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.

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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

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

 

 

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.

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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

Weekly Roundup – December 17

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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


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.

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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