7 Reasons Why MFDs Need Mutual Fund Software

Handling the complex business of mutual fund distribution isn’t easy, especially when MFDs deal in Crores of Assets Under Management (AUM) and thousands of investors. Managing such a demanding business can be overwhelming without the right tools.

The Struggles of MFDs

No Personal Life

MFDs often find themselves working long hours, leaving little time for personal life and relaxation.

Hectic Work

The nature of mutual fund distribution involves dealing with numerous transactions, client queries, and paperwork, making the work hectic.

Manual Workload

Handling transactions, calculations, and compliance manually increases the risk of errors and consumes valuable time.

Slow Growth

Without efficient tools, MFDs struggle to grow their business, as manual processes limit scalability and hinder performance.

Mutual Fund Software for Distributors

Mutual fund software is designed to address these challenges by offering a range of features that automate processes, enhance efficiency, and improve client service. Here are seven reasons why MFDs need mutual fund software:

1. Automation

Automating routine tasks such as transactions, reporting, and compliance reduces the manual workload and minimizes errors. This frees up time for MFDs to focus on strategic activities.

2. Saves Time with Video KYC

Digital onboarding and Video KYC streamline the client acquisition process, making it quicker and more efficient. This saves time and improves client satisfaction.

3. Attracts Investors with Liquid Funds, IPOs, and Equity

Offering a range of investment options such as liquid funds, IPOs, and equity investments can attract new investors and retain existing ones. Mutual fund software provides the tools to manage these offerings seamlessly.

4. Stable AUM with Goal-Based Planning

Goal-based planning tools help MFDs create personalized investment plans for clients, encouraging them to stay invested for the long term. This leads to a more stable AUM.

5. Reduce Redemptions with Loans Against Mutual Funds

By offering loans against mutual funds, MFDs can provide clients with liquidity without them having to redeem their investments. This reduces redemptions and maintains AUM.

6. Expand Offerings with Multiple Asset Classes

Mutual fund software allows MFDs to offer a variety of asset classes, including IPO, P2P, LAMF, Equity, Mutual Funds, and more. This diversification attracts a wider range of investors and meets more client needs.

7. Build a Brand with White Labeling and a Digital Marketing Panel

White labeling features enable MFDs to brand the software with their own logo and colors, enhancing their professional image. The digital marketing panel helps create and share promotional images, building a stronger brand presence.

Benefits of Mutual Fund Software

1. Increased Efficiency: Automation and streamlined processes reduce the time spent on manual tasks.
2. Enhanced Client Service: Quick onboarding, personalized planning, and diverse investment options improve client satisfaction.
3. Stable AUM: Tools to reduce redemptions and promote long-term investments stabilize AUM.
4. Scalability: The ability to manage multiple asset classes and handle larger volumes of transactions supports business growth.
5. Error Reduction: Automation minimizes the risk of human errors in transactions and reporting.
6. Time Savings: Digital tools like Video KYC save time in client onboarding and management.
7. Brand Building: White labeling and digital marketing features help build a professional and recognizable brand.

Conclusion

There are multiple reasons why MFDs should go digital with mutual fund software, and no reason to not choose it. It’s high time MFDs switch paperwork with automation and grow their business with mutual fund software in india exponentially.