Trending News: New portfolio registrations at Zerodha Fund House, a joint venture between Zerodha and a small fund, reached 2.3 crore in the five months from April to August, with small towns and cities making up 53 percent of those portfolios, according to data released by the outfit. management company. Zerodha Fund House, which specializes exclusively in the creation of passive investment products, develops and provides index funds and exchange traded funds (ETFs).
Here are five trends highlighted in the Zerodha Fund House report:
Small town investors contribute 19% to Zerodha Fund House’s total AUM
Portfolios from investors located in small towns and cities account for 19 percent of a fund house’s total assets under management (AUM)—a popular metric that determines the size of a fund house.
In other words, although more than half of the portfolio registrations at Zerodha Fund House came from small towns and cities in the five-month period, such investors account for less than one-fifth of its total assets under management.
SIPs are the preferred investment method for many such investors
High portfolios found in small towns and cities prefer the systematic investment plan (SIP) mode of investing in the desired schemes.
Can you guess their favorite mutual fund category?
Another important finding of Zerodha Fund House data is that 79 percent of such portfolios go towards choosing growth equity to invest in funds.
The ‘growth’ option enables investors to diversify their investments with the aim of capital appreciation. In this option, dividends are not distributed to investors but instead are reinvested in that to ensure higher growth.
50% of investors choose direct mode
More than half of investors from small towns and cities prefer direct plans to conventional plans, according to the report.
While the direct mutual fund option enables the investor to park his funds directly with the fund house, investments under the general scheme are routed through distributors or agents.
This also means that the direct system has a lower cost compared to the standard system.
Look at the average ticket size
The average ticket size of portfolios from small towns and cities stands at Rs 1.13 lakh, according to Zerodha Fund House.
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