BackCAMS launches Insta Purchase for liquid and overnight schemes
MF unit allotment follows a complex trade settlement process with a NAV cycle which is changed at the end of the day. This results in settlement, and confirmation with statement of accounts, taking almost a day from the time an investor places a purchase order and the money leaves his bank account
PremiumNEW DELHI: Computer Age Management Services Limited (CAMS), registrar and transfer agent of mutual funds, has launched Insta Purchase, under which CAMS-serviced funds will be able to deliver confirmation of trades where purchase of a scheme is based on historical (previous day) NAV. This service will be available for liquid and overnight schemes.
“This will apply to liquid and overnight schemes of all mutual funds where the trade settlement confirmation will be delivered to the investors within hours of the origination of trade and remittance of the money," said CAMS in its statement.
Investors will not have to make any additional steps during the purchase process to get instant allotment, as this will happen within the ambit of the current rules of MF which require compulsory sighting of credit as a pre-condition to allot a trade.
Mutual fund unit allotment follows a complex trade settlement process with a NAV cycle which is changed towards the end of the day. This results in settlement, and confirmation with statement of accounts, taking almost a day from the time an investor places a purchase order and the money leaves his bank account. Investors, especially new entrants, sometimes view this as a delay and believe that service standards could be better.
“We recognized that the urge for instant gratification amongst consumers continues to go up, given the formats of execution in many new products including ride hailing, airline ticket booking and stock trading. It is important now for the MF industry to offer an experience which, despite the multiple complexities involved, is able to deliver to consumers similar real time experience and superior fulfilment of their service requirements," said Anuj Kumar, managing director, CAMS.
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