Common online platform for MFs near completion

There's some good news for the mutual fund industry and investors. CNBC-TV18's Vidhi Godiawala reports that the much awaited Common online platform has entered into its final stages. Investors can buy, sell, and switch all mutual fund products from this one common platform.

Here is a verbatim transcript of Vidhi Godiawala's comments on CNBC-TV18. Also watch the accompanying video.

The good news for mutual fund investors. If you are a mutual fund unit holder in five different fund houses, this online platform will save you the trouble of five different statements, constant review of net asset values (NAVs).

This website will bring a consolidated view of an investor's portfolio. Apart from increasing the penetration of mutual funds and easier transaction, this platform is going to save costs for the industry. 

Jaideep Bhattacharya, CMO, UTI AMC and Head-AMFI Common Platform Committee said, "We expect paper volumes to come down by one-fifth and from a cost of paper perspective, it will come down by one-third. The total cost will come down to half." 

This platform will have multiple modules for different users and access points.

The platform can be accessed via mobile or online and by a distributor or a depository participant. 

The final design this platform has been finalised, and four IT majors have been short listed for implementing this project.

The AMFI committee is hopeful of seeing the first few transactions on this platform by the end of this year. The initial capital cost required and who bears the cost is yet being decided.