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TMI BlogSystematic Investment Plans (SIPs) in Mutual Funds in IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... Systematic Investment Plans (SIPs) in Mutual Funds in India - News and Press Release Dated:- 25-11-2016 - News - Press Information Bureau Government of India Ministry of Finance 25-November-2016 17:17 IST The number of Systematic Investment Plans (SIPs) in Mutual Funds in India has almost doubled from 60 lakh as on 31 st March 2014 to 116.3 lakh as on 31 st March 2016. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has further increased to 134.5 lakh as on 31 st October 2016. The details of number of SIPs are as follows: As on Number of SIPs (in lakh) 31 st March 2014 60.0 31 st March 2015 90.2 31 st March 2016 116.3 31 st Oc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tober 2016 134.5 The increase in number of SIPs can be attributed to: Increased investor awareness. Focus on other than top 15 cities by Assets Under Management (AUM) of Mutual Funds. General buoyancy in markets : With the Sensex remaining continuously above the 22,000 levels during 2014-15 and 2015-16 and above 24,000 level during 2016-17 has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led to renewed interest in SIPs from investors. The details of the steps taken by the Securities and Exchange Board of India (SEBI) to create awareness regarding SIP investments is placed at Annexure. Annexure Steps taken by SEBI to create awareness regarding SIP investments (i) To increase investor awareness : 2 basis points for investor education: In order to have greater and m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore focused investor education, mutual funds/Asset Management Companies (AMCs) are required to annually set apart at least 2 basis points on daily net assets within the maximum limit of Total Expense Ratio (TER) for investor education and awareness. Several AMCs have utilized this amount to create awareness about SIPs through print, electronic and digital media. Also, 31 AMCs have adopted 182 dist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricts across, 26 States to conduct focused financial literacy campaigns. These campaigns include explanation of the concept of SIPs. As a result, greater number of investor understands the importance of rupee-cost averaging [buying more units at lower Net Asset Value (NAV) and less units at higher NA V] and disciplined investing for long-term wealth creation. Use of regional languages: Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to promote financial inclusion, Mutual Foods (MFs) need to make available printed literature on MFs for investor awareness and education in regional languages. Also, MFs need to introduce investor awareness campaign, both in print an electronic media, in regional languages. The use of regional languages has helped in broadening the reach of marketing and investor education material related to SIP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Also, to energize the distribution system, a new cadre of distributors was introduced b including postal agents, retired officials from government, banks, retired teachers etc. for distribution of simple products with simplified National Institute of Securities Markets (NISM) certification. (ii) To focus on other than top 15 cities by Assets Under Management (AUM) of MFs: Introductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of additional Total Expense Ratio (FER) (up to 30 bps): To improve the geographical reach of mutual funds and bring in long term money from smaller towns, Asset Management Companies (AMCs) have been allowed to charge additional TER of up to 30 bas points on inflows from cities beyond top 15 cities by AUM of MFs. As a result, fund house have pushed aggressively into other than top 15 cities. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he details of no. of SIPs from other than top 15 cities by AUM of MFs are as follows: As on No. of SIPs from other than to 15 cities b AUM of MFs (in lakh) 31 st March 2014 29.6 31 st March 2015 43.5 31 st March 2016 56.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31 st October 2016 63.1 Thus, the number of SIPs from other than top 15 cities has also almost doubled from 29.6 lakh as on 3 l March 2014 to 56.2 lakh as on 3 pt March 2016, keeping pace with the growth number of SIPs across the country. It has further increased to 63.1 lakh as on 31st October 2016. This was stated by Shri Arjun Ram Meghwal, Minister of Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te in the Ministry of Finance in written reply to a question in Lok Sabha today. ***** DSM/KA - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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