The equity markets are doing well, and the assets under management of mutual fund companies are rising. But new regulations have brought down margins and it is now about volumes, Nimesh Shah, managing director, ICICI Prudential Asset Management Company told Hindustan Times. Excerpts:
On growth strategy
AMCs should only worry that their funds should do well. The environment will change but as far as the funds do well we will do well.
On regulations and profitability
The margins have come down both for AMCs and the distributors but if the margins have gone down we should try to increase volumes.
On attracting investors
I think mutual fund is the best products for investors to take exposure in equities. The fundamental thing is to advertise MF as a category, rather than individual products... create awareness of ‘invest in equities through mutual funds’.
As the country grows, corporate earnings will grow, stock prices will grow and so will our investors’ money and their participation.
On bank participation in MFs
In this quarter the money that has come from banks is lower than last quarter. As of now we are fine... the smaller money is much more stable.
On likelihood of long-term FII investment in domestic MFs
The world is looking at India and a part of that has already invested. A lot of hedge fund money is there in the country but I think India should get a lot of long-term money of endowment and pension funds across the world. They are bit worried on the volatility in the Indian markets. But I see a lot more coming in over the next three years.
Source: http://www.hindustantimes.com/Global-long-term-funds-to-come-soon/H1-Article1-527090.aspx
On growth strategy
AMCs should only worry that their funds should do well. The environment will change but as far as the funds do well we will do well.
On regulations and profitability
The margins have come down both for AMCs and the distributors but if the margins have gone down we should try to increase volumes.
On attracting investors
I think mutual fund is the best products for investors to take exposure in equities. The fundamental thing is to advertise MF as a category, rather than individual products... create awareness of ‘invest in equities through mutual funds’.
As the country grows, corporate earnings will grow, stock prices will grow and so will our investors’ money and their participation.
On bank participation in MFs
In this quarter the money that has come from banks is lower than last quarter. As of now we are fine... the smaller money is much more stable.
On likelihood of long-term FII investment in domestic MFs
The world is looking at India and a part of that has already invested. A lot of hedge fund money is there in the country but I think India should get a lot of long-term money of endowment and pension funds across the world. They are bit worried on the volatility in the Indian markets. But I see a lot more coming in over the next three years.
Source: http://www.hindustantimes.com/Global-long-term-funds-to-come-soon/H1-Article1-527090.aspx
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