Mutual fund distributors (MFDs) have relied on Microsoft Excel for managing their business for years. However, the financial industry is evolving rapidly and Excel may no longer be sufficient. It's time for MFDs to consider upgrading to purpose-built mutual fund software. In this blog post, we will discuss the advantages of upgrading software and how it can improve efficiency.


Excel Has Limitations

While Excel is a versatile tool, it has some key limitations that make it challenging to manage an investment business.

●Complex data handling: Excel files can become unwieldy with large amounts of data and complex formulas.

●Sharing & collaboration: They are also not collaborative - only one person can work in a file at a time.

●Client relationship management: Excel was not designed for specialized financial or CRM functions that MFDs require.

●Data storage: Excel was not designed to be a robust data storage and management platform. It struggles to handle large amounts of data generated by the financial industry.

●Data accuracy: It is almost impossible to quickly verify the accuracy of data in Excel, which can lead to errors and inconsistencies.

●Lack of automation: Excel requires manual updates and calculations, which can be time-consuming and prone to human error.



Modern Software Offers More Features

Modern mutual fund software is designed specifically for investment distributors. Key features include:

●Centralized client databases
●Automated workflows
●Customizable dashboards, and reports.

Distributors can track leads, manage client portfolios and transactions, run analytics, and more.

Data entry is streamlined. Multiple users can access the system simultaneously, improving team collaboration.

The software also ensures data security and integrity with features like automatic backups.


Stay Competitive in the Digital Age

As investors increasingly conduct business online, MFDs need digital tools to engage clients and prospects effectively.
Younger advisors also expect the technologies they use personally to be available professionally.

Outdated systems can hamper an MFD's ability to service clients and attract new talent. Upgrading to purpose-built mutual fund software keeps businesses competitive in today's digital landscape.


Conclusion:

Managing client relationships and business operations with Excel will become more difficult as demand grows.

It's time for MFDs to take a serious look at upgrading to modern investment software tailored to their unique needs. This investment will pay off through increased efficiencies, improved client services, and the ability to scale for future growth.

The winners will be distributors who embrace new technologies to stay ahead in this rapidly changing industry.