Mutual Fund investment: SIP or lumpsum? A survey reveals what retail investors prefer

livemint.com:

Asset Management Company (MOAMC) reveals that passive funds have taken center stage in India over the last few years, gaining market share from 1.4% of AUM in 2015 to over 17% today. The survey conducted with more than 2,000 investors participating from across the country, shares insights on the usage and attitude of investors towards passive funds in India. The study also throws light on investors’ preference for SIPs over lumpsum investing, an affinity for index funds, and reliance on social media over news outlets in their investment decision-making.

Speaking on the study, Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd. said, “The demand for passive investing has grown exponentially over the past few years, which reflects in AUM growth of 8.5x in last 5 years at a CAGR of 54%. Our commitment to innovation and education will continue to support the future of passive funds in India." Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said, “Passive funds are widely popular in the U.S.

and have over 50% market share. We have started seeing similar trends in India over the last few years as well. With a market share of around 17%, we believe that there is ample runway for passive funds ahead.

This survey is a first of its kind in India and provides insights into how investors think about passive funds. It also helps shed some light on the thought process behind investment decisions of Indian investors." According to the findings of the survey, 61% of investors have invested in at least 1 passive fund, underscoring the fast-growing adoption of passive funds in India. Revealing the reason investors choose to invest in passive funds, the survey findings point out the fact