AMFI data shows that 35 AMCs have conducted close to 7000 investor awareness programs (IAPs) in April-January 2017. These AMCs have reached out to 3.30 lakh people across 211 cities in the first ten months of the current financial year.
In FY 2015-16, AMCs had conducted close to 11,000 IAPs by reaching out to almost five lakh people across the country.
Interestingly, most of the IAPs conducted so far have taken place in B15 locations. Close to 3700 IAPs were held in B15 cities compared to 2600 IAPs in T15 cities in April-December 2016, shows AMFI’s internal communication sent to the fund houses.
SEBI has mandated AMCs to invest two basis points of their assets under management on investor awareness activities. Typically, AMCs take help from independent agencies, distributors and media houses to conduct IAPs. In fact, some AMCs have tied up with regional newspapers to reach out to investors in the hinterland.
In a related development, SEBI, in its annual budget expenditure document of FY 2017-18, has said that they would reach out to all the districts of the country to spread financial awareness. Currently, there are over 700 districts in India. This thrust will help the mutual fund industry to expand its reach.
As on January 2017, the mutual fund industry has close to Rs.350 crore at their disposal to spend on IAPs.
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