SEBI chief U K Sinha commended the mutual fund industry for showing robust fund performance at the 11th CII MF Summit held yesterday in Mumbai.
Sinha said that over a 3 year period, 93% of equity funds outperformed their benchmark while over a 5 year period, 91% of equity funds outperformed their respective benchmarks. Talking about the extent of outperformance, Sinha said that 42% of equity funds have outperformed their respective benchmarks by more than 5% while 58% have outperformed up to 5%.
He also said that crossing the Rs. 12 lakh crore AUM mark is a major achievement for the industry. “Three years ago, nobody expected the industry to cross Rs. 10 lakh crore. I am happy that more than 30% (Rs 3.65 lakh crore) is equity AUM. Net inflows in equities in FY15 have been greater than Rs 71,000 crore and in the two months of the current fiscal, greater than Rs 20,000 crore.”
He said that MF industry is now prepared to counterbalance the volatile FII inflows. “Foreign flows in our market are now getting more volatile and I’m happy to note that the MF industry is now contributing to the macroeconomic stability to the country by pumping in inflows.”
Government has decided that EPFO will start investing 5% in equities and this is a stamp of approval for your industry, he added
