<h1>Digital transformation reshapes mutual fund distribution with paperless onboarding, e-KYC, instant payments, automated advice, and compliance duties</h1> Digital transformation is altering mutual fund distribution and investor engagement, with paperless onboarding, e-KYC standardization, instant payment rails and automated advisory tools reducing friction and expanding access. Regulatory measures (including SEBI-led digital KYC standards and proposals for DigiLocker document sharing) aim to streamline processes while preserving oversight, creating compliance obligations for providers and periodic validation duties for investors. Legal considerations include duty of clear fee disclosure, truthful scheme documents, data protection and custodial security, and liability risks from automated advice. Investors must assess platform credibility, maintain cyber hygiene, understand fund risk disclosures and retain responsibility for investment decisions despite convenience-enhancing technologies.