Mutual Fund company Motilal Oswal MF joins Open Network for Digital Commerce (ONDC) to increase mutual fund's reach and influence

The Motilal Oswal Asset Management Company (MOAMC) has taken a significant step towards democratizing mutual fund investing by integrating with the Open Network for Digital Commerce (ONDC). This partnership, which is anticipated to set a precedent for the industry, aims to provide greater access to a range of funds for retail investors.

The integration intends to utilize India's digital public infrastructure, as ONDC is an initiative by the DPIIT, Ministry of Commerce. ONDC's open protocol is designed to create a digital distribution channel for mutual funds, supporting efforts towards enhancing participation in financial markets.

Akhil Chaturvedi, Executive Director and Chief Business Officer at MOAMC, states that the partnership addresses distribution gaps and benefits all stakeholders, including investors and distributors. Prateek Agrawal, Managing Director and Chief Executive Officer at MOAMC, emphasizes that the integration with ONDC aims to provide investors with access to funds aligned with their financial goals.

The integration of MOAMC with ONDC is expected to lead to wider participation in formal finance and formal investing. Anchal Jajodia, Co-founder of Cybrilla, who serves as the service provider for the ONDC backend platform, highlights that the integration brings together the trust of an established investment house and the reach of ONDC, creating new pathways for grassroots investors.

Vibhor Jain, Acting CEO and COO at ONDC, notes that the integration marks a shift from centralized to decentralized distribution and signals confidence in the ecosystem. The integration of MOAMC with ONDC is intended to facilitate transactions through the platform, enabling local distributors to benefit from a wider reach.

The integration between MOAMC and ONDC is significant as it sets a precedent for the industry to follow in technology-led innovation. This partnership is expected to provide wider access to mutual fund products for a broader community of investors, giving more people the tools to build long-term wealth.

ONDC aims to democratize digital commerce by establishing an interoperable open network for digital transactions. The integration of MOAMC with ONDC is intended to benefit local distributors by enabling wider reach, supporting the goal of democratizing digital commerce and financial investments.