New Delhi, May 9 -- There's no doubt that 'mutual funds sahi hai', but that doesn't mean investing in them is hassle-free. Investors still face several issues, from tiny but annoying stamp-duty cuts to unredeemable folios with fractional units.

To smooth out these and other issues, the Association of Mutual Funds in India (AMFI), on Sebi's direction, has asked asset management companies (AMCs) to suggest changes that could streamline the operations of the mutual fund industry and benefit investors.

Here are four changes that a few AMCs suggested, which they shared with Mint on the condition that they not be named.

Buying units of mutual funds attracts stamp duty at the rate of 0.005%. This minuscule deduction creates completely avoidab...