Greetings on Dasera!
Personal Finance and all things connected being my passion, this will be the theme of most of my posts.
Today, I wish to focus on the Consolidated Account Statement which has been mandated for investors. Many are not even aware that if they transact in 3 or 4 Funds during the month, they will only receive only one physical Account Statement after the 10th of the following month giving transaction details of all Funds. Most Funds are participating in this. Of course, those investors opting for email statements will receive one for each transaction and this rule applies to those opting for physical statements. While the industry has worked out the details, I personally feel there are several shortcomings and few advantages.
First the advantages:
The Industry feels this is will reduce costs. Secondly they have presupposed that one common account statement , i.e a one-view statement is what investors want.
Now the short-comings and issues faced:
1. A first-time investor has invested in 4 Funds. He will get one statement next month . The personal data printed on the statement will be from any one of the Funds and the investor has no idea if the personal details and bank details are correctly captured with all Funds. With errors found in statements earlier, I am apprehensive!
2. What about security? Do you get your bank account statements from different banks all-in-one? How is the industry guaranteeing the security of data? Who is the data held by different Funds being shared with? Who will print and dispatch the statements and ensure that my financial details are not leaked. Earlier, the Fund would send me a statement and be responsible for not leaking my financial data
3. Now, if you are aged, have not opted for email, you have to wait for a month to receive confirmation of your transaction! The industry has earlier set a standard of dispatching a statement within a day or two of transactions. Now, we regress.
4. Branding is dead!! Earlier, the statement with the Fund logo was like popularizing a brand. However, only the smaller Funds will lose some brand-identity.
The Registrars already give Consolidated Account Statements through their websites for those with email ids registered. Just visit their websites and get one if you want. To cut costs, the Industry should go all out to encourage email Statements. Currently, investors can still get a duplicate statement at any time and even after this rule is enforced, nothing stops you from asking Funds to send their regular statement.
So, what is the solution? Yes, the industry needs to cut costs; however the above aspects need considering.
Update: 23.12.2011
I understand that first time investors will get a full account statement with all details. However, all the other concerns mentioned above remain.
Personal Finance and all things connected being my passion, this will be the theme of most of my posts.
Today, I wish to focus on the Consolidated Account Statement which has been mandated for investors. Many are not even aware that if they transact in 3 or 4 Funds during the month, they will only receive only one physical Account Statement after the 10th of the following month giving transaction details of all Funds. Most Funds are participating in this. Of course, those investors opting for email statements will receive one for each transaction and this rule applies to those opting for physical statements. While the industry has worked out the details, I personally feel there are several shortcomings and few advantages.
First the advantages:
The Industry feels this is will reduce costs. Secondly they have presupposed that one common account statement , i.e a one-view statement is what investors want.
Now the short-comings and issues faced:
1. A first-time investor has invested in 4 Funds. He will get one statement next month . The personal data printed on the statement will be from any one of the Funds and the investor has no idea if the personal details and bank details are correctly captured with all Funds. With errors found in statements earlier, I am apprehensive!
2. What about security? Do you get your bank account statements from different banks all-in-one? How is the industry guaranteeing the security of data? Who is the data held by different Funds being shared with? Who will print and dispatch the statements and ensure that my financial details are not leaked. Earlier, the Fund would send me a statement and be responsible for not leaking my financial data
3. Now, if you are aged, have not opted for email, you have to wait for a month to receive confirmation of your transaction! The industry has earlier set a standard of dispatching a statement within a day or two of transactions. Now, we regress.
4. Branding is dead!! Earlier, the statement with the Fund logo was like popularizing a brand. However, only the smaller Funds will lose some brand-identity.
The Registrars already give Consolidated Account Statements through their websites for those with email ids registered. Just visit their websites and get one if you want. To cut costs, the Industry should go all out to encourage email Statements. Currently, investors can still get a duplicate statement at any time and even after this rule is enforced, nothing stops you from asking Funds to send their regular statement.
So, what is the solution? Yes, the industry needs to cut costs; however the above aspects need considering.
Update: 23.12.2011
I understand that first time investors will get a full account statement with all details. However, all the other concerns mentioned above remain.
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