Why investors should opt for MFCentral

The launch of MFCentral.com by CAMS and KFin Technologies (KFinTech), in phases over 2021-2022, was one of the most significant developments for Indian mutual fund (MF) investors in the last 10 years.

- AVINASH LUTHRIA

For the first time, there was a single, user-friendly platform to invest in direct plans (ie zero-commission plans) of 100 per cent of MFs, without the risk of being pushed to buy other high-fee financial products or services.

There are seven reasons why I recommend MFCentral to my clients.

First, Securities and Exchange Board of India (Sebi)-registered investment advisors (RIA) recommend direct plans of MFs because in regular plans (ie commission plans), investors end up paying an average commission of 0.8 per cent per annum to MF distributors (MFD). This is mathematically equivalent to the investor losing 21 per cent of the investment over 30 years. Avoiding this leakage is crucial. MFCentral enables investment in direct plans of MFs.