The AMFI (Association of Mutual Funds of India) is planning for its new campaign that will focus on debt mutual fund investment benefits, following its first popular MF campaign “Mutual Funds Sahi Hai.”
N S Venkatesh, Chief Executive of AMFI, said that AMFI is at present planning for the second phase of MF campaign on debt investment benefits which is anticipated to begin from the third week of September.
Presently, retail investors contribute just 10 percent in debt funds and the rest in equity funds. The ratio of debt fund investment to equity fund investment is not advisable or sensible asset allocation, said Venkatesh.
According to Ventakesh, in the past fiscal year 2017-2018, AMFI spent 200 crore Rupees to promote MF investments, while it will spend 150-175 crore Rupees in this fiscal year 2018-19.
While the new campaign focuses on debt mutual fund investment benefits, the AMFI has no plans to withdraw the “Mutual Funds Sahi Hai” campaign. Henceforth, the sectoral MF products will also come under the “Mutual Funds Sahi Hai” campaign. Also, the “Mutual Funds Sahi Hai” campaign will become the master campaign brand.
SEBI has frequently insisted to clearly spell out the risks related to mutual fund investments. The Market Regulator has also required rationalization in the TER (Total Expense Ratio) of the mutual fund industry.
Recently, Ajay Tyagi, SEBI chief said that it is essential to have TER rationalization and more competition in the MF sector.
The idea of TER started in the late 90s. The AUM (Assets Under Management) was 50,000 crore Rupees during the late 90s, while it has grown to about 23 lakh crore Rupees today. Tyagi added that SEBI is examining the need for rationalization as the AUM is witnessing a great improvement today.
AMFI now plans the new campaign on debt mutual fund investment benefits, and the Chief Executive Venkatesh hopes that the MF inflows will witness a double-digit improvement in the current fiscal year, according to The Economic Times.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]