Financial Daily from THE HINDU group of publications
Wednesday, Jul 10, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Markets - Mutual Funds


`Investor awareness of MFs must be raised'

Our Bureau

KOCHI, July 9

WORKING within the strict regulatory environment and conforming to the standards that match global requirements, the Indian mutual fund industry is poised for a sustained growth in the coming years, Mr A.P. Kurian, Chairman, Association of Mutual Funds of India, has said.

However, efforts were needed to enhance investor awareness about the concept and working of mutual funds and this was a task that everyone concerned should take up seriously, he said at a press conference here on Tuesday.

Referring to the current status of the industry, Mr Kurian said the assets under management as at the end of May 2002 stood at Rs 1,02,231 crore, which were only about six per cent higher than the last year's figures of Rs 96,795 crore. This slow growth was chiefly due to the depressed market conditions, he added.

However, positive signals were there in the market for a change in the equity share pattern in view of the economy picking up. Many companies and banks were coming out with IPOs that would help regain investor confidence. This was the time for investors to buy shares, as most of them were low priced. "The market will improve in terms of value and we expect this in the current year itself'', he added.

Regarding consolidation and mergers taking place in the mutual fund industry, the AMFI Chairman described it as a very good trend that would create confidence and understanding for bringing various schemes to the benefit of investors.

Mr Kurian, who was here in connection with AMFI certification tests for agents, said the written test was aimed at developing a cadre of trained professional intermediaries who will play a pivotal role in developing and expanding the market. It is now a regulatory requirement that all agents or brokers and intermediaries and those engaged in the sale of mutual fund schemes should clear AMFI certification test.

So far nearly 3,000 intermediaries have passed the test, which was launched in July 2000, and obtained certification conducted in association with the National Stock Exchange Certification in Financial Markets (NCFM). Similar tests would be conducted in another 50 cities in the country to help the agents get themselves certified before the deadline of March 2003.

Send this article to Friends by E-Mail

Stories in this Section
HDFC Sec launches `Dial a Share' service


More UTI schemes to come under SEBI ambit
`Investor awareness of MFs must be raised'
SEBI asks AMFI to prepare report on real estate MFs
Narrow movement
Derivatives trading may help out SEs, feels SEBI
BSE launches new online confirmation system
CSE seeks SEBI's intervention on pending issues
New BSE system to expand Net trading
Jaiprakash at new high on accord over Iraqi dues
Institutions fancy Rolta India scrip
Bhave panel wants cos to bear part of demat cost
Nalco jumps on strategic sale talk
Satyam up on Sify stake sale reports
Negative outlook on Tata Engg
Auto stocks skid in narrow lane; Reliance firm
NTPC mulls 4-5% equity float
`3 oil PSUs to get nod for public offers jointly'


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line