The bigger the AUM for MFDs, the bigger their responsibilities. As Mutual Fund Distributors (MFDs) grow their business, managing multiple investors, schemes, transactions, and portfolios becomes more complex. Once an MFD starts handling crores of Assets Under Management (AUM), it’s not just about growth—it’s about handling that growth efficiently and delivering consistent investor experience.
And we know—it’s not an easy task at all. That’s exactly why more and more MFDs across India are now switching to digital tools like mutual fund software. But how does software actually help in handling high AUM? Let’s break it down simply.
Why Managing Crores of AUM Manually isn’t Practical Anymore
If you’re still managing portfolios using Excel sheets, emails, and WhatsApp groups, you’ve probably faced these issues:
● Missing out on follow-ups
● Delayed report sharing
● Portfolio mismatch or confusion
● Lack of visibility on year-on-year performance
● Struggling to offer anything beyond mutual funds
With increasing investor expectations and regulatory standards, manual processes are no longer scalable. That’s where the top mutual fund software in India, like that offered by REDVision Technologies, comes in—helping MFDs simplify and automate complex tasks.
How Software Helps MFDs Manage High AUM
1. Offer Multiple Asset Classes Under One Roof
When investors reach a certain level of wealth, they expect more than just mutual funds. They want a diversified portfolio that includes:
● Mutual Funds
● Fixed Deposits
● Equity & IPOs
● P2P Lending
● Loan Against Mutual Funds (LAMF)
With wealth management software, you can offer all of this from one single dashboard—without juggling different tools. This increases your business offerings and helps you retain high-value clients.
2. Share Simple & Insightful Reports on WhatsApp
Your investors don’t want a 20-page report filled with technical data. They prefer quick, clear, and easy-to-understand updates delivered in a format they already use—like WhatsApp. With portfolio management software, MFDs can:
● Share portfolio summaries in simple formats
● Send SIP reminders or due alerts
● Share timely capital gains and tax reports
This builds trust and enhances your client service—without adding extra effort to your day. It keeps investors engaged and well-informed without overwhelming them.
3. Track Portfolios Without Hassles
As your AUM grows, so does the complexity of each investor’s portfolio. Tracking 100+ folios and their performance manually is not only time-consuming but error-prone. Back office software lets you:
● Get a real-time snapshot of all investor portfolios
● Set alerts for rebalancing or underperformance
● Automate follow-ups for renewals, SIPs, and more
● Filter clients by asset class, transaction size, or risk profile
It gives you more control over the investor journey—even if you have 500+ clients.
4. Get a Clear Picture of Your Own AUM Growth
You need to see how far you’ve come. With software, you get visual dashboards that show:
● Monthly AUM trends
● Year-on-Year AUM growth
● SIP book value and growth
● Redemption vs Purchase patterns
This helps you set goals, measure performance, and plan your next move smartly. You’re no longer in the dark when it comes to your own business metrics.
What’s the Real Impact of Using Software?
Once you start using software to manage your AUM, the change is not just internal. It directly reflects in your investor relationships and long-term business success.
1. More Investors Are Attracted and Retained
Digital presence builds trust. When clients see you using professional tools to manage their money, they feel more confident.
● Onboarding becomes smoother
● Reports are clear and timely
● Queries get resolved faster
● Clients feel they are in good hands
That translates into more referrals and longer retention.
2. Stable AUM Becomes Easier to Maintain
As MFDs, we know that redemptions are the biggest challenge to growing AUM. But with tools like Loan Against Mutual Funds (LAMF), you can reduce redemption pressure.
Clients don’t need to redeem their investments in emergencies—they can just take a loan against them. This keeps your AUM stable while helping the investor meet their short-term needs.
Why MFDs Should Embrace Technology Now
Technology is no longer optional—it’s the need of the hour. In a fast-paced financial world where investors expect everything online, digital-first MFDs will always have the edge. Using software is not just about convenience. It’s about:
● Scaling your business
● Reducing manual errors
● Improving investor trust
● Growing your AUM consistently
● Offering a wide range of financial products
Whether you’re managing ₹10 crore or ₹100 crore, software makes your business more efficient, investor-friendly, and future-ready.
Final Thoughts
To answer the question clearly, yes, software can help you handle crores of AUM easily. It takes away the stress of operations, brings in automation, and helps you grow with confidence.
As your AUM grows, let your tools grow with you. If you’re an MFD looking to grow, retain clients, and scale your services, investing in the right software might just be your smartest business move yet.
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