NEW DELHI: If selecting one out of the maze of over 1,500 mutual fund schemes in India sounds confusing to you then you are not the only one. A survey of mutual fund investors shows a simplification of the fund selection process is the biggest improvement they expect from the industry.
Nearly 30 per cent of about 660 respondents said the convenience of selecting a fund with relative ease is something that they want to see. 23 per cent of respondents voted for, single transaction for multiple schemes and lesser documentation. A quarter of respondents want all three things while investing via SIPs.
The survey was conducted by Aditya Birla Sun Life Mutual Fund. Respondents were investors and other stakeholders.
In the same survey, a whopping 83 per cent of people who have invested in SIPs said they would recommend others as well. 85 per cent of people said they have invested in multiple SIPs and chances of multiple SIPs rise with an increase in age.
Half of the respondents think SIPs help in building long-term corpus with the benefit of compounding interest and that would be the primary reason for them to recommend the SIP way of investing.
SIPs help maintain investment discipline remains the single-most-important reason for investors to choose the systematic way of investing. They also help with lower ticket sizes. Not surprisingly, most first-time SIPs were less than Rs 5000, followed by 26 per cent who said their first SIP was between Rs 5000-10,000.
Interestingly, women are more willing to start a new SIP in their 20s (33 per cent) than men (22 per cent). This shows that women have a higher propensity to start their SIP journey in their 20s. This is a major shift in investment behaviour of the category which is a reflection of shifting social norms driven by higher access to education, skill-building, and awareness towards financial freedom.