Radha Consultancy : The Importance of Documentation for Investors

Wednesday, 8 November 2023

The Importance of Documentation for Investors

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This article summarizes the key documentation required for mutual fund investors. Those wishing to read the detailed book chapter on documentation may refer to the Tamil PDF link. The chapter is part of an upcoming book on mutual fund investing in Tamil. Readers can explore the full book through the internal links provided. Potential sponsors are welcome to collaborate for wider outreach to investors. Please reach out regarding partnership opportunities to spread literacy.

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Proper documentation is a critical part of investing successfully over the long-term. While many investors enjoy researching investment options, few maintain the necessary discipline to keep their documents organised.

In this comprehensive guide, we will explore the key documents mutual fund investors need to submit and maintain.

Key Documents

When investing in mutual funds, you will need to submit personal and financial information to the asset management company. These records are securely maintained to verify your identity and transaction history. Key documents include:

- PAN and Aadhaar Numbers – Used to verify your identification.

- Personal Details – Name, address, contact information etc.

- Bank Account Information – Account number, IFSC code etc.

- Nomination Details – Who will inherit the units if the investor passes away.

- Two-Factor Authentication – Adds a layer of security to your account.

- Mobile Number, Email ID – For communication purposes.

Maintaining Your Documents

Mutual funds keep your information safe, but how can you access it when needed? This is where RTAs or registrar and transfer agents come in. They maintain all investor records and details.

Currently only two major RTAs exist - CAMS and KFinTech. You can obtain the following reports from them via email:

1. Consolidated Account Statement (CAS) Cams

2. Portfolio Valuation Statement Cams / K Fin Tech

3. Transaction Summary Cams / K Fin Tech

4. Individual Folio Statements Cams / K Fin Tech

5. Capital Gains Statement Cams / K Fin Tech

By regularly downloading these statements, you can stay updated on your portfolio. The monthly fact sheets also provide in-depth information on each fund scheme.

With organised documents, you are empowered to make informed investment decisions and secure your hard-earned money.

Fact Book from Mutual funds.

Monthly fact books published by AMCs offer the most accurate and up-to-date information on each fund scheme. Investors should refer to these documents when researching investment options or managing their portfolio. Popular factbook from large mutual fund houses can be accessed through the link give here