Indian stock market regulator SEBI has asked recently mutual fund companies to disclose the performance of all schemes managed by a single fund manager.
Consolidation of schemes
This pressure tactic is one of the attempts by the regulator to bring about a consolidation of current schemes that now number over 3,000.
The multiplicity of schemes is confusing the investors. SEBI may insist on one fund manager handling no more than one.
The same was indicated in a memorandum issued after the July (2011) meeting of the SEBI board.
Mr H. N. Sinor, CEO, AMFI (Association of Mutual Funds in India),'' SEBI's actions would lead to a drastic reduction in the scheme numbers. Each consolidation requires SEBI approval. Also, only schemes that have common features may be merged. The idea is to have cost effective and efficient management of schemes."
Indian mutual houses have been consolidating funds for some time now; this year, 49 schemes have already been merged so far.
The consolidation process is already happening. The number of new fund launches has reduced, while inflows into existing schemes have increased.
Also Read
Five Years: About 60 Mutual fund schemes vanishing
Consolidation of schemes
This pressure tactic is one of the attempts by the regulator to bring about a consolidation of current schemes that now number over 3,000.
The multiplicity of schemes is confusing the investors. SEBI may insist on one fund manager handling no more than one.
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| Mr. H. N. Sinor, CEO, AMFI |
The same was indicated in a memorandum issued after the July (2011) meeting of the SEBI board.
Mr H. N. Sinor, CEO, AMFI (Association of Mutual Funds in India),'' SEBI's actions would lead to a drastic reduction in the scheme numbers. Each consolidation requires SEBI approval. Also, only schemes that have common features may be merged. The idea is to have cost effective and efficient management of schemes."
Indian mutual houses have been consolidating funds for some time now; this year, 49 schemes have already been merged so far.
The consolidation process is already happening. The number of new fund launches has reduced, while inflows into existing schemes have increased.
Also Read
Five Years: About 60 Mutual fund schemes vanishing
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