Investing In Mutual Funds? Read This First

By | September 16, 2020

Are you in the dark about what role an R&T agent in a Mutual Fund actually plays? Fret not! We’ll tell you everything you need to know.

Role Of A Registrar And Transfer Agent In A Mutual Fund

Have you ever wondered what role a Registrar and Transfer agent (R & T agent) plays in a Mutual Fund? Well, as an investor in Mutual Funds, you perform a number of transactions, often on a daily basis. These transactions range from buying, selling or switching units, or requesting for a change in your details. Every such action represents a transaction.

Who Is A Registrar And Transfer Agent?

It is binding for the respective Mutual Fund house to maintain a record of all such transactions. This is because it would become a burden for a Mutual Fund house to take care of all these transactions on its own. Due to lack of skilled manpower or time constraints, it may outsource work related to these transactions to an external agency. These agencies can directly handle these requests made by investors. This job is performed by people who are also known as Registrar and Transfer agents.

Additional Reading: Mutual Funds: An Amazingly Effective Way To Fund Your Child’s Education

Responsibility Of A Registrar And Transfer Agent

It is the sole responsibility of an R & T agent to maintain the records of all such transactions carried by them on behalf of the fund house, through various branches of offices set up in various parts of the country. These agencies act as a single-window system for investors. This provides investors with a simplified method to receive forms of their fund houses. This also helps complete their transactions, and even receive a record of their account statements.

Registrar and Transfer agents also offer investors with all details related to new fund offers, maturity dates of fixed maturity plans or even the date and amount pertaining to dividend distributions. While fund houses can also provide such information, an R & T agent is a one-stop contact for all your investor needs on various schemes and investments.

Additional Reading: Everything You Need To Know About SIP Investing In Mutual Funds!

Benefits Of Dealing With A Registrar And Transfer Agent

While being of great value to an investor, R & T agents are a blessing in disguise to Mutual Fund houses as well. This is because they provide better accessibility at lower costs to them.

It is important that you get complete knowledge about your R& T advisor to ensure that he is a genuine agent. It would be completely absurd if you are forced to take a loan of some kind because you lost all your investments due to a dubious investment agent.

So, ensure that you get all the background details about the agent right before you proceed with your investment decisions. Apart from that, ask yourself if you actually need an R&T agent or not.

Do you have multiple investments that need to be carried on with a Registrar and Transfer agent? Are you seeking to make investments in multiple schemes? Well, you can do so with the help of an R & T agent. It’s a lot easier than scrambling to connect with different fund houses for deals and information on investments. These R & T agents will help them make investments and conduct all related transactions for them.

It is the responsibility of a Mutual Fund house to bear the costs incurred by an R & T agent, which depends on the volume of transactions carried out by the agent for the Mutual Fund house. This amount is then directed by the Mutual Fund house through the charge of the expense ratio.

As an investor, you are not required to make any independent payments for your services to the agent. Do not forget to read the terms and conditions though. This will help you get a complete understanding as to how your policy functions and the charges associated with it.

If you’re looking to sort out your finances, click the link below.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit for the latest rates/offers.

4 thoughts on “Investing In Mutual Funds? Read This First

  1. Ghorpade

    Great ideas leads to great learning & knowledge

    1. Team BankBazaar

      Hi Ghorpade,

      Yes, we totally agree with you!

      Cheers, Team BankBazaar


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