Why should I make payment in favor of PowerMF and what are the securities available to me as I am not making the payment to the Mutual Fund?
The account in which the investment is made is Customer Account opened by PowerMF exclusively for the purpose of ensuring ease of transaction for you. The beneficiary of the amounts lying in the account is only the investor and not PowerMF. Further, the payments out of this account can only be paid to the AMC and in exceptional cases to the investors accounts (where the transaction is rejected for any reason whatsoever). The reason for having a single account is to ensure that you have the freedom to invest in multiple schemes at a time (it is understood that a normal investor invests in 2 schemes at a time) without the problem of having to transfer funds online or write out cheques multiple times. Further, the agreement entered in to between PowerMF and you clearly specify that PowerMF account will be only used as a pass through and not for any other purpose except payment for the transaction request entered by you.