Three key questions that SEBI whole-time member Amarjeet Singh has for MF industry

that while India has a vibrant primary market that brings in fresh paper to invest in, asset management companies will have to work towards creating more investment opportunities.

The Indian mutual fund industry has registered a phenomenal growth in terms of reach and asset value but the industry needs to be watchful in terms of investment opportunities and asset classes to invest in, said Amarjeet Singh, whole-time member, Securities and Exchange Board of India (SEBI).

“The question I had in mind was that while we are growing at a fantastic speed, and it's a phenomenal growth, it is a huge success story… what we need to be watchful about is do you have enough investment opportunity? Do you have enough asset classes to invest in? Is too much money chasing too few good opportunities? There is no easy answer to it,” said Singh while delivering the keynote address at the Moneycontrol Mutual Fund Summit on Monday.

He further said that while India has a vibrant primary market that brings in fresh paper to invest in, asset management companies will have to work towards creating more investment opportunities.

Also read: Moneycontrol MF Summit 2025: Full text of SEBI member Amarjeet Singh's address on mutual funds' success story and need for self regulation in industry

“Thankfully, we seem to have a good primary market, good pipeline of IPOs coming in… but I guess, the speed at which money is coming in… we will also have to work… mutual funds also have at stake in ensuring that there are more investment opportunities in the markets where money can be invested in a very productive manner,” he added.

This assumes significance as mutual fund products are predominantly structured around equity and debt with only a small portion going towards commodities like gold and silver and also real estate by way of Real Estate Investment Trusts (REITs).

Incidentally, while the narrative in India for the past many years has been that equity is the best investment in terms of long-term returns, there are enough instances of equities actually not being the best performing asset. Countries like China, Russia, and Japan, among others, have seen periods when other asset classes performed on par with equities or even fared better.

Meanwhile, in an earlier panel discussion at the Moneycontrol Mutual Fund Summit, which saw well-known CEOs of mutual fund firms participate, Nilesh Shah of Kotak MF said that a “rule of law” is needed for fund houses to expand beyond debt and equity.

“We have precious metals. Gold and silver products. Could I be going into other commodities? Yes, but we need rule of law there,” he said adding that currently in the commodity markets, either the arbitrage is very low, the returns are poor, or there is no security.

In terms of investing in real estate, Shah said that fund houses have the capability and interest but are still approaching with prudence. “In terms of real estate, again, do I have ability to manage REIT? The answer is yes. And we have gone to SEBI to increase exposure to REIT, INVIT, and they are actively considering it,” said Shah.

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