Nothing is on priority for a mutual fund house than to preserve the records of investor’s transaction. Any information missed or inaccurate may cause damage to a mutual fund company. RTA is a regulatory body responsible to maintain records of investor’s transaction and other relevant information on behalf of the mutual fund house.
Also we will see the role of RTA's with its relevant stakeholders and to understand its responsibilties. Registrar and Transfer Agent is a requisite for any mutual fund house or investor. They maintain transaction records, issue or cancel certificates, they manage emails, handle customer queries, they solve investor problems such as lost or stolen share certificates, etc.
They are concerned with investors receiving their payments and dividends on time and provide monthly investment statement to the investors taking care of all the details of the units, maturity dates, conduct of mutual funds and other aspects of investor’s interest.
Investors make transactions on a frequent basis selling, buying and switching of shares. RTA is assigned to facilitate the investor while participating in the activities of mutual funds. Registrar and Share Transfer Agent makes it a way easier process for the investors to invest in mutual funds by time to time educating them about the buying and selling of shares, updating personal information and new deals in the mutual funds.
RTA Services to Mutual Fund Associates
The functioning of a Mutual Fund revolves around its:
- Distributors
- Investors
- Mutual Fund Company
Distributors:
The distributor - an individual or an organization which guides the investor with investment schemes of his/her interest. Before suggesting the investor with any of the investment plans, the distributor must acknowledge the investor’s risk profile and then advice the best for him/her.
A distributor earns his commission on profits earned by selling the mutual funds to the investor. Registrar & Transfer Agent provides equipment to the distributor like application forms for investors and other materials required for facilitating their clients regarding the mutual fund. RTA even releases distributors sales statements in a given month.
Investors:
Investor- the one who is capable of buying shares, bonds or other securities from the mutual fund house. Investors ally with the mutual fund house to earn profits in the future from the investment they have done today. Registrar & Share Transfer Agent makes the concept of mutual funds easy and attractive for the investors as they serve the investors with security/share transactions, new investment offers, dividend distribution, maturity dates and other relevant updates.
Mutual Fund Companies:
A mutual fund house is a monetary institution which gathers money from the potential investors and invests in shares, bonds or other securities.
Such entities work with the motive of earning considerable profit for its investors in the future. Registrar & Transfer Agent Services towards mutual fund house is to maintain the records of investor’s transactions and other information, ultimately saving their time and resources.
Everything happens via digital communication, now there is no need for the mutual fund house to establish their branch nearby RTA office.
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