Finance Desk – Welcome to the world of Indian mutual funds — where your great-grandfather’s paper units are still lost in a cupboard somewhere, and unclaimed assets are chilling to the tune of ₹1.3 lakh crore. Enter blockchain, the tech superhero we keep hyping but rarely let out of the lab.
So, the big question: Can blockchain revolutionise mutual fund ownership in India?
Short answer: Yes.
Long answer: Yes, but only if we stop being scared of technology and paperwork ghosts.
Tokenization: Bye-Bye, Paper Drama
Imagine if mutual fund units were digital tokens you held in your digital wallet. No more “Dad bought some fund in 1998 but didn’t tell anyone” stories. Blockchain could give investors full control — minus the file folders and missing nominee forms.
And hey, smart contracts could automate the boring stuff — dividends, compliance, paperwork — basically firing the “middleman uncle” who delays everything.
Real-Time Settlements: T+What?
Currently, transferring units takes T+1 or T+2 days, because why not drag it out? Blockchain says: “Instant or bust.”
Imagine buying or transferring mutual funds like sending a WhatsApp message — fast, clean, and no one asking you for a cancelled cheque.
Tamper-Proof? Yes Please.
Once something’s on the blockchain, it stays there. You can’t “accidentally” misplace it or “conveniently” forget about it. Everyone — investors, fund managers, regulators — sees one honest version of the truth. For once.
Big Numbers, Bigger Headaches
With over 23.83 crore mutual fund accounts (yes, that’s a LOT), the system has to scale like a pro. Public blockchains might wheeze under that weight, so private ones with selected validators may step in — think of it as VIP entry, but for your investments.
Regulation: Still Loading…
Of course, none of this matters if the rules stay from 1992. We’ll need regulators to stop sipping chai and start drafting laws for tokenized securities. No legal green light = no tech revolution. Simple.
Privacy on the Blockchain? Ironic, But Doable.
Blockchain is super transparent — which is great until your neighbour knows how much you SIP every month. So, we’ll need a hybrid system: privacy on the outside, decentralisation on the inside. A bit like hiding your money under a mattress, but digitally secure.
And What About Tier 2 & Tier 3 Cities?
Here’s the twist: More than 50% of SIPs come from small towns. That’s right, Bharat is investing. But if we want blockchain to really take off, the interface has to be so simple even your nani can use it — ideally without needing a 2-hour YouTube tutorial.
