Know your scheme before investing

The key information memorandum has all the relevant information

Very often, we hear of people making a ‘wrong’ investment. Much of this is because most investors ignore a critical aspect of investing – knowing the scheme. Before making an investment, it is always useful to read the details in the scheme information document (SID) and statement of additional information (SAI). The information contained in these two documents is further summarized in the key information memorandum (KIM) which comes along with the application form.

It is an abridged version of the scheme documents with several important facts which an investor should know before investing. They are as follows:

Scheme information: This gives the asset allocation pattern and investment strategy. So you will know the allocation made to equity, debt, gold, etc.

Next comes the comparison benchmark. For example, the benchmark may be the Sensex or the Nifty or any other index against which the scheme performance is measured. Further, details on plans and options are available. For instance, dividend or growth are two plans normally offered; under dividend option, the investor further gets to either reinvest or get cash dividend payouts. Default scheme options are also mentioned in case the investor fails to indicate his option. Special options like a dividend sweep or trigger facilities, if available, are also explained. Along with this, the minimum application amounts under each plan and option are mentioned separately.

The actual performance of the scheme for the last one year, three years, etc., and even since inception in respect of existing schemes is given. This is compared against the benchmark to give an idea of the performance of the fund. Essentially this is the progress card of the scheme.

Charge structure: The charges made by the fund managers to the investors to cover certain expenses are called “load.” The exit load — charged when an investor takes his/her money out or opts to switch between schemes within a certain timeframe — is an important piece of information.

The recurring expense of the scheme is, again, vital information for investors. Each mutual fund scheme reports an ‘expense ratio.’ This signifies the proportion of recurring expenses that a fund charges to its schemes’ assets under management (AUM) year after year. This includes fund management fee, administrative costs, marketing and distribution costs incurred by the fund house. The expense ratio varies across fund houses and schemes. However, the regulator has capped the expense ratio and this cap decreases as the AUM increases in slabs.

Common information: Details of risks associated with equity, fixed income instruments and derivatives are clearly given. Scheme-specific risks are also mentioned.

Also, rules regarding the applicability of NAV are explained along with cut-off timings for transactions. Finally, detailed instructions are given for correct filling of the application form, especially useful for first-time investors.

Contributed by CAMS Viveka. The views expressed are general practices in the MF industry and may vary on a case-to-case basis.


Enabling clients’ business growth

With clients’ growth embedded in it’s mission, CAMS has built multiple utilities  to enable customer on-boarding,  geographic expansion, transaction acceptance


Pan India network of  CAMS Service Centers ( CSC )

CSC Infra

With over 270+ locations , CAMS Service Centers  serve as “the face” of the manufacturers, near eliminating the need to set up their own infrastructure to service customers. As a shared service model, CSC format has been immensely cost effective model to expand and grow in new markets.

Branch In a Box ( B-in-B )


Branch in Box from CAMS makes geographic expansion plug-and-play for Manufacturers.  B-in-B is  white-labelled, functional, furnished office space with client’s branding, leased and maintained by CAMS. This service facilitates manufacturers to launch in a new geography in a cost effective manner.

Finnet Distributor Platform


An original CAMS innovation for  Distributors to manage all their business requirements – modules to support  CRM, Transactions, Reports, Data management

STP Interfaces

CAMS has built electronic linkages with over 250+  large distributors such as  wealth management platform, Banks, National Distribution Houses for straight through processing of transactions.



A Mobile app taking the Mutual fund investing and management to a whole new level.  myCAMS app is designed to be a single gateway to access MF portfolio across CAMS services funds on the go.


GoCORP another industry first from CAMS for institutional investors to transact across multiple mutual funds though a single portal. CAMS GoCORP is designed to deliver simplicity, ease and safety in preparing and submitting Mutual fund transactions, tracking investments and more.

CAMS Connect – White label Call Center

Cams Connect

CAMS White label call center facilities are available across 5 locations viz. Chennai, New Delhi, Ahmedabad, Kolkata and Mumbai. Agents bring multi lingual capabilities in nearly 15 languages.

CAMS has a variety of information available in its website and also share excellent inputs on Investments and Savings in our Facebook Page.

Like us on . To watch informative videos visit .

New Requirements for Mutual Fund investing

India has joined MCAA on Automatic Exchange of Financial Account Information on 3rd June 2015. In terms of the MCAA, all countries which are a signatory to MCAA, are obliged to exchange a wide range of financial information.

Additionally, Governments of India and USA have signed an agreement to improve international tax compliance and to implement the FATCA in India.


Further, for combating the problem of offshore tax evasion, avoidance and stashing of unaccounted money abroad, it requires cooperation amongst tax authorities. Hence, the G20 and OECD countries worked together and have developed a Common Reporting Standard (CRS) on Automatic Exchange of Information (AEOI).

As per above agreements and towards compliance with tax information sharing laws, such as FATCA/CRS, financial institutions of the “source” jurisdiction are required to collect and report information to their tax authorities about account holders “resident” in other countries, such information having to be transmitted “automatically’ on yearly basis. The information to be exchanged relates not only to individuals but also to shell companies and trusts having beneficial ownership or interest in the “resident” countries. This also mandates all financial intermediaries to seek additional personal, tax and beneficial owner information and certain certifications and documentation from account holders. They are also obliged to share information of your account with relevant tax authorities and other competent authorities.

Vide SEBI Circular CIR/MIRSD/2/2013 dated 24th January 2013, SEBI has issued guidelines on identification of Beneficial Ownership and mandated all Intermediaries to identify and verify such beneficiary owners.

Vide AMFI Circular dated 18th September 2015, following information has been made mandatory w.e.f. 1st November 2015 for new investors to the respective Fund/from 1st January 2016 for the existing investors

What do you need to do as an investor?

The following information is mandated as part of the above requirements. All investors [both Individuals and Entities] are required to fill-up this additional information in the relevant Declaration form that contains FATCA-CRS Declaration, Supplementary KYC Information and UBO Declaration and submit to CAMS/CAMS serviced Mutual Fund AMC branches.

  • Additional KYC Information
  • Ultimate Beneficiary Ownership [UBO] declaration from Non-Individuals

Accordingly, following information is mandated as part of the above requirements:

  • Country of Birth/Incorporation
  • Place of Birth/Incorporation
  • Address Type [Residential or Business, Residential, Business, Registered Office] for the KYC registered address
  • Occupation
  • Applicant Income Slab details
  • Net Worth details
  • Information about PEP [Politically Exposed Person & its relatives]
  • Information on specific Corporate services [applicable for Non-Individuals]
  • Information about Ultimate Beneficiary Owner(s)/Controlling Person(s) [applicable for select category of Non-Individuals]
  • If your [investor] tax residency is other than India, then following information for all countries in which you are resident for tax purposes is required:

Tax Resident

  • Country of Tax Residency [also include USA, where the individual is a citizen/green card holder of the USA]
  • Tax Identification Number [If not available, kindly provide its functional equivalent]
  • Identification Type [TIN or Other, to be specified)]

CAMS has enabled online updation facility in

Forms are available at the counters or can be downloaded from

For more details, please write to or call our toll-free support number 1800-200-2267 and 1800-419-2267 from anywhere in India.

CAMS – Our Mission Your Growth

Powering the BFSI sector in India.

With 25 years of experience as an integral part of the Indian Financial infrastructure, CAMS Group has built a credible reputation as technology enabled service solutions partner to Mutual Funds, Private Equity Funds, Private Insurance Companies, Private Banks, Non-Banking Finance Companies.

Besides serving as B2B solutions partner, CAMS brings a unique ability of a B2C to serve the end customers through a variety of touch points viz. pan India network of service centers, white label call centre, online services and smart phone services.

CAMS is co-owned by — NSESIC, NSE Strategic Investment Corporation Limited, a subsidiary of National Stock Exchange, HDFC Group (a financial services conglomerate) and Acsys Investments Pvt Limited (the founding promoter).

CAMS holdings

CAMS Group has 3 subsidiaries viz.

CAMS KRA (KYC Registration Agency) is licensed for implementation of SEBI’s vision of a robust PMLA through a harmonized KYC process.

CAMSRep is licensed by IRDAI to offer Insurance Repository services to policy holders. The company has developed outsourcing solutions for new business processing and policy holder services for leading private insurance companies.

Sterling Software, the software development arm brings high specialization in building technology solutions for financial services domain viz .Net platform for core Mutual Fund Transfer Agency services, vast suite of applications to support CRM, Analytics, Compliance, Sales and Marketing. In-house Solutioning and technology origination bring speed and efficiency to new service and product launches.

Headquartered in Chennai, India, CAMS has two back office delivery centers in Chennai and a BCP site at Coimbatore, about 500 Km. from Chennai and a pan India customer service delivery network.

Specialist Solutions Partner to Mutual Funds:

Mutual Fund services is a mature business  and  CAMS has secured and sustained leadership position  engaging as a solutions partner to the Asset Management Companies and has served as a catalyst to their growth.  CAMS clients have seen a differential growth path from rest of industry.  Over the last 2 decades, CAMS has revolutionized the Mutual Fund operations and services in India delivering  international service standard at Indian costs.  CAMS is the market leader serving  61% of the assets of the Indian Mutual Fund  industry  across 17 Mutual Funds which includes 9 out of Top 15 Funds.

Beyond Mutual Funds

In the last 8 + years CAMS has diversified its services to other BFSI segments viz. Private Equity, Insurance Companies and more recently to Private sector Banks and NBFCs. CAMS partners  its clients to provide IT enabled business process services and deliver business outcomes rather than engage as a pure play outsourcing vendor.  Our value position is structured to support clients in the following areas

  • Reach and on- board new customers
  • Consistently deliver services to customers, pan India
  • Support in innovative service delivery
  • Compete and grow in a cost efficient manner

CAMS Partners

Across the BFSI sector CAMS is proud to partner with 80+ premium Indian financial institutions and marquee MNC brands. As always, Our Mission Your Growth..

25 years

One Size Does Not Fit All

Do you know that there are multiple products or schemes that are available for you to chose when you decide to invest in Mutual Funds?

Simply because, one size of the dress will not fit all. Some of us are thin, some medium and some are extra large..Isn’t it? Let us look at the various scheme options (dress sizes so to speak) that are available.

Monthly Income Plans famously known as MIPs that basically invest in debentures, debt instruments and have very moderate risk exposure, mostly on Interest earning capability.

Index Funds are another set of options that allow the investors to participate in the two indexes available to investors. While we may not be able to invest directly on these indexes such index funds basically are incarnation of these indexes which can be bought and sold through Mutual Funds. These are passive managed funds and hence the relationship to the return will be directly proportionate to the movement of the indexes. Sounds simple, right?

Growth plans – Simple to understand. When does growth happen? When someone is young, the growth proponent is fast and happening. True. Likewise, Growth plans majorly invest in Equities considering the investor profiles which would be the younger group. This is the best suited option for the long term investor who is clear about taking risks. This is why CAMS in a series of publications have suggested that long-term outlook and investing is essential for achieving outstanding results. Read all offer documents to ascertain the risks associated, before investing.

Balanced Funds offer balance of life and investing. Cool….Yes, they allow portion of your investment to be parked in Equity and Debt, where there is equilibrium of return and the risk. We would recommend this for a middle aged investor in the age group of 45- 55.

Fixed Maturity Plans are another investment option which is comparable to Fixed Deposits which manage your funds for a specific number of days and you get your investment back with returns. Since these also invest in debt securities, the returns could be probably higher than what your FD could give you.

Equity Linked Savings Schemes (ELSS) gives you double benefit – yes – while you get to invest in Equity Funds, you also get to reduce your taxable income to the extent of Rs 1 Lakh in a financial year by investing in them. Only catch is that these units are locked in for three years. This also enables the fund manager to invest the money in stocks which have higher yield potential with medium term outlook.

World of Investing

Arbitrages allow the mutual funds to encash on the difference of prices in multiple markets or price horizons. These are almost similar to debt funds in their risk profile however invest in equity and derivatives.

CAMS has a variety of information available in its website and also share excellent inputs on Investments and Savings in our Facebook Page. Like us on .

To watch informative videos visit


The need for Retirement Planning

Have you ever thought “Why or when should I start retirement planning?”

Unfortunately, few people succeed in building wealth into the future because it has little to do with understanding simple principles and everything to do with actioning the same. With the internet giving plethora of information on investing, mutual funds, stocks, bonds and so on, the challenge does not lie in equipping ourselves with this knowledge, but in translating this acquired knowledge into action and therefore results.

Most of us do lack financial literacy. We could get lured away by anecdotal evidence or advice which quickly comes out from friends or relatives that we may act upon. Most of us are quite consumed in life that we tend to ignore those key aspects of financial planning and do not plan for the future needs.

At some point of time, we all have to stop working and the years ahead then will still require money for food, clothes, travel and so on. Where is the source for all this money? This question may not arise during those years when all these expenses do exist but you are in a job and those later years don’t occur to us in such a busy schedule occupied by house, kids, parents and many other issues. All this calls for systematic financial planning early.

The first requirement is that before you go to a financial adviser it is important to list down everything about what you have and what your liabilities are. This could probably be the starting point.

The next step is obviously to write down what you earn every month and how much you could set aside every month in order to plan for the future. It is important to see those big expenditures that could occur down the line basically your down payments on your home loan, your kid’s college admission, your daughter’s marriage and also probably reserve an amount for some-thing unforeseen.

If I do not intelligently invest a considerable portion of what I earn, what would be the outcome with my savings? After x years from now?  Not many of us think about inflation your money will decrease after many years in its purchasing power. What INR 100 can purchase today, it may not purchase the same thing in the future.

All of us need to retire from work at some point of time. If we do not invest our money, we will never be able to create a corpus of money we can rely on, and will never be able to get free from our work unless we are person who says “I love my job. I will work till I die”

There is a need to not just plan but translate the plan into actionable rules that you will live with. Time spent writing goals and building a step-by-step plan to achieve those goals is an investment in your future.

Once you get these basics, take your advisor’s help in doing a risk profiling. If you already have all the basic already met for, then you could take slightly higher risk. If not, do choose low risk investments. While at a young age, you can afford to be less conservative, you still need to know where you stand. If your needs are more than what your earnings can provide for, then your planner will end up advising you instruments that are highly risky and you will end up in a soup. It is best to match our future needs to what we have. That is the only way to enjoy those later years peacefully.

CAMS has a variety of information available in its website and also share excellent inputs on Investments and Savings in our Facebook Page. Like us on . To watch informative videos visit .  Happy investing….

Your Financial Security

Financial security provides every individual the impetus for better living. If you are financially secured, things are always on a smooth run in your life. Managing financial security effectively is the need of the hour and we should frame financial objectives and set life goals actively identifying and planning for them.

We belong to a generation where there is growing job insecurity, cascading inflation and lack of a comprehensive pension system.   In this scenario, financial security acquires paramount importance in the overall scheme of things and managing it well is critical for fostering family’s investments and thereby multiply income generation. There is an impending need to actively craft and plan the family’s investments in such a manner so as to be aligned to investment objectives and personal life goals.

What is the key to financial security? Is it an asset of a secured bank balance, property and credit to refer precisely? Well these things give you financial security but maintaining this security is really a big deal. This is exactly where planning for financial security or more comprehensively financial security comes into focus.

Take an example, you inherit a large property of your grandparents. And elated as if on top of the world you start using or spending from the asset in reckless terms. What will be the consequence in course of time? Things get over without giving you an opportunity to recover. On the other hand, another gentleman begins from zero and through conscious financial planning; bit by bit he builds up an asset and may be at the end of the day this turns out to be an empire. In the words of eminent Scientist Albert Einstein, the power of compounding is the eighth wonder of the World. History has many such legend examples where the individual began from nothing and ended with everything.

What do these two examples try to portray?  They actually signify the importance of financial planning and the need to set life goals. Depending on life goals, one could plan for short-term, medium term and long term investments. Benefits of linking investments with life goals via active management or planning are many and varied. Not only does it help manage our investments with a clear objective in mind, but also provides a framework to guide investment selection.

Once the tenor and timelines of goals are clear, one can choose the right mix of asset class based on risk vis a vis return. Mutual Funds offer a plethora of choices for an average investor to pick up the right asset class depending on your profile. Mutual Funds are serviced by Registrar and Transfer Agents (RTA) like CAMS for all their customer servicing needs.

Listed below are some of the choices an Investor can make depending upon his/her goal related objectives.

Nature of   Goal Tenure Preferable mode of investment Benefits
Short to medium term 1-3 years Fixed Income Ensures capital protection and checks volatility
Medium to long term 3-10 years Income fund Best returns complemented with safety with little volatility
Balanced Mutual Fund Capital appreciation with
Long term Above 10 years Equity or hybrid funds Negates volatility combined with better returns acting as a hedge against inflation.

Success in financial planning and ensuring financial security depends upon identifying our life goals, setting timelines, calculate the amount of funds required for life goal fulfillment and link investments to each individual goal. Once our vision and priorities are clear, we should embark on a monthly investment plan or design a plan with disciplined investing over the year selecting the right type of funds suiting our profile. In such a focused manner, expenditure and savings management can be conducted in an admirable manner. Financial planning is no child’s play. You need to dedicate an ample amount of time to work on it and systematically schedule things to earn maximum benefits.

So, what are you waiting for ?? Isn’t the time to enlist your life goals and actively plan for them ? Start the process sooner than later to ensure your financial security.