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The rapid adoption of technology has simplified the otherwise cumbersome onboarding process, suggests CAMS data. Paper onboarding has shrunk to almost one-third in the last three financial years. What used to be 58% has reduced to 20% between FY 2019 and FY 2022, said Anuj Kumar, MD, CAMS at Cafemutual Confluence 2022.
Notably, the contribution of platforms, websites and apps increased from 42% to 80% in the said period. Most of this is 100% tech and without physical documents or cheques.
Further, the data also shows that 98% of transactions in the last five financial years are electronic/digital. They have almost tripled from 15 crore in FY 2017 to 42 crore in FY 2022.
Investor count and AUM
The MF industry sells in over 19,000 PIN Codes and is very well-penetrated, shows AMFI data.
If we look at the period from September 2017 to September 2022, the number of unique investors jumped around two and a half times from 1.5 crore to 3.6 crore.
During the same period, individual investors’ AUM grew from 48% to 57% and continues to expand. New SIP registrations annually increased by 1.1 crore in FY 2019, 1.2 crore in FY 2020, 1.4 crore in FY 2021 and 2.7 crore in FY 2022. Anuj believes that the core characteristic of India is that the small investors will define the market, something similar to the FMCG segment where sachets contribute 70% of the market share in shampoos.
This is indicated by SIP collections which increased from Rs. 43,921 crore in FY 2017 to Rs. 1.25 lakh crore in FY 2022 - a 23% CAGR. Such momentum can move the entire industry towards the Rs 100 lakh crore frontiers, believes Anuj.
