ritten by TheWealthWisher riday, 31 December 2010 11:32

The year 2010 has seen a lot of changes in the Mutual Fund industry. Here's a list of Personal Finance News from the mutual fund industry.

Source: Personal Finance News of 2010 from TheWealthWisher In a series of updates, TheWealthWisher revisits the news of 2010 in the Mutual Fund, Insurance Stock Markets and other new Here's the list on Mutual Funds.
1. Securities and Exchange Board of India (SEBI) directed all Asset Management Companies (AMCs) not to pay upfront commissions to distributors from their loads accounts effective 1st April 2010. The money in loads accounts are meant to be invested but AMCs were using this for marketing and for paying commissions. They need to now pay the commissions from their own expenses. SEBI has directed mutual fund houses to disclose investor complaints on its website in a move to usher in greater transparency. This is effective 30th June 2010. The same information will be available on Association of Mutual Funds in India (AMFI) website too. MF houses received 3.94 lakh investor complaints in 2009-10 out of which non-receipt of dividends topped the chart. SEBI is working on drafting a standard set of rules for mutual fund houses These rules are around advertisement and scheme information. Currently all AMCs use their own definition of some parameters in their annual reports ± SEBI is looking to standardize these. Investors have pulled out as much as Rs 28,000 crore from mutual funds this year after SEBI played spoil sport with regulations on mutual funds that were not timely and practical.


3. 4.

5. The mutual fund industry¶s asset under management crossed the Rs 8 lakh crore mark in the middle of this year. 6. SEBI has asked mutual funds to quote the dividend declared on their various schemes in absolute Rupee terms, and not as a percentage.

by Erica deVry, Big4.com Staff Reporter June 25th, 2010 June 25, 2010 Erica deVry, Big4.com Staff Reporter Mumbai ± The Indian Mutual fund industry has grown and survived the global financial crisis, but will have to look at financial inclusion to take itself to the next level, a PricewaterhouseCoopers report has found. PricewaterhouseCoopers (PwC) and the Confederation of Indian Industry (CII) this week released a report titled ³Towards 2015: ³Sustaining Inclusive Growth - Evolving Business Models´. The report details the growth of the Indian mutual fund industry and portrays India as an attractive investment destination that has weathered the recent global economic downturn. India has been identified as an economy with a vast growth potential, a resilient economy boosted by an accelerated GDP growth rate of 7.4%, a high rate of household savings and investments´

Market participants are waiting to see how the industry adapts to these changes. Developments on the regulatory front. which are the other important determinant of how the industry evolves its business. ³We are delighted to have partnered CII for this report on the Indian mutual fund industry. spelling out the impact of such developments. Mutual funds are restructuring their business models to provide for increased efficiencies and investor satisfaction. PricewaterhouseCoopers said. with its growth drivers and continuing challenges. Our interaction with market participants has reaffirmed the critical role that distribution has to play in this industry. The industry also faces a number of issues which are characterized by lack of investor awareness. the Executive Director & Leader.This report seeks to outline the current state of the industry. The industry is looking forward to early resolution of certain inter-regulatory issues requiring government or court intervention. after the restrictions on entry load. and harbors immense potential for extensive growth in the future. The regulatory changes have been made keeping in mind the best interests of the investors. Some of the major challenges discussed in the report include limited reach in smaller towns and cities. are given a fair share of coverage in the report. low penetration levels. Thus. In our view. Financial Services.´ Jairaj Purandare. to scale greater heights. However. A whole section of the report is dedicated to regulatory changes of the past year and the impact it had on the Indian mutual fund industry and tracks the effect of trends in the US. The report also highlights the predicament of the distribution community. The Growth rate of the industry therefore needs to be seen from this perspective. the mutual fund sector has shown remarkable progress over the last decade.´ . The chairman of the CII Mutual Fund Summit 2010 and chairman and managing director of UTI Asset Management Company Limited further explained: ³The Indian mutual fund industry is passing through a transformation. it is crucial that all industry stakeholders work collaboratively towards inclusive growth and ensure that the interests of the small investors are taken care of. while trying to maintain its pace of growth. and tries to identify viable measures to deal with this change. and it is essential to focus efforts towards strengthening the distribution network. Australia and China on the local regulations. cost pressures and a lack of investor education. high dependence on corporate sector and spiralling cost of operations. UK. On one side it has seen a number of regulatory developments while on the other the overall economy is just recovering from the global crisis of 2008. intermediaries and the investing public at large. like all changes these changes will take time to be adapted by industry.

Sign up to vote on this title
UsefulNot useful