The capital markets regulator, Securities and Exchange Board of India (Sebi), is set to give you a handle to assess funds through advertisements. In a recent circular, Sebi has asked fund houses to include more details in their advertisements. It has also put the onus of regulating distributors on the fund houses.
"With higher degree of transparency, investors would be in position to take better decisions. Also, it may result in higher inflows in the long run," says Rajan B. Krishnan, CEO, Baroda Pioneer Asset Management Co. Ltd.
SEBI has recommended that disclosures in ads should include performance details, fund manager's credibility and distributors' fee. Though challenges remain, the new rules are definitely a step ahead in making MFs more transparent and customer friendly.
News Source – LIVE MINT.
Mutual fund houses are outsourcing their marketing to remote locations where they do not see their presence in the immediate future. The move has come at a time when opening of new branches is becoming economically unviable, thereby making players incapable of tapping potential investors in the hinterlands. Failure to penetrate smaller towns and cities have prompted them to tie up with a Chennai-based firm Mutual Fund NAV Plus (MFNP) for pilot projects. MFNP has a network of 750 members having presence in over 500 cities in 26 states in India. It facilitates all categories of distributors. Amid high costs of the servicing platform it makes sense for MFNP to experiment with the model, say industry players.
News Source – BUSINESS STANDARD.