Total Number of Mutual Fund SIP
Accounts Stands at 1.08 crore..!
Indian households are gradually learning to chase
returns and boost savings by realising the compounding power of equity
investments and are choosing one of the
safest instruments to achieve this:
systematic investment plans (SIP).
The growth in SIPs and the widening share of
equities in total financial savings corroborate the trend.
In the past year, SIP accounts have increased by
27.1 lakh compared with 75 lakh such accounts registered over the past 30
years, according to the Association of Mutual Funds in India (AMFI).
The number of SIP accounts stands at 1.08 crore.
The preference for SIP accounts can be gauged from the fact that more than half
of them have been in operation for more than five years.
Three factors have made SIPs a preferred choice
of investment.Fund houses and regulators have put in efforts to create
awareness about mutual funds, spending Rs. 320 crore on investor education.
Secondly, distributors have been pushing SIPs
aggressively as an efficient way of dealing with volatility in the markets.
In addition, the lack of suitable alternatives
has convinced a large section of new investors that equity is a relatively safe
option.
SIP account holders have been pouring in Rs.
2,500 crore to Rs. 3,500 crore every month in the past year to the overall
assets under management of mutual funds in the country .
The value of assets under management of SIP
accounts were Rs. 1.3 lakh crore in August, constituting about 8% of the total
assets held by mutual funds at Rs. 16 lakh crore.
According to industry experts, SIPs accounted for
almost 30% of the total equity mutual funds of Rs. 4.16 lakh crore in August.
The combined impact of indirect and direct
investments in equities has boosted the proportion of shares and debentures in
Indian household savings.
According to the Reserve Bank of India's annual
report, household investments in shares and debentures increased by Rs. 91,763
crore in the year ended March.
The portion of shares and debentures in gross
national disposable income increased to 0.7% in 2015-16 from 0.2% in 2011-12 .
On the direct equity side, retail investors own
almost 7.6% of the total market capitalisation, which is double the assets
under management of domestic mutual funds.
The holdings of retail investors in
BSE 200 stocks were valued at $96 billion in June compared with $88 billion two
years ago.
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