What is a Consolidated Account Statement & How is it Beneficial | Motilal Oswal
What is a Consolidated Account Statement & How is it Beneficial | Motilal Oswal

Understanding consolidated account statement and its benefits

If you are an investor or are considering stepping into the domain, you may have come across the term CAS or Consolidated Account Statement. Mutual fund managers are responsible for notifying investors about how a fund is performing on a regular basis. This is done by putting together the CAS document. Read on to know the exact meaning of Consolidated Account Statement and its benefits:

What is a Consolidated Account Statement (CAS)?

The consolidated account statement is a single document that provides the investor with all the pertinent details of their transactions and investments related to depository accounts and mutual funds investment in an organized manner. Sebi introduced CAS in 2015 when all depositories were given the responsibility to consolidate this essential investment-related information for every investor, in association with their PAN. The CAS includes information about every transaction related to a particular mutual fund, including purchase and sale. Thus, investors are able to track mutual fund performance over time consistently. The document is provided free of cost on a monthly basis, typically as a soft copy via email. If you want consolidated mutual fund statement in the form of a hard copy, you can also request one and it will be delivered via post. 

What does a Consolidated Account Statement include?

1. AMC and Mutual Fund details: The mutual fund consolidated account statement includes all financial transactions such as purchases, merging of your funds, bonus payments, details of bank accounts, etc. In addition to that, reinvestment information or indication of a New Fund Offer (NFO), investment method, portfolio balance are also included. The AMC also mentions whether the investor has opted for a systematic withdrawal or systematic transfer plan

2. Investor details: The investor’s name, contact details, nominee registration, and their bank’s contact details, mode of holding the units are all included in CAS. The consolidated account statement makes it very easy to check the nominee registration status and the KYC status. However, confidential and sensitive information such as certain bank details or PAN is not included. 

What are the benefits of CAS for investors?

  • Tracking investments: Since CAS carries all the financial transaction details, lists all the holdings and the current value, notes the consultant/mutual fund distributor’s fees and so on, it makes tracking your funds and investments very simple. 
  • Helps assess the company: Having the consolidated account statement in hand provides more clarity on a fund house’s or company’s financial health, performance and overall standing - thereby making it easier for investors to make informed decisions about investments. 
  • Paperwork reduction: Since all the information is gathered and presented in one single document in an orderly manner, it drastically reduces the paperwork one would need to manage otherwise. 
  • To the point: By eliminating all the subsidiaries and focusing on the overall performance of a fund or company, the whole process gets simplified and investors can always stay in the loop with little effort. 

Conclusion:

As an investor, you should be aware of factors such as your financial standing, investment goals, risk appetite, short-term and long-term strategies, portfolio diversification and so on. Remember to do your research thoroughly before investing anywhere. With the advent of technology and the internet, you can do so with the help of digital tools or mobile apps that can give you real-time updates on the market, advice from experts, price alerts and other such insights. Ensure that you are getting the consolidated account statement on a regular basis in order to stay on top of your investments and make the most of their potential. 

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