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Soon You May Be Able To Buy Mutual Funds On Flipkart, Amazon

Soon You May Be Able To Buy Mutual Funds On Flipkart, Amazon
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E-commerce sites such as Flipkart and Amazon may soon be allowed to sell mutual fund products on their site as markets regulator, Sebi, considers making these investment schemes more accessible to consumers, Mint reported.

The move would allow customers to invest in mutual funds at lowest commissions while taking advantage of a “simple, seamless experience” of the web that could lower instances of transaction-related disputes that arise because of technical glitches.

Customers would also get a warning message if the products are deemed high risk as funds take into consideration, age, income and location details of potential customers.

According to the Mint report a panel on “digitization of financial services” headed by Infosys Co-founder Nandan Nilekani has submitted its recommendation to SEBI recently.

In the early stages, only a handful of e-commerce players may be permitted to sell depending on criteria such as minimum net worth, sales, brand popularity, and customer service track record, Mint said citing sources. The products could be rolled out within one month.

Retail demand for mutual funds has been on the rise. So far this year, as many as 50 new mutual fund offers have been filed with the regulator, according to media reports. Some fund names plan to launch under Hindi brand names to help rural customers better understand the objectives of these schemes, The Economic Timesreported.

Mutual funds are diversified pools of capital that allow investors to spread risk by investing across a pool of stocks, bonds or other investment securities. According to ET, the top five mutual fund schemes that have returned over 20 per cent over three years include SBI Bluechip Fund; Quantum Long Term Equity Fund; DSP Focus 25 Fund; Birla Sun Life Top 100 Fund; and Reliance Top 200 Fund.

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This article exists as part of the online archive for HuffPost India, which closed in 2020. Some features are no longer enabled. If you have questions or concerns about this article, please contact indiasupport@huffpost.com.