Mobile technology enters Investment Industry

I am constantly surprised by the expansive use of mobile technology. And to add to its ever growing importance the recent addition is Investment. Now you can make an investment from an ordinary mobile phone.

Some say this is a “Game changer facility” in Mutual Fund Transactions. Now an investor can transact in Mutual Fund (purchase as well as redeem) with the help of a simple SMS. This facility is currently available with Liquid Plus scheme of “IDFC Money Manager Fund – Treasury Plan”.

There are three steps for using this facility

A.    Fill up an application form for first purchase and a onetime ‘SMS Debit mandate form” & submit at any of the investor service centers or IDFC AMC Branches.

B.    Post submission it takes about 15 working days for the facility to get activated.

C.    Investor receives a confirmation post which he can start using the facility.

Followings are the short code for transactions

For Purchases – SMS Inv < space> Amount to 56767267  (example - Inv 200000 and send it to 56767267)

For Redemptions – SMS Red <space> Amount to 56767267 (example Red 150000 and send it to 56767267)

Following things are important to note

A.    Transactions can happen only in amount and not in units (means “Inv 15555 units” in an invalid transaction)

B.    Transaction cannot happen in decimal based amount either. (means “Inv 12500.21” is an invalid transaction)

C.    The maximum amount which can be transacted at a time is Rs. 9,999,999 (i.e. One Rs. less than a crore)

D.    Each sms costs Rs. 3/- to the investor which will be charged via his mobile service provider

E.    Currently this facility is available for account holders of 7 banks  - SBI, Standard Chartered, Kotak Mahindra, HSBC, Axis Bank, ING Vysa Bank, Citibank.

Once an investor sends a sms, within a minute he will receive a return SMS from CAMS confirming receipt of request for transaction. He will receive a second sms within 10-30 minutes once the transaction is successfully processed or declined.

A detailed presentation as well as FAQ is attached herewith. Kindly note that “All purchases via sms will by default will go under existing broker code and sub-broker code, if any”