MFs catch fancy of retail investors

Vijay C Roy

Tribune News Service

Chandigarh, November 17

Thanks to growing participation from retail investors and lower returns on conventional saving instruments, the mutual fund industry has attracted investment worth over Rs 1 lakh crore in the past four months. This is much bigger than the industry has attracted during the entire period of any financial year.

“If you see the current scenario, people are not getting good returns from bank deposits or fixed deposits as the interest rates have gone down. Even the realty sector and gold has lost its charm. So, more and more investors are coming forward to invest in mutual funds, as these have given good returns. The industry attracted investment of Rs 1 lakh crore in just four months (July-October) is a testimony to the fact,” said Manish Mehta, National Head Sales & Distribution Alliances, Kotak Mahindra Asset Management Co. Ltd.

He said the Indian mutual fund industry is in a growth phase with investors now shifting focus to equity mutual funds. “Out of Rs 21 lakh crore invested in mutual funds, around Rs 8.5 lakh crore is in equities,” he added.

The Systematic Investment Plan (SIP) is gaining popularity among the investors as an efficient tool for regular and disciplined investment. The total folio under SIP is around 6.4 crore. On an average, Rs 5,600 crore per month is invested in mutual funds through SIP.

Meanwhile, the fund house has also taken the initiative to educate investors on how to create wealth using SIPs.

Kotak Mutual Fund is currently present in 11 locations across Punjab, Haryana and HP. Approximately 21% of industry’s assets under management (AUM) are contributed by the Northern zone.