Mutual Fund Investors India

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					        Do you know what’s in
         How well do you know
             investor’s mind?
        youryour investors?




Where they live, what they do for a living, what
  motivates them & how to capture them!
     Now you have the key
       Now you have the key to
to unlock new insights about them!
           unlock their mind
           The Basis For This Research

• The study on the India Mutual Fund Industry has been
  done by KPMG-CII



• This research report was released in the Mutual Fund Summit,
  2009 in Mumbai on the 17th of June 2009


• Through “Insight”, we plan to bring the findings of the research
  to you bit by bit on a weekly basis so that the knowledge in the
  report becomes a part of each and every colleague of TAML
 Our topic for the week of 27th July, 2009

Indian Mutual Fund Industry: Key characteristics of
                     customers
While retail investors comprise 96.86 percent in terms of
  numbers, it only accounts for 37 percent of AUM as of
      March 2008*. In contrast, in the US the retail
         participation is at 82% as of Dec. 2008*




                                               * Source: SEBI / ICI
Out of a population of 1.15 billion, the total number of MF
     investor accounts in India as of March 2008 was 42
  million (actual investors would be a lot less as investors
                    have multiple folios).


In contrast there are 92 million investors in the US out of a
         total population size of 305 million in 2008.

                                                   Source: ICI/CIA
              Abysmal penetration

In the age group of 18 to 59 years, only 1.6 % invest in
                      Mutual Funds.




                              Source: Invest India Savings and Income Survey 2007
 Penetration levels worse in lower income
                 segment

In the group comprising of those with annual household
   income of less than Rs 90,000, the penetration was
                 found to be just 0.1%.




                             Source: Invest India Savings and Income Survey 2007
       Awareness levels extremely low

90% of the savers interviewed were not aware of mutual
                     funds or SIP.




                             Source: Invest India Savings and Income Survey 2007
      Participation in Tier 2 & Tier 3 towns

The period 2004 till early 2008 witnesses a secular bull run
   giving rise to buoyant markets. This resulted in higher
   retail investor participation in Tier 2 and Tier 3 towns.




                                Source: Invest India Savings and Income Survey 2007
1. The share of AUM of retail investor is still quite low.


2. Retail penetration in MF investments is extremely low.


3. In lower income bracket, penetration levels are even worse.


4. 90% of savers are not even aware of MFs and SIPs.


5. Last few years has seen growth in Tier 2 and Tier 3 towns.
            Thank You!
If you need additional information, do mail
        your queries & feedback to:
       insight@tataamc.com
                 Or visit:
    www.tatamutualfund.com
                            Disclaimer
This e-trendspotter is for private circulation only. The information contained
in this e-trendspotter is derived from the study on the India Mutual Fund
Industry done by KPMG-CII. Information given, although believed to be
accurate, is not guaranteed. Please consult your financial advisor before
investing.

				
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