MUTUAL FUNDS TRADING???

Well i have promised to discuss on some serious topic to my viewers, this MUTUAL FUNDS trading is a very new concept in India. NSE has the credit to launch this model first in India and its a very new addition to their portfolio as well.

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. As a retail investor all we know very well how to invest or trading in listed company's shares through secondary market dealings. In this very similar way we can put a trade in MF also. One more interesting parts of this model is you don't need to open a fresh DEMAT A/C to keep your holdings. you can use your existing demat for this purpose also.
similarly BSE is also preparing for a trading platform like this. This would not be wrong if i say another trading platform like this would give the competitive edge to investors only.

Workings of this model is really fantastic as i can certify it from my previous and current association with big giants in the industry. Some of the big names like kotak securities, indiabulls securities, religare has approached this model with their own trading platform, a absolutely new one. Where someone can put his/her bids and we are at corporate office sitting at a highest hierarchy on these, collectively put these bids safely on our corporate IDs for the execution purpose through a different platform. After getting executed, we update trade details on investor's platform to make him/her aware.

UTI is the first funds house india is eligible of NSEs mutual funds trading. There are currently 39 mutual funds in the country.

In order to compensate distributors (after abolishing the entry load), the Sebi has asked mutual funds to use the exit load proceeds diligently. “Of the exit load charged to the investors, a maximum of 1 of the redemption proceeds shall be maintained in a separate account which can be used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses,” the Sebi had said.