With a view to increasing financial literacy, markets regulator, Securities and Exchange Board of India (Sebi) plans to launch over 2,000 ‘super ATMs’ in the country, which will facilitate all the information to mutual funds investors. Apart from this, Sebi is also in the process of starting financial literacy and investor education programmes throughout the country to encourage retail investors to participate in mutual funds.
Speaking at an awards ceremony on Thursday, K Vaidyanathan, executive director Sebi said, “Super ATMs will provide better infrastructure to investors throughout the country and we hope to start this initiative in the next 12-18 months.”
CB Bhave, chairman, Sebi, while speaking at the event, said the Indian mutual fund industry is at the crossroads and should not expect phenomenal results in the next six months. Bhave said, “It is always difficult to accept change but if you are confident that the change is good for the consumer, you eventually accept it.” In the year 2009, several regulatory changes were made, such as the ban on entry load and parity among all the classes of investors in the exit load structure.
Bhave also added that Sebi is ready to help the mutual fund industry in the country, in their efforts to increase the financial literacy. “We have already started some programmes for financial literacy and the education of investor. But we also want that fund houses come and present to us their plan for the purpose so that we can help them out.”
Apart from this, Vaidyanathan also mentioned that the regulator will play a twin role for investor interest protection through regulations and also through developmental activities. “Performance is also the important factor and we would like to see this business revolve around the investor’s managers and also the performance,” he added.
After the ban on entry load, several distributors had stopped selling mutual fund schemes, as their upfront commission completely vanished. Since the ban on entry load from August, 2009, equity schemes have seen net outflows for the next five months to the tune of over 7,000 crore as distributors stopped selling mutual funds.
However, in January, 2010, some smart inflows came in equity schemes after three new fund offers (NFO) were launched. Total average assets under management for the month of January, 2010 stood at over Rs 7.61 lakh crore, according to the data provided by the Association of Mutual Funds in India.
Source: http://www.financialexpress.com/news/Sebi--super-ATMs--to-spread-info-on-MFs/579081/
Speaking at an awards ceremony on Thursday, K Vaidyanathan, executive director Sebi said, “Super ATMs will provide better infrastructure to investors throughout the country and we hope to start this initiative in the next 12-18 months.”
CB Bhave, chairman, Sebi, while speaking at the event, said the Indian mutual fund industry is at the crossroads and should not expect phenomenal results in the next six months. Bhave said, “It is always difficult to accept change but if you are confident that the change is good for the consumer, you eventually accept it.” In the year 2009, several regulatory changes were made, such as the ban on entry load and parity among all the classes of investors in the exit load structure.
Bhave also added that Sebi is ready to help the mutual fund industry in the country, in their efforts to increase the financial literacy. “We have already started some programmes for financial literacy and the education of investor. But we also want that fund houses come and present to us their plan for the purpose so that we can help them out.”
Apart from this, Vaidyanathan also mentioned that the regulator will play a twin role for investor interest protection through regulations and also through developmental activities. “Performance is also the important factor and we would like to see this business revolve around the investor’s managers and also the performance,” he added.
After the ban on entry load, several distributors had stopped selling mutual fund schemes, as their upfront commission completely vanished. Since the ban on entry load from August, 2009, equity schemes have seen net outflows for the next five months to the tune of over 7,000 crore as distributors stopped selling mutual funds.
However, in January, 2010, some smart inflows came in equity schemes after three new fund offers (NFO) were launched. Total average assets under management for the month of January, 2010 stood at over Rs 7.61 lakh crore, according to the data provided by the Association of Mutual Funds in India.
Source: http://www.financialexpress.com/news/Sebi--super-ATMs--to-spread-info-on-MFs/579081/
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