Mutual fund infrastructure may offer reusable building blocks for wider equity-market participation—but it is a plausible pathway, not a proven cause. In an opinion article, Balakrishna Shankwalker, Chief Technology Officer of the National Commodity and Derivatives Exchange (NCDEX), argues that the next phase of participation depends not only on what people invest in, but on how they access, transact, and engage with markets.
Why infrastructure matters beyond the investment product
Shankwalker’s central argument is that adding investment products is not enough if people cannot easily open accounts, complete verification, make payments, and manage transactions. “In my view, the answer lies not in launching more products, but in building stronger infrastructure,” he writes in his DSIJ article, listed October 6, 2026.
In this context, infrastructure means the systems, procedures, and connections that support investor access and market operations. Mutual-fund channels already involve multiple steps and participants. The idea is that capabilities developed to handle those steps could inform services in other parts of the capital market.
What mutual fund infrastructure includes
The mechanisms Shankwalker identifies span the investor journey and the operational work behind it:
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- Identity and account setup: identity verification, Aadhaar-enabled e-KYC, PAN validation, account-creation workflows, and connections to KYC systems and depositories.
- Payments and recurring investment: SIP mandates and UPI transactions, which support one-time or scheduled contributions.
- Transaction operations: transaction management, settlement, and reconciliation.
- Participant communication: information flows among investors, distributors, registrars, asset managers, and service providers.
These capabilities could be useful in other market contexts because they address recurring needs: establishing identity, authorizing payments, processing transactions, reconciling records, and communicating status. Reuse does not mean that one institution’s systems can simply be copied into another market. Different products and institutions may have distinct rules, technology, controls, and integration requirements.
How the proposed model could widen access
Shankwalker’s inclusion proposal combines digital convenience with human assistance and local trust. He expects prospective investors to come from beyond major urban centres, where access, familiarity, and confidence may remain barriers. His recommended approach includes local institutions, financial intermediaries, and vernacular platforms alongside online onboarding and payments.
The two channels address different friction points. Digital processes can make routine steps available remotely; assisted and local channels can help people understand requirements, navigate unfamiliar processes, and build confidence. This is a proposed model, not a measured finding: the DSIJ article does not report an outcome study showing that this combination increases participation.
Why scale and resilience belong in the design
Systems that serve more investors and transactions must handle variable demand without compromising reliability or security. Shankwalker presents cloud-native architecture as one possible way to adapt to transaction volumes and integrate systems. He also highlights monitoring, backups, security, and business continuity.
These are design goals, not automatic results of choosing a particular architecture. Cloud adoption alone does not establish that a system is secure, resilient, or well integrated. Those outcomes depend on implementation, operational controls, ongoing monitoring, and tested continuity arrangements.
What the available market data does—and does not—show
SEBI publishes period-specific Indian mutual-fund industry data that helps describe the scale and activity of the ecosystem in which these capabilities operate. Its report for April 1 through August 31, 2026 includes scheme, folio, asset, flow, and SIP measures. A separate SEBI report covers the fiscal year April 1, 2025 through March 31, 2026. These are distinct reporting periods; figures from one should not be presented as if they describe the other.
SEBI’s Investor Survey 2025 reports 100.29 crore internet connections as of June 2025, attributing the figure to the Department of Telecommunications’ 2025 year-end review. That is a measure of connectivity, not proof that those connections belong to unique people, that their holders use mutual funds, or that internet access alone produces financial inclusion.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Where the argument stops
Shankwalker’s article is an opinion piece that sets out a thesis and examples of possible mechanisms. SEBI’s reports provide context about the mutual-fund ecosystem, but they do not test whether adopting these systems causes more equity participation or improves access, cost, security, or resilience. The case for mutual-fund infrastructure as a foundation is therefore a proposal about reusable capabilities, not an independently established causal result.
Shankwalker captures that view in his concluding metaphor: “In that journey, mutual fund infrastructure is not just a back-end enabler. It is the invisible foundation upon which the next chapter of India’s equity story will be written.” It is a statement of his outlook; whether infrastructure produces that broader effect depends on how systems are designed, connected, and made usable to investors.
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