FIIs will provides a fillip to Indian mutual fund industry

Union Budget 2011-12 on Mutual Fund Industry by Sushmita Ghatak, Executive Director & Chief Operating Officer, ICRA Online.
 
"The pronouncement by the Finance Minister in Union Budget 2011-12 to allow KYC-compliant foreign investors to invest directly in equity schemes of SEBI registered mutual funds provides a fillip to the growth of the Indian mutual fund industry. This would enable Indian capital markets to access disposable fund surpluses of global retail investors and allow foreign investors to participate in the Indian growth trajectory.
 
We expect Indian fund houses to design innovative products compatible with regulatory guidelines and establish new delivery channels for targeting this customer segment. The presence or the extent of the international linkages shared by domestic AMCs with their international partners (wherever applicable) would in our opinion, be one of the key success factors in this initiative."