Consolidated Account Statement (CAS): Benefits & Importance

The Consolidated Account Statement (CAS) gives an investor all the necessary details about his investment holdings and mutual fund transactions in an orderly, simplified manner, into one consolidated document.

Every investor can get a hard copy or a soft copy of CAS once a month, free of cost. CAS is an essential document for every investor, as it carries the record regarding the purchase, sales or any other transactions that have taken place in his/her investment holdings. CAS offers a proper insight for investors and helps them track the performance of their investments and the overall health of their portfolios. It also gives an investor all the details of their mutual fund transactions in a single place. It shows the mutual fund investments under a PAN. You can request for hard copy as well as a soft copy of CAS once a month free of cost.

It is an essential document for investors as it carries every information regarding sale, purchase and other transactions in a mutual fund. This gives a proper insight for investors about how to track mutual fund performance.

Let’s begin with the institutions that provide the data included in the CAS.

Depositories

The securities that you buy through the stock exchanges are held in the Demat account and are managed by depositories like CDSL and NSDL. When you sell, the securities are directly transferred from your Demat account to that of the buyer. The value of the holdings changes after you buy or sell securities. The value also fluctuates depending on the market conditions. The depositories record all the data related to the transactions and the change in the value of the holdings.

In the case of mutual fund investments, the mutual fund registrar and transfer agent keeps the records of the holdings.

Consolidated Account Statement

One of the basics of any investment is to keep track of the performance and the transactions. If you have to monitor all your investments separately, it could lead to additional efforts and increase the chances of miscalculation. To make monitoring investments easier for investors, the Securities and Exchange Board of India, in 2015, instructed depositories to take the responsibility to collate all the investments of an individual based on the PAN.

The Consolidated Account Statement is a result of the market regulator’s order. It contains the details of all the transactions and holdings an investor might have across depositories and mutual funds. If there is a transaction in the Demat account or mutual fund folio, the CAS is sent to the investor at the end of the month. The CAS helps in having a consolidated view of the investments. However, if an investor fails to conduct any transaction during a month, the CAS is sent on a half-yearly basis. The CAS will either be sent on your registered email id or a physical copy to your address.

Benefits of CAS

The CAS has proved to be extremely beneficial to investors. Here are some of the many advantages of this statement:

1.Reduces paperwork
Instead of separate statements for different investments, the CAS summarises the details of various investments into one and reduces paperwork in the process. With reduced paperwork, you do not have to worry about the safety of different investment details. It helps facilitate online trading which is becoming increasingly popular.

2.Increases safety:
The advent of online trading and digital payment methods has simplified the process of investing. Investor friendly steps like online Demat account opening have been made possible due to the use of technology. However, technology-based services have also given rise to sophisticated frauds and forgeries. With monthly updates, the CAS helps investors stay alert. In case of any unauthorised transactions, you can inform the regulator at the earliest.

3.Keeps investors informed:
Besides helping prevent fraud, CAS also helps in keeping investors informed. A monthly update of all the investments makes it easy for investors to keep track of their investments and make necessary changes.

The Central Depository Service Ltd has provided a facility through which investors can download the CAS directly from the depository’s website:

• To download, log in to the CDSL website: www.cdslindia.com.
• Click on the ‘login to-CAS’ link on the home page.
• To log in, you will need your PAN, Demat account number and date of birth.
• After you submit the request, you will receive an OTP on the registered mobile number.
• Investors can select the month and year of the CAS that they wish to see.

Conclusion

The CAS has made monitoring of investments easy and simplified for investors. As an investor, it is important to be aware of your financial standings, risk appetite, short term and long term strategies as well as the diversification of your current portfolio. The CAS helps you keep track of all these factors, offers insights into your investments and helps you become an alert, and better-informed investor. Sign up for an IIFL Demat and Trading account that does not include any opening charges and begin your trading journey.