Mint Mutual Fund Conclave 2019
Building Investor Centricity
Regulation. Products. Distribution.
The Rs. 24.25 trillion mutual fund industry has gathered momentum in the past few years. An important signal that the industry is maturing is the greater participation of the retail investor seen across asset classes. Individual investors now constitute 55% of mutual fund assets, with equity-oriented schemes deriving 88% of their assets from this segment of investors and contribution to debt-oriented schemes inching closer to the 50% mark. Rs.12.98 trillion of individual investors’ money is now in mutual funds.
As the investor understands the product better and begins to allocate a larger part of the savings share in mutual funds, it is important to put the spotlight on the investor and see what they need as products, services and regulations to further their interests. Brining investors to the center stage of all decisions, whether by mutual funds, distributors or regulators, will serve the industry better.
Mint’s MF Conclave focuses on the investor and questions what changes are needed in regulations, in products and in distribution to make the next quantum jump in MF acceptance and experience. Three panels will debate this topic:
As mutual fund products get standardized, the low hanging fruit of returns being the primary criterion for differentiating between schemes is past its prime. The investors and the industry have been seeing the effects of chasing that last percentage point in returns. It is important for performance evaluation to become forward looking rather than focused on historic return performance only. Factors like risk management infrastructure in mutual funds, investment processes and the fund management team and others that all play a starring role in the final outcome need to come into focus for investors to make informed choices.
It is a tightrope for the regulator to get the market just right. Too tight and it kills the business and too loose make investors hurt. Sebi has done well with getting this balance right in India. The challenge ahead is to continuously stay abreast of the industry, technology and new ideas. This panel will debate the future direction of regulations in the mutual fund industry in India with special focus on the intermediary SRO.