1.Mutual funds' asset base grows by 4%.
The mutual fund industry's average assets under management of fund houses for the June quarter grew four per cent. According to data from the Association of Mutual Funds in India (AMFI), average AUM for the June quarter was Rs 6.92 lakh crore versus Rs 6.64 lakh crore in March. Assets under management represent the total value of funds handled by fund houses at the end of any time period. It is the total value of their investment portfolio and the cash balances. Debt funds continue to be the major contributor to the growth of the mutual fund industry. HDFC Mutual Fund continues to be the top fund house in the country with assets worth Rs 92,624 crore. The next four include Reliance, ICICI Prudential, UTI and Birla Sun Life.
News Source – THE HINDU-BUSINESS LINE
The Secretary, Department of Economic Affairs met mutual fund industry officials and financial advisors association along with senior officials of finance ministry and SEBI to discuss the strategies to re-boost the mutual fund industry. The ministry has classified the agenda discussed in the meeting into two categories – immediate and medium term plan. The immediate plan of the body is as follows:
1.Attend to issue relating to compensation payable to distributors
2.To provide greater flexibility to asset management companies to manage the total expense ratio(TER)
Medium term plan includes looking at greater role of pension and insurance sector. Tax related issues were also discussed in the meeting and the mutual fund industry has been asked to do an in-depth study of tax issues and submit a proposal to the Government.
News Source – CAFE MUTUAL