Guidelines for real estate MFs to be announced soon
The mutual fund industry announced that the guidelines for launching real estate mutual funds in India would be promulgated soon.
By INDIATIMES NEWS NETWORK |
NEW DELHI: Real Estate Mutual Funds guidelines will be announced shortly. M Damodaran, chairman, Securities and Exchange Board of India, while addressing the mutual fund industry announced that the guidelines for launching real estate mutual funds in India would be promulgated soon.
Damodaran also announced that capital protection schemes would be launched by next month and that the scope for launching Indian mutual fund schemes aimed at overseas investors is under active consideration as a follow-up to the Finance Minister's announcement in his Budget speech.
He also complemented the mutual fund industry on its growth performance over the past year. According to him, the industry growth has been beyond figures and mutual funds have done excellent work in reaching out to new segments and adopting a better fee structure. "I believe mutual funds today are far more significant than they were a year ago. .It is time to press down the accelerator," he said.
Damodaran called for a greater role on part of mutual fund trustees, especially in relation to new fund offerings. He said that mutual funds should not only publicise new offerings but also their existing schemes.
Before launching any new fund offerings, they should first verify that the ambit is not already covered by one of their existing, older offerings. Stressing the need for more retailisation by mutual funds, Damodaran pointed out that while incidences of mis-selling have substantially reduced, they have not been eliminated entirely either.
He also asked mutual funds to ensure that they alert investors about aspects like ups and downs in the stock markets. There is reasonable money to be made in this asset class if you take informed decisions, he felt. Damodaran also highlighted the huge untapped potential market that could be exploited by mutual funds and said that there was immense scope for proactive measures from Sebi and AMFI.
According to him, the increased focus on equity means that a downside in the equity markets could also impact mutual funds substantially. The low level of investor knowledge coupled with the dependence on tax sops could also affect returns, he said. "People should understand that mutual funds are long-term solutions provider across various asset classes. The Indian mutual fund industry has taken big strides and is as good as any in the world. It has done extremely well by all yardsticks," he said.
It may be noted that the Indian mutual industry has grown 65 per cent on a year-on-year basis during 2005-06 compared to a rate of just 9 per cent in 2004-05.
Damodaran also announced that capital protection schemes would be launched by next month and that the scope for launching Indian mutual fund schemes aimed at overseas investors is under active consideration as a follow-up to the Finance Minister's announcement in his Budget speech.
He also complemented the mutual fund industry on its growth performance over the past year. According to him, the industry growth has been beyond figures and mutual funds have done excellent work in reaching out to new segments and adopting a better fee structure. "I believe mutual funds today are far more significant than they were a year ago. .It is time to press down the accelerator," he said.
Damodaran called for a greater role on part of mutual fund trustees, especially in relation to new fund offerings. He said that mutual funds should not only publicise new offerings but also their existing schemes.
Before launching any new fund offerings, they should first verify that the ambit is not already covered by one of their existing, older offerings. Stressing the need for more retailisation by mutual funds, Damodaran pointed out that while incidences of mis-selling have substantially reduced, they have not been eliminated entirely either.
He also asked mutual funds to ensure that they alert investors about aspects like ups and downs in the stock markets. There is reasonable money to be made in this asset class if you take informed decisions, he felt. Damodaran also highlighted the huge untapped potential market that could be exploited by mutual funds and said that there was immense scope for proactive measures from Sebi and AMFI.
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According to him, the increased focus on equity means that a downside in the equity markets could also impact mutual funds substantially. The low level of investor knowledge coupled with the dependence on tax sops could also affect returns, he said. "People should understand that mutual funds are long-term solutions provider across various asset classes. The Indian mutual fund industry has taken big strides and is as good as any in the world. It has done extremely well by all yardsticks," he said.
It may be noted that the Indian mutual industry has grown 65 per cent on a year-on-year basis during 2005-06 compared to a rate of just 9 per cent in 2004-05.
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