Invest in Mutual Funds through the Stock Market

SEBI has opened a new window of opportunity for the mutual fund industry by allowing online transactions in mutual fund units through stock exchanges. This has enabled investors to invest in mutual funds in a cost-effective and convenient way.
The electronic mutual fund transaction platforms available are:
• Mutual Fund Service System (MFSS) on National Stock Exchange (NSE)
• Star MF Platform on Bombay Stock Exchange (BSE)
How to use the stock exchange platform for MF?
The mutual fund platform is based on Electronic Order Collection facility, through which investors can place an order to buy or sell mutual fund units. The units purchased through this platform are in dematerialized form.
Investors can also convert their existing mutual fund units in dematerialized form by submitting Conversion Request Form (CRF) to the AMC/RTA along with a copy of Client Master Report (CMR) or transaction statement issued by its Depository Participant to such centers of AMC/RTA.
Why invest through stock market platform?
• Investment in mutual fund through stock market platform eliminates the need of paper work. There is no need to fill out physical application form.
• Transacting in mutual funds through the stock market platform will result in faster execution of orders.
• As there is no paperwork and manual submission of applications to the collection centers, it is more convenient for the investor.
• Investor can transact in mutual funds as well as shares through the same demat account.