Asset Management Companies (AMCs) have received an overwhelming response as investors opened up nearly 30,000 accounts in various mutual funds since its inception.
According to the official data, more than 8,000 accounts were opened online till 2020. In the five months of 2021, the number of accounts opened online stood 21,000 as of March 2021.
The digital onboarding mechanism has been introduced by SECP received to attract investors in instruments of asset management companies through the easiest approved process and regulations.
The digital onboarding mechanism offers investors not only a seamless account opening process for investments in mutual funds but also eliminates the requirement of physical presence and submission of physical documents.
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The assets management companies conduct an online customer verification process for opening online accounts and ensure investors’ protection and compliance with all applicable relevant legal and regulatory frameworks.
The mechanism introduces digital verification for the authentication of the investor and original identification documents through virtual meeting applications (WhatsApp, Skype, etc.) for online face-to-face interaction on a real-time basis.
Also, a simpler account opening process eliminates the physical signing of different forms and declarations by the investors. The apex regulator has designed the mechanism of digital onboarding with AMCs to attract investors towards mutual funds focus on investment and savings.
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