Mutual funds are the right way to enter markets

The mutual fund is a very good story in India as assets under management doubled in the last four years, SEBI Chairman Ajay Tyagi told ET now Today.

He drove home the point that SEBI has taken up a lot of reforms concerning distributors. "We will also meet AMFI next month as well," he added.

The chief of the Securities and Exchange Board of India called on investors to go the MF as that's "the right way to enter equity markets".

With the BSE Sensex and NSE Nifty at their all-time highs, Tyagi stressed that this is a good time for markets. "The Sensex has given the best performance among emerging markets this financial year," he added.

The 30-share index climbed its fresh life high of 36,929.69 today while the Nifty was some 20 points away from its record at the time of filing this article.

In India, the asset base of mutual funds as a percentage of GDP is just 11% while the world average is 62%. According to the Association of Mutual Funds in India (AMFI), assets under management (AUM) of the Indian fund industry grew 1.19% sequentially to Rs.22.86 lakh crore in June.

On a YoY basis, the industry AUM witnessed a growth of 20.57%. The quarterly average assets under management (QAAUM) at the end of Q1 FY19 was Rs.23.40 lakh crore, up 19.91% from Rs.19.52 lakh crore at the end of Q1 FY18.

According to SEBI data, the total folio count at the end of June stood at 7.46 crore, up 1.57% MoM and 21.97% YoY.

Source: Economic Times July 25, 2018.

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