Harshad Chetanwala, Co-founder MyWeathGrowth said, “This is good for mutual fund investors; however, most of the fund houses were ensuring the redemption payout of equity schemes within 3 business days at present as well. Hence, from that perspective, it will not be much stress or change in the process for fund houses and RTAs."
Experts say that investors usually prefer investing in mutual funds because there is liquidity, and the money comes back quickly into their bank accounts when they redeem units. And now, with this amendment, mutual fund investing will gain good traction and inflows in mutual funds can see better results in the coming months.
“This amendment has come in good times because, according to an Association of Mutual Funds in India (Amfi) report, the inflows into open-ended equity mutual funds slumped 31% to ₹6,119.58 crore in August month."
The mutual fund SIP assets under management (AUM) at ₹6.39 lakh crore as a percentage of mutual fund overall average AUM ( ₹39.53 lakh crore) stood at well over 16%, signifying healthier and disciplined investment by small investors. Further, the number of SIP accounts stood at an all-time high at 5.71 crore in August, crossing the June high of 5.61 crore.
