposits, and more. Thus, they can offer personalized solutions for each investor type.
The app trains and upskills MFDs to stay updated and effectively handle their business.
AssetPlus offers MFDs the latest technology that streamlines all aspects of mutual fund distribution, such as client onboarding, KYC, and transaction management.
Conclusion
Choosing mutual fund software for any mutual fund business should be based on factors like convenience, personalization, or enhanced decision-making. The best digital tools for MFDs ensure you deliver client satisfaction that is unmatched by other platforms.
When choosing the best platform for your needs, consider user-friendliness, pricing, research tools, and automation. AssetPlus is the best option for MFDs who want a strong, cost-effective, and feature-rich solution to propel their business forward.
Sign up to make the most of the best digital tools for MFDs!