Moneycontrol Mutual Fund Summit highlights SIPs' impact on financial inclusion in Bharat

The Moneycontrol Mutual Fund Summit 2024 in Mumbai gathered finance experts, industry leaders, and regulators. This year's theme, "How SIPs Are Empowering Bharat," focused on the role of SIPs in promoting financial inclusion. The summit included discussions and strategies to improve investor experiences and financial empowerment.

Nalin Mehta, managing editor, Moneycontrol set the tone for the summit. He said, “At Moneycontrol, we strongly believe in empowering India’s growth story, the remarkable expansion of Indian markets, and the rise of a new breed of retail investors fuelling this transformation. The mutual fund industry plays a pivotal role in this shift. With SIP inflows tripling over the past three years, we must address how to manage this shift responsibly and sustainably, especially as more first-time investors emerge from smaller towns. This marks our third Mutual Fund Summit, and we're proud to host top industry leaders—CEOs, fund managers, and key stakeholders."

Amarjeet Singh, whole time ,member, SEBI, pointed out that fresh capital raising is a better reflection of the markets and reduces concerns related to asset price inflation. He added, "While we are witnessing a lot of money coming to the mutual fund space, we need more listings, more asset class, more fund raising by existing listed companies in the market so that the money which is coming in can be appropriately invested."... fresh paper issuance is clearly a better reflection of fresh capital formation and raises less doubts about asset price inflation," he added.

Singh also elaborated on the importance of corporate governance within the mutual fund industry. “In order to sustain the current growth story, it is essential for mutual funds to uphold strong governance practices and maintain reputation for integrity and reliability. Good governance assumes greater significance given significant retail participation in mutual funds. They account for 28 percent of the industry AUM,” he said. Also, many of these retail participants are first-time investors. “Maintaining their trust in the markets is vital, as once lost, it is challenging to regain these investors’ confidence.”

A panel discussion on meeting investor expectations featured industry stalwarts such as Radhika Gupta, MD and CEO, Edelweiss Asset Management; Kalpen Parekh, MD & CEO, DSP Mutual Fund; Ajit Dayal, Founder and Advisor, Quantum Advisors; and Swarup Mohanty, VC and CEO, Mirae Asset Investment Managers, India. 

Speaking on the challenges and opportunities that come with Micro SIPs, Radhika Gupta said that the reason AMCs do not promote micro-SIPs is due to the number of costs involved with a micro SIP. However, Gupta also pointed out that if investors are willing to spend Rs 100 a month on OTT, she is "excited" that they could just as easily allocate that money towards a micro SIP.

A special highlight of the evening was an engaging chat with Chess Grandmaster, Viswanathan Anand. He remarked, “In chess, as in finance, success requires careful calculation and strategic risk-taking. Many players have successfully transitioned into the world of finance, applying the same analytical skills they honed on the board to manage their personal investments. The parallels between these fields are clear—both demand a deep understanding of the landscape, meticulous planning, and the courage to make decisive moves when the time is right.”

Other speakers and panellists at the summit included Kailash Kulkarni, CEO, HSBC India Asset Management; Suresh Sadagopan, SEBI RIA, MD and principal officer, Ladder7 Wealth Planners; Misbah Baxamusa, CEO, NJ Wealth; Rajeev Thakkar, chief investment officer, Director, PPFAS Mutual Fund; Roshi Jain, senior fund manager, HDFC Asset Management; Dinesh Balachandran, head of equity, SBI Mutual Fund; Ashish Gupta, CIO, AXIS Mutual Fund; Sanjay Chawla, CIO - Equity, Baroda BNP Paribas Mutual Fund; Akhil Chaturvedi, chief business officer, Motilal Oswal AMC and G Senthil, CFA, CAIA, chief business development Officer, KFintech.

The evening concluded with the mutual fund distributor awards ceremony, celebrating the sector's achievements and recognising outstanding contributions towards financial empowerment and inclusion across India.

Winners of the Mutual Fund Distributor Awards 2024: