Mutual funds have been the best option for retail investors over the last decade.
As Money Today celebrates its 10th anniversary, let's take a look at the top wealth creating funds over the last decade.
- Nov 4, 2015,
- Updated Apr 7, 2016 5:50 PM IST
India's mutual fund industry has been around for over 20 years. Still, not even 2 per cent of the population has a mutual fund folio. Traditional investments that offer fixed returns continue to hold sway.
However, there appears a glimmer of hope if one looks at the way domestic institutional investors, or DIIs, have reacted to the recent correction in stock markets. The fact that they were net buyers when foreign institutional investors, or FIIs, sold shares marks a major shift in the way equities are being viewed in India. Till a few years ago, it was common for retail investors to buy when markets peaked. But now, mutual fund investors do not fear market corrections.
Keeping with the times, the mutual fund industry has expanded its online. Today, one can go online to invest in a mutual fund, cutting back on paper work, which is beneficial for both the investor and the fund house. One of the stumbling blocks to this was the offline know-your-customer, or KYC,procedure
But several fund houses have come up with innovative ways to get KYC done online too. According to Kalpen Parekh, Chief Executive Officer at IDFC Asset Management Company, "There is growth in digital transactions by MF investors - through both online distribution platforms as well as mutual fund websites. This trend will accelerate once the online investing process gets simpler, which requires regulatory approvals.
The main attraction of online investing is lower cost as there is no commission to be paid to the distributor. In the coming days, transactions are likely to be swift and paperless. Chawla points that given the penetration and awareness levels at present, we see online as complementing the efforts of the distributor, and adding to customer convenience, and not only as a means to invest directly.
"We also expect digital to play a role in terms of customer analytics, which should help in more focused marketing, he says.Others options are also coming up. Quantum Mutual Fund, for instance, allows registered identified investors to transact (buy, sell, switch in /switch-out) via WhatsApp.
All in all, it has been a rough ride at times, but mutual fund players have managed to weather the odds till date.
India's mutual fund industry has been around for over 20 years. Still, not even 2 per cent of the population has a mutual fund folio. Traditional investments that offer fixed returns continue to hold sway.
However, there appears a glimmer of hope if one looks at the way domestic institutional investors, or DIIs, have reacted to the recent correction in stock markets. The fact that they were net buyers when foreign institutional investors, or FIIs, sold shares marks a major shift in the way equities are being viewed in India. Till a few years ago, it was common for retail investors to buy when markets peaked. But now, mutual fund investors do not fear market corrections.
Keeping with the times, the mutual fund industry has expanded its online. Today, one can go online to invest in a mutual fund, cutting back on paper work, which is beneficial for both the investor and the fund house. One of the stumbling blocks to this was the offline know-your-customer, or KYC,procedure
But several fund houses have come up with innovative ways to get KYC done online too. According to Kalpen Parekh, Chief Executive Officer at IDFC Asset Management Company, "There is growth in digital transactions by MF investors - through both online distribution platforms as well as mutual fund websites. This trend will accelerate once the online investing process gets simpler, which requires regulatory approvals.
The main attraction of online investing is lower cost as there is no commission to be paid to the distributor. In the coming days, transactions are likely to be swift and paperless. Chawla points that given the penetration and awareness levels at present, we see online as complementing the efforts of the distributor, and adding to customer convenience, and not only as a means to invest directly.
"We also expect digital to play a role in terms of customer analytics, which should help in more focused marketing, he says.Others options are also coming up. Quantum Mutual Fund, for instance, allows registered identified investors to transact (buy, sell, switch in /switch-out) via WhatsApp.
All in all, it has been a rough ride at times, but mutual fund players have managed to weather the odds till date.