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Mutual fund is the only financial product in India which discloses commission of distributors.
In 2020, when the MF industry clocked Rs. 24 lakh crore AUM, it surpassed the goal of Rs. 20 lakh crore laid down in the vision paper of 2010, shared Shri Ananta Barua, Whole-Time Member, SEBI at the Cafemutual Confluence 2022.
Citing transparency as the key, Shri Ananta said that transparency is the beauty of mutual funds, which makes them different from other financial products.
He elaborated; mutual funds have all disclosure requirements in place. You know their daily NAV, AUM and also the whole portfolio where they invest in. They also give scheme performance and return details. Additionally, unlike other financial products, mutual funds reveal complete commission information.
Further, the transparency gets stronger with monthly portfolio disclosures.
Shri Ananta also shared some specific points related to debt mutual funds.
He stated that debt funds disclose their portfolio every 15 days which also gives information related to instrument downgrades, if any. Also, in the case of open-ended debt schemes, the mandated 10% investments in liquid assets give liquidity comfort.
Themed ‘Marching towards 100 lakh crores!’ Cafemutual Confluence 2022 was held on October 13, 2022 at Taj Lands End, Mumbai and received an overwhelming response from over 550 MF professionals.
Here’s a teaser of Shri Ananta's session. You can watch the entire video along with other CC 22 videos at a nominal price of Rs. 499 only. Simply write to us at fouzia@cafemutual.com and get ready to march towards Rs. 100 lakh crore.
