The domestic fund industry added 245,411 investor accounts in May, taking the total number to 30,954,195 against 253,663 added in April, according to Securities and Exchange Board of India (Sebi).
Investor response was marked among diversified equity and equity-linked saving schemes, whose tally rose by 1,32,721 and 70,258, respectively. Only four new schemes were launched last month.
NEW ENTRANTS The number of investor accounts of funds
Category
30-Apr
31-May
Change
Liquid
2,03,419
2,19,789
16,370
Gilt
24,668
25,509
841
Income
29,13,414
29,32,637
19,223
ELSS
45,98,623
46,68,881
70,258
Diversified equity
2,09,99,749
2,11,32,470
1,32,721
Balanced
18,30,980
18,38,467
7,487
Gold ETFs
47,520
47,697
177
Other ETFs
3,476
3,985
509
Fund of funds
86,935
84,760
-2,175
Total
3,07,08,784
3,09,54,195
2,45,411
Life can only be understood backwards—but it must be lived forwards
Joined: 01/Jan/2006
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Posted: 12/Jun/2007 at 10:23am
From July new MF investors would need PAN. This could put some temporary brake on the MF money spinning saga but over a longer period of time the Indian MF's would become bigger then the FII's Indian Investment. As it is Reliance MF with about US $ 15 billion is larger then HSBC the biggest foreign investor in India who has around US $ 7 billion invested here (figures are approximates).
I do not know but as ICICI PRU decreased the SIP level to Rs 50 per month this decision to make PAN mandatory seemed a bit out of place. SOmeone with a PAN number would not go out and do a SIP of only RS 50/-.
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Madhusudan Kela, head of Equities at Reliance Capital Asset Management spoke to Mayur Shekhar Jha about the various investment options before investors, trends in the mutual fund industry and his company’s plans. Excerpts:
Of late, AUMs have registered a sharp increase. What is your take on this?
I believe that the Indian mutual fund industry is in its very early stages of growth. Today, with only $100 billion of AUMs, the industry still is minuscule in the context of the domestic savings in the country and the global scale. For example, the US Mutual Fund industry is 100 times larger than that of India, while the US GDP is only 13 times that of India. Also, Brazil’s mutual fund industry is about four to five times that of Indian mutual fund industry, which reflects huge under penetration in India.
Inspite of having grown from 20 cities to 170 cities and from 20,000 investors to 33 lakh investors over the last five years, we at RMF believe we are at the mezzanine floor of a 40-floor building.
Considering the fact that the domestic equity holdings as a part of total savings is currently about 2%, we strongly believe that over the next five years, it could easily move to 5%. In other words, it would mean an additional investment of more than Rs 3 lakh crore. This however assumes that the current economic environment will continue.
Where do you see the next big opportunity — midcaps or bluechips?
In India, we are seeing structural shift in the GDP growth rate which has moved up from an average of 6% in the last five years to over 9% currently . In this environment, we believe that companies which have the right scalable business model, competitive positioning, cost leadership and execution capabilities will deliver strong returns irrespective of their size. Our objective has always been to identify mid-cap companies which can become large-cap over a period of time. We see the next lever of growth to come from domestic consumption and infrastructure companies.
New sectors like media, retail, etc will continue to emerge and grow larger in size. (ET)
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
Joined: 29/Mar/2007
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Posted: 13/Jun/2007 at 4:34pm
The domestic fund industry added 245,411 investor accounts in May, taking the total number to 30,954,195 against 253,663 added in April, according to Securities and Exchange Board of India (Sebi).
These numbers could be misleading. I have a feeling these are not 'virgin' MF investors. By investor account, I think they mean 'folio account numbers'.
Lots of MF investors churn their portfolios (sell old MFs and go for NFOs).
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
After the usual gossip and discussions on jewellery and designer clothes, the talks veer around the hitherto uncharted territory of IPOs, demat accounts, BSE and NSE indices and what shares to buy.
As the stock markets boom, housewives and even some college students are taking interest in the markets and some of them are managing their portfolios well too.
"There is a feeling among youth and housewives that they too should invest. Call centre employees, who earn a good salary, easily invest upto Rs 5,000 per month in mutual funds (MFs). Housewives too invest in small if not big amounts," says Dwij Seth, Assistant Vice-President Online, India Bulls.
You can say that housewives have now sharpened their knives to cut their share from the booming stock market pie, he adds.
"You can attribute the awareness among the housewives to business channels,"says Ravinder Seth, Managing Director, Elite Stock Exchange Ltd.
"If 50 per cent of the housewives watch the saans-bahu soaps on the television, there are 50 per cent watching the programme on the economy," he adds. Agreeing that there is increased interest among women in investments, he says that if three years ago, ten out of 100 queries his company was receiving on investment were from women, the number has gone up to 30 out of 100.
"Housewives have come out of kitchens and engaging themselves in various vacations like direct sales, event management. They are earning money and contributing to the household income," says Raju Vyas, Chartered Accountant. And as they start earning money, they want it to be managed in intelligent way, he says.
-------------------------------
Sometime during last year, CNBC had interviewed a group of Kolakta based housewives & their Guru.
Life can only be understood backwards—but it must be lived forwards
Joined: 01/Jan/2006
Location: India
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Posted: 13/Jun/2007 at 6:46pm
The Saas Bahu and sensex syndrome but they need a better advisor then Prakash Gaba!
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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