It is mandatory for all the mutual fund houses to record all investor transactions regularly. Managing day-to-day investor transactions on a regular basis consume a lot of time of mutual fund houses. To manage daily investor transactions, mutual fund houses require skilled manpower, which increase their operational costs.
Hence, to avoid time and cost constraints, the task of investor recordkeeping is outsourced by mutual fund houses to skilled third-party agencies. These third-party agencies are also popularly known as Registrar and Share Transfer Agents (RTA) like SAG RTA, Karvy, etc.
Responsibility of a Registrar and Transfer Agent
Registrar & Transfer Agent is a SEBI-authorized entity who operates on behalf of mutual fund houses, publicly-traded companies, and other financial institutions to assist them in investor recordkeeping task. It is the sole responsibility of R & T Agent to maintain all such investor records in a professional manner on a day-to-day basis.
For Investors
- Registrar and Transfer Agent operate as a single-window system for investors by assisting them in managing their day-to-day transactions like buying, selling or switching units, receive detailed account statements, etc. at mutual fund houses.
- RTA Agent also handles the responsibility of informing or updating the investors about new fund schemes, consolidate their portfolio, pay dividends, and much more.
- Register and transfer agent is a one-stop-shop for all your investor’s needs related to different mutual fund schemes or other investments.
For Mutual Fund Houses
- Registrar and Transfer Agent processes thousands of financial and non-financial transactions through their branches located at distinct parts of the country on behalf of mutual fund houses and other financial institutions in order to provide them extreme convenience.
Benefits of Registrar & Transfer Agent for Investors and Mutual Fund Houses
For Investors
- R & T Agent provides a single one-stop platform for investors to manage and transact in multiple mutual funds with zero hassle.
- Investors do not need to connect with multiple fund houses for getting an idea about their fund schemes, new offers, and other information related to investment, once they connect with an authorized registrar and share transfer agent.
- Investors can also complete all the legal formalities like KYC verification, link folio with Aadhar, etc. through an R & T Agent at once place.
For Mutual Fund Houses
- Mutual Fund houses can lower their operational costs and save valuable time by outsourcing the investor’s recordkeeping duties to a Registrar & Share Transfer Agent.
- Registrar and share transfer agents also provide greater country-wide access to mutual fund houses through their branches across the country.
- Registrar and transfer agent also benefit the mutual fund houses by promoting their products or services directly to investors.