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How Does Mutual Fund Software Ease Client Reporting?

wealthelite

August 31, 2024

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Sharing investment reports with clients is not an easy task, especially for Mutual Fund Distributors (MFDs) who need to do it consistently, day and night. It’s not easy to keep investors updated with their reports in a simple form so that they can easily understand. However, client reporting comes with its own set of challenges.

Challenges with Client Reporting

1. Time-Consuming Process: Creating, reviewing, and sending reports manually can take up a significant amount of time. This leaves MFDs with less time to focus on strategic tasks that could help grow their business.
2. Manual Work: Manual data entry and report generation increase the risk of errors. A simple mistake can lead to confusion and loss of client trust, which can be detrimental to an MFD’s reputation.
3. Calling Clients: Following up with clients to explain the details of their reports over the phone is both exhausting and inefficient. It’s hard to ensure that the client fully understands the information conveyed.
4. Lengthy Reports: Standard reports are often filled with financial jargon and complex figures that are difficult for clients to understand. This can lead to clients feeling overwhelmed or uncertain about their investments, possibly prompting premature redemptions.

Introducing Mutual Fund Software for MFDs

To tackle these challenges, Wealth Elite, a reliable Mutual Fund Software for distributors offers a range of client reporting features that streamline the process and enhance client satisfaction. The software lets MFDs simplify reports, making them easier for investors to follow. By removing extra details and highlighting important information, MFDs can provide exactly the information beneficial to investors.

Types of Reports Offered by Mutual Fund Software

1. Live MF Portfolio: A real-time overview of the client’s mutual fund investments, showing current value, growth, and performance at a glance.
2. P&L Valuation Report: A detailed Profit and Loss report that shows the gains or losses in the client’s portfolio over a specified period.
3. Between Date XIRR: This calculates the Extended Internal Rate of Return for investments made between selected dates, offering a clear picture of performance over time.
4. Realised Funds XIRR: A focused XIRR calculation for funds that have been fully realized, helping clients see the exact returns on completed investments.
5. Transactions: A comprehensive report listing all transactions made within the client’s portfolio, including purchases, redemptions, SIPs, SWPs, and STPs.
6. Allocation Report: This shows the distribution of investments across various asset classes, funds, or sectors.
7. Recent Transaction: A snapshot of the most recent transactions, keeping clients up to date with the latest changes in their portfolio.
8. Notional Capital Gain: This provides an estimate of potential capital gains based on current market values.
9. Realised Capital Gain: A report that details the actual capital gains realized from sold investments, useful for tax filing purposes.
10. FY Wise Report: A financial year-wise breakdown of investments, returns, and capital gains, helping clients track performance year over year.
11. Tax Package: A comprehensive package that includes all necessary reports for tax filing, such as capital gains and dividend statements
12. Dividend Report: A report detailing all dividend payouts received by the client, including dates and amounts, which is important for income tracking.

Conclusion

Mutual Fund Software significantly eases the process of client reporting for MFDs, offering a suite of customizable reports that cater to the specific needs of both the distributor and the investor. In today’s competitive market, leveraging such technology is not just an option; it’s a necessity for success.