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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