Yearly Roundup – 2016

CAMS brings you a glimpse into the key events that occurred in year 2016 in the BFSI sector, both in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

GSecs

Early into 2016, Chinese economy displays signs of toppling markets across the world and sending currencies of emerging markets to their weakest levels in two decades.

In a dramatic turn of events , UK chooses to leave the EU in June 2016. Dubbed Brexit, the decision causes ripple effects that affect global proceedings politically and economically.

Falling in line with the anticipation of market experts around the world, the Federal Reserve hikes interest rates seeking to address issues related to labor market and inflation.

index

Government of India decides to merge railway budget into the main budget, indicating a strategic departure from the 92 year old practice instituted by the British. Also, budget will be presented on first working day of February, starting next year.

India’s move to demonetize Rs500 and Rs1000 notes urges consumers to go the cashless and tax compliant way.

In a move to promote and boost cashless, digital payments in the country, Niti Aayog launches ‘Lucky Grahak Yojna’ and ‘Digi Dhan Yojna’ for consumers and merchants.

gst

In a landmark shift of stances, Indian government seeks to implement GST in 2017. GST council led by Union Finance Minister Arun Jaitley state finance ministers meets seven times to discuss amendments to be effected to GST.

RBI

Urjit Patel assumes office as the newly appointed chief of RBI in September 2016; GoI sets up Monetary Policy Committee to manage affairs concerning policy interest rates.

sebi1

SEBI introduces several reforms in the past year, including relaxation of norms for start-up funding.

SEBI sources confirm registration of over 1700 fresh FPIs in the April-October quarter of the current financial year, accounting for an inflow of around Rs 2800 crore in equities alone.

MF

Mutual fund folios reach 44 lakh mark in the eight months spanning April to November 2016 alone, with considerable amount of inflow coming from B15 regions of the country.

insurance_irda

IRDAI mandates specific set of insurance policies to be issued in digitized, electronic form, from October 1, 2016.

The Indian Insurance industry records notable growth in year 2016, thanks to the several initiatives undertaken at the behest of the Central Government.

About CAMS

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

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MF investments from smaller towns are on the rise – CAMS

SEBI initiatives for investor education and awareness programmes and launch of the district adoption programmes, designed to drive financial inclusion pertaining to mutual funds, seem to have finally paid off. Mutual funds are on the rise as a prime destination for small town investors in the country.

A recent article published in the Delhi and Chandigarh editions of The Tribune, covers the growing participation of investors from smaller towns among other significant trends that are driving the MF industry, as spoken by Mr. NK Prasad, President and CEO, CAMS to Girja Shankar Kaura.

N K Prasad

Excerpts from the article:

Computer Age Management Services Pvt Ltd (CAMS) has emerged as one of the major players in managing data for mutual funds, private equities, banks, NBFCs, insurance companies and even brokerages. NK Prasad, President and CEO, CAMS, talks about the industry.

Q. What is the main business of CAMS and how has it evolved over time? What are your key services?
A. CAMS is Mutual Fund Registrar and Transfer Agency (RTA) serving three key stakeholders viz. the mutual funds, investors and distributors. In our two decade plus journey with the Indian fund industry, we have contributed significantly to the growth of the category via investment in technology infrastructure, product/service innovations, investor outreach and customer touch points. We provide full range of services, excluding advisory, for investors of 15 asset management companies. We provide investor and distributors services through a national network of over 260 service centres and multi-locational call centers supported by a large centralised back office. Going beyond the traditional RTA role, we have built significant scale and specialisation and serve over two crore live investor accounts.

Q. What are the benefits of investment in mutual funds?
A. The mutual fund industry is relatively young and has emerged as a well-regulated, transparent and low-cost investment solution. It provides world-class service standards and the benefits of diversification, tax efficiency, superior risk adjusted and inflation beating returns. Mutual funds offer the benefits of a professional fund manager who is trained and experienced in generating returns superior to the benchmark. He has the knowledge and expertise to deploy strategies, determine the allocation for investments into sectors, specific securities and booking profits. Staying invested for at least 10 years in well-performing equity schemes have generated CAGR ranging between 15 and 20%. These are far superior returns when compared to other asset classes.

Q. How is the digital transformation impacting MF industry?
A. As with all financial products, mutual funds are also witnessing digital trends in many ways. New account opening with Aadhaar eKYC, online transaction through website, portals and mobile app are all on the rise. With the proliferation of smartphones and good connectivity, investors have anytime, anywhere access to MFs. Our data points to nearly 15% of transactions from digital channels such as websites and mobile apps. Mutual fund being a highly intermediated product, we have enabled interfaces for electronic transaction submission for distributors. CAMS has been in the forefront to provide digital conveniences and launched Aadhaar-based eKYC, myCAMS mobile app to access multiple funds and GoCORP for institutional investors.

Q. Which key trends are visible in MF industry?
A. We see all round positive trends in the past few years. Retail investors’ confidence is high and this has been witnessed in consistently high inflows in equity funds in the past two years from new and existing investors. Market movement-led redemption is contained which points to investors’ long-term goal. SIP is becoming the preferred route to enter MFs. At CAMS, we processed around 74 lakh SIPs in November 2016 as against 39 lakh two years ago. From a high concentration of assets in metro cities a couple of years ago, sustained investor education and awareness building are opening up Tier 2 and Tier 3 town investors. We see nearly 50% of new investors from these locations.

Q. How should investors benefit from MF investing?
A. Mutual funds offer the most versatile combination of product options and plans, investing options such as systematic plans, product innovations such as step up SIP, flexi SIP and superior tax efficiency. The choice of asset allocation in mutual funds can work for long-term wealth creation with equity funds and short-term investment through debt funds. Moving surplus funds from savings account to liquid funds even for a few days gives a better yield.

Investors can take advantage of Systematic Investment Plan (SIP), a disciplined way to build a long-term portfolio and manage volatility of equity markets and product features such as goal-based plans, systematic sweep etc. Dividend income and long-term capital gains are tax-free in equity schemes.

Q. What is the growth potential of industry and how is your company pursuing?
A. Indian mutual fund industry has seen a double-digit growth and has about 5.1 crore investors with Rs 16.8 trillion worth assets under management and has penetrated to over 260+ locations. While this may look significant in absolute numbers for a relatively new industry, as a percentage of GDP, it is very low at 8.4%. However, we are seeing visible shift in trend to financial assets which is a positive sign.

Article source: http://www.tribuneindia.com/news/business/mf-investments-rising-in-smaller-towns-cams/342616.html

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit http://www.camsonline.com

 

 

CAMS CEO participates at CII Mutual Fund Roundtable 2016

We are witnessing a major turning point in the Indian history that is marked with significant regulatory breakthroughs that are significantly redefining the way BFSI domain operates in the country. Recent months bear testimony to the undeniable fact that mutual funds are on the rise as a prime destination for Indian investors, with special emphasis on growing participation from the B15 cities.

It is at such a significant juncture that the Confederation of Indian Industry (CII) organized CII Mutual Fund Roundtable 2016 on Tuesday, 20 December 2016 at Mumbai.  The event saw the coming together of industry veterans, thought leaders and prominent officeholders from across BFSI sector.

Conceived to address significant topics for the asset management industry, the event saw CAMS CEO and President, Mr. NK Prasad, speaking on the many possibilities that lie ahead for investments in mutual funds.

N K Prasad

Elaborating on how the mutual fund industry has evolved over the years to arrive at where it stands now and on the many innovations that have emerged with the advent of smart digitalisation techniques. Mr. Prasad explained the current trends that are driving the industry that is thriving at this point. He also projected future possibilities and opportunities that will play a significant role in taking retail investor participation to a higher level.

The bigger picture

It is evident that investors from small towns are now sensitized to the importance and benefits of Wealth Management. They constantly seek constructive avenues to deploy their money usually through the likes of retirement plans or plans for their children’s education. With growing awareness on Mutual funds and how the schemes offer products to meet the diverse needs of the meticulously careful Indian savers, participation from B15 investors are expected to go up in the Mutual fund space.

It is noteworthy that CAMS as a pioneer in several paper-based and digital initiatives that support participation of investors in mutual funds, have also served to facilitate and encourage mutual fund investments from the B15 cities.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit http://www.camsonline.com

 

Weekend Roundup – December 24

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 CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

Mutual Fund SIP

Revised estimates indicate US economy had grown by a substantial 3.5% in the third quarter of the current fiscal year.

For the fourth consecutive time in the last few weeks, Indian government bonds record gain.

gst

Considerable progress made at the GST council meeting held on December 22, 2016, in structuring the draft based on which the laws pertaining are to be drawn.

RBI

Central bank in possession of sufficient currency reserves to last until end of year, affirms Finance Minister, Mr. Arun Jaitley.

RBI sets up the seventeenth banking Ombudsman centre in the country. Uttarakhand and seven districts of western Uttar Pradesh to fall under the jurisdiction of the new centre.

sebi1
SEBI reinstates its inclination to go green by ushering in policy for electronic issuance of debt security papers. 

Investment advisors entitled to charge fees subject to ceiling as indicated by board, but shall not charge it as a variable pay, clarifies market regulator SEBI.

MF

Mutual fund folios reach 44 lakh mark in the eight months spanning April to November 2016, with considerable amount of inflow coming from B15 regions of the country.

insurance_irda

IRDAI  report points at a steady comeback and growth for the Indian insurance industry as measured in 2015-16, after several years of declining sales.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit http://www.camsonline.com

CAMSRep organizes exclusive event for User group

The CAMS group of companies have always prided themselves on developing solutions and services that match customer expectations and user suggestions. Interactive sessions that bring together the various perspectives of users and their expectations play a crucial role in such developments that continue to serve the organizations’ zeal for sustained innovation.

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CAMSRep CEO, Mr. S. V. Ramanan, seen moderating a high energy discussion at the CRUG event.

In keeping with this spirit of robust user engagement, CAMSRep, one of the major insurance repositories in India, hosted its first ever CAMSRep User Group event on the 8th December 2016 at Chennai.

The event themed ‘Ideate, innovate and implement’, was attended by key officials from leading organizations in the Indian insurance sector, representing –

    • Bajaj Allianz Life Insurance
    • Birla Sun life
    • HDFC Life Insurance
    • ICICI Prudential Life
    • Kotak Life
    • SBI Life

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Moderated by the energetic Mr.S .V Ramanan,CEO, CAMSRep, the session was an engaging event that brought to the fore some of the key issues of prevalence in the Indian insurance industry.

Discussions at the event focused on the role of insurance repositories into reaching out to potential consumers in the under-penetrated Indian market. Besides touching upon a joint representation to be presented to the IRDAI, the delegates discussed on the ways to approach and address the issues concerning unclaimed policies.

The distinguished guests also contemplated over the need to render insurance repositories mandatory.

About CAMSRep

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CAMS Insurance Repository Services Ltd (CAMSRep), a subsidiary of CAMS, is one of the major Insurance Repositories in India Licensed by Insurance Regulatory and Development Authority of India (IRDAI). CAMSRep, as an Insurance Repository opens unique eInsurance Accounts (eIA) for policy holders,which in essence are convenient, safe and relatively risk-free electronic policies. CAMSRep also acts as a single point of service for all ePolicies held by a policy holder. Apart from repository services, CAMSRep also provides outsourcing services to multiple Insurance Companies in accordance with IRDAI regulations.

Digitalisation drive could improve insurance penetration

e-Insurance

If one were to measure the degree of penetration of insurance industry in the India, it would be found that there is scope for a lot more to be done. However, now there is scope for hope in this regard, with the Government of India promoting digitalisation in financial transactions with commitment and intensity.

A recent article published in Financial Express, authored by Mr. Kamalji Sahay, Director, CAMSRep, covers the many possibilities that digitalisation of economy would offer to the advantage of the insurance industry.

Excerpts from the article:

Prime Minister Narendra Modi has been vigorously pursuing the agenda of converting the country’s socio-economic landscape into a digital highway for faster and more inclusive growth. The mission is to map every Indian to a network to enable them to access all kinds of services, benefits and information without hassle and without discrimination. The current drive to move all financial transactions between any two entities or among several entities to the digital platform is a very determined effort to achieve this objective.

While Aadhaar provides a reliable identity to about 90% citizens, the stress on opening bank accounts such as a zero balance account under the Jan Dhan Yojana is targeted to make every entity KYC compliant and armed with a digital identity acquired through the bank account number or the registered mobile phone number.

In the marketing of life insurance, obtaining KYC data and processing the first premium payment have always been very challenging. During consideration of the insurance proposal, verification of several facts, right from age proof to income detail or records of previous policies, are required for evaluating the life before the risk is underwritten.

After completion of the proposal, the policy bond is printed with information on name, address, sum at risk, premium mode and amount and other conditions so that it establishes a legally valid contract between the insured and the insurer. Payment of subsequent premium with the contracted frequency and of any policy proceeds to the policyholder or the claimants has to be hassle free so that the insurer is able to honour its commitment in letter and spirit.

Lack of efficiency in this regard is the most important impediment in achieving higher insurance penetration. When an intermediary asks the potential customer for submitting KYC details, his first reaction is to either postpone buying of insurance or ask the salesman to come later. It’s worse when demands for documents even after depositing the money keep coming to the prospective policyholder. And in utter annoyance, he just refuses to talk to the sales person, depriving himself of a much-needed financial security cover. For people living in remote areas or those belonging to the disadvantaged sections of society, these issues have been a major deterrent in securing life insurance cover. The effect is visible in the low penetration of life insurance.

Aadhaar, which has been recognised by the Irdai as a valid KYC document, issue of guidelines regarding e-insurance account and insurance repositories by the regulator, opening of bank accounts by almost every eligible Indian have suddenly solved many of these latent issues. All these requirements can be complied with through networking with Aadhaar and banks. Even premium and claim payment can be smoothly transacted to minimise lapsation of policies and hassle-free credit of the insurance proceeds to the insured’s or claimant’s account .

Apart from such procedural advantages, digitalisation will enable insurers to identify prospective customers. Repositories can encourage people to go for more insurance. The environment would provide incentive to insurers to operate in villages. People in remote areas may also find it convenient to buy and maintain a few life insurance policies. The new landscape throws up opportunities for insurers to rethink their strategies and deepen their grip on the market. Those insurers who would take time to realise what has happened lately, may face the danger of being left behind in India’s quest for raising insurance penetration to the best global standard.

Article source: http://www.financialexpress.com/money/pm-narendra-modis-digitalisation-drive-can-improve-insurance-penetration-heres-how/479908/

About CAMSRep

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CAMS Insurance Repository Services Ltd (CAMSRep), a subsidiary ofCAMS, is one of the major Insurance Repositories in India Licensed by Insurance Regulatory and Development Authority of India (IRDAI). CAMSRep, as an Insurance Repository opens unique eInsurance Accounts (eIA) for policy holders,which in essence are convenient, safe and relatively risk-free electronic policies. CAMSRep also acts as a single point of service for all ePolicies held by a policy holder. Apart from repository services, CAMSRep also provides outsourcing services to multiple Insurance Companies in accordance with IRDAI regulations. To know more about CAMSRep, please visit https://www.camsrepository.com/.

 

 

Weekly Roundup – December 17

weekly-roundup-fallout-free-edition-660x330

CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

Mutual Fund SIP


Falling in line with the anticipation of market experts around the world, the Federal Reserve hikes interest rates. The hike seeks to address concerns pertaining to the prevalent labor market and inflation conditions.

chinese yuan

China opts for a no-frills, balanced monetary policy for the year to come. Accordingly, the People’s Bank of China has implemented selective tightening of interest rates.

niti-aayog

In a move to promote and boost cashless, digital payments in the country, Niti Aayog launches ‘Lucky Grahak Yojna’ and ‘Digi Dhan Yojna’ for consumers and merchants.

RBI

No charges to be levied on consumers for cashless transactions via USSD, IMPS or UPI upto Rs 1,000, as per recent sanctions as motioned by RBI.

sebi1

SEBI sources confirm registration of over 1700 fresh FPIs in the April-October quarter of the current financial year, accounting for an inflow of around Rs 2800 crore in equities alone.

MF1

Mutual funds industry in India is going through a notable phase of growth, with a robust inflow of Rs 36,000 crore in November.

insurance_irda

The Indian Insurance industry has recorded notable growth in year 2016, thanks to the involvement of the Central Government.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit http://www.camsonline.com