Securities and Exchange Board of India’s (Sebi) decision to allow mutual fund houses to charge additional expenses from customers from beyond top 30 cities, as against 15 earlier will help in increasing penetration of such products, experts said.
“Sebi is now worried to develop the interiors of B-30 cities. So it augurs well for financial inclusion and availability of mutual fund investment products to the retail people,” Quantum Mutual Fund managing director and chief executive officer (CEO) Jimmy Patel said.
Echoing the view, Ashish Chauhan MD and CEO BSE, which runs mutual fund distribution platform BSE StAR MF, said that the move will help penetrations beyond 30 cities. “The present effective B15 concept had indeed helped penetrations beyond 15 cities and it presently accounts for nearly 20 per cent of the industry’s assets under management,” he said.
