MF News SIP investors explore direct equity: SEBI

SIP investors explore direct equity: SEBI

Reduction in SIP inflows indicates that they are investing through direct equity, said SEBI Chief Ajay Tyagi.

Team Cafemutual Feb 26, 2021

SEBI Chief Ajay Tyagi said that slowdown in SIP inflows indicates that many SIP investors have started investing in equity market through direct stocks.

He was speaking at the SEBI-NISM conference on February 25.

Tyagi said that SIP investors may also be exploring debt, real estate or may be holding cash and waiting for correction.

Tyagi said,” Monthly SIP inflows into growth/equity schemes of mutual fund averaging around Rs.5600 crore in FY 2019-20, initially increased to Rs 6200-6400 crore in April-May 2020 but since then has been almost consistently falling every month. In the last 3 months, November 2020-January 2021, monthly SIP inflows have been less than Rs.3000 crore. This reducing trend could be indicative of a trend of individual investors using funds previously being dedicated for SIPs to invest directly into the market or in other assets such as debt/real estate or even possibly holding out in cash waiting for market corrections.”

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17 Comments

waryam singh · 3 years ago `

Mr.Tyagi should visit rural india. Enormous untapped opportunity.

Bhabani Kalita · 3 years ago `

SEBI has reduced all incentives of distributors, hence it is very tough to educate and bring SIP in this commision bracket. Pls introduce extra incentive for six month SIP will automatically increase.

Prashant · 3 years ago `

Well it is you who introduced and then promoted and then forced direct schemes to benefit AMCs. Now be ready for direct everything.

Ravendra · 3 years ago `

Direct means Direct why sip in mf

Ramakumar · 3 years ago `

The reason behind this SIP fall is very simple. Who ever invested SIP thru direct scheme without advisor handhold are the one who exited.Check the SIP falling ratio in Regular scheme it will be negligible.

SEBI Chief Ajay Tyagi said that slowdown in SIP inflows indicates that many SIP investors have started investing in equity market through direct stocks."Even God cant will save this investors"

Shivkumar Kalra · 3 years ago `

NDs bank ke saat tie-up karke, Bank me apne employee betha ke MF and Insurance bech raya hai. Hamare schemes ka data leke, Humkohi chutiya bana raha hai. Kisine yeh bhi batana chahiye ki ND kis kis ko serve kar sakta hai.

Vikas · 3 years ago `

Remove Direct plan and see the sip growth in future. Direct plan is like shisya without Guru.

Indrajit sarkar · 3 years ago

Absolutely right

Amar Singh · 3 years ago

Right

CHANDRAKANT · 3 years ago `

Sebi is not in favour of distributors... in coordination with few amcs.. sebi imposing all the rules by which distributors getting difficulty in getting business

Suraj · 3 years ago

Please suggest those AMC from which we need to keep clear

Kirtikumar · 3 years ago `

When Direct Mutual Fund option available, why not direct equity skipping brokers? It seems Indian Investors are not able to trade in equity market without brokers?

Amar Singh · 3 years ago `

Right

Hemant Goswami · 3 years ago `

There are some people like Dilip Parekh (who suggest Direct MFs to investors) and there are some organizations like SEBI, these are responsible for endangering a "Career Stream" of IFAs/MFDs.

51920 · 3 years ago `

Sorry, Regulator but We must be truth in it i.e. : - the main reason of fall down is MFD's depression to encourage the investors for this type of investment mainly due to LEAST commission in relative to promoting the other Financial product & putting the load of lots off N Lots off compliance even to others.
Its very easy to draft & compile any performa of business with insufficient data & facts. The core of this business is Individual Distributors way from the begining & will be their till they are well paid off.

Lets take an example of insurance product (LIC) which is big & bigger only due to their agents, just see the data the co. who is moving with less manpower due to non- competitive pay off ( to agents) hardly garner the business.

Special Note : - Just allow the AMC's to offer an adequate pocket for INDIVIDUAL MFD's & see the result in next 3 months ........all be back with more numbers than assumed I guess......!

N jayakumar · 3 years ago `

Direct means direct. Why equity investor should buy shares through brokers, they must be allowed to buy shares directly from the exchanges without paying any brokerage.

Balasubramanyam · 3 years ago `

SEBI should not insult Distributors as Mutual fund will suffer

Distribution channels are the ones which gets business not direct channel

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