The ETF story in India

World of InvestingExchange Trade Funds (ETFs) have become very popular among international investors especially since the recession in 2008. In 2007 there were 1,171 ETFs worldwide and the number increased to 4,396 by 2015. The ETF market is now expected to reach $7 trillion by 2021. However, it is believed that this growth is reflective of a bigger trend in world market – an appetite for investment in passive funds. While international investors have invested highly in ETFs, the market in India is not too far behind either. Before we take a look at ETFs in India, let’s take a closer look at ETFs in general.

What are ETFs?

Exchange Traded Funds (ETFs) are index funds that are listed and traded on the stock market exchange. Index funds could not be traded on the stock market before the introduction of ETFs. An ETF is a collection of stocks designed to resemble the composition of an index like CNX, S&P, NIFTY or BSE. Much like stocks and shares, ETFs experience price changes throughout the day as they are bought and sold. These funds have introduced individual and retail investors to an array of investment opportunities globally. ETFs give investors real time exposure to stock markets in different parts of the world at a lower cost.

The first ETFs

The first time anyone tried investing in an ETF was when the Index Participation Shares were launched for S&P 500 in 1989 in the US, also known as Standard & Poor’s Depositary Receipts (SPDRs). The market has only grown since. According to Morgan Stanley, by the end of 2007 there were 1,171 ETFs trading worldwide with assets roughly worth $800 billion. About 60% of trading volumes on the American Stock Exchange is from ETFs.

ETFs in India

India got its first equity ETF in 2001 when Benchmark Mutual Fund was acquired by Goldman Sachs in 2011, launching the Nifty ETS Fund (ETS is short for Exchange Traded Scheme). The ETF industry has grown since. Indian markets saw an inflow of $2.5 billion in 2014 and $4.3 billion in 2015. The segment also saw net outflows of $2.5 billion in 2016

A divestment target of INR 72,500 crore has been set in this year’s Union Budget. The Finance Minister said that ETF will continue to be a preferred vehicle for this process. He was quoted saying, “A new ETF with diversified CPSE stocks and other government holdings will be launched in 2017-18.” An increase in ease of access and the possibility of trading being facilitated through asset management companies (AMCs) will continue to drive their growth in the country. ETFs comprised of diversified CPSE stocks would be popular with new retail investors if such investors could be served by the Asset Management Companies instead of compulsory demat accounts. Mutual funds are a great benchmark in this regard. Mutual funds service investors who don’t use demat accounts but transact via stock exchange platforms used by both trading members as well as limited purpose members.

Over the years, mutual funds have also established a strong investor servicing infrastructure with extensive linkages to stock exchanges, Settlement Corporation and brokers operating on stock exchange platforms, allowing them to service investors who don’t use demat accounts. Such a model would make ETFs popular with small retail investors. Furthermore, the possibility of trading being facilitated through asset management companies (AMCs) will continue to drive their growth in the country.

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 is the Technology Partner at the 10th Annual ICC Mutual Fund Summit

Demonetisation has impacted and boosted cash inflows into banks. In the last five months, the strong inflow of funds has positively impacted the equity market via investments in mutual fund, catapulting net buying of equity by mutual funds over the 25,000 crore mark. According to data from AMFI, the AUM of the Indian Mutual Fund industry had reached Rs 17.4 trillion mark in January, recording a year-on-year growth of 36.4 per cent.

icc-mutual-fund-summit-2017

It is in this context that the 10th Annual ICC Mutual Fund Summit, organized by the Indian Chamber of Commerce, on February 18, 2017 at Kolkata, brought under one roof industry veterans, renowned experts, key officials and thought leaders from across the Indian Mutual Fund domain. Themed “Unearthing the potential for progress,” the event saw high-energy discussions pertaining to strategies for inducing further penetration and growth in the MF industry.

Mr. Piyoosh Gupta, Chief General Manager, SEBI, the Chief Guest of the event, spoke on the need to boost investment activity in 12-odd states located in the eastern region of the country and on why MF industry should focus more on the B15 cities as against the metros.

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A prime highlight of the summit was a panel discussion on “Conquering barriers through business innovation”. The discussion saw panelists cerebrate upon the relevance of digital engagement as an essential differentiator and a business enabler in current times, and the need to leverage analytics to derive insights into pro-active investor acquisition and engagement. They also cogitated on the need to develop physical and online versions of alternative distribution channels to accelerate Mutual Fund participation. Training and development in the advisory domain pertaining to the country’s wealth management industry were another key topics of discussion.

Special guest and panelist, Mr. N K Prasad – President and CEO, CAMS, highlighted how CAMS – leverages digital technology towards transforming and reinventing the overall investing experience, by implementing consistently pioneering technology innovations for mutual fund investors and distributors such as Investor Mailback statements for portfolio view and funds net for distributors. The discussion panel also comprised

Mr. Milind Barve, MD, HDFC Asset Management Co. Ltd.,

Mr. Sanjay Sapre, President, Franklin Templeton Asset Management (India) Pvt. Ltd.

Mr. Ashutosh Bishnoi, CEO, Mahindra Asset Management Co. Pvt. Ltd.

Mr. Himanshu Vyapak, Deputy CEO, Reliance Nippon Life Asset Management Ltd.

Mr. Hemant Jhajhria, Partner, Financial Services – Strategy & Digital, PwC India

Mr. Arun Laddha, Director, J.R Laddha Financial Services Pvt. Ltd.

Other eminent guests at the event included

Mr. Anil Chopra, Director and CEO, Bajaj Capital Ltd.

Mr. Aniruddha Chaudhuri, Zonal Head – North South and East, ICICI Prudential Asset Management Co. Ltd.

Mr. Ashish Agrawal, Director – JR Laddha Financial Services Pvt. Ltd.

Mr. Deepak Mehta, Sr. VP & Head – SIP, Balanced Products & Retail Banking Channel, UTI Asset Management Co. Ltd.

Mr. Dhirendra Kumar, Founder and CEO, Value Research India Pvt. Ltd.

Mr. Joydeep K. Roy, Partner, Insurance & Allied Businesses, PwC India

Mr. Neeraj Kulsreshtha, COO, BSE Ltd.

Mr. Prashant Vagal, Sr. VP & Head – Business Development & Products, NSDL

Mr. Sanjeev Chakraborty, President ICAA

Mr. Suresh Soni, CEO, DHFL Asset Managers Pvt Ltd.

About CAMS:

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 15 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 officials participate in Birla Sun Life Mutual Fund’s Investment Conclave at Bengaluru

Birla Sun Life Mutual Fund recently organised an exclusive Investment Conclave for Corporate Investors at The Lalit Ashok, Bengaluru. Building upon the success of the previous conclave, held in Mumbai,with the same agenda, the institution brought the event to Bengaluru on January 6, 2017.

Among the prestigious invitees to the exclusive event were top level executives representing Computer Age Management Services, popularly known as CAMS.The Investment Conclave, keeping in tide with the times, was aptly themed “India in the post-demonetisation era”. The occasion saw the coming together of a diverse set of thought leaders and corporate executives, that rendered the evening abuzz with insights on the impact of demonetisation with a special emphasis on the Indian mutual fund industry.

Speakers at the event included officials from the top tiers of Birla Sun Life Mutual fund and CAMS, including:

Mr. Maneesh Dangi, CO – CIO Fixed Income – Equity, Birla Sun Life Mutual fund

Mr. Bhavdeep Bhatt, Head, Institutional Sales, Birla Sun Life Mutual fund

Mr. V Srinivasan, Senior Vice President – Mutual Fund Operations, CAMS

Mr. Tilak Raj Khanna, Asst. General Manager – Distributor Services, CAMS

Mr. Y S Ramesh Raju, RM-South, CAMS

Mr. Shaji Varghese, Branch Head, Bengaluru, CAMS

Mr. P Sasidhar Raju, Sr.DSE – Distributor Services, CAMS

CAMS GoCORP, a unique solution designed to meet the investment needs of corporate investors, was was discussed in detail at the event with the panel highlghting the,  many advantages of the product.

CAMS GoCORP

GoCORP

GoCORP is a digital solution designed to empower institutional investors with the freedom to transact across multiple mutual funds serviced by CAMS through a single portal. Launched in July 2015, CAMS GoCORP has seen a steady enrollment from both large and mid-sized corporate houses across India.

The GoCORP portal allows corporate investors to transact across all participating CAMS serviced funds using single login facilities to enable multiple maker and authorizer combination as approved by the board. GoCORP also addresses compliance & audit needs of corporate investors. To know more about the Transaction features, Reports/Transaction tracking and other conveniences that come with GoCorp, please click here.

About CAMS:

CAMS Logo

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 15 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

Mutual funds AuM reach record highs for the first time in the last seven years.

Mutual Fund SIP

Mutual fund assets in India have recorded the highest growth since December 2009, thanks to the furor created by demonetization, RBI’s decision to maintain status quo on key rates in its policy review and hike in Fed rate.

The key logic behind this noted increase in investment activity is that short-term debt schemes are relatively firm investment options than long-term debt schemes, in times of unpredictability. Indian investors who display a knack for “opportunistic buying” during times of tumult in the market situation, appear to have made the most of the circumstances, taking advantage of the decline in prices.

Demonetisation, for its part, has impacted and boosted cash inflows into banks, which in turn have mobilized the same into investment avenues including the mutual funds.

Based on retail investment activity, most of the investment inflows into mutual funds seem to have come via the Systematic Investment Plans (SIPs) route. AMC sources have confirmed that average monthly retail investments had risen as high as Rs. 4,000 Crore per month in 2016. This corresponded to an increase in AMC assets by a solid 30%.

Mutual funds AuM to hit record highs in the near future

There has also been a notable increase in retail investment activity from B15 regions in the country. According to information furnished by AMFI, around 4.7 million investors have been recorded to have forayed into mutual fund investing between December 2015 and September 2016 alone.

The last few days have been abuzz with prospects for further increase in investment activity. Thanks to extensive investor awareness programmes that have been hosted all over the country, the earning population in the country are gradually turning to investing in investment avenues such as mutual funds. With the dawn of this realization, experts have predicted that mutual funds AuM would reach the much-anticipated Rs. 20 Crore mark quite sooner than expected.

CAMS – adding value to mutual fund operations in times of robust business

As the country’s premier RTA, Computer Age Management Services (CAMS) provides multifaceted services to AMCs, keeping pace with massive volumes of transactions.  The company continuously improves its IT infrastructure, while meeting the growing demands of its client AMCS, with innovative technology enabled service designs that deliver speed, standardization, transparency, regulatory compliance, data confidentiality and cost efficiency. In Mutual Fund services , CAMS handles approximately 130 Million transactions per annum with near zero failures.

CAMS eKYC and myCAMS are other key initiatives that have greatly reduced time and effort to be invested in KYC and mutual fund investment processes.

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

CAMS CEO participates in Forbes India’s CEO Roundtable

The digital mega trend has been impacting businesses profoundly and more so the category of financial services. Computer Age Management Services, (CAMS) one of the first organizations to tap into the digital potential in the BFSI segment, has taken many initiatives to make mutual fund investing simpler and better, in the digital age.

N K Prasad

Recently, CAMS CEO Mr. N K Prasad was invited as a panelist at the Final CEO Roundtable conference in Chennai, organized by  Forbes India in association with Microsoft, in acknowledgment of the many digital initiatives that CAMS has launched for the benefit of investors and distributors. The event took place on 15th December 2016, at the Trident, Chennai.

Organized as a series of discussions across six cities in India, as part of the acclaimed Forbes India LeaderSpeak – The Digital Transformation Series, the event saw the convening of eminent CEOs from various organizations that are redefining the face of India Inc.

At the event, Mr. Prasad reiterated how CAMS, as a solutions partner to the mutual fund industry for over 2 decades, has been focussing on design and development of technology solutions/interfaces to change the investing experience of investors and distributors.

The Distinguished Guest List

Other eminent guests at the event included-

Mr. A V Dharmakrishnan – CEO, Ramco Cements
Mr. Manoj Jain – MD, Shriram Life
Mr. R Chandrasekaran – Group Chief Executive, Cognizant
Mr. Srinivasa Raghavan – CEO, TVS & Sons
Mr. Girish Mathrubootham – Founder, Freshdesk
Mr. Sridhar Venkatesh – Co-founder, Indix
Mr. Sumit Ganguli – CEO, GAVS Technologies

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 15 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

 

 

 

 

 

Weekly Roundup – January 7

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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.

Bank

Encouraging turn of events in terms of unemployment and inflation have the Federal Reserve officials record with strong confidence that the U.S. economy is progressing towards the goals as set by the central bank.

gst

Central government stays keen on implementing GST , the country’s biggest tax reform in decades, between April 1 and September 16, 2017.

RBI

RBI extends deadline to end of June 2017, for exchange of old Rs. 500 and Rs. 1000 notes at its offices around the country by NRIs.

sebi1

SEBI seeks to ease entry procedure for domestic institutional investors including insurers and pension funds.

Market regulator declares that registered FPIs seeking operate in the IFSC domain can now get to work without the burden of additional documentation.

MF1

Mutual funds reach all time high, since December 2009; total corpus amount touches Rs. 17 trillion.

rubber stamp with inscription INSURANCE

Indian insurance market expected to grow manifold in size, with at least six global reinsurers set to open operations in the country.

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 15 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

Birla Sun Life Mutual fund launches Samriddhi and organizes exclusive investment conclave for corporate investors

India, with its thriving population and current status as an underpenetrated market for mutual funds, is now brimming with a huge base of customers looking at ways to channelize cash assets into investments. The time seems ripe to spread investor awareness like never before.

Birla Sun Life Mutual fund’s in-train magazine, Samriddhi is launched

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Recently, Mr. N K Prasad, President and CEO, CAMS, launched Samriddhi, a first of its kind in-train magazine in Chennai. Available as a complimentary copy to the passengers on the Chennai-Mysuru-Chennai circuit of the Shatabdi express, this magazine, a brainchild of Birla Sun Life Mutual Fund, aims to spread financial awareness among its readers.

CAMS CEO speaks at Investment Conclave organized by Birla Sun Life Mutual Fund

Mr. N K Prasad was invited to be one of the key speakers at an exclusive event on “Investment Conclave : India in the post-demonetization era”, organized by Birla Sun Life Mutual Fund for corporate investors, at JW Marriott Hotel, Aerocity, New Delhi on 9th December 2016.

Speakers at the event comprised of officials from the top tiers of Birla Sun Life Mutual fund and CAMS, including –

  • Mr. Bhavdeep Bhatt, Head, Institutional Sales, Birla Sun Life Mutual fund
  • Mr. Maneesh Dangi, CO – CIO Fixed Income – Equity, Birla Sun Life Mutual fund
  • Mr. Mahesh Patil, CO – CIO Fixed Income – Debt, Birla Sun Life Mutual fund
  • Mr. Gautam Deo – North Head Institutional Sales
  • Mr. Tilak Raj Khanna, Asst. General Manager – Distributor Services, CAMS

At the event, Mr. N K Prasad and Mr. Tilak Raj Khanna, elaborated on ‘Technology and ease of doing investment’ while Mr. Mahesh Patil  and Mr. Maneesh Dangi addressed the gathering on Equity Market Outlook and Fixed Income Outlook, respectively.

CAMS GoCORP, a unique solution designed to meet the investment needs of corporate investors, was elaborated upon at the event, wherein the discussion touched upon the multiple advantages GoCORP brings to investors.

CAMS GoCORP

Corporate Mutual Fund Investments

GoCORP from CAMS, is a digital solution designed to empower institutional investors with the freedom to transact across multiple mutual funds serviced by CAMS through a single portal. Launched in July 2015, CAMS GoCORP has seen a steady enrollment from both large and mid-sized corporate houses across India.

The GoCORP portal allows corporate investors to transact across all participating CAMS serviced funds using single login with facilities to enable multiple maker and authorizer combination as approved by the board. GoCORP also addresses compliance & audit needs of corporate investors. To know more about the Transaction features, Reports/Transaction tracking and other conveniences that come with GoCorp, please click here.

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 15 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