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NS Venkatesh, Chief Executive Officer, AMFI, on Friday said the average monthly collection through systematic investment plans in mutual funds is likely to grow by over 30 per cent to ₹10,000 crore a month beginning FY20.
According to data available on the Association of Mutual Funds in India website, SIP inflows increased by nearly 53 per cent to ₹7,554 crore in July 2018, compared with ₹4,947 crore in July 2017.
“The Indian economy has been picking up and there is overall prosperity. The demographic advantage is also in favour of the country. SIP inflows have witnessed a sharp increase in the last one year. We expect it to increase further to ₹10,000 crore a month in the next one year,” Venkatesh told newspersons on the sidelines of a mutual fund forum organised by the Merchants’ Chamber of Commerce and Industry here on Friday.
The mutual fund industry added about 9.92 lakh SIP accounts each month on an average so far during this fiscal, taking the total SIP accounts to about 2.33 crore. The average size of investment per SIP account is about ₹3,250, according to AMFI data.
Growth potential
Though there are close to 29 crore PAN cardholders in India, only two crore have invested in mutual funds, he said, highlighting the potential for growth.
Nearly 90 per cent of the SIP inflows are into equity funds, while only the remaining 10 per cent go into debt. According to Venkatesh this is due to the low awareness about debt schemes in India.
The ‘mutual fund sahi hai’ campaign launched by the AMFI under the guidance of SEBI has received an overwhelming response, he said, and added that the second phase of this campaign would come up soon with a specific focus on creating awareness about debt schemes.
One-day income drive
The investor awareness campaign — Jan Nivesh — would be rolled out by AMFI in 100-odd cities over the next six months. It would aim to educate and encourage people to change their financial habits by pledging to invest one day’s income in mutual funds every month.
“We expect close to 20 lakh folios to be added due to this initiative, moving forward,” he said.
The association would also aim to have five lakh distributors of MFs in the country by 2025 against one lakh at present.
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