The inflow is in line with Bombay Stock Exchange’s benchmark Sensex rising around 10 per cent during the first four months of the current financial year. At present, the mutual fund industry is managing an asset base of about Rs 20 lakh crore mark.
Broadly, there are two routes available for investment in mutual funds. Investors with a good understanding of their investment needs and decisions can opt for direct plans of mutual fund schemes, while others can go through distributors for a seamless experience.
According to the data sourced from Association of Mutual Funds of India, the industry paid a total of Rs 1,832 crore in salaries for the year 2014-15 and it was 105 per cent of the total amount that the industry earned in profits during the year.
The term ‘commission’ here refers to all direct monetary payments and other payments made in the form of gifts, rewards, trips, event sponsorships etc by AMCs/MFs to distributors.”
MF investment cap with a single issuer cut from 15% of net asset value to 10% of NAV.
While pension schemes of insurers are under the Insurance Regulatory and Development Authority, schemes floated by mutual funds are regulated by the Securities and Exchange Board of India.
Experts feel that if domestic investors had not participated in big numbers, the fall in the markets would have been more pronounced.
Interest rates in India are on a downward trajectory and RBI is expected to go for a rate cut in its next monetary policy review on June 2 which only augurs well for debt investment.
Even the balanced scheme and equity linked savings schemes witnessed strong net inflow over the last one year.
Financial planners say the low popularity of the schemes is due to the tax treatment at the time of withdrawal.
The finance ministry last November announced a liberalised DR scheme that includes new asset classes.
The last six months has seen a rise in inflow into equity linked savings schemes of mutual funds with investors putting in about Rs 1,316 crore in them.
The CNX Nifty gained 19 per cent in the six months ended September 2014.
Mutual fund managers dropped their exposure in bank stocks to Rs 55,398 crore in September.
The comparative analysis between debt-based funds and S&P India’s two benchmark indices — government bond index and bond index — is for the five years ended June 2014.