Mutual fund market is on a flight path these days. Many retail investors have started investing in mutual funds and the reason is the popularity of mutual funds these days. Why India is coming up as the emerging market in terms of mutual fund is a big question. ‘Earnings are less and requirements are more’, may be this is the answer to many questions that follows. Simply to examine this,
Let me just take you through an example. If a person is earning Rs. 50,000 per month (i.e 600000 per annum) and his savings is 10,000 every month. He/she saves this money for future requirements. How about making this 10,000 as a potential savings and multiplying it day by day.
This will be possible only when he will start investing through some or the other channel. The point i want to put forward is that extra money is not just a myth, there are several ways through which you can earn other than the fixed income per month, you are getting.
Investment can start even with Rs. 500 per month through SIP (Systematic Investment Plan).
According to AMFI (Association of Mutual Funds in India), On an average MF industry has added 8.3 lacs SIP accounts each month during the FY 2017 – 2018 and Rs. 4,947 Crore has been collected through SIP by the end of July, 2017.
Coming back to the market, According to the latest exposures, Investment has gone up with an increment of 22 – 28 % which is a huge achievement in itself for the Country. According to AMFI, The Average Assets Under Management (AAUM) in the country was at Rs. 20.42 lakh crore at the end of July 2017.
Clearly, When it comes to mutual funds, India is on a peak of development which is getting better day by day. The number of folios went upto 5.8 Crores in June end. In past one year more than 93 lakhs investors have been added to the list.
The largest investments in mutual funds were seen in Income, Growth & Money Market Funds. However, Surprisingly no such remarkable growth was seen in gold investment which is considered amongst the best investment option in India.
All the above statistics can be clearly seen as a standard to determine the rapid pace of growth.
Everyday SEBI (Securities and Exchange Board of India) is coming up with the new rules and implications that would help in the betterment of the industry. Recently, SEBI has been pushing Asset Management Companies to merge similar schemes as this will aid the confusion that is always created while choosing a particular scheme.
People have started understanding the importance of getting better with the money that was earlier being hidden somewhere just like that. Many changes are still to be made and the market regulators are working on it. Soon, India will be on the top list of Mutual Fund investment market with this development scenario.