NS .Venkatesh, CEO, Mutual Fund Association at India’s 14th Mutual Fund Summit 2022′ in Kolkata, December 10, 2022. | Photo credit: PTI
If the mutual fund sector is allowed to manage pension, provident and insurance funds, the objective of increasing the assets under management to 80 thousand million dollars from the planned year.
The Mutual Fund Association of India also envisaged AMC Repo Clearing Ltd (ARCL) to start operations from January 2023, providing a market for wholesale corporate debt.
“We want the government to allow the mutual fund industry to manage the funds of pension, provident and insurance companies. This will help the MF industry ensure greater efficiency in managing its assets in a cost-effective manner. The industry can achieve the target of doubling its growth,” said AMFI CEO at a program organized by the Indian Chamber of Commerce. NS Venkatesh’s assets under management have increased from the projected
The mutual fund industry has assets under management (AUM) of $40 million, he said.
AMFI has already provided the demand in their budget proposals, said Mr. Venkatesh.
Talking about ARCL, he said the firm’s equity capital currently stands at Rs150 crore and the AUM of all asset management companies (AMCs) for 2020-21 open-end and debt-oriented mutual fund schemes is linked. .
“Therefore, AMCs can improve their returns by using corporate debt securities as the one and only alternative to government securities with guaranteed funding.”
“The market regulator SEBI is going to give credit for this, which will go a long way in developing the debt market in India,” he said.
He said that AMFI plans to launch a portal to analyze the entire mutual fund industry in an integrated manner.
“The biggest data portal will be ready by April 2023 where all MF data will be collected at one point in an integrated fashion, which will help the industry to conduct analysis and come up with new products,” the official said.
Mutual fund investors have shown “resilience” during the period of profit-taking and adjustment and continue to invest in SIPs, he said.
According to the data, inflows through SIPs in November were Rs 13,306 crore, surpassing the high of ₹13,041 crore in October.
Mr. Venkatesh hoped that inflows from SIPs would not slow down as equity fund inflows fell sharply in November due to volatility.
Speaking about the industry, SEBI Whole Time Member Anatha Barua said, “From 1991 to 2002, the market has grown tremendously as many investors contributed significantly to the investment sector. But the investment sector suffered a lot of erosion due to inflation after 2002. Meanwhile, policymakers and business leaders have been working to revive the mutual fund industry.