Ajay Tyagi the Chief of SEBI said some interesting things at the MF Summit 2018 organised by AMFI. Let me summarize some of the things that I made note of…and some from my memory:

Mutual funds are an important constituent of India – and have helped the country

He said the earlier speakers have spoken about the journey from 1963 to 1994 to 2018….

He spoke about concentration RISK. Top 4 players control 50% of the aum and 7 players control 70% of the Aum.

He said 7 amcs have more than 60% of the profits (of course he did not suggest a solution)

He said we need healthy competition (I did not understand what he meant)

He said debt funds invest only in AA- or paper above this – and there is not enough retail participation (OMG what is the solution?)

He said we need initiative to have good debt funds (did not understand please)

He said MF should have public interest in mind (well, well)

He spoke of ARM’s length (did he mean Icici securities?), he also said things like ‘accountability of trustees’. I have never understood these terms. I mean I have no empirical proof….of Corporate Governance…see the LnT shareholders giving such a huge gift to AM Naik.

He said Retail participation should go up. He said geographical spread should go beyond B30 and B50.

He spoke about the ease of doing business…and using wallets…standardisation..and of course TER.

He spoke about direct plans …and said how we need to sell it more than the current effort…

He said ETF is just 4% of Aum and it should go up (of course no clue how)

He said IAP funds should be used better (no clue what he knows and what he thinks)

He said SHORT TERM risk is not high lighted enough….

Well…this is what he said.

well…..he touched some of the problems…and of course it is for us to think of the solutions….