The CII summit on the mutual fund industry was a welcome relief to the Mutual fund industry which was anyway in the shambles.
Actually when you are on the ground it is perhaps difficult to kick you also – sharanagadhi has its advantages!
The current SEBI chief has asked the mutual fund industry to come out with pension plans. A noble thought, but the 2 players in the business do not have a great AUM to boast about. In fact the Templeton India Pension Plan is expensive in terms of asset management charges, but seems to be the best in the business. I like a pension plan from a mutual fund simply because I get to decide how I need to withdraw. In case of a pension plan from a life insurance company the compromise on the annuity rates is too much of a price to pay.
Mr. Sinha has also said that there will be some kind of distributor regulation. Not sure what they can or will do. The distributor anyway does not care about this industry – unless he has no choice. I do not see new people coming into this industry. And it is only the national distributors and banks who are in this business (no it is not a profession).
Sorry Ramesh Bhatt of IFA Galaxy would not be as excited being recognised by Amfi – Amfi is a body of just the manfuacturers. One piece of legislation which is good for the manufacturer and not good for the distributor …will be difficult to handle.
Frankly the distributor body should not have anything to do with a manufacturer body. A larger organisation which allows distributors, manufacturers, banks, R&T agents, …as members is a crying need. However all this can happen only if the industry is prospering…not in the current stage.
MHO…about the industry meet…where I think the industry is happy that it did not get slapped unlike in the past…
All the best mutual fund industry…i still see far more pain than pleasure..all the best once again.
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