Mutual Fund Platform Modernization

Enterprise Architecture Document: Mutual Fund Platform Modernization

1. Vision

Modernize a legacy mutual fund transaction and investment management platform into a secure, scalable, and real-time Spring Boot-based microservices architecture hosted on Azure Cloud using AKS, Istio, and Kafka. The solution will support 20,000–50,000 concurrent users and handle 3,000–5,000 TPS with real-time NAV (Net Asset Value) processing.

2. Business Objectives

• Enable real-time investor transactions and NAV updates

• Reduce transaction time by 70%

• Comply with SEBI regulations (data retention, PII security)

• Ensure 99.99% uptime and disaster recovery

• Deliver rapid onboarding and fund setup via self-service

3. Target Architecture Overview

• Microservices: 40+ Spring Boot services

• Cloud: Azure

• Container Orchestration: AKS (Azure Kubernetes Service)

• Service Mesh: Istio (traffic control, mTLS, policy enforcement)

• Messaging: Kafka (event-driven processing)

• Database: Azure SQL, Cosmos DB

• Monitoring: Prometheus, Grafana, Azure Monitor

• Logging: ELK Stack

• Authentication: Azure AD B2C

• CI/CD: Azure DevOps

4. Capability Map

Capability	Description
Investor Onboarding	KYC, AML, eSign
Fund Setup	AMC onboarding, scheme registration
Order Management	Purchase, redemption, SIP, SWP
Portfolio Tracking	Holdings, NAV, transactions
Real-Time NAV Processing	Asset feed ingestion, computation, publish
Compliance	SEBI checks, audit trail
Reporting & Statements	Transaction reports, SOA, capital gains
Notifications	Email/SMS alerts, investor updates
Partner/Distributor Portal	Lead management, commissions
Fraud Detection	Behavioral analytics, transaction patterns

5. Capability-to-Service Map (Sample)

Capability	Microservices
Investor Onboarding	KYC Service, eSign Service, Account Service
Order Management	Order Service, SIP Engine, Payment Gateway
Portfolio Tracking	Holding Service, NAV Cache Service, Statement Svc
NAV Processing	Asset Ingestor, NAV Calculator, NAV Publisher
Reporting	Report Generator, Audit Trail Service

6. Architecture Flow (Functional Modules)

Investor Onboarding:

Front Door → API Gateway → Istio → KYC/Account Service → Azure SQL → Kafka (event log)

Order Management:

App UI → Order Service → Kafka → Payment Gateway → Transaction Engine → DB → Kafka → Notifications

NAV Processing:

Asset Feed API → Kafka Topic → NAV Calculator Service → Kafka → NAV Publisher → Cache DB & Webhook

Reporting:

Backend Cron / Event Trigger → Report Generator → Azure SQL → PDF/S3 → Email Service

7. AKS + Istio Design

• AKS Clusters (Multi-AZ): Dev, UAT, Prod

• Node Pools:

  • App Pool (Spring Boot): autoscale 30–60 nodes

  • Kafka Pool: high-throughput SSD nodes

  • Infra Pool: Istio, monitoring, ELK

• Istio: mTLS, Ingress Gateway, retries, timeouts, circuit breakers

8. Enterprise Risks & Mitigation

Category	Risk	Mitigation
Business	Investor churn due to downtime	Active-active setup, SLAs, health checks
Operations	Manual reconciliation delays	Kafka-driven real-time syncing
Technology	Latency during NAV publishing	Decoupled services, Kafka buffering
Security	PII data exposure	mTLS, Azure Key Vault, RBAC
Compliance	SEBI non-compliance	Geo-redundant backup, data retention policies
Governance	Shadow IT or misaligned services	Architecture Review Board, Azure Policy
People	Skill gaps in microservices/Kafka	Training, paired programming, CoE support

9. Business Outcomes: Before vs After Modernization

Metric	Before	After
Avg. Order Processing Time	12–15 seconds	3–4 seconds
Uptime	95%	99.99%
NAV Publishing Frequency	3 times/day (batch)	Every 1 minute (real-time)
New Fund Setup Time	3–4 weeks	<1 week
Compliance Audit Time	4–5 days	<4 hours

10. Key Complexities & Solutions

Complexity	Solution
Stateful NAV calculations	Idempotent Kafka consumers, partitioning strategies
High user concurrency	HPA, Istio load balancing, caching via Redis
Regulatory data logging	Immutable audit trail service (Kafka + Cosmos DB)
Downstream system sync	Event replay, dead-letter queues
Microservice dependency chaos	Istio service mesh + distributed tracing

This architecture supports real-time, highly concurrent mutual fund operations while delivering scalability, observability, security, and compliance as per BFSI standards.