2 weeks ago
SEBI's Amarjeet Singh: Mutual fund growth must rest on investor trust
A mutual fund is like a big basket where many people put their money together to buy investments.
In India, people have been putting a lot of money into mutual funds lately.
The total amount in Indian mutual funds has grown past ₹85 lakh crore.
That is more than eight times bigger than it was in 2014.
More than six crore people in India now invest in mutual funds.
An important official at SEBI named Amarjeet Singh said companies must be honest and fair with investors.
He said they must explain risks clearly and not trick people into buying things they do not need.
He also said computers and artificial intelligence can help, but people should still get help from real humans.
SEBI has also suggested new rules that would let some advisors invest with less starting money.
India's mutual fund assets under management have reached around ₹85 lakh crore, up from ₹10 lakh crore in 2014.
Mutual fund folios have crossed 27 crore and unique mutual fund investors now exceed 6 crore.
Active AMFI-registered distributors rose from 2.4 lakh to 3.4 lakh in five years, and about 71% of retail and HNI assets come through distributors.
SEBI's Amarjeet Singh stressed ethical distribution, warning against mis-selling and urging fair disclosure of risks and commissions.
SEBI proposed a Mutual Fund-only PMS framework with a ₹25 lakh minimum investment and simplified the SIF certification framework.
- Who
- Amarjeet Singh of SEBI, speaking about India's mutual fund industry
- What
- Said growth not built on investor trust will be difficult to sustain and stressed ethical distribution, as mutual fund assets crossed around ₹85 lakh crore
- Where
- India
- When
- Exact date not specified; figures cover the period since 2014
- Why
- To emphasize that sustainable industry growth depends on investor trust and fair, ethical distribution practices
Key facts
- Mutual fund AUM
- Around ₹85 lakh crore
- AUM in 2014
- ₹10 lakh crore
- Mutual fund folios
- Over 27 crore
- Unique mutual fund investors
- Over 6 crore
- Active AMFI-registered distributors
- 3.4 lakh, up from 2.4 lakh in five years
- Retail and HNI assets via distributors
- About 71%
- Proposed MF-only PMS minimum investment
- ₹25 lakh
- Conventional PMS minimum investment
- ₹50 lakh
Quotes
Amarjeet Singh
Chief Executive of the Securities and Exchange Board of India (SEBI)
““A simple test is whether you would make the same recommendation, in the same manner, to a member of your own family,” Singh said.”
businesstoday.in
““Ethical distribution therefore has to remain at the centre of the investor relationship,” he said.”
businesstoday.in
Sources
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