BSE Star MF rides digital investment growth amid equity market rally

Platform executed 663 million transactions in FY25, from 57 million in FY20

Mutual funds (MFs) have witnessed record growth after the pandemic, with the investor count expanding almost threefold. The growth is driven by online channels making investments easy and an equity market rally.

 

BSE Star MF, the largest execution platform used by individual distributors as well as online investment apps, has been an enabler as well as the key beneficiary of this growth. The platform executed 663 million transactions in FY25, up many times over from 57 million in FY20. Its revenue crossed ₹100 crore for the first time in FY24, reaching ₹128 crore and surged 80 per cent to ₹231 crore in FY25, according to data provided in BSE investor presentations.

 

As of March 2025, BSE Star MF had more than 80,000 MF distributors registered with it. The MF industry had a little over 160,000 individual MF distributors. The number of investor accounts registered through the platform stood at 237 million.

 

BSE Star MF was launched in 2009 as an electronic distribution system to enable efficient and dematerialised (demat) transactions across asset management companies via registered intermediaries. Its primary purpose is to facilitate and streamline MF transactions, acting as a crucial bridge between asset management companies, MF distributors, and investors.

 

 

The platform has evolved to provide quick execution, detailed status tracking and other features. It significantly reduces paperwork and processing time compared to traditional physical methods. It's a browser-based, fully automated online system for collecting mutual fund purchase, redemption, and Systematic Investment Plan orders. For demat account holders, it obviates significant paper movement and allows faster unit allotment.

 

Internet and smartphones are among reasons cited for the surge in MF investments from semi-urban and rural areas. According to reports, more than 90 per cent of MF transactions are done online. There are around 60 million MF investors in the country and the industry is targeting a base of 100 million by the end of the decade.

 

Rahul Jain, founder of investment firm GR Finvisors, said Star MF has several advantages. "BSE Star MF is a pioneer and market leader, commanding significant share due to its first-mover advantage – we've used it reliably for over seven years.”

 

“Beyond core mutual fund transactions, it uniquely enables sovereign gold bond investments for clients. Its standout efficiency is evident in processes like systematic transfer plans (STPs), which take just two to three days versus weeks on other platforms. The platform also streamlines operations by allowing consolidation of multiple mutual fund investments under single orders, facilitating seamless fund transfers and client data management. Crucially, its easy API integration with diverse applications simplifies data and report consolidation,” he said.

 

BSE Star MF, which processes more than 60 million monthly transactions, is working to add to its capacity while also adding more features. 

 

An updated version of the platform called BSE Star MF 2.0 is expected to be launched soon.