By Madhvendra
In India’s growing mutual fund (MF) sector, one company plays a vital role behind the scenes, making things run smoothly for some of the biggest names in asset management.
This company is CAMS (Computer Age Management Services), and it’s become the backbone of the industry, overseeing a major share of the country’s assets under management (AUM). CAMS operates in a market that’s almost a duopoly (the other player being KFin Technology), meaning it has a stronghold with limited competition.
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Thanks to its solid client relationships, high barriers to entry, and a service model built around trust and efficiency, CAMs has grown alongside the mutual fund boom in India. But CAMS hasn’t stopped there—it’s also branching out into new areas like KYC registration and UPI payment, keeping pace with the rise of digital finance.
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The company’s transaction-based revenue model has kept it stable while offering plenty of room to grow. This article will examine CAMS’s market position, business model, and future prospects for this key player in the financial services industry.
Let’s take a closer look at the role of RTAs and the key drivers behind their revenue.
Mutual Fund RTAs – The silent power behind India’s investment boom
Registrars and transfer agents (RTAs) offer backend data processing and record-keeping services to asset management companies (AMCs). Over the years, they have expanded to analytics, distributor management, and management information systems (MIS).
MF houses heavily depend on RTAs to service their clients, allowing them to concentrate on core operations. As a result, they foster long-term partnerships with RTAs, as the transition process is quite intricate. Currently, there is only one example where Franklin Templeton shifted its services from KFin to CAMS in 2021.
The Indian MF RTA operates as a duopoly, dominated by CAMS and KFin Technology. CAMS holds a significant lead in the market,
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