Mutual fund industry is likely to double its investor base and register growth in next three years, a top official of a leading mutual fund house said here.
The industry, comprising 43 active players, had an average assets under management (AUM) of Rs 17.37 lakh crore at January-end, the latest data of the Association of Mutual Funds in India (AMFI) showed.
Always seek the advice of professional mutual fund managers and invest in those funds that have been consistent performers over the last 10-20 years, and have generated money in good and bad times, says Madhu Kela, Chief Investment Strategist, Reliance Capital.
Mutual Fund industry has added more than Rs 3.5 lakh crore to its asset base in 2016 to reach Rs 17 lakh crore mark, primarily on account of growing interest from retail investors and aggressive buying of stocks.
Comprising 43 active players, the industry had assets under management (AUM) of over Rs 16.28 lakh crore at the end of October, which was the previous all time high, rising to Rs 16.50 lakh crore in November-end, as per the latest data by Association of Mutual Funds in India (AMFI).
The asset base of country's mutual fund industry dropped to Rs 13.81 lakh crore at the end of May after hitting all time high in May
The AMFI (Association of Mutual Funds in India) plans to take up the issue of "disclosing distributors commission in Statement of Accounts" in its board meeting this week.
The country's 44 fund houses together had an average assets under management (AUM) of Rs 11.06 lakh crore at the end of December 2014, compared to Rs 13.39 lakh crore registered in December-end last year, as per latest data available with Association of Mutual Funds in India (AMFI).
The fund raised through the deal with Nippon Life would be used to grow NBFC business and reduce debt, said Sam Ghosh, CEO, Reliance Capital.
Financial Advisor Forum travels across the country with leading financial advisors and talk to them about the key issues, the challenges and the way ahead for the mutual fund industry in India.
This also marks the third consecutive rise in MF industry's exposure to banking stocks. MFs collect funds from various investors for investing in securities such as stocks, bonds, money market instruments and similar assets.
Jaitley said he would prefer to lower fiscal deficit by boosting revenues rather than cutting down on expenditure.
There are a lot of positive, qualitative things happening internally. More investors are coming into the mutual fund industry. New investors are coming into debt, initial investors are coming through SIPs
Industry experts feel as the rupee stabilises, investor interest will come back to the debt market. Between April 2 and July 8 this fiscal, the rupee has plummeted by 12.81 percent, and hit all-time low of 61.21 percent yesterday.
Mutual fund industry is set for a slew of regulatory changes, including setting up of a single SRO (Self Regulatory Organisation) for all distributors, who would also be allowed to access the stock exchange platforms.
The mutual fund industry lost more than 34 lakh investors, measured in terms of individual accounts or folios, in the first 11 months of fiscal 2012-13.
The reason behind lackluster MF industry is often attributed to tepid growth in the equity MFs assets. However such funds accounts to only 30% of the industry while the other 70% comprising all forms of debt and hybrid funds is in better health. Read this space to know the reason behind jaded MF industry even after introducing various reforms.
"The country's mutual fund industry has the scope to introduce simple products rather than come out with sophisticated offerings for customers," CS Mohapatra, advisor to the Financial Stability Development Council (FSDC) at the finance ministry said on Wednesday.
Lately SEBI has made various efforts to boost the aligning Mutual Fund Industry. Read this space to know about the various steps taken by it to strengthen the regulatory framework, increase the penetration, and improve reach of MF in semi-urban and rural areas.
CNBC-TV18‘s Mitra Joshi reports that mutual-fund distributors are not happy with the Sebi's decision to reintroduce the direct investment system or the fact that distributors will have to choose between being advisors or agents.
A panel of experts explain to CNBC-TV18 the various aspects of the Sebi‘s decisions and agree that the measures announced, if not sufficient, are positive and in the right direction.
Investing in mutual funds has become more expensive mainly because of the 25 basis point hike in expense ratio and the levy of service tax. But CNBC-TV18's Mitra Joshi reports that fund houses are trying to ease the burden by adjusting the exit load.
Finance Ministry today told the mutual fund industry that their demands related with taxation issues could only be taken up in the next Union Budget.
CNBC-TV18's Mitra Joshi and Archana Shukla report that fixed maturity plans (FMPs) are bearing the brunt of a burst of redemptions
CRISIL Research has come out with its report on 'AUM up 8% on liquid fund inflows, market gains in equity funds'.