CAMS launches Insta Purchase to enable instant purchase of mutual funds

Computer Age Management Services Limited (CAMS), a mutual fund registrar and transfer agent (a SEBI regulated entity) in India on Monday announced the launch of Insta Purchase to improve the service experience of investors in liquid and overnight diet categories.

With the new Insta Buy initiative, funds managed by CAMS will now be able to provide confirmation of all trades where the purchase of a program is based on historical (previous day) net asset value.

“This will apply to liquid and overnight systems of all mutual funds where trade settlement confirmation will be delivered to investors within hours of trade origination and money being paid out” , CAMS explained in an official statement.

According to CAMS, this will occur under current MF rules which require mandatory credit observation as a precondition to awarding a trade. However, investors won’t have to take any additional steps during the purchase process to get instant allocation.

This is to improve mutual fund unit allocation that follows a complex trade settlement process with a NAV cycle to help investors, especially new entrants.

Anuj Kumar, Managing Director of CAMS, said, “We recognized that the desire for instant gratification among consumers continues to grow, given the fulfillment formats of many new products including ridesharing, ticket booking airline and stock trading. It is now important for the MF industry to deliver an experience that, despite the multiple complexities involved, is able to provide consumers with a similar real-time experience and superior satisfaction of their service requirements.

Kumar, added, “CAMS, has built advanced algorithms and mechanisms to settle transactions and recognize payments in record time despite the issues involved. Insta Purchase is another breakthrough development that leverages our technology to improve the experience serving investors in the liquid and overnight plan categories, they will now be able to receive their trade confirmation within hours rather than waiting until the next morning.”

Published on

January 31, 2022

Dolores W. Simon