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MF News ‘Daily disclosure of scheme AUM may trigger unhealthy competition’

‘Daily disclosure of scheme AUM may trigger unhealthy competition’

AMFI has requested SEBI to do away with the requirement of publishing daily AUM of scheme.
Nishant Patnaik Feb 13, 2019

AMCs claim that daily disclosure of scheme AUM could trigger unhealthy market competition and unwarranted media hype.

In a letter sent to SEBI, AMFI has requested the market regulator to do away with the requirement of publishing daily AUM of scheme. Sharing the rationale for this, AMFI said, “In our view, it is not desirable to publish daily absolute AUM, as the same could trigger unhealthy completion and also unwarranted media scrutiny. We therefore request SEBI to kindly consider dropping the aforesaid requirement of disclosure of scheme AUM on a daily basis.”

Currently, AMCs are required to disclose average AUM (AAUM) of their schemes on AMFI website.

AMFI has also sought clarification if such a disclosure does not require disclosing additional benchmark, product labelling and so on. AMFI said, “It is our understanding that AMCs are not required to adhere to other regularity requirements relating to scheme performance disclosure such as additional benchmark, prohibition on disclosure of performance for funds in existence for less than a  year, prohibition on disclosure of performance for liquid schemes for 3 and 6 months.”

Further, AMFI sought clarification if performance needs to be disclosed only for growth option of regular and direct plans.

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1 Comment
Mohit · 1 month ago
Apart from daily NAV, AMCs should also provide weekly scheme portfolio update.
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