Mutual fund investors who use the mutual fund utilities (MFU) platforms can schedule their transactions to purchase, switch or redeem funds. The advantage of this facility is that it allows the unit holders to carry out transactions immediately from the next business day, instead of a lead time of T+15 days with a mutual fund.
Who can do it?
Individuals and Hindu Undivided Families who have a valid CAN (Common Account Number) allotted by MFU can carry out these transactions. Distributors or registered investment advisers of the investor can also carry out these transactions online on behalf of their clients.
MFU website
The online portal to carry out transactions by CAN holders is https://www.mfuonline.com.
Process
After logging in, the investor can click on the ‘CAN Transaction’ tab to select Purchase/Redemption/Switch in respect of which he wishes to create a scheduled transaction. At the end of the order form, a button ‘Scheduled Transaction’ is available. On clicking the button the investor can choose ‘Once’ for a single transaction or ‘Repeat’ for systematic transactions.
Repeat transactions
Alternatively, the investor can click on ‘Scheduled Purchase Plan (SPP)’ or ‘Scheduled Redemption Plan (SRP)’ or ‘Scheduled Switch Plan (SSP)’ to place systematic instructions identical to SIP/SWP or STP respectively. The advantage of using the scheduled transaction mode is that with only one request the investor can place scheduled transaction requests with multiple AMCs.
Points to note
- Scheduled transactions can be carried out only in online mode on MFU online platforms.
- While scheduling the transaction request, one can also set up ‘Triggers’ or ‘Alerts’ to carry out transactions on the happening of an event.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
