Investors will be able to transact in mutual funds units through the National Stock Exchange (NSE) from Monday. UTI Mutual Fund will be the first fund house to use the NSE’s mutual fund platform, which would enable exchange’s members to use its existing infrastructure for transaction in MF schemes.
There are currently 39 mutual funds in the country.
“Investors can buy and sell mutual fund units through their demat account like the way they buy and sell shares of listed companies,” said dealer. The BSE is also likely to set up the trading platform soon.
The idea behind setting up a mutual fund trading platform on the stock exchange is to spread equity cult across the country. “Many new investors are using the MF route to invest in the stock market. Mutual funds with assets in excess of Rs 7 lakh crore have become a major force in the market,” said a market expert.