NCDEX Launches Mutual Fund Platform 'NCDEX Nidhi' To Expand Investment Access In Rural India

The National Commodity and Derivatives Exchange (NCDEX) has entered the mutual fund distribution business with the launch of NCDEX Nidhi. The new transaction platform is designed to improve access to mutual funds in rural and semi-urban India.

The platform marks a significant step in NCDEX's strategy to evolve into a multi-segment exchange. It also aims to bring first-time investors from smaller towns and villages into the formal financial system by making regulated investment products more accessible.

At launch, six asset management companies (AMCs) have joined the platform. These include Nippon India Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, LIC Mutual Fund, Tata Mutual Fund and Invesco Mutual Fund. NCDEX said it expects around 20 more AMCs to be onboarded by the end of August.

Leveraging Agricultural Network For Wider Reach

The exchange plans to leverage its two-decade-old agricultural ecosystem and extensive network of Farmer Producer Organisations (FPOs) to expand mutual fund distribution beyond India's top 100 cities. These regions continue to have relatively low mutual fund penetration despite growing financial awareness.

Platform Targets First-Time Investors With Digital Features

Arun Raste, Managing Director and Chief Executive Officer of NCDEX, said the platform is expected to help millions of first-time investors participate in the mutual fund ecosystem.

According to Tojo Banerjee, Chief of Equity Business at NCDEX, rural and semi-urban India represents a large untapped opportunity for mutual funds. However, access to distribution channels has remained limited. He said NCDEX Nidhi has been built as a simple, compliant and API-ready platform for distributors, registered investment advisers (RIAs), AMCs and retail investors.

NCDEX has already trained members from 20 Farmer Producer Organisations as certified mutual fund distributors. These members cleared the mandatory National Institute of Securities Markets (NISM) examination with support from the exchange. The trained distributors are expected to improve awareness of mutual fund investing in villages, where traditional distribution networks remain limited.

The NCDEX mutual fund platform also offers several investor-friendly features. These include UPI AutoPay for systematic investment plans (SIPs), end-to-end transaction time-stamping until net asset value (NAV) allocation, detailed rejection messages instead of technical error codes, and the flexibility to choose any calendar date for SIP deductions. According to NCDEX, these features are intended to improve transparency and simplify the investment process.

Also Read - Vedanta Oil and Gas Q1 FY27 Results