Tried searching few things on what BSE StarMF platform is. BSE Star MF platform is available for distributors mainly to onboard their customers to the Mutual Funds. Earlier it was a tedious process to onboard an investor on mutual fund and a lot of paperwork was required. Now with the help of platforms like BSE Star MF, the MF distributors are onboarding the new investors and shifting existing investors which have opted for SIPs.
BSE Star MF platform is provided by BSE, similarly NSE has NSE NMF II. Also, MF Utilities is also a service initiative formed by AMCs.
If we see the below link BSE and NSE has started charging from AMCs and waived off the joinin fees from Distributors.
Advantages to investors/other stakeholders of using BSE StAR MF:
1.Independent view of customer’s entire portfolio at one place
2.Reduction of paperwork and ensuing errors
3.Reduction of redundancy in process and data duplication at RTA and Distributor levels
4.De-risking MF settlement processes by using superior Delivery v/s Payment (DVP) process provided by 5.Stock Exchanges
6.Efficiently & effectively address customer servicing issues
7.Extending present convenience available to Secondary market to mutual fund investors
8.Enable transparency to customers
9.Enable charging customers for service at the point where it is rendered
I see the trend, that MF Distributors shifting towards using platforms like BSE STarMF or NSE NMF II.Not able to get the numbers which platform is growing fast and gaining market share but it looks like it will be duopoly.
Some Useful Links
https://www.morningstar.in/posts/40599/to-scale-up-advisers-flock-to-stock-exchange-platforms.aspx
https://www.bseindia.com/Static/Markets/MutualFunds/MF_tutorial.aspx#
Disc: Invested