In a first of its kind, Reliance Capital Asset Management (RCAM), part of Reliance Capital, has announced the launch of systematic investment plan (SIP) in mutual funds through SMS.
Buyers are required to fill only a one-time 'Invest Easy' registration form.
Once they register their details with the form the can invest in Reliance MF schemes through SMS.
The registration form would also include a debit bank mandate allowing transfer of funds from the investor's bank at the time of purchasing the scheme.
Investors who have registered can then make purchases, start an SIP, or redeem their units using their registered mobile phones.
For opening their SIP account with the company investors are required to send an SMS SIP scheme code to a specified mobile number at the company through their own pre-registered mobile numbers with the company.
The SIP would be open-ended and can be discontinued by the investor at any time with the default date for SIP installment the 10th of every month.
In case of no mention of a particular scheme fund, the default SIP would be opened for Reliance Equity Opportunities Fund with the minimum SIP for most funds as low as Rs100 that can be be initiated with the registered mobile phone to a designated telephone number at RCAM.
According to Sundeep Sikka, CEO, RCAM, a huge challenge for the industry has been to reach out to small ticket investors and help them invest in the MF sector. The initiative would help the company to strengthen its reach and enable investors to directly invest in the schemes using their phones.