A study carried out by the Securities & Exchange Board of India mentions that around 71% of mutual fund investors are from urban regions and the rest are from rural or other non-urban areas.
This is in contrast tp the Invest India Economic Foundation (IIEF) survey, which stated that the number of investors from urban areas formed 87% of the total investors in mutual fund schemes.
The variation, says a Sebi memorandum, is mainly because of two reasons:
First, the survey conducted by IIEF was on a sample and the figures quoted were projected figures based on the sample result whereas we have collected all the data of unit holder from the mutual fund houses directly.
Second, the IIEF sample consisted of people within the age group of 18?59 years and who are cash income earners whereas no such condition is imposed by us while collecting the data.
While the number of investors from rural areas seems to be more than anticipated, the volume of investment still remains skewed in the favour of urban areas.
?Based on the data collected by us, urban area contributes 86% of the total assets of the mutual funds while the remaining (14%) is contributed by rural or other areas,? says the Sebi memorandum.