The National Commodity and Derivatives Exchange (NCDEX) has launched NCDEX Nidhi, a new mutual fund transaction platform designed to make investing easier for people living in rural and semi-urban India.
The platform aims to reduce the investment gap by helping more people access mutual funds through a simple and digital system.
It uses an API-first architecture, allowing distributors to use the NCDEX Nidhi portal directly or integrate its services into their own platforms.
What Does NCDEX Nidhi Offer?
The new platform comes with several features that make mutual fund investments easier and more transparent.
Some of the key features include:
Accurate transaction timestamping to avoid confusion over the applicable NAV.
Universal SIP AutoPay that works with major UPI apps.
Clear reasons for failed transactions to help users resolve issues quickly.
Support for both lump-sum and SIP investments across different mutual fund schemes.
Flexible SIP options for investors with irregular monthly income.
End-to-end support for all mutual fund investment transactions.
These features are expected to make investing more convenient, especially for first-time investors.
NCDEX to Use Farmer Producer Organisations (FPOs)
NCDEX Managing Director and CEO Arun Raste said the platform will expand the reach of mutual funds by working with leading asset management companies (AMCs) and the exchange’s existing network of around 800 Farmer Producer Organisations (FPOs).
Each FPO has an average of about 250 members, giving NCDEX access to a large rural investor base.
According to Raste, many rural investors already trust NCDEX, and this trust, combined with well-known mutual fund companies, can encourage more people in villages and small towns to start investing.
FPOs Will Also Become Mutual Fund Distributors
NCDEX is helping FPOs obtain the required certification to become mutual fund distributors.
FPOs can choose between two types of licences:
A licence to distribute mutual funds only within their own organisation.
A licence to sell mutual funds to the general public.
The exchange will assist FPOs in getting the licence that best suits their needs.
This initiative is expected to create an additional source of income for FPOs while giving rural investors access to investment options beyond traditional choices like gold and fixed deposits.
More AMC Partnerships and Future Expansion Plans
NCDEX has already partnered with five leading Asset Management Companies (AMCs) and plans to add 15 more fund houses over the next one to two months.
The exchange also plans to collaborate with cooperative organisations to further expand its distribution network across the country.
Apart from NCDEX Nidhi, the exchange has announced plans to launch new weather-related derivative products linked to rainfall and heat, introduce derivative contracts for platinum and freight, and explore opportunities to enter the securities markets of Sri Lanka and Bangladesh through partnerships with local exchanges.