Archive · 9 Jun 2025
ONDC Set to Revolutionize Mutual Fund Investment in India
Imagine a new way to buy mutual funds, like a digital store run by small businesses using the internet.
This new system, built on something called ONDC, aims to make investing in mutual funds easier and cheaper for everyone.
It allows distributors and mutual funds to connect directly, cutting out extra costs.
This means people can start with small investments, like a few rupees a day.
Some experts are still working out the details, but it could change how people save and invest.
Fintechs and ONDC are developing a plan to transform mutual fund investing in India.
The system, developed by Cybrilla, reduces transaction costs by bypassing legacy platforms.
Eight mutual funds, including major players, have joined the ONDC system.
The initiative aims to broaden reach and lower costs, facilitating small-ticket SIPs.
A new category of distributors and regulatory changes are potential developments.
- Who
- Fintech companies like Cybrilla and Bachatt, ONDC, mutual funds, distributors, and regulators like SEBI, with the goal of benefiting investors.
- What
- A new system using ONDC to simplify and reduce the cost of investing in mutual funds, potentially including a new category of distributors.
- When
- The initial pipeline is operational, and the full plan is still under discussion, with some fintechs already offering products through this system.
- Where
- India, with a focus on smaller cities and towns where mutual fund penetration is currently low.
- Why
- To make mutual fund investments more accessible and affordable for a wider range of people, including those in smaller cities and towns, and to reduce transaction costs.
- ONDC Launch
- 2022
- Cybrilla's Role
- Built the system for direct interface between distributors and mutual funds
- Cost Reduction
- From ₹2-7 to ₹0.75 per transaction
- Key Players
- Axis, UTI, HDFC, and other mutual funds
- Average daily SIP (Bachatt)
- ₹105
- MF Assets in Top 30 Cities
- 82% (as of April 30, 2025)