'Individuals now hold more than half of industry's assets'
With individual investors outdoing institutions in terms of ownership of mutual fund assets, Radhika Gupta, CEO of Edelweiss Mutual Fund, is happy that mutual funds are turning mainstream
Jan 15, 2019
As we celebrate the 25th year of the mutual fund industry, the last one year has been a good one. In terms of assets, the industry crossed the Rs 25 trillion mark, growing by over Rs 4 trillion in just last one year. We are on a journey to becoming a $5 trillion economy. We will now make an economic tryst with destiny - momentum and scale. And one of the most important parts of this economic trysts will be a multi-fold increase in financial assets from domestic investors. From a country of 11 per cent mutual-fund-to-GDP penetration to a journey of 40-50 per cent penetration in line with the rest of the world, we truly have miles to go and grow.
Talking about investor's experience, numbers say a lot. Individual investors now hold more than 52 per cent of industry's total assets, which is higher than the share of institutional investors. Kudos to all the participants of this industry - regulator for making investor-friendly moves, AMFI for spreading awareness and the manufacturers for innovating both on product as well as technology front.
USP of investment strategy
At Edelweiss, we follow a true-to-label philosophy while managing all our funds. The investment strategy in each fund reflects this philosophy. Consistency, robust risk management and being true to mandate and investment objective are our focus when it comes to investment strategy for each of our funds.
Impact of SEBI's reclassification
Scheme categorisation has been one of the most important exercises. This has made mutual funds simpler and true to label and will make the investor's and the advisor's job of choosing, recommending and comparing funds easy.
Becoming more investor-friendly
We have undertaken a couple of steps to empower investors so that they take the right investment decision. We have been promoting the concept of true-to-label funds, which give clarity and transparency of what they do and stay committed to their investment objective. This helps investor get what they see. We have also been promoting 'Advice Zaroori Hai' to make people aware about why advice is necessary before investing in mutual funds and they should not randomly invest looking at just the past performance.