DSP Asset Managers Joins ONDC to Expand Mutual Fund Access
DSP Asset Managers has joined the Open Network for Digital Commerce (ONDC), opening doors for more distributors, including local entrepreneurs and fintech startups, to offer mutual funds to a wider audience. This move signals a shift towards decentralized distribution, expanding access to financial news at scale.
The integration with ONDC is a first for mutual fund companies, made possible through a partnership with Cybrilla. Anchal Jajodia, Cybrilla's co-founder, explains that this enables a new kind of distribution, allowing local distributors and digital apps to offer low-cost, goal-based investments to first-time investors across India.
Vibhor Jain, ONDC's Acting CEO and COO, sees this as a step away from centralized distribution. The integration also lowers costs for DSP by covering KYC and payment gateway fees, making it easier for new distributors to join and serve customers. Manish Rathi, DSP's VP & Head of Consumer Growth Marketing, believes this is a significant step towards making investing simple and accessible to everyone, particularly in smaller cities.
ONDC, an initiative by the Ministry of Commerce and Industry, aims to revolutionize digital commerce and boost retail e-commerce penetration in India. Its decentralized design allows DSP and its partners to create new investment news products like daily SIPs or goal-based micro-investments. ONDC is also exploring the use of Central Bank Digital Currency (CBDC) for mutual fund purchases and redemptions, which could lower costs and offer instant settlement.
DSP Asset Managers' integration with ONDC Network opens up new opportunities for decentralized distribution of mutual funds, making news more accessible and affordable, particularly for first-time investors in India. This partnership aligns with ONDC's goal of providing easier access to credit and simple investment options for unserved or underserved individuals and small businesses.
