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

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The year that was 2016: CAMS perspective

2016 was a year that suffered no dearth of surprises. The year was marked by multiple instances of market unpredictability, what with Brexit, Fed rate hikes, surge in oil prices and strategic political events passing on in their stride. In the domestic premises, demonetization and GST did their parts to influence the proceedings of the Indian market.

MF

Robust investment activity in MF in India

Mutual funds investors in India, however, surprised observers with a significant upsurge in participation, even as the rest of the world was reeling from the effect of the many events ringing with political and economic significance.

Industry data confirms that inflow of investments as high as 580 billion had been recorded in the period between January and November 2016. This information has rendered 2016 as the third consecutive year that has registered positive growth in terms of mutual funds in India.

One aspect of investment discipline, as observed among investors in India during this period, was adherence to a long-term investment strategy and a well-planned asset allocation practice that could be deployed even during times of tumult in the market.

Systematic Investment Plan or SIP, where the investor builds a portfolio through specific sums invested at regular intervals that may be monthly, quarterly or annually, was one investment avenue a vast majority of Indian investors had taken to in 2016.

The year saw a remarkable increase in retail investor participation through SIPs. Implementation of presence-less and paperless eKYC procedure was another factor that catalyzed robust investment activity in the mutual fund sector.

Mutual Fund SIP

The CAMS perspective

An integral part of the Indian Finance sector and a trusted service partner to 8 out of the top 10 AMCs in India, CAMS had retained its position as the market leader with a substantial market share of 62%.

The following inferences are based on data provided by CAMS Data Bureau Services – covering 92% of Mutual Fund Industry –

It is encouraging to note that investments from smaller towns had significantly increased in 2016. Nearly 2.19 million new SIP registrations made in the last year have been traced to the B15 regions in the country; T15 regions accounted for 2.65 million new SIPs. It is notable that the average ticket size had also increased during the said period.

Why investors prefer SIP

In general, SIP requires a fixed amount to be invested periodically. Clearly, this is a convenience to investors who are beginners and those who prefer to invest in small pockets.

Alternatively, step-up SIPs, as hosted by most of the CAMS-serviced funds, allows for ‘stepping up’ the amount to be invested, at set intervals.

Now, investing in SIPs has become a lot more easier for first-time investors, thanks to the state-of-the-art digital investment services hosted by camsonline.com and myCAMS. Investors can now set up new SIPs, view SIP status(es) and cancel SIPs in a matter of few minutes. The icing on the cake here is that no physical request is required for registrations done via myCAMS. For more information on investing through myCAMS, 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 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

 

 

 

 

 

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

 

 

A winning case for SIPs

Systematic Investment Plan (SIP) is an investment avenue where the investor builds a portfolio through specific sums invested at regular intervals that may be monthly, quarterly or annually. By the very nature of being a systematic mode of investment distributed over an extended period of time, SIPs have an innate advantage of remaining immune to market-induced fluctuations.

GSecs

In general, SIP requires a fixed amount to be invested periodically. Clearly, this is a convenience to investors who are beginners and those who prefer to invest in small pockets.

For investors who prefer to ‘step up’ their installment amount at defined intervals, there exists the option of Step-up SIPs, hosted by several CAMS serviced funds.

In the wake of many such advantages, it comes as no big surprise that nearly 27% of mutual investors prefer to invest through SIPs (Source: SEBI). According to recent data that was shared in the Parliament of India, SIPs in mutual funds have witnessed a growth of 124% in the last two and a half years.

Accordingly, between March 31, 2014, and October 31, 2016, SIPs rose from 60 lakh to a whopping 134.5 lakh. The object of real interest rests with the fact that more than 46% of the SIPs as measured on end of October 2016 are those from B15 towns.

According to MFDEx CAMS data bureau services, which tracks about 92 per cent of the MF industry, there were 1.02 crore live SIP accounts for the funds that it services, at the end of July 2016. This corresponds to a growth of 16.5 per cent from 87.51 lakh SIP accounts at the end of December 2015. CAMS data also showed that it counted 53.71 lakh accounts in June-2014, suggesting that the number of SIP accounts has nearly doubled in two years.

N K Prasad
Mr. N. K. Prasad, President and CEO, CAMS

Mr. N. K. Prasad, President and CEO, CAMS attributes the SIP growth to AMC initiatives on investor education and awareness bearing fruit. ‘Investors are increasingly adopting systematic investments to optimize investment returns from the volatile equity asset class,’ he expressed.

As mentioned above, it is heartening to see that smaller cities have taken a great interest to SIPs too. ‘Investors in B15 cities too are adopting systematic investment habits and account for over 40% of new systematic registrations. We look forward to MF industry helping retail investors create wealth over long term via regular and systematic investments in Mutual Funds,’ stated Mr. Prasad.

About CAMS

CAMS Logo High ResolutionComputer 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

Riding the Wave of Change

According to latest information from SEBI, mutual fund folios have exceeded the Rs 5 Crore mark as on October 2016.

This growth is attributed to the fairly consistent and continuous participation from investors, irrespective of the many tumultuous occasions such as the Brexit. If anything, Indian investors are known for holding their calm despite the storm. In other words, Indian investors take advantage of volatile market situations and resort to “opportunistic buying”.

While Brexit was an international event that effected an impact on the country’s economy, we now stand witness to a phase of major change where the contours and layout of the Indian economy are being redefined. India’s altered stance on FDI regulations in terms of GST, and the recent demonetisation have triggered positive responses from Economists and Policymakers across the world. The country’s position on FDI regulations in terms of defence, civil aviation, broadcasting services, and pharmaceuticals is expected to boost the potential of bilateral relationships with international trade partners, which presents opportunities for assured investment inflows from international sources.

Mutual Fund SIP

Good times ahead for Mutual funds

Demonetisation has impacted and boosted cash inflows into banks, which in turn have mobilized the same into investment avenues including the mutual funds. Experts foresee a possible rate cut over the next one year along with ease of inflation, rendering mutual funds more attractive for existing and potential investors. Moreover, the high level of investment is expected to flow into liquid funds.

MF

In addition, demonetisation has also has triggered the drive for increased tax compliance and improved revenue for the government.  In combination with increased liquidity in banks,  this is likely to lead to gain in terms of government bonds. Needless to say, Mutual funds are one of the safest avenues for investments in government and securities, with associated tax benefits. For the next two months, the picture looks positive for mutual funds.

CAMS – adding value to 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.

Besides offering specialized services and solutions to its B2B partners, CAMS also functions with the unique ability of a B2C service provider that attends to end customers’ needs through an assortment of touch points, viz. Pan-India network of Service centers, White Label Call centers and White Label Online Services.

Furthermore, the CAMS Common OTM facility benefits investors now, more than ever. It allows users to circumvent the long queues and paper-filling procedures at banks. 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

Demystifying Common One Time Mandate

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Common One Time Mandate, as illustrated in the preceding article that underlined The Power of One, is a one-time registration process that renders immense paperless convenience for investors who seek to invest in Mutual fund schemes.

CAMS Common OTM brings home several advantages and service benefits to the investor, besides helping them circumvent multiple repetitions of cumbersome paper-based form-filling procedures.

Freedom to invest without bank/branch/location related restrictions

CAMS Common OTM facility is not limited to constraints concerning a specific bank/branch/location. Any bank that is a participant of the NACH (National Automated Clearing House) system, allows for registration of Common OTM facility, at any given branch of its. Currently, CAMS Common OTM can be registered across as much as 800+ Banks across the country.

For those with existing mandates –  

Existing registered mandates will not be canceled when CAMS Common OTM is set up.
When transacting in those specific MFs, you will have the choice of MF specific OTM or CAMS Common OTM. While transacting in any new fund where you do not already have a mandate, CAMS Common OTM will be available as an option to cheque/ net banking.

Case of a forgotten folio number? Relax.

The Common One Time mandate is registered at PAN level of the first holder. There is no requirement to quote folio number while registering for CAMS Common OTM. This comes in handy for savvy investors with multiple investments and folios across AMCs.

Also, CAMS facilitates registration of multiple mandates at bank and account number level, at once. There is no restriction on the number of SIPs that can be registered through the Common OTM facility.

What can the investor do if s/he has forgotten the CAMS Common OTM Number

CAMS has an incredibly effective pan India network of Customer Service Centres (CSCs) conveniently located in cities across the country. In the event of a forgotten CAMS Common OTM Number, the investor may approach any of the CSCs and quote her/his PAN and obtain the Common Mandate Number. Alternatively, an SMS could be sent to a designated number with the specified text / or the CAMS Toll Free Call center could be reached to get the CAMS Common OTM Number.

For more information on CAMS Common OTM, 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 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

The Power of ONE : CAMS Common One Time Mandate

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The investment discipline that escorts Systematic Investment Plans or SIPs, as elaborated in the preceding blog post, mandates the need to invest a specific sum of money at regular intervals in the SIP.

Many banks now facilitate setting up of a ‘debit mandate’ which relieves the investor, who is also the account holder from initiating/authorising every time a routine transfer is made from the bank account to the SIP(s). Debit mandate is essentially an authorization for payments to be collected from a customer (the account holder and authorizer) in the future and/or fund transfers to be remitted to investment plans such as SIPs.

Debit mandate, however, brings along with it a hurdle: the need to provide a separate mandate for each SIP leading to further form-filling , paperwork and other formalities at the bank of operations which often takes several days. Consequently, there is a delay in the commencement of a new SIP.

CAMS Common One Time Mandate

In this digital age, nobody wants to expend time doing mundane form-filling routines; more so, when the form-filling procedure has to be done over and over again.

Committed to ideating and implementing new technology-enabled services and solutions that address investor pain points and enhance overall investing experience, CAMS had come up with the simply effective and hassle free ‘CAMS Common One Time Mandate‘ (OTM) –  to circumvent the routine of filling up separate mandate every time a Systematic Investment Plan (SIP) is started /renewed.

 Choose CAMS Common OTM, forget cumbersome form-filling routines

CAMS Common OTM is an enhanced, PAN based mandate that will be registered centrally at a PAN level rather than for a specific SIP with one Mutual Fund. In contrast to Debit Mandate, CAMS COTM being a common mandate, it will be available for transactions across all CAMS serviced Funds.

As the CAMS Common OTM is registered for “as and when presented” than for a SIP specific date, the mandate can be used for any number of SIPs, the mandate can be used not only for any number of SIPs, but also for lumpsum transactions across any Mutual Fund serviced by CAMS. Once the mandate is registered, the unique registration number is all that the investor needs to quote for making lumpsum transactions and new SIP registration.

With the enhanced PAN – based Common One Time Mandate from CAMS, investments can be done in any number of SIPs across all funds serviced by CAMS – with just one mandate. No more filling up separate mandate every time a Systematic Investment Plan (SIP) is started / renewed. Once the Common OTM is registered, starting/renewing SIP is a breeze just by quoting the unique common mandate registration number.

Advantages of deploying CAMS Common OTM facility

  1. One-time registration – eliminates paperwork and cuts down on process time associated with separate mandate registration for each SIP.
  2. Convenience to register new SIP/ renew SIP quickly – current model of mandate
    registration lag time (usually from 15 – 30 days ) is eliminated.
  3. Lump sum purchase transaction can be done with ease as Common OTM is not set up
    for a specific date. Debit instruction can be presented for any date, any number of
    transactions across any MF serviced by CAMS.
  4. Investment through any mode – Once the mandate is registered, transactions can be
    submitted through any mode, i.e. Physical paper /SMS/Website / Mobile app, simply
    selecting the CAMS Common OTM as the payment mode.
  5. Superior option to completing the payment than writing and banking of cheques or
    completing multi-step Net-banking than payment initiated by simply quoting the unique mandate registration number.

For more information on CAMS Common OTM, 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 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