Mutual funds to increase use of online medium: SEBI

India Infoline News Service | Mumbai |

Online distribution not only increases customer convenience, but also significantly improves distributor economics, SEBI said

Capital market regulator SEBI (Securities and Exchange Board of India) wants mutual funds to increase the use of online medium for sale of investment products.
According to SEBI, a greater use of Internet as a distribution channel can help increase the penetration of mutual funds, especially among young investors.
Online distribution not only increases customer convenience, but also significantly improves distributor economics, SEBI said in its draft proposal on Long Term Policy for Mutual Funds in India.
"This phenomenon brings opportunities for mutual funds to tap this segment of population by offering them an option to invest online using Internet," SEBI added.
The online phenomenon is increasing rapidly and it is observed that more and more people especially younger generation prefers to carry out most of the transactions online such as internet banking, shopping, ticketing, etc.
Presently, many of the Mutual Funds are providing facility for online investment, however there is need to promote and make it more user friendly for the investors by improving the infrastructure and efficiencies.
 

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