GENERAL

1.Investing via MFs is still thesafe bet: SMC Investments.

 

Even as high value blue chips are seeking newer lows, is it time for retail investors to shift the investment focus from mutual fund to direct equity investment at least for those who have some serious exposure to equity markets? The reasons for this are many. The returns from mutual fund investments have remained stagnant, and in many cases negative, for the past two years and even dividend payouts from them has come down, partly because of SEBI diktat and partly because of their poor show.

News Source – BUSINESS LINE.

2.MF chiefs for less micro regulation.

 

Lack of penetration, reduction in distributor base and swift changes in regulations, besides adverse market conditions continue to hurt the mutual fund industry this year. Speaking at the Business Standard Fund Cafe, top CEOs of the asset management industry were unanimous that the problems they were facing were largely due to the lack of financial literacy. As a result, the industry was paying more attention to increasing the penetration to attract long-term stable fund inflows. “While people keep on talking about high savings rate in India, investment through stocks or mutual funds is not so high,” said Sundeep Sikka, CEO of Reliance Mutual Fund.



News Source – BUSINESS STANDARD.

3.No plan to allow foreign retail investors directly into equities.

 

The Centre has no immediate plans to allow qualified foreign investors (QFIs) to directly purchase equities in Indian stock markets. This is even as QFIs are now permitted to invest in Indian mutual fund schemes – both equity-oriented schemes as well as debt schemes investing in the infrastructure sector. “At present, no proposal is under consideration,” the Finance Minister, Mr Pranab Mukherjee told the Upper House in a written reply on Tuesday in response to a question on whether the Government was exploring the possibility of allowing QFIs to directly buy equities in Indian stock market.

News Source – BUSINESS LINE.

Latest Indian Mutual Fund News | 24-Aug-2011
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