{"id":7256,"date":"2025-02-25T06:33:27","date_gmt":"2025-02-25T06:33:27","guid":{"rendered":"https:\/\/blog.certifiedfinancialguardian.com\/?p=7256"},"modified":"2025-02-25T06:34:03","modified_gmt":"2025-02-25T06:34:03","slug":"3-new-initiatives-launched-by-amfi-to-improve-reach-of-mutual-funds-heres-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2025\/02\/25\/3-new-initiatives-launched-by-amfi-to-improve-reach-of-mutual-funds-heres-all-you-need-to-know\/","title":{"rendered":"3 New Initiatives Launched by AMFI to Improve Reach of Mutual Funds. Here\u2019s All You Need to Know"},"content":{"rendered":"\n

The Mutual Funds Sahi Hai<\/em> campaign launched by the Association of Mutual Funds in India (AMFI)<\/a>, brought much success to the Indian mutual fund industry. Today, the Average Assets Under Management (AUM)of the Indian mutual fund has touched Rs 68.05 trillion, not only because of the mark-to-market gains but also because of real inflows into various mutual fund schemes.<\/p>\n\n\n\n

Particularly during the COVID-19 pandemic times, a lot of investors in the endeavour to earn better returns turned to mutual funds. SIP<\/a> contributions have seen an almost consistent increase since January 2020, and today, the SIP<\/a> assets (at Rs 13.19 trillion) comprise 19.6% of the total mutual fund industry assets.<\/p>\n\n\n\n

Graph:\u00a0SIP Inflows Over the Years<\/em><\/strong><\/p>\n\n\n\n

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(Source: AMFI)\u00a0<\/p>\n\n\n\n

Despite volatility, SIP contributions have remained rather robust. Those who started SIPs around the lows of the COVID-19 pandemic have largely benefited. Investors have recognised that SIP-ping into mutual funds brings the needed investment discipline and could potentially help accomplish the envisioned goals.<\/p>\n\n\n\n

[Read: Should You Stop Your SIPs Now Amid Falling Equity Markets<\/a>]<\/p>\n\n\n\n

Making the most of the encouraging SIP flows, AMFI has now launched three initiatives: 1) SIP for smaller investments, 2) Tarun Yojana, and 3) Mutual Fund Investment Tracing and Retrieval Assistant (MITRA)<\/a><\/p>\n\n\n\n

Let’s understand each of these…<\/p>\n\n\n\n

1. SIP for Smaller Investments<\/strong><\/p>\n\n\n\n

This initiative is in line with the Securities and Exchange Board of India’s (SEBI’s) proposal of ‘sachetisation of mutual funds<\/a>. The intent is to offer smaller SIPs of RS 250 or lower. Currently, some fund houses, in certain schemes, are allowing investors to do SIPs with as little as Rs 100, but many are staying away from offering micro-SIPs.<\/p>\n\n\n\n

To make it viable for the mutual fund industry, the capital market regulator has proposed that a part of the cost of investment for the Asset Management Companies (AMCs) and certain incentives for financial inclusion be compensated from the Investor Education and Awareness Fund. This shall further reduce the break-even time for AMCs.<\/p>\n\n\n\n

SEBI via its consultation paper released in January 2025, proposed that small ticket SIPs can be offered in any scheme except for Debt schemes, and Sectoral & Thematic Schemes<\/a>, Small-cap and Mid-cap Schemes <\/a>under the equity schemes category.<\/p>\n\n\n\n

The investor enrolling for smaller SIPs may be offered the Growth Option<\/a> and such an investment may be held in Statement of Account (SOA) mode or demat mode, as per SEBI.<\/p>\n\n\n\n

2. Tarun Yojana<\/strong><\/p>\n\n\n\n

The youth today, with information at their fingertips, are curious about the functioning of the capital market and its ability to create wealth. AMFI recognises the importance of financial literacy for Viksit Bharat (developed India).<\/p>\n\n\n\n

The Tarun Yojana seeks to integrate financial literacy into school curricula, equipping young minds with foundational knowledge of investment principles. This is a part of the investor education initiative to inculcate from a very young age a sense of saving and investing in wealth-creating avenues, which can help accomplish financial goals<\/a>.<\/p>\n\n\n\n

The slightly older youth who are in college or just out of college with information at their fingertips, are already participating in the capital markets or influencing the investment decisions of their parents.<\/p>\n\n\n\n

Both the aforementioned initiatives from AMFI are intended to achieve financial inclusion and improve the reach of mutual funds to a wider section of the population.<\/p>\n\n\n\n

Here’s what AMFI, Chairman Navneet Munot said in a statement to the media:<\/p>\n\n\n\n

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"Mutual funds are a key pillar of financial empowerment, enabling individuals to participate in India's growth story. These initiatives are designed to ensure that investing is not just accessible but also secure, transparent, and aligned with the financial well-being of every Indian. By expanding retail participation, promoting financial literacy at an early stage, and providing investors with the necessary tools to navigate the financial landscape confidently, we aim to build a more resilient and inclusive investment culture."<\/em><\/p>\n<\/center>\n\n

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At present, despite the surge in mutual fund folios and demat accounts, only around 3-4% of India’s population is investing in mutual funds. Even in terms of India’s mutual fund AUM as a percentage of GDP, it is around 17%, whereas in the developed countries, it is much higher (over 70%). The global average of mutual fund AUM to GDP is around 65%. This brings out untapped potential for the Indian mutual fund industry, while the country aspires to be Viksit (developed nation) by 2047 – the 100th anniversary of independence.<\/p>\n\n\n\n

3. Mutual Fund Investment Tracing and Retrieval Assistant (MITRA)<\/strong><\/p>\n\n\n\n

This initiative of AMFI offers a single-stop solution for investors to trace, find, and recover their missing, inactive or unclaimed mutual fund investments.<\/p>\n\n\n\n

MITRA is an online platform where investors can enter basic details and view information about their forgotten or old mutual fund investments AMCs. The platform is being developed in collaboration with AMCs and industry stakeholders to ensure seamless access to mutual fund folio data.<\/p>\n\n\n\n

The key objective is to minimise unclaimed mutual fund folios and make sure that investors can administer their investments effectively. MITRA is expected to become operational soon, with regulatory approvals and technical integrations currently underway. To learn more about MITRA, click here<\/a>.<\/p>\n\n\n\n

“Through these initiatives, AMFI aims to lower entry barriers, instil financial literacy at an early stage, and provide investors with mechanisms to track and retrieve their investments. Our focus remains on building a well-informed and confident investor community,”<\/em> said AMFI CEO, Venkat Chalasani.<\/p>\n\n\n\n

To conclude…<\/strong><\/p>\n\n\n\n

In my view, the initiatives taken by AMFI are steps in the right direction. Facilitating SIPs with smaller investments would result in the next phase of growth of SIP AUM with financial inclusion. That being said, investors should also ensure that SIP contributions are meaningful to beat inflation and help accomplish the envisioned financial goals. Watch this video:<\/p>\n\n\n\n