BUSINESS
The investor-friendly initiatives by SEBI to increase penetration of mutual funds in small cities.
The contribution of the country's smaller towns- beyond-15 cities (B15) in industry parlance -- to mutual funds' asset base surged 41% to Rs 3.09 lakh crore by March-end due to investor-friendly initiatives by SEBI.
Mutual funds' assets under management (AUM) from B15 locations grew from Rs 2.18 lakh crore in March 2016 to Rs 3.09 lakh crore at the end of March 2017, according to latest data available with Association of Mutual Funds in India (AMFI).
"Steps taken by SEBI to increase penetration of mutual funds in smaller cities is paying dividend. SEBI allowed up to 30 basis points of extra expense to be charged to a fund to incentives distribution of funds in B-15 (Beyond Top-15 cities).
"This coupled with the increasing investor education programs has resulted in increasing investor awareness and many first time investors from smaller cities are investing into mutual funds," Director of Fund Research at Morningstar, Kaustubh Belapurkar said.
Currently, B15 accounts for 17% of the total assets of the industry. Besides, these locations have a better balance of equity and non-equity assets.
Moreover, a large proportion of direct investments were in non-equity oriented schemes where institutional investors dominate.
"Investing through Systematic Investment Plan (SIP) has helped a lot, adding to the convenience of investors. We do expect a solid growth in B15 towns in the next five years," Sharekhan director, Jean-Christophe Gougeon, said.
B15 cities are those which are beyond these top 15 cities New Delhi (including NCR) Mumbai (including Thane and Navi Mumbai), Kolkata, Chennai, Bengaluru, Ahmedabad, Baroda, Chandigarh, Hyderabad, Jaipur, Kanpur, Lucknow, Panjim, Pune and Surat.
A total of 53% of the assets from B15 locations is in equity schemes, while the same is 29% for T15 assets.
About 25% of assets held by individual investors is from the B15 locations and 10% of institutional assets come from such places. On the other hand, institutional assets are concentrated in T15 locations, accounting for 91% of the total.
Further, about 9% of the retail investors chose to invest directly, while over 16% of HNI assets were invested directly. Together, all 42 mutual fund houses managed assets worth Rs 18.3 lakh crore at the end of March 31, 2017. This was 35% higher from Rs 13.53 lakh crore managed by the industry in March last year.
DNA TV Show: How US Presidential election results may impact the world
Sharda Sinha dies at 72: Who are there in her family?
Who was Sharda Sinha aka Bihar Kokila, famous for Chhath and Maine Pyar Kiya songs?
Bihar Kokila Sharda Sinha passes away in AIIMS, son Anshuman confirms news
Parliament's winter session to begin from Nov 25, to continue till Dec 20
IPL 2025 mega auction dates announced: Check no. of players, venue, where to watch and more
Deepinder Goyal reveals customers' reaction to wife Grecia Munoz delivering Zomato orders
Infosys founder Narayana Murthy flirts with Sudha Murty in viral video from Kapil Sharma show
Ajay Devgn's fans don't want Singham Again to become a blockbuster: 'Rohit Shetty jab tak hai...'
Types, Most Popular and Where to Buy Peptides for Bodybuilding
Luxury in the City of Light: SABO Boutique Hotel Brings Elegance to Varanasi’s Sacred Ghats
Virat Kohli, Babar Azam could play for same team as Afro-Asia Cup set for revival
Shaping the Future of Web Apps: Full Stack Developer’s Expertise in API Design and Cloud Deployment
The Role of Artificial Intelligence in Enhancing Software Performance and Security
Mastering Linux for Superior Sound
Amid divorce rumours of Abhishek Bachchan and Aishwarya Rai, Aaradhya praises mother in viral video
AI in Data Warehousing: Future Trends and Innovations
Mukesh Ambani's Reliance Jio IPO worth Rs 840960 crore in 2025: All you need to know
After India's 0-3 loss against New Zealand, Shah Rukh Khan calls Gautam Gambhir...
BIG revelation on Imane Khelif, Olympic gold medallist boxer's medical repot leaked, it confirms…
Meet man who built Rs 152000 crore company, donated Rs 100 crore, now set to lead US firm as...
Visa Uncertainty: Impact of US polls on global talent
Virat Kohli turns 36: IPL franchises send heartwarming birthday wishes to legendary India cricketer
Meet Sanjay Verma, the new DGP of Maharashtra who replaced Rashmi Shukla
Anushka Sharma shares FIRST photo of Akaay, Vamika to celebrate Virat Kohli’s birthday
CAT 2024 admit card to be out today at iimcat.ac.in; know release time, steps to download
Vikas Divyakirti UPSC Tips: Check strategy to crack IAS exam, aspirants should study for...
Video of Pakistani man putting hand into chained tiger's mouth goes viral, social media reacts
Shalini Passi reveals her husband's connection to Shah Rukh Khan's wife Gauri Khan, they were..
SC upholds validity of UP madrassa law, says it does not violate principle of secularism
US Presidential Elections 2024: What time do the polls close; when will the results be known?
Elon Musk shares controversial post on X amid US election results, video goes viral
Mukesh Ambani's company earned Rs 15393 crore last week, his net worth now stands at...
Chhath Puja 2024: Know about Kharna, Sandhya Arghya, Usha Arghya, date, timings and puja vidhi
Virat Kohli Birthday: Legendary batter turns 36, here's a look at his incredible milestones
When Ratan Tata met his first true love after 50 years, went for dinner together, know who she was
Samantha Ruth Prabhu hits back at trolls who body-shamed her: 'If you guys...'
Two fall prey to Narayana Murthy and Mukesh Ambani's deepfake videos, lose Rs 80 lakh: Report
North Korea fires multiple ballistic missiles toward sea ahead of US election
Deepika Padukone romances Hrithik Roshan in Bikini, looks sizzling hot in UNSEEN viral video
Chhath Puja 2024: Top 50 wishes, What'sApp messages, quotes to share with your loved ones
Meet Caroline Emmons, Ratan Tata's 'first love' with whom he couldn't marry due to...
Who is Rohan Jaitley, frontrunner to replace Jay Shah as BCCI secretary?
World’s most expensive human tooth is valued over Rs 3000000, it belonged to…
Viral video: Little girl’s adorable dance to Lisa Haydon’s 'Manali Trance' impresses internet, watch
SC to deliver its verdict on pleas against Allahabad HC order scrapping UP madrasa law today
DNA TV Show: Why Election Commission changed Assembly by-elections' dates
Days after imposing fine on Anil Ambani, Sebi now issues Rs 130 crore demand notices to...
Thailand announces indefinite visa-free entry for Indian travellers
Meet daughter of billionaire, who studied in UK, now works in Rs 32770 crore Indian company as...
MUDA case: Lokayukta police summon Karnataka CM Siddaramaiah for questioning on...
This city is 4000 years old, belongs to bronze age where 500 people lived, it is located in...