Description
investor services by MF and it contains topics like investor services by mutual fund, importance of investor service, procedure, investment plans & services, systematic withdrawal plan, tax information
INVESTOR SERVICES BY MUTUAL FUNDS
?
?
Applying and Redeeming for Mutual Fund Units Investment Plans and Services
IMPORTANCE OF INVESTOR SERVICE
? ?
?
Besides good returns of funds… Most important advantage of is…“CONVENIENCE” Depends upon
? ?
MF
type of service provided variety of service provided
PROCEDURE FOR PURCHASE OF UNITS
?
Read the Offer Document
?
?
Description of the procedure for purchase of units acceptable mode and permissible places of payment
?
Refer (KIM)
? ?
Key
Information
Memorandum
Application form Salient features of schemes
‘Only KIM contains Application form and not OD’
?
Submission of application form to
? ?
Collection Centres AMC offices
?
? ?
„Registrars? accept new subscriptions and redeem from investors. MF may own „Investor Service Centres? Payment is through Cheque / Demand Draft / Cash (in certain cases), Internet can be used to transfer funds
FOR NRIs
RBI has given permission to all MFs to sell units to NRIs / OCBs/ Foreign entities
Companies need to submit Board resolutions, memorandum and articles of association with application forms Mode of Payment:
?
?
?
?
For repatriation benefits- DDs or cheques using FCNR account / NRE account Non repatriation benefits- DDs or cheques on NRO/NRSR accounts
?
PROCEDURE FOR REDEMPTION
OD contains place where redemption notice must be sent ? Investors have to deal with registrars or Investor service centres ? Payment is through cheque, ECS to bank account ? For NRIs and OCBs: ECS to to NRE or US Dollar draft at current exchange rate „If investment was on repatriable basis? Else - Rupee cheque in favour of investors NRO, NR/SR account
?
INVESTMENT PLANS AND SERVICES
?
Automatic Reinvestment plan:
? ? ?
? ?
?
?
There are two options: Dividend & Growth ARP is also called Growth option allows investor to reinvest in additional units the amounts of dividends or other distributions they do not receive dividends Reinvestment takes place at ex-div NAV „Investor reaps benefit of Compounding? Some funds allow reinvestment in other schemes of same fund family.
?
Automatic Investment plan:
?
?
?
?
Invest a fixed sum periodically Investors save in a disciplined and phased manner Investment mode would be direct debit to Investor?s salary or Bank account „Investor get the benefit of Rupee cost averaging?
Voluntary Accumulation Plan
?
Investor gets flexibility of the amount and frequency of Investment
Through AIP & VAP Investment can only be in Open end schemes AIP is a contractual obligation of the Investor to keep investing Whereas in VAP Investor is not obliged to keep investing, but has voluntary self discipline Investment accounts are maintained for both VAP and SIP Normally. funds which Investment accounts issue certificates do not have
?
?
?
? ?
Systematic Withdrawal Plan
?
?
?
?
Allows Investor to make Periodic withdrawals from Fund Investment accounts Amount withdrawn is treated as redemption of units at the applicable NAVs They are different from MIPs, because MIPs pay the income generated on regular basis, without touching the capital. Hence, Dividend Tax is not levied on SWP, whereas it is levied for MIPs with more than 50% in debt.
Systematic Transfer Plans
?
?
?
?
Allows investor to transfer on a periodic basis a specified amount from one scheme to another within same fund family. The redemption or investment will be at applicable NAV It is necessary to maintain a minimum balance under both the schemes. The service allows the investor to manage his Investments actively to achieve his objectives
OTHER INVESTOR SERVICES
?
Phone transactions:
?
?
Investors may telephonically redeem or purchase units. The telephone instructions are possible in case of the funds that keep investment accounts, rather than issue certificates.
?
Cheque Writing Facility:
?
?
? ?
?
Open - End MFs allow cheque writing by treating fund account equivalent to bank saving account Checks can be issued subject to maintaining minimum balance RBI approval is needed to start this service Usually offered by MMFs and other liquid schemes of short duration. Useful for investors with large short-term surpluses.
Periodic statements and Tax information:
?
?
?
Account statement show units purchased, redeemed or transferred between schemes, distributions and reinvestments and investor?s current holding in units and in amount. „SEBI regulations require funds to send annual financial statements to unit holders within six months of close of accounting year? If a fund has deducted tax at source from income distributed to the investors, it would also issue TDS statement.
?
Loans against units:
?
?
?
Several banks lend to the investors against mutual fund units held by them. The amount is usually a percentage of the value of the value of the Investor?s holding in Units „SEBI prohibits MFs to give loans?
?
?
?
Nomination facility is available for Open end Funds and Close End Funds not listed on SE. The benefits passes to the nominee In case of Close Ended schemes listed on SE same procedure as Share transfer is followed
doc_902048674.ppt
investor services by MF and it contains topics like investor services by mutual fund, importance of investor service, procedure, investment plans & services, systematic withdrawal plan, tax information
INVESTOR SERVICES BY MUTUAL FUNDS
?
?
Applying and Redeeming for Mutual Fund Units Investment Plans and Services
IMPORTANCE OF INVESTOR SERVICE
? ?
?
Besides good returns of funds… Most important advantage of is…“CONVENIENCE” Depends upon
? ?
MF
type of service provided variety of service provided
PROCEDURE FOR PURCHASE OF UNITS
?
Read the Offer Document
?
?
Description of the procedure for purchase of units acceptable mode and permissible places of payment
?
Refer (KIM)
? ?
Key
Information
Memorandum
Application form Salient features of schemes
‘Only KIM contains Application form and not OD’
?
Submission of application form to
? ?
Collection Centres AMC offices
?
? ?
„Registrars? accept new subscriptions and redeem from investors. MF may own „Investor Service Centres? Payment is through Cheque / Demand Draft / Cash (in certain cases), Internet can be used to transfer funds
FOR NRIs
RBI has given permission to all MFs to sell units to NRIs / OCBs/ Foreign entities
Companies need to submit Board resolutions, memorandum and articles of association with application forms Mode of Payment:
?
?
?
?
For repatriation benefits- DDs or cheques using FCNR account / NRE account Non repatriation benefits- DDs or cheques on NRO/NRSR accounts
?
PROCEDURE FOR REDEMPTION
OD contains place where redemption notice must be sent ? Investors have to deal with registrars or Investor service centres ? Payment is through cheque, ECS to bank account ? For NRIs and OCBs: ECS to to NRE or US Dollar draft at current exchange rate „If investment was on repatriable basis? Else - Rupee cheque in favour of investors NRO, NR/SR account
?
INVESTMENT PLANS AND SERVICES
?
Automatic Reinvestment plan:
? ? ?
? ?
?
?
There are two options: Dividend & Growth ARP is also called Growth option allows investor to reinvest in additional units the amounts of dividends or other distributions they do not receive dividends Reinvestment takes place at ex-div NAV „Investor reaps benefit of Compounding? Some funds allow reinvestment in other schemes of same fund family.
?
Automatic Investment plan:
?
?
?
?
Invest a fixed sum periodically Investors save in a disciplined and phased manner Investment mode would be direct debit to Investor?s salary or Bank account „Investor get the benefit of Rupee cost averaging?
Voluntary Accumulation Plan
?
Investor gets flexibility of the amount and frequency of Investment
Through AIP & VAP Investment can only be in Open end schemes AIP is a contractual obligation of the Investor to keep investing Whereas in VAP Investor is not obliged to keep investing, but has voluntary self discipline Investment accounts are maintained for both VAP and SIP Normally. funds which Investment accounts issue certificates do not have
?
?
?
? ?
Systematic Withdrawal Plan
?
?
?
?
Allows Investor to make Periodic withdrawals from Fund Investment accounts Amount withdrawn is treated as redemption of units at the applicable NAVs They are different from MIPs, because MIPs pay the income generated on regular basis, without touching the capital. Hence, Dividend Tax is not levied on SWP, whereas it is levied for MIPs with more than 50% in debt.
Systematic Transfer Plans
?
?
?
?
Allows investor to transfer on a periodic basis a specified amount from one scheme to another within same fund family. The redemption or investment will be at applicable NAV It is necessary to maintain a minimum balance under both the schemes. The service allows the investor to manage his Investments actively to achieve his objectives
OTHER INVESTOR SERVICES
?
Phone transactions:
?
?
Investors may telephonically redeem or purchase units. The telephone instructions are possible in case of the funds that keep investment accounts, rather than issue certificates.
?
Cheque Writing Facility:
?
?
? ?
?
Open - End MFs allow cheque writing by treating fund account equivalent to bank saving account Checks can be issued subject to maintaining minimum balance RBI approval is needed to start this service Usually offered by MMFs and other liquid schemes of short duration. Useful for investors with large short-term surpluses.
Periodic statements and Tax information:
?
?
?
Account statement show units purchased, redeemed or transferred between schemes, distributions and reinvestments and investor?s current holding in units and in amount. „SEBI regulations require funds to send annual financial statements to unit holders within six months of close of accounting year? If a fund has deducted tax at source from income distributed to the investors, it would also issue TDS statement.
?
Loans against units:
?
?
?
Several banks lend to the investors against mutual fund units held by them. The amount is usually a percentage of the value of the value of the Investor?s holding in Units „SEBI prohibits MFs to give loans?
?
?
?
Nomination facility is available for Open end Funds and Close End Funds not listed on SE. The benefits passes to the nominee In case of Close Ended schemes listed on SE same procedure as Share transfer is followed
doc_902048674.ppt