Ease Of Doing Biz: MF Investors Can Transact Via Whatsapp, Apps

Further, Sebi had also set up an expert panel to suggest measures for increasing distribution of MF products through digital modes.

According to an estimate, number of Internet-enabled mobile phones in the country is expected to increase from 10-15 million in 2010 to 300-400 million in 2015.

The Securities and Exchange Board of India (Sebi) is of the view that a greater use of Internet as a distribution channel can help increase the penetration of mutual funds, especially among young investors.

As per the regulator, the online phenomenon is growing rapidly as more and more people, especially the younger generation, prefer to carry out most of transactions online such as Internet banking, shopping and ticketing.

Nearly 45 fund houses together manage assets worth over Rs 12 lakh crore in India, but fund mobilization has been a tough task for them in the past few years. One of the biggest reasons behind this low fund mobilization is the lack of healthy participation from a large part of the country.

A Sebi-conducted study had said that MF presence in the country is heavily skewed in favor of top 60 districts.

Out of 60 districts, a lion's share of MF presence originates from Mumbai as the city houses the headquarters of most of the large companies, thereby getting a bulk of investments through the non-retail or institutional routes.

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