AMFI chief notes increase in financialisation of savings post-Covid pandemic

The Chief Executive of AMFI, Venkat Chalasani, compared SIPs in mutual funds to the ’80s motorcycle advertisement slogan, ‘fill-it, shut-it, forget-it’. He highlighted the benefits of SIPs, stating that it allows investors to set it and forget it, making investing and withdrawals easy.

Chalasani emphasized the importance of SIPs for Indian investors to participate in the capital markets for long-term wealth creation and to combat inflation. He noted that mutual funds, especially through the SIP route, offer equity investing opportunities for as low as Rs 500 per month, making it accessible to a wider range of investors.

The AMFI chief projected significant growth in mutual funds’ AUM, aiming to reach Rs 100 trillion AUM and 10 crore unique investors in the coming years. He expressed confidence in achieving this goal sooner than expected, with the industry already halfway there, boasting over Rs 54 trillion AUM and 4.30 crore unique investors.

Chalasani mentioned the increasing trend of financialization of savings, especially post the Covid-19 pandemic, with people realizing the challenges of liquidating physical assets. He credited continuous investor awareness campaigns by AMFI, SEBI, mutual funds, and RBI for educating people on the importance of financialization of savings and the role of different asset classes in achieving financial goals.

The AMFI chief highlighted the industry’s proactive approach in safeguarding investors’ interests, particularly in small and midcap funds. He mentioned the industry’s alignment with SEBI to ensure informed decision-making by investors. Chalasani also praised the transparency of the Indian mutual funds industry, offering global first disclosures, regulations, and investment options for all investors, regardless of their size.

Chalasani discussed the growing participation of small towns and cities in the equity market, with an increasing number of investors from B30 locations contributing to the industry. He credited digital platforms and mobile apps for making investing in mutual funds more accessible to individuals in smaller towns and cities, leading to a rise in SIP popularity due to its affordability and convenience.


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