The financial industry is vast, complex, and often overwhelming. In the middle of equity curves, NAV charts, and macroeconomic commentary from Economist or RBI itself, it’s easy to lose or build our own perspective. Personally, I’ve found that writing things down and putting financial concepts into a simple description and helps me declutter my thinking.
In this article, I’m diving into a lesser-known but fundamentally important part of the mutual fund ecosystem — the Registrar and Transfer Agent (RTA). Think of RTAs as toll bridges in the world of mutual funds. Regardless of whether the investment journey is profitable or not, every participant must pass through this toll booth and pay the fee. It’s an indispensable infrastructure layer that supports the broader growth of mutual fund investing in India.
What is an RTA?
A Registrar and Transfer Agent (RTA) serves as a critical operational backbone of the mutual fund industry. RTAs handle a vast array of services on behalf of Asset Management Companies (AMCs), including:
Core Functions:
- Transaction processing (purchase, redemption, SIP, STP, switch)
- Maintaining and updating folio records
- Investor communication and account statements
- KYC, FATCA, and regulatory compliance
- Commission calculation and payment for distributors
- Customer service infrastructure (call centers, web portals)
- Providing data and analytics services to AMCs
They ensure operational efficiency, compliance, and scalability for the growing Indian mutual fund ecosystem.
Key Players: CAMS vs. KFintech
India has two dominant RTAs:
| Attribute | CAMS | KFintech |
| Market Share (by folio) | ~69% | ~29% |
| AMCs Served | 10 (incl. 4 of top 5) | 18 (incl. many new AMCs) |
| Key Clients | SBI MF, HDFC MF, ICICI Pru MF | Axis MF, Nippon MF, Edelweiss MF |
| Revenue Mix | Largely MF + some diversification | More diversified + IPO processing |
| Global Presence | India-focused | Expanding (Malaysia, Philippines) |
| Listed | Yes (NSE: CAMS) | Yes (NSE: KFINTECH) |
While CAMS serves fewer AMCs, it services larger ones, hence its dominant folio share.
Can One AMC Have Two RTAs?
No. Each mutual fund asset management company (AMC) signs up with one exclusive registered transfer agent (RTA) for its operations. There is no overlap within mutual fund transactions. However, an AMC may use another service provider for its non-MF verticals, such as PMS, AIF, or insurance.
AMC Count and RTA Partnerships
- Total AMCs in India: 43
- CAMS partners with ~10 AMCs, including top-tier names like SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential, and Kotak MF.
- KFintech serves ~18 AMCs, including Axis MF, Nippon India MF, Mirae Asset, Edelweiss MF, and most new-age or mid-sized players.
Why CAMS is Larger Despite Fewer Clients:
Obvious questions come to mind as to why CAMS is larger than KFin. CAMS enjoys a dominant position in the RTA space not because of the quantity of AMCs but due to the quality and size of those AMCs. It services 4 out of the top 5 Asset Management Companies (AMCs) in India, which together account for a disproportionately large share of the mutual fund industry’s Assets Under Management (AUM) and individual investor base.
These top-tier Asset Management Companies (AMCs) are equity-oriented and have significantly higher Systematic Investment Plan (SIP) contributions. Equity funds typically attract more retail investors, resulting in a larger number of folios per AUM.
Since CAMS processes and maintains these folios, it naturally controls a larger share of the industry’s total folio count (~69%) despite having fewer total AMC clients. In contrast, KFin works with more AMCs numerically, but many of these are newer, smaller, or more debt-oriented, resulting in lower folio intensity.
This is a key insight in the RTA business: market share in folios and transactions is closer to the nature and scale of AMC partners rather than their mere count.
Commission Structure: SIP vs. Folio
RTAs earn revenue primarily from AMCs based on the following:
- Per Folio Charges: Annual maintenance or monthly charges.
- Transaction-Based Fees: Fees per SIP installment processed, redemption, or switch.
- Value-Added Services: Analytics, call centers, digital onboarding tools, etc.
Distributors, not RTAs, earn commissions based on SIP amounts or AUM.
Beyond Core: Other Revenue Streams
CAMS:
- Insurance Repository (CAMSRep): Digital policy servicing.
- Account Aggregator: RBI-regulated framework.
- CAMS Pay: UPI-enabled payment service for mutual fund transactions.
- AIF/PMS Servicing: For high-net-worth clients.
- Digital Solutions: Onboarding, analytics dashboards.
KFintech:
- IPO Processing: End-to-end IPO application servicing.
- Global RTAs: Services in Malaysia, Philippines.
- SaaS Offerings: For pensions, corporate registries, and wealth tech.
- Alternative Investment Servicing: AIFs, PMS.
- Regulatory Tech and ESG Reporting.
Projected SIP and MF Growth till 2030
Mutual Fund Industry Growth:
- AUM (2020): ₹22.26 trillion
- AUM (2025): ₹69.5 trillion
- AUM (2030E): ₹100 trillion
SIP Growth:
- Monthly SIP inflows (2024): ₹25,000 crore
- Projected SIP by 2030: ₹1 trillion/month
- CAGR (2024–30): >25%
Drivers:
- Digital penetration
- Financialization in Tier 2/3 India
- Government push (Jan Dhan, UPI)
- Young, salaried investors opting for SIPs
RTAs are clear beneficiaries of this trend.
AMC AUM Growth Trends (2020–2025)
Highlights:
- 2024 alone saw 39% AUM growth.
- Equity MF AUM rose 40.3% YoY.
| AMC | AUM (Dec 2023) | AUM (Dec 2024) | Growth % |
| SBI Mutual Fund | ₹8.51 Tn | ₹11.14 Tn | 30.96% |
| ICICI Prudential MF | ₹6.15 Tn | ₹8.74 Tn | 42.21% |
| HDFC Mutual Fund | ₹5.52 Tn | ₹7.87 Tn | 42.77% |
These top AMCs are with CAMS, explaining its large folio base.
Business Risks: CAMS & KFintech
For investment to work, as an investor we need to know the risk and possible mitigation.
1. Client Concentration Risk
- CAMS depends heavily on the top 5 AMCs.
- KFin’s smaller AMCs pose monetization delays.
- AMC consolidation (mergers) could hurt volumes.
2. Regulatory Risk
- SEBI might mandate centralized KYC, UCC, or direct transaction processing via exchanges.
- RTA margins could reduce if SEBI enforces price caps.
3. Cybersecurity and Data Risk
- Sensitive data handling increases risk.
- Breaches could lead to reputational and financial loss.
4. Tech/Automation Risk
- AMCs may insource digital onboarding, investor servicing.
- Fintech-led platforms may replace certain RTA functions.
5. Pricing & Margin Compression
- Large AMCs constantly negotiate lower fees.
- SaaS-style margins are hard to sustain long term.
CAMS-Specific Risks:
- Equity-heavy portfolio (more operationally intensive).
- Less aggressive in international/IPO servicing.
KFintech-Specific Risks:
- High exposure to volatile IPO income.
- Diversification into global and SaaS may dilute core focus.
- Working with smaller AMCs → higher client churn, slower profitability.
Investment Perspective: CAMS vs. KFintech
Hypothesis:
Given the sustained growth trajectory of mutual funds and SIPs in India, combined with the inherent stickiness of RTAs due to high entry barriers and significant switching costs, CAMS is well-positioned to maintain and strengthen its leadership position in the Registrar and Transfer Agent (RTA) space.
Additionally, CAMS’ diversified revenue streams beyond mutual fund servicing such as insurance repositories, digital payment solutions, and alternative investment servicing — provide it with a competitive moat in a market where few large-scale, diversified players exist.
Key Metrics Snapshot (as of June 2025):
| Metric | CAMS | KFintech |
| Stock Price | ₹4,248.30 | ₹1,206.00 |
| Market Cap | ₹20,633 Cr | ₹20,755 Cr |
| P/E (TTM) | 43.74 | 62.4 |
| PEG Ratio | 1.87 | 2.63 |
| EV/EBITDA | 30.7x | 39.06x |
| P/B Ratio | 16.2 | 14.3 |
| ROE | 41.82% | 26.1% |
| ROCE | 47.77% | 34.2% |
| Dividend Yield | 1.59% | 0.48% |
CAMS: Pros and Cons
✅ High ROE and dividend yield
✅ Core RTA focus, sticky clients
⚠️ Valuation premium; requires timing discipline
KFintech: Pros and Cons
✅ Global/IPO growth potential
✅ Broader client base across AMCs
⚠️ Lower profitability metrics; higher valuation multiples
Final Take
If SIPs are the heartbeat of India’s investing future, RTAs are the circulatory system keeping it running. CAMS represents a high-quality proxy for that growth — but like all great stocks, timing and valuation matter.
As the saying goes, “A great business can still be a bad investment if bought at the wrong price.”
However, We must also be cautious of potential regulatory disruptions. I was talking one of the Senior person few days back. He recommended to be cautious of regulations. If SEBI or other bodies introduce changes that reduce the role of RTAs, enforce direct transaction processing, or open the industry to more competition with licensing of new RTAs, it could fundamentally alter the economics of current incumbents.
In such a case, the investment thesis weakens significantly, and a reevaluation or exit may be prudent.