Mutual funds are increasingly becoming a go-to investment option for people owing to its hassle-free and paperless investing process. As the number of mutual fund investors rises, processing and maintaining the enormous database gets difficult for mutual fund institutions. This is where RTAs come in.
Registrar and transfer agents (RTAs) are trusts or entities that register and keep accurate records of investor transactions for the benefit of mutual fund houses.
Who are registrars or transfer agents?
Registrar and transfer agents (RTAs) are employed by financial organisations to manage and preserve accurate records of investors' crucial data, including account balances and transactions.
Investors routinely engage in transactions such as purchasing, exchanging, processing of mails and associated information, changing personal data, etc., which must be documented. Due to their professional experience in maintaining such data, registrars and transfer agents help save time and cost needed to maintain thorough, accurate records of investor transactions.
Their duty also includes gathering all investor-friendly material in one location for investors to review, including information about new offerings, maturity dates, and other relevant information. They also assist people in updating their personal information and changing bank mandates as required.
How do RTAs assist mutual fund distributors?
RTAs assist the distributors of mutual funds in purchasing and selling funds on the investors' behalf. Agents of MF distributors are no longer required to physically be at the R&T's office by 3 PM. Instead, they submit their applications online.
The deadline to submit an investment application was earlier 3 PM. Only when an applicant's application was received before the deadline, they were qualified to receive the same-day net asset value or NAV.
How do RTAs assist investors?
RTAs use portals to provide their services to investors who can conduct business with mutual fund firms via their platform. Through RTAs, for example, you can invest in an NFO launched by a registered MF house.
An investor can also submit a variety of service requests to RTAs, including requests to terminate or halt an ongoing SIP, STP, or SWP, modify a bank mandate, combine all investor folios into one folio, and upgrade records from minor to major for a specific person.
RTAs may be considered facilitators and custodians of all your mutual fund transactions' records. Therefore, RTAs handle all the back-end procedures with regards to mutual fund investments. Investors may see a consolidated account statement of all their activities by visiting their website.