The number of
Systematic Investment Plans (SIPs) in Mutual Funds in India has almost doubled
from 60 lakh as on 31st March 2014 to 116.3 lakh as on 31st
March 2016. It has further increased to 134.5 lakh as on 31st
October 2016.
The details of number of SIPs are as
follows:
As on
|
Number of SIPs (in lakh)
|
31st March 2014
|
60.0
|
31st March 2015
|
90.2
|
31st March 2016
|
116.3
|
31st October 2016
|
134.5
|
The increase in
number of SIPs can be attributed to:
·
Increased
investor awareness.
·
Focus
on other than top 15 cities by Assets Under Management (AUM) of Mutual Funds.
·
General
buoyancy in markets : With the Sensex remaining continuously above the 22,000
levels during 2014-15 and 2015-16 and above 24,000 level during 2016-17 has led
to
renewed interest in SIPs from investors.
The details of
the steps taken by the Securities and Exchange Board of India (SEBI) to create awareness
regarding SIP investments is placed at Annexure.
Annexure
Steps taken by
SEBI to create awareness regarding SIP investments
(i) To increase
investor awareness:
2 basis points
for investor education: In order to have greater and more focused investor
education, mutual funds/Asset Management Companies (AMCs) are required to
annually set apart at least 2 basis points on daily net assets within the maximum
limit of Total Expense Ratio (TER) for investor education and awareness.
Several AMCs have utilized this amount to create awareness about SIPs through
print, electronic and digital media. Also, 31 AMCs have adopted 182 districts
across, 26 States to conduct focused financial literacy campaigns. These
campaigns include explanation of the concept of SIPs. As a result, greater
number of investor understands the importance of rupee-cost averaging [buying
more units at lower Net Asset Value (NAV) and less units at higher NA V] and
disciplined investing for long-term wealth creation.
Use of regional
languages: Further, to promote financial inclusion, Mutual Foods (MFs) need to
make available printed literature on MFs for investor awareness and education
in regional languages. Also, MFs need to introduce investor awareness campaign,
both in print an electronic media, in regional languages. The use of regional
languages has helped in broadening the reach of marketing and investor education
material related to SIP.
Also, to
energize the distribution system, a new cadre of distributors was introduced b
including postal agents, retired officials from government, banks, retired
teachers etc. for distribution of simple products with simplified National
Institute of Securities Markets (NISM )certification.
(ii) To focus on
other than top 15 cities by Assets Under Management (AUM) of MFs:
Introduction of
additional Total Expense Ratio (FER) (up to 30 bps): To improve the
geographical reach of mutual funds and bring in long term money from smaller
towns, Asset Management Companies (AMCs) have been allowed to charge additional
TER of up to 30 bas points on inflows from cities beyond top 15 cities by AUM
of MFs. As a result, fund house have pushed aggressively into other than top 15
cities.
The details of
no. of SIPs from other than top 15 cities by AUM of MFs are as follows:
As on
|
No. of SIPs from other than to 15
cities b AUM of MFs (in lakh)
|
31st March 2014
|
29.6
|
31st March 2015
|
43.5
|
31st March 2016
|
56.2
|
31st October 2016
|
63.1
|
Thus, the number
of SIPs from other than top 15 cities has also almost doubled from 29.6 lakh as
on 3 l " March 2014 to 56.2 lakh as on 3 pt March 2016, keeping pace with
the growth number of SIPs across the country. It has further increased to 63.1
lakh as on 31st October 2016.
This was stated by Shri Arjun Ram
Meghwal, Minister of State in the Ministry of Finance in written reply to a
question in Lok Sabha today.
*****
DSM/KA