Reliance Capital Asset Management (RCAM), a unit of Reliance Capital on Wednesday launched a Systematic Investment Plan (SIP) in mutual funds through SMS.
This is the first-of-its-kind initiative by any asset management company in India that allows customers to initiate an SIP in mutual fund schemes just by sending an SMS through their registered mobile phones.
"SIP using SMS is the latest service offering from RCAM. This unique feature will make it cost efficient, and convenient for over 900 million mobile users across the country to participate and make investments in mutual funds," said Sundeep Sikka, chief executive officer, RCAM.
"This first-of-its-kind feature is also in line with the company's objective to continuously provide the customers with innovative products and value-added services," said Sikka.
RCAM has launched the new service under its Invest Easy initiative, a transaction platform that aims to use technology to make it convenient for investors to invest in mutual funds.
To invest in Reliance Mutual Fund schemes through SMS, customers need to fill in a one-time Invest Easy registration form with their details. The registration form would also include a debit bank mandate that will facilitate transferring of funds from the investor's bank while purchasing the scheme.
Registered investors can then make a purchase, start an SIP, or redeem their units using their registered mobile phones, the company said in a statement.
For starting an SIP, the investors need to send an SMS to 9664001111, from their registered mobile numbers, it said.
SIP would be open-ended and can be discontinued by the investor at any time. The default date for SIP instalment would be 10th of every month, the company added.
Sikka said Reliance Capital Asset Management already had over 2.5 lakh customers under the Invest Easy initiative that allows investors to transact online on the net, on their mobiles, through call centre and now using SMS.