Single statement for all MF transactions

There is good news for mutual fund investors. Now, one no more needs to put multiple requests to fund houses to obtain account statements.

 

More than three years after the idea of a common statement for mutual fund investors having investments with different fund houses was conceived by the industry, the Association of Mutual Funds in India (Amfi), has finally implemented it, effective from October.

 

The industry has implemented issuance of Consolidated Accounts Statement (CAS) to its investors. So, do not be surprised if you get a single statement instead of many, containing all transactions during the month, irrespective of the fund houses you have done transactions with.

 

In a statement issued on Thursday, Amfi said, "Commencing of the transactions from the month of October, 2011, CAS will be issued as a monthly statement to investors, if there are any transactions during the month."

 

H N Sinor, chief executive officer, Amfi, said, "This is an investor-friendly initiative to allow investors a single-window view of all their transactions in mutual funds."

 

The consolidation of folios will be on the basis of the Permanent Account Number (PAN) provided by investors. This is in compliance with the amendment to the Securities and Exchange Board of India's (Sebi) regulations with regard to issuance of monthly CAS.

 

According to fund managers, the move is a step in the right direction and will further simplify things for the investors. They add that it will also have its limited positive impact on the fund houses as single statement reduces the cost to some extent.

 

In recent years, Amfi along with Sebi has been attempting to make mutual funds an easy tool of investment to the customers.

 

Mutual funds continue to have a penetration of as low as three to four per cent, the lowest among all the investment options.

 

Currently, there are 43 players in the fund industry, with an overall asset under management of close to Rs 7,00,000 crore. However, of the country's population of 1.2 billion, the industry's investors' base is less than 50 million.

 

Source: http://www.business-standard.com/india/news/single-statement-for-all-mf-transactions/455854/

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