Investors are often advised to make more out of their surplus savings by investing in a liquid fund for better returns than leaving it idle in a savings account. Despite this, investors often prefer to hold a cash buffer in savings account to manage sudden expenses.
Though liquid funds provide redemption within 24 hours, at times investors need cash urgently. This is where instant redemption facility of liquid funds come in. Offered by a few fund houses, these schemes allow immediate withdrawal of up to Rs. 50,000 or 90% of the fund value (whichever is lower). The money is transferred to the investor’s bank account via IMPS (immediate payment service). While this eliminates the worry about receiving funds, the multi-step redemption process makes this option unappealing for investors. So, despite it being prudent to invest in liquid funds, investors continue to hold a substantial amount in their savings bank account.
However, what if there was a quick and hassle free way to transfer money between the bank account and the liquid fund? If the investment and redemption process could be completed with just a swipe of the finger, it would be easier for your clients to keep their money more ‘active’.
Aditya Birla Sun Life has an app, which does just that. Called ‘Active Account’, the liquid fund based app allows investors to invest money or redeem their investments in the ABSL MF Liquid Fund with a single swipe.
To encourage investors to minimise their idle cash, the minimum investment amount through the app is kept at Rs. 1,000. Moreover, it allows 24*7 instant withdrawal of up to Rs. 50,000 or 90% of total investment value whichever is lower per day and per PAN. As an additional nudge to invest, the app displays the idle money held in the bank account and estimates its earning potential.
The investors can register into the app using their PAN and date of birth. Investments can be made through internet banking or debit card or UPI.
In addition, the app has an ARN hardcoding feature for distributors. With this feature, a distributor can enter his ARN details and share the download link of Active Account with his investor. All the investments done by client through this downloaded app will be tagged under the respective ARN.
Five easy steps for distributors to share ARN hard coded link with clients
- Install the Active Account APP
- Register / login using PAN and DOB details
- Click on the ‘share’ icon on the top left corner of the dashboard screen or the share option in the hamburger menu
- On click, a pop-up appears with two options – Self or Through Advisor
- Select ‘Through Advisor’ and enter the ARN and EUIN (if any) details on the next screen
- Click on share button and share the link via convenient communication app
