HDFC AMC Joins ONDC Network to Broaden Mutual Fund Access for Underserved Groups
One of HDFC AMC’s biggest plays recently was to join the Open Network for Digital Commerce, called ONDC, as one of the first asset management companies to offer its mutual fund products on that platform. This is all part of a broader effort by HDFC AMC to make mutual fund investments accessible to low-income and underserved communities across India.
ONDC is a government-monetized initiative launched in December 2021. It aims to revolutionize the face of digital commerce by creating a decentralized and interoperable structure to be used for enhancing retail e-commerce all over the country. The idea is to democratize access to digital goods, removing traditional barriers and making products and services available to consumers, especially in the areas where electronic infrastructure and financial services have been limited.
HDFC AMC and ONDC will enable mutual fund products to reach a part of the population, particularly in lower-income brackets and underserved areas. HDFC AMC, with the help of its tie-up with ONDC, aims at solving various issues that had otherwise limited investment among the low-income groups by providing limited available financial tools and resources.
This will also give mutual fund distributors more options for investing smaller sums besides other advantages. This is thus seen as an effort towards more ease of entry for the newcomer investor who otherwise cannot invest because of a financial constraint. In this scheme investment into mutual funds will become even more accessible and consequently with ONDC’s platform, a larger number of people will be better positioned to harness the wealth-building opportunity.
It also makes much of the use of the open protocol on ONDC, which is very important in allowing mutual funds to be available to more people. That way, people, particularly those from otherwise under-served regions, will be able to participate in India’s economic growth through investments in mutual funds.
Joining ONDC, HDFC AMC would be hoping to shatter the investment environment in India so that, otherwise deprived, people will find access to investment avenues, which they never considered otherwise. This trend matches with the rising application of digital platforms, this time applied for financial products so that economies in India suffering from various issues, reap larger benefits from society.
This will positively contribute to the financial inclusion agenda as more people lock in their financial futures through diversified investment opportunities.
