Financial Technologies (India) Ltd

Feature List for Mutual Fund (Version 1.3)

Content
Mutual Fund (Version 1.3) - Feature List

Financial Technologies (India) Ltd.

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Financial Technologies (India) Ltd Confidential: For internal and private circulation only

. Mutual Fund (Version 1.2): Feature List

Mutual Fund - (Version 1.3)

Overview
A mutual fund is an investment option wherein the Asset management company (AMC) pools money from a large number of investors and invests the collected money in various instruments such as stocks, bonds, short and long term money-market instruments, commodities, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each unit represents an investor's proportionate ownership of the fund's holdings and the income those holdings generate. The rate of these holdings is denoted by NAV (Net Asset Value). Participants in the Mutual Fund Investment Arena Investors Distributors Asset Management Companies (AMC) Register Transfer Agents Existing Market Details New Investors In the current scenario, the investor invests in the mutual fund in the manner mentioned below: 1. Investor gets the information of the NFO or current schemes through various channels like advertisements, distributor agents and various sites giving the analysis of the performance of the schemes. 2. Investor consults the distributor agents for the selection of the AMC and the scheme as per his requirement. (Investor can also invest directly through the AMC) 3. Distributor suggests the AMC and the scheme suitable to the investors need and handover the form to the investor. 4. For the first time investors in an AMC the investors have to fill up the form and submits the form to the AMC/distributor along with the cheque 5. A statement is issued to the investor from the AMC with the details of the unit holdings.

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Financial Technologies (India) Ltd Confidential: For internal and private circulation only

. Mutual Fund (Version 1.2): Feature List

Existing Investors In the current scenario existing investor/ unit holders who wish to redeem/switch the units have to follow the following steps: 1. Unit holder has to approach the AMC/ Distributor agent with the account statement. 2. AMC/ Distributor agent hands over the redemption form to the investor 3. Investor has to again fill up the form and submit it to the AMC/Distributor agent. 4. The form submitted to the distributor has to be couriered to the AMC. 5. On receiving the form the AMC has to verify the details mentioned in the form. 6. After verifying the details of the form the AMC will credit the amount through ECS or issue a cheque in case of redemption. Gap Analysis In the existing market practice there are lot of paper work involved to be done by the investor. The investor has to approach the AMC/ Distributor agent, fill up the form every time he wants to invest in a Mutual fund and issue a cheque. The existing scenario in the mutual fund industry has the following gaps: 1. Investor has to approach the AMC/ Mutual Fund which is time consuming. 2. Investor has to fill up the detailed form for every schemes and every AMC he wants to invest. 3. New Investor of any AMC has to submit the mandatory documents required every time with the form. 4. Distributor has to collect the physical form and submit the same to the AMC before a stipulated time. 5. Existing investor has to again fill up the form for redemption or any other transaction he wishes to do. Proposition A system which can offer a platform where in the investor can place his/her mutual fund transactions through the electronic mode, thus eliminating the paper work. New Investor 1. Investor gets the information of the NFO or current schemes through various channels like advertisements, distributor agents and various sites giving the analysis of the performance of the schemes. 2. Investor consults the distributor agents for the selection of the AMC and the scheme as per his requirement.

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Financial Technologies (India) Ltd Confidential: For internal and private circulation only

. Mutual Fund (Version 1.2): Feature List

3. Investor fills in the KYC details with the distributor agent which will be one time for all the AMC along with a POA. 4. Investor logs in to the web based application and transfers the funds from his internet bank account to the distributors account. 5. Investor selects the AMC and the scheme he desires to invest and places a purchase request. 6. Holdings of the investor are updated in the system after receiving confirmation from the AMC and the investor can view his holding, value of his holding as per the current NAV of the fund & do transactions on units present in his/her holdings. Existing Investors In the proposed system existing investor/ unit holders who wish to redeem/switch the units have to follow the manner mentioned below: 1. Investor will login to the web based application and check his unit holdings. 2. Investor selects the scheme, units and applies for redeem. 3. Investors account is credited with the amount by AMC after the file is send by the distributor agent to the AMC.

Mutual fund module consists of two components viz.

Web based Application Web based application is user friendly front end where user can invest in Mutual Fund online. It provides facility to retail investors to place orders, view order status and allocate funds online on real time with paperless work. Mutual fund Admin Application Mutual Fund Admin is a user friendly front end for the Brokers where they can maintain all the details like RTA, AMC, Scheme, Plan etc. The Admin also have the facility to Import and Export the Transaction File. Admin displays daily transactions done by the online user.

Feature List Web Based Application

Home User can view all their details like Client Id, Name, Address, Contact No., Email, Bank Account Number, PAN Number, Etc

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Financial Technologies (India) Ltd Confidential: For internal and private circulation only

. Mutual Fund (Version 1.2): Feature List

Allocation of Fund Provides the details of the Fund Allocated for Mutual Fund Transactions, the Blocked amount for MF and the Net amount available for Purchase order. Place Order Investor can purchase/ redeem the scheme he wants to invest. The details of the scheme such as scheme name, plan, option, NAV as on date, minimum investment/redemption amount and cutoff time is displayed. Order Book Order book displays the orders placed by investor along with the status i.e. the order is in process or completed. Investor can use the date filter to view the entire orders placed by giving a date range. Unit Holdings Can view the number of units holds of the particular Mutual Fund scheme. Mark to Current NAV profit/loss and realized profit/loss are displayed along with other details such as purchase quantity , purchase price, redemption quantity ,redemption price, net units held, net price. NAV Details This option provides the Net Asset Value of the Particular Mutual Fund Scheme as on the Day it was published. Profile Creation Investor can configure mutual fund schemes across different AMCs and create a profile. In market watch, investor will be able to view data pertaining to schemes configured in each profile such as NAV, Min. redemption amount, Min. purchase amount etc. Market Watch All profiles created will be visible in market watch as different tabs. One profile will be default. Whenever Admin/Investor will click on market watch, the default profile will be visible. Admin/Investor will also be able to do transactions such as Buy/Sell etc. on schemes present in a profile. Investor will also be able to view the details of each scheme present in a profile by clicking on scheme name. Short Cut keys in Market Watch User will be able to select scheme present in market watch with the help of Up/Down arrows. After selection, user will be able to buy or sell in that particular scheme with the help of short cut key F1 & F2 respectively.

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Financial Technologies (India) Ltd Confidential: For internal and private circulation only

. Mutual Fund (Version 1.2): Feature List

Order Entry Panel For All Transaction An order entry panel has been created (similar look & feel as ODIN) where user will be able to orders of any particular scheme. Scheme Look Up A scheme look up has been provided to add schemes in market watch. User will also be able to search a scheme through scheme look up present in order entry panel and do purchase/ redeem on a selected scheme. Systematic Order Details Investor will be able to view systematic orders history. Investor will be able to cancel the next instalment or stop a systematic order (SIP/SWP/STP) with the help of this menu. Transfer IN functionality User will be able to transfer in offline unit holdings to online & do transaction on those units as well. Basically client will be able to transfer units from one broker to another. BSEStarMF offline mode User will be able place orders in BSE StarMF in offline mode. Order placed will be uploaded in BSE star MF & the allotment/redemption statement will be imported. Based on these statements, the unit holdings will be populated & displayed to the client. NSE MFSS Offline mode User will be able place orders in NSE MFSS in offline mode. Order placed will be uploaded in NSE MFSS & the allotment/redemption statement will be imported. Based on these statements, the unit holdings will be populated & displayed to the client.

Feature List Admin Application

NFO handling
Mutual fund application will support New Fund Offer (NFO).

Auto Activation of Schemes & AMC

User will be able to fill in details of a new scheme or AMC in advance & on the selected date, system (with the help of scheduler) will activate new scheme/AMC. Similarly system will be able to inactivate a scheme/AMC based on details entered by user.

Scheduler Service
All Commercial & non-commercial transactions done from MF system will be exported automatically (as per user defined time) with the help of scheduler. Similarly all reverse feeds received from RTAs will be imported automatically (as per user defined time). All the systematic orders (SIP/SWP & STP) will also be populated & exported automatically by scheduler.

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Financial Technologies (India) Ltd Confidential: For internal and private circulation only

. Mutual Fund (Version 1.2): Feature List

Schedule Jobs
User will have the option to create schedule jobs to do export of transaction, NAV & Non commercial transactions. User will also be able to place systematic orders & import transaction (reverse feeds). User will be able to create daily as well as one time scheduled jobs.

Supporting different types of schemes

MF application will support open, close & interval schemes as well. User will also be able to handle transactions done in liquid & non liquid schemes. Investor will also be able to differentiate ELSS (tax saving) schemes.

Supporting different types of Frequencies

MF application will support daily, weekly, fortnightly, monthly, quarterly & Half-Yearly frequencies while placing systematic orders.

MASTERS
RTA Master RTA master captures the details of the Registrar Transfer Agents such as Code, Name of the RTA, Address of the RTA and the status. AMC Master AMC master captures the details of the Asset Management Company who manages the scheme and the same data is used to display in the web based application. The details captured are AMC Code, AMC Name, RTA Name, RTA Code, Status, AMC Address, AMC Website, Name of the Chairman, Sponsor of the AMC and Name of the Trustee. Plan Master Plan Master captures the details of various plan available for a scheme. Scheme Master Scheme master captures the details of the scheme offered by the AMC. The details captured are Scheme Code, Scheme Name, Inception date, Status, AMC Name/Code, Plan Name/ Code, Option Name / Code, Sub-option Name, Entry Load, Exit Load, NAV, Minimum Investment Amount, Cut-off Time, Transaction Type allowed for the scheme, Fund Manager, Benchmark Index, Expenses of the Scheme, Asset allocation Details , Dividend Policy, Terms and Conditions, etc. In case of BSE & NSE, the scheme master will be uploaded in the system & the details will be displayed

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. Mutual Fund (Version 1.2): Feature List

AMC Broker Details This master captures broker related details to be sent to AMC while reporting the transactions. AMC wise Mapping This master captures State, Tax, Occupation, Location & Payout information about each AMC. Based on the information captured for each AMC, AMC wise transaction feed file is created.

REPORTS
Transactions The broker can view the details of the transactions he has made for All/particular scheme under All/Particular AMC. He is given the facility to view the transactions he has made from a particular date to a particular date using filter.

FILES
Export / Transaction At the end of the day the broker needed to send all the transaction details to the RTA/BSE/NSE so he has the facility to export the transaction in a file format automatically with the help of a scheduler and then send that file to the RTA/NSE/BSE. Import / Transaction The RTA/BSE/NSE sends the updated file to the broker which he can upload using scheduler service.

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