Heard on the Street

Smaller MFs hike payout to boost asset base

In an an attempt to boost distribution and build their asset base, small-sized fund houses are ramping up commission on equity schemes. The buzz is that MF distributors are aggressively selling the recently-launched equity schemes of ‘America’ Mutual Fund.

The fund house is offering commissions in excess of 1.5%, sources in distributor circles said. According to industry sources, ‘America MF’ is trying to build a decent asset base to make it eligible for partnership with a PSU bank.

The PSU bank, which was rumoured to be acquiring a stake in ‘Indian Axe Mutual Fund’ , has evinced interest in ‘America MF’ due to strong international pedigree. However, if the PSU bank were to go solely by AUM, the latter would still have a long way to go.

Local brokers gear up to outdo foreign peers

Domestic broking houses are no longer content to play second fiddle in the market and are looking at novel methods to keep pace with their foreign counterparts that are looking to cash in on India’s high growth rates as well as continued issuance of new equity.

A large listed local broking firm — a pearl among its peers — recently con-ducted an etiquette workshop for its senior sales team in an attempt to help them deal better with different geographies.

The workshop was conducted by the hostess of a popular word game on Doordarshan in the 80s. Titled ‘international business etiquette and communication classes’, the increasing acceptance of Indian broking firms by FIIs, is prompting many big players to take an innovative approach to strengthen client relationships.

(Contributed by Shailesh Menon & Deeptha Rajkumar)