The Hindu Business Line : Mutual funds must offer innovative products: U.K. Sinha

(From left) Mr A.P. Kurian, Chairman, AMFI; Mr Niraj Bajaj, Vice-President, IMC; and Mr U.K. Sinha, Chairman & Managing Director, UTI Mutual Fund, addressing the Mutual Fund Convention 2006 in Mumbai on Thursday. — Shashi Ashiwal

Mumbai , Dec. 14

The products that are not currently offered by the mutual fund industry can generate at least a quarter of the total fund earnings in the future, according to Mr U.K. Sinha, Chairman and Managing Director of UTI Mutual Fund.

He was speaking at the Mutual Funds Convention 2006, organised by the Indian Merchants Chamber on new innovative products that the Indian industry can generate and their potential.

He stressed on the need for pension monies entering the MF industry, as retirement products can be offered for different income groups, age categories, varying asset allocation with annuity, life cover and withdrawal facility at varying stages.

Innovative products such as target maturity plans and children plans, commodity-based products, new asset classes such as real estate funds, hedging and arbitrage products and bundled products providing pension, insurance and mutual fund benefits in one product should be introduced by the mutual fund industry, he added. Mr Sinha called upon the mutual fund industry to be the `single solution money manager.'

However, he added, issues such as inter-regulatory arbitrage for products involving various segments and varying stance of regulators on assured returns should be taken into consideration.