2016 was a year that suffered no dearth of surprises. The year was marked by multiple instances of market unpredictability, what with Brexit, Fed rate hikes, surge in oil prices and strategic political events passing on in their stride. In the domestic premises, demonetization and GST did their parts to influence the proceedings of the Indian market.
Robust investment activity in MF in India
Mutual funds investors in India, however, surprised observers with a significant upsurge in participation, even as the rest of the world was reeling from the effect of the many events ringing with political and economic significance.
Industry data confirms that inflow of investments as high as 580 billion had been recorded in the period between January and November 2016. This information has rendered 2016 as the third consecutive year that has registered positive growth in terms of mutual funds in India.
One aspect of investment discipline, as observed among investors in India during this period, was adherence to a long-term investment strategy and a well-planned asset allocation practice that could be deployed even during times of tumult in the market.
Systematic Investment Plan or SIP, where the investor builds a portfolio through specific sums invested at regular intervals that may be monthly, quarterly or annually, was one investment avenue a vast majority of Indian investors had taken to in 2016.
The year saw a remarkable increase in retail investor participation through SIPs. Implementation of presence-less and paperless eKYC procedure was another factor that catalyzed robust investment activity in the mutual fund sector.
The CAMS perspective
An integral part of the Indian Finance sector and a trusted service partner to 8 out of the top 10 AMCs in India, CAMS had retained its position as the market leader with a substantial market share of 62%.
The following inferences are based on data provided by CAMS Data Bureau Services – covering 92% of Mutual Fund Industry –
It is encouraging to note that investments from smaller towns had significantly increased in 2016. Nearly 2.19 million new SIP registrations made in the last year have been traced to the B15 regions in the country; T15 regions accounted for 2.65 million new SIPs. It is notable that the average ticket size had also increased during the said period.
Why investors prefer SIP
In general, SIP requires a fixed amount to be invested periodically. Clearly, this is a convenience to investors who are beginners and those who prefer to invest in small pockets.
Alternatively, step-up SIPs, as hosted by most of the CAMS-serviced funds, allows for ‘stepping up’ the amount to be invested, at set intervals.
Now, investing in SIPs has become a lot more easier for first-time investors, thanks to the state-of-the-art digital investment services hosted by camsonline.com and myCAMS. Investors can now set up new SIPs, view SIP status(es) and cancel SIPs in a matter of few minutes. The icing on the cake here is that no physical request is required for registrations done via myCAMS. For more information on investing through myCAMS, click here .
Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com