SEBI chief urged AMCs to reach out to more investors and assured that SEBI will remove all bottlenecks for the growth of the industry.
SEBI chief U K Sinha praised the performance of equity funds and urged the industry to reach out to a larger number of investors. He also assured the industry that SEBI will work along with them to remove the bottlenecks to help the industry reach new heights.
Speaking at the launch of MF Utility system, SEBI Chairman U K Sinha said “Over a three year period, 84% of equity AUM has outperformed the benchmark and over a five year period, 88% of equity AUM has outperformed the benchmark. We should be proud about this. Now, we have to look at a complete paradigm shift.”
He urged AMCs to take a cue from e-commerce industry and try to replicate such growth in MF industry “If you look at railway reservation, 80% tickets are booked online. If you look at e-commerce business, from $6 billion in 2011, in 2013 the industry has crossed $16.50 billion. If such an exponential growth can happen in e-commerce industry then why can’t this happen in MF industry? You are selling an outstanding product. SEBI will remove all bottlenecks for the growth of the industry.”
SEBI has also taken a number of steps to help the industry expand its footprint in B-15 cities. Talking about the progress in B-15 cities, Sundeep Sikka, Chief Executive Officer, Reliance MF said “Towards the close of the year (December 2014) there were two crore folios from T15 and 1.75 crore folios from B15, but total folios from beyond top 15 cities were around 2.01 crore compared with two crore folios from top 15 cities.”
Top officials from AMCs, distribution fraternity and R&T were present at the launch of industry’s much awaited MF Utility system in Mumbai yesterday. SEBI chief handed out the first set of seven common account numbers (CAN) to mutual fund investors at the event.
MF Utility system is expected to go live from March 01.
