Computer Age Management Services Limited (CAMS), a registrar and transfer agent of mutual funds (a SEBI regulated entity) in India on Monday announced the launch of Insta Purchase to improve the service experience of investors in liquid and overnight scheme categories.
With the new Insta Purchase initiative, CAMS serviced funds will now be able to deliver confirmation of all those trades where the purchase of a scheme is based on historical (previous day) NAV.
“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,” CAMS explained in an official release.
According to CAMS, 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. However, investors will not have to make any additional steps during the purchase process to get instant allotment.
This is to improve mutual fund unit allotment that follows a complex trade settlement process with a NAV cycle to help investors, especially new entrants.
Anuj Kumar, Managing Director – CAMS, said: “We recognised 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.”
Kumar, added, “CAMS, has built advanced algorithms and mechanisms to settle trades and recognise payments in quick time despite the issues involved. Insta Purchase is yet another path-breaking development leveraging our technology to elevate the service experience for investors in the liquid and overnight scheme categories. They will now be able to receive their trade confirmation within hours rather than waiting until next morning.”