Mutual fund managers may get more operational freedom
02 Jul 2012
The government is looking at expanding the distribution channels of mutual funds while at the same time providing greater flexibility to asset management companies to manage the total expense ratio (TER), in order to give a big boost to the Mutual Fund (MF) industry.
The finance ministry is engaging mutual fund industry and market regulator Securities Exchange Board of India (SEBI) to make MFs more competitive and attract greater retail participation through innovative financial literacy programmes, a finance ministry official said today.
Special emphasis would be given to improve penetration of MF products in Tier II and Tier III cities/towns and to redress the grievance of investors, R Gopalan, secretary, department of economic affairs, said during a meeting with representatives of the mutual fund industry and Financial Advisors' Association.
The meeting was held to evolve a common strategy to re-energise the MF industry.
The meeting was also attended among others by senior officials of the ministry of finance and the Securities and Exchange Board of India (SEBI).
The gross asset mobilisation by the MFs had seen a decline since 2009-10 and the need to reverse this trend has been engaging the attention of the government and SEBI.
.webp)
