Friends,
Soon, investors could have one consolidated monthly statement for investments made across different mutual funds. The Association of Mutual Funds in India (Amfi) committee on operations and compliance is likely to take a decision on Thursday on Securities and Exchange Board of India's (Sebi) advice in this regard.
“ We are working on the issue of common statement, however some technical issues are be sorted out,”said Amfi CEO HN Sinor.
The issue of sharing costs has to ironed out, he added.
“Some big fund houses are not in favour of this move. But it is likely to be implemented in the next few days,” a committee member said.
If Sebi makes it mandatory, close to one crore mutual fund investors will get a single statement of all transactions once a month. Currently, fund houses have to send statements once every quarter. Many mutual fund houses don't send statements at all to save on mailing costs.
As per Sebi's current guidelines, fund houses have to send statement of accounts within 10 working days of a transaction.
However, some industry players have reservations about this move as it could affect the communication and marketing of their schemes. Mutual fund houses communicate launch of new schemes to the investors and give them the option to buy more units.
“If implemented, it will be beneficial not only for investors but also fund houses, as cost of sending statement to all the investors will fall,” IDBI Mutual Funds managing director and CEO Krishnamurthy Vijayan said.
At present, registrar and transfer agents Karvy, CAMS and FTAMIL provide consolidated statements to investors online.
A sales head of a top fund house on condition of anonymity said, “Have you ever seen a telecom company or even banks giving a consolidated statement to its investors, then why are they targeting only mutual funds. We are being forced to give our approval and some of the fund houses are not happy with this move.”
