{"id":189,"date":"2019-04-25T12:22:07","date_gmt":"2019-04-25T12:22:07","guid":{"rendered":"http:\/\/blog.certifiedfinancialguardian.com\/?p=189"},"modified":"2019-04-25T13:01:41","modified_gmt":"2019-04-25T13:01:41","slug":"how-has-mutual-funds-sahi-hai-campaign-benefited-the-industry","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2019\/04\/25\/how-has-mutual-funds-sahi-hai-campaign-benefited-the-industry\/","title":{"rendered":"How Has \u2018Mutual Funds Sahi Hai\u2019 Campaign Benefited The Industry"},"content":{"rendered":"\n

It has been two years since the launch of the \u2018Mutual Funds Sahi Hai\u2019<\/em> campaign in March 2017. And considering the way Indian investors have always invested\u2014in physical assets (gold and real estate) and traditional avenues (viz. Bank FDs PPF, and other small saving schemes)\u2013\u2013the Indian mutual fund industry has made commendable progress supported by the confidence of investors in mutual funds as potent investment avenue, particularly for long-term wealth creation. <\/p>\n\n\n\n

The cross-media campaign (TV, Digital, Print and other mediums) was brought alive in a conversational\nstyle with familiar real-life narratives to explain the benefits of investing\nin Mutual funds. It resonated well across diferrent states through regional\nlanguages.<\/p>\n\n\n\n

Moreover, emphasis on investor education by mutual fund<\/a> houses, and even the distributors and investment advisers, has contributed to the progress the mutual fund industry has made as well as empowered investors. <\/p>\n\n\n\n

In a span of two years since the \u2018Mutual Funds Sahi Hai\u2019<\/em> campaign, the Average Assets Under Management (AAUM) has grown 33% \u2013\u2013from Rs 18.5 trillion in February 2017 to Rs. 24.6 trillion in March 2019. <\/p>\n\n\n\n

Graph 1: Average AUM of the Indian Mutual Fund\nIndustry (Rs in Trillion)<\/em><\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Data\nas of March 31, 2019
\n(Source: www.amfiindia.com<\/a>)<\/p>\n\n\n\n

Over the\nlast decade, the AUM of the Indian mutual fund industry has grown from Rs 4.17\ntrillion as of March 31, 2009, to Rs 23.80 trillion as of March 31, 2019 — a\n5\u00bd fold increase. <\/p>\n\n\n\n

And if we\nassess the growth in the Indian mutual fund industry\u2019s AUM in the last five\nyears, since the Modi-Led-NDA government was voted to power in 2014 by a\nthumping majority, a 3 fold increase is reported.<\/p>\n\n\n\n

A part of this growth is, of course, a\nfunction of the markets going up. That said, investors too have been exuding\nconfidence, taking the risk, and deploying their hard-earned money in mutual\nfunds in pursuit of better returns, amidst a time when the real rate of return\nclocked by traditional instruments such as bank fixed deposits do not seem very\neffective from a financial planning point of view. The rise in mutual fund\nfolios or accounts is testimony of it. <\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Data as of December 2018 quarter
\n(Source:www.amfindia.com<\/a>)<\/p>\n\n\n\n

As on March 31, 2019, the total number of folios stood at 8.25 crore and majority were under equity-oriented schemes, including Equity Linked Saving Schemes (ELSS)<\/a> and aggressive hybrid funds<\/a>, accounted for by the individual investors.  <\/p>\n\n\n\n

Graph\n4: Scheme-wise composition of assets<\/em>
\n<\/strong>\n \n<\/strong><\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

\n\nData as of March 31, 2019
(Source: www.amfiindia.com<\/a>)\n\n<\/p>\n\n\n\n

Equity-oriented schemes now occupy a dominant portion (over 42.5%) in the scheme-wise composition of assets of the Indian mutual fund industry. It is the individual investors who have a dominant exposure to equity-oriented funds<\/a>, while institutional investors mainly hold debt-oriented and money market schemes.<\/p>\n\n\n\n

Slowly but\nsteadily, the rise in disposable income and increase in life expectancy has\nchanged the way an average Indian investor is investing. <\/p>\n\n\n\n

Table: SIP contributions over three financial years<\/em><\/strong><\/p>\n\n\n\n

\n\n\n\n\n
\n Month<\/strong>\n <\/td>\n SIP\n Contributions (Rs in crore)<\/strong>\n <\/td>\n<\/tr>
\n  <\/strong>\n <\/td>\n FY 2018-19<\/strong>\n <\/td>\n FY 2017-18<\/strong>\n <\/td>\n FY 2016-17<\/strong>\n <\/td><\/tr>
\n March\n <\/td>\n8,055<\/td>\n7,119<\/td>\n4,335<\/td>\n<\/tr>\n
February<\/td>\n8,095<\/td>\n6,425<\/td>\n4,050<\/td>\n<\/tr>\n
January<\/td>\n8,064<\/td>\n6,644<\/td>\n4,095<\/td>\n<\/tr>\n
December<\/td>\n8,022<\/td>\n6,222<\/td>\n3,973<\/td>\n<\/tr>\n
November<\/td>\n7,985<\/td>\n5,893<\/td>\n3,884<\/td>\n<\/tr>\n
October<\/td>\n7,985 <\/td>\n 5,621\n <\/td>\n 3,434\n <\/td><\/tr>
September <\/td> 7,727 <\/td>\n 5,516\n <\/td>\n 3,698\n <\/td><\/tr>
\n August\n <\/td> 7,658 <\/td>\n 5,206\n <\/td>\n 3,497\n <\/td><\/tr>
\n July\n <\/td> 7,554 <\/td>\n 4,947\n <\/td>\n 3,334\n <\/td><\/tr>
\n Jun\n <\/td> 7,554 <\/td>\n 4,744\n <\/td>\n 3,310\n <\/td><\/tr>
\n May\n <\/td> 7,304 <\/td>\n 4,584\n <\/td>\n 3,189\n <\/td><\/tr>
\n April\n <\/td> 6,690 <\/td>\n 4,269\n <\/td>\n 3,122\n <\/td><\/tr>
\n Total during FY<\/strong>\n <\/td> 92,693<\/strong> <\/td>\n 67,190<\/strong>\n <\/td>\n 43,921<\/strong>\n <\/td><\/tr><\/tbody><\/table><\/center>\n\n\n\n

Data as on April 24 , 2019
\u00a0(Source: AMFI) <\/p>\n\n\n\n

The volatility of the Indian equity markets hasn\u2019t deterred individual investors. In fact, by contributing via for Systematic Investment Plans (SIPs)<\/a> (see table above), investors have managed volatility with the rupee-cost averaging feature of SIPs in their endeavour to compound hard-earned money to accomplish the envisioned financial goals <\/p>\n\n\n\n

According to the AMFI data, there\nare about 2.62 crores (26.2 million) SIP\naccounts through which investors invest regularly. And there has been an\naddition of about 9.13 lacs SIP accounts each month, on an average, during the\nFY 2018-19, with an average SIP size of about Rs 3,070 per SIP account. <\/p>\n\n\n\n

[Read<\/strong>: Best SIPs To Invest in 2019<\/a>]<\/p>\n\n\n\n

Retail and High Net-worth Individuals (HNIs) have preferred to take the services of a Mutual Fund distributors \/ investment advisers, while institutional investors have gone direct.<\/p>\n\n\n\n

Interestingly, the\nparticipation has been relatively higher from the the B30\nlocations, i.e. the locations beyond the top 30. Around 65% of the assets\nfrom B30 locations and 38% of the T30 assets are in equity schemes as on March 2019.<\/p>\n\n\n\n

The capital market regulator has persistently\ntaken a number of measures in the interest of investors, be it:<\/p>\n\n\n\n