Several platforms like ETMoney, GROWW, Zerodha and Paytm offer direct schemes to support mutual fund investors. Direct plans bypass distributors and provide long-term cost savings to investors. Until now, these platforms did not charge investors and had no income status because they were not compensated by the fund house or the investor. This is set to change two options for such platforms with the given controller. You can either register and become an agent of asset management firms or register as a stockbroker and get paid as an investor’s agent.
“Direct MFs are a commission-free and authentic product for investors and are the fastest growing channel in the industry for bringing in new investors,” said Mukesh Kalara, CEO, ET Money. “The detailed framework, implementation mechanisms, nature of services that can be provided by EOPs, cyber security requirements, service pricing, grievance redressal mechanisms etc… should be notified through a circular,” he said.