The advent of direct plans has been the singular impactful innovation from an investor's standpoint. Introduction of international equity funds, which offer meaningful diversification to small investors, gets a green tick too. But the remaining innovations are a sea of red.
In the last two decades, AMCs have made repeated attempts to hawk complexity in the name of innovation. Net result? Cluttered product line-ups and fads that faded as quickly as they emerged.
In their zest to innovate, AMCs have not even spared the simple and effective concept of SIP, deforming it with layers of market timing.
Direct plans: A masterstroke
Born in January 2013, direct plans truly benefited investors by giving them the option to save on distributor commissions, thereby earning vital extra returns. SEBI, the market regulator, went a step further: it nudged the mutual fund industry to advertise these plans to benefit end customers. Before the advent of direct plans, investors had to invest in 'regular' mutual funds, even if they were investing without a middle person.
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Esta historia es de la edición November 2022 de Mutual Fund Insight.
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'Since Sahi Hai drive launch, industry has grown over twofold'
The AMC’s marketing and corporate communication head also lauds MFCentral and MF Utility
'Earlier, not many knew of mutual funds; now SIP is a verb'
The CMO also explains how 4G, fintechs have elevated mutual funds’ reach
'MFCentral is the most impressive of online platforms'
Shah says though passive funds are growing, there’s a long road ahead
'Fintechs are driving mass financial inclusion'
Shah also lauds the pace at which distributors have embraced technology
'A Maldives tour guide knew of the Mutual Fund Sahi Hai drive'
Interaction with Edelweiss’s senior VP and head of products and marketing
'More distributors will come to MFCentral, MF Utility'
Goyal feels they can grow their business five times, 10 times with tech
'The size of passive funds has grown 36 per cent in a year'
Parija explains how mutual funds have gained traction
Tomorrow, and tomorrow, and tomorrow...
There are a total of about 1.1 lakh crores of rupees invested in India’s mutual funds and the number of investors is now about 12 crore