Taiwan Depository & Clearing Corporation

In 2020, TDCC’s Mutual Fund Processing and Settling System has provided an additional function, a daily systematic investment plan, which allows investors to make mutual fund investments in a more flexible way, further reduces price risks, and offers secure and efficient payment services.

Systematic investment plan has been the most prevalent strategy among Taiwanese investors. According to the data provided by TDCC, both the number of subscriptions and the amount of investment have seen significant growth. Statistics showed that in 2019, the amount for systematic investment plan through TDCC’s Mutual Fund Processing and Settling System reached NT$10 billion, with the number of subscriptions reaching approximately 2 million, showing a growth over two times higher than in 2016.

For more flexibility in systematic investment plan, recently TDCC has started the daily systematic investment plan service—investors from any distributors on Mutual Fund Processing and Settling System can set any date as the debit date to invest on a more flexible basis and with better diversified risks. As the market goes down, the debit frequency can be increased for “buy low, sell high,” and investors can subscribe more as the market shows a downward trend.

Since 2006, TDCC has been constructing the Mutual Fund Processing and Settling System. As the back-office service provider for Taiwan’s mutual fund market, through connection, TDCC has cooperated with 10 major banks and financial companies taking charge of national (tax) payment to create the largest domestic mutual fund payment flow system. TDCC not only offers secure and efficient payment services for the public but also remits the redemption payment to investors’ accounts at the fastest rate for higher capital operation efficacy.

TDCC also found that distribution funds have become one of the most essential targets of investment lately. To widen the range of distributors’ fund products, TDCC has been planning to assist in deducting the supplementary premium for 2nd Generation National Health Insurance on behalf of distributors as they sell domestic distribution funds. This not only further satisfies the diversified investment needs but also creates a new value-added service in the mutual fund payment flow process.

TDCC has been devoted to the mutual fund business for more than a decade. In addition to creating more automated services for the market, TDCC’s current objective is to continue promoting self-financing through “systematic investment plan” and raise the awareness of investment for pension fund management. Online fund distribution platforms such as FundRich, AnueFund, and Ezfunds have all benefited from TDCC’s secure, reliable, and efficient post-trade fund services, and their systematic investment plan business volume has grown rapidly. This time, both daily systematic investment plan and the deduction of supplementary premium for 2nd Generation National Health Insurance from domestic distribution funds have complemented the services of these distributors. Moreover, investors can decide on the timing for investment out of their own will and strategically diversify risks for long-term wealth accumulation and enjoyable retirement.