Some call it being horse-headed; that is, the attitude
of Mutual Funds to not focus on the retail investors... If numbers could speak, then they would provoke more questions than present answers about the state of the Indian Mutual Fund (MF) industry. The MF industry has current Assets Under Management (AUM) standing at a huge Rs.4.86 trillion (a little over $100 billion). Creditably, in the last year and a half, the AUM of MFs have actually doubled (AUM stood at Rs.2.30 billion in March 2006) due to factors including record New Fund Offers (NFOs; more than 60% of which have underperformed as compared to their benchmark indices) and the robust rally at the Dalal Street. Then why is it that M. Damodaran, Chairman of the market regulator SEBI, remarked sometime back that the MF industry “seems to be prematurely patting itself on the back.” Consider this statement in the light of findings of the ‘Invest India Incomes and Savings Survey 2007’ produced by IIMS Data works – a government think-tank – which has revealed some startling figures. Out of 321.38 million paid workers in India, only 5.3 million are mutual fund investors – a trifling 1.65%!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
of Mutual Funds to not focus on the retail investors... If numbers could speak, then they would provoke more questions than present answers about the state of the Indian Mutual Fund (MF) industry. The MF industry has current Assets Under Management (AUM) standing at a huge Rs.4.86 trillion (a little over $100 billion). Creditably, in the last year and a half, the AUM of MFs have actually doubled (AUM stood at Rs.2.30 billion in March 2006) due to factors including record New Fund Offers (NFOs; more than 60% of which have underperformed as compared to their benchmark indices) and the robust rally at the Dalal Street. Then why is it that M. Damodaran, Chairman of the market regulator SEBI, remarked sometime back that the MF industry “seems to be prematurely patting itself on the back.” Consider this statement in the light of findings of the ‘Invest India Incomes and Savings Survey 2007’ produced by IIMS Data works – a government think-tank – which has revealed some startling figures. Out of 321.38 million paid workers in India, only 5.3 million are mutual fund investors – a trifling 1.65%!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)
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