Outlook Money OLM December 2017 Issue | Page 55

smaller cities typically rely on avenues like real estate , gold , National Savings Certificate ( NSC ) and Kisan Vikas Patra , where the horizon is one year or more . They are , therefore , attuned to longer-tenured instruments ,” explains Subramaniam . What ’ s more , many seem to prefer the SIP mode for investing in mutual funds , which is not surprising given the overall SIP inflows recorded ( See : SIP by SIP ).

First-time mutual fund investor Bathindabased Hitesh Pant , 35 , falls in this category . He started investing in equity mutual funds through the SIP route since July this year to build an education corpus for his four-year-old daughter by the time she turns 17 . “ Since funding her higher education is a long-term goal , I don ’ t intend to redeem my investments in the near future even if the market cycle turns ,” he clarifies . The goals of the newer crop of first-time mutual fund investors may be as varied as their age-groups , professions , and locations , but there seems to be unanimity in their vehicle of choice for achieving them — SIPs . Take the case of Coimbatore resident Alamelu Vishwanathan Sundaram , 60 , for instance . A retired school teacher , she stepped into the world of mutual funds in August with a monthly SIP of `3,000 . “ I want to create a savings fund for my postretirement needs , in addition to creating wealth for my grandchildren ,” she says . Nashik-based banker Rajesh Arun Bara , 32 , zeroed in on an ELSS for a far simpler purpose — tax-planning . “ I have started a monthly SIP of `4,000 in a tax-saving fund since April . Compared to other instruments , an equity scheme is likely to fetch higher returns ,” says Bara .

This is the common thread that runs across all four first-time investors — the realisation that

SIP by SIP

SIP Month Contribution

( Rs crore )

Monthon-month Growth (%)

AUM Ascent

Mutual Fund Category

Jan-Mar 2017

AUM ( ` Crore )

April- June 2017

AUM ( ` Crore )

July-Sep 2017

AUM ( ` Crore )

North-east Rising

Industry AAUM Oct ' 16 Oct ' 17

( in Cr )

even if markets turn choppy , their investments are likely to yield better returns when compared to bank fixed deposits or post office schemes . “ Interest rates are very low at present and even PPF rate has been slashed . After tax , the returns will not add any value to my portfolio . ELSS is a more remunerative option even if returns plummet to say 9-10 per cent in case of a market crash ,” reckons Bara .

Asset management companies acknowledge the durable nature of such inflows , which largely come in through the SIP route . “ The ticket size is small , but the quality of inflow is quite good . Even if the market cycle were to turn , these investors are likely to stay invested ,” says Sikka . According to him , it is the high networth investors with large chunks of money who tend to make panic withdrawals . “ For smaller investors directing `2,000 per month into the funds , such downturns do not matter ,” he affirms .

Put simply , the future looks bright , according to industry-watchers and players . “ While it will be interesting to see the impact if there is a sharp correction in the market , there are enough reasons to believe that increasing awareness and

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