Registrars Like CAMS, Karvy & Franklin Templeton To Despatch Consolidated Statement Every Week
FROM January, mutual fund investors will get a weekly consolidated statement of their transactions instead of the monthly statement they get currently. The fund industry is finalising an investor database that will help registrars despatch consolidated account statements to investors every week.
The move is an offshoot of a Sebi suggestion, calling for a central statement processing hub, common for all mutual funds. Once the database is ready, fund registrars, like CAMS, Karvy and Franklin Templeton, will despatch consolidated statement of accounts to investors every week.
"Investors will get one consolidated statement having transaction details across funds, including scheme or fundwise NAV and even the overall portfolio value. This service is ideal for investors who have more than one investment folios," said a senior official in a registrar.
According to the official, CAMS, Karvy and Franklin Templeton RTA are already despatching consolidated monthly statements to investors, having their money in schemes managed by 25 asset management companies. The registrar group is expecting non-participating mutual funds to join in when the weekly despatch of consolidated statements commence.
"By weekly despatch, we mean that if any investor has done any transaction in their fund portfolio, he'll get a statement of his actions and the impact thereof, in a week's time," the official said.
"Post-July, after Sebi's directive to send consolidated statements, we've been sending deal details only once in a month. Weekly statements will help active fund investors keep a tighter tab on their fund portfolios," the official added.
According to mutual fund officials, consolidated statements will help people who have invested in multiple fund schemes. In the absence of consolidated statements, the investor will receive individual statements from every fund he has invested. Consolidated statements will cut down the number of statements to just one. The consolidated statement will have scheme-wise transaction details and also net portfolio value. This move will reduce the paperwork and to some extent, even the cost for AMCs.
The cost of sending consolidated statements will be borne by fund houses; it will be calculated on the basis of transactions effected by the investor. Fund houses expect the charge to be around . 5-6 per active client for every month. SIP investors will get consolidated accounts once in every three months. The statement will be mailed to investors in a paper-andenvelope format, sources said.
"This is a good move, but it will hit our marketing campaigns badly," said the marketing head of bank-promoted fund house. "The statement of accounts, which fund houses mail to investors once a year, is a carrier of our print ad campaigns. Consolidated statements, which include details of other fund houses, will not have any advertisement or promotional material," the fund marketer said.
