Investors got the upper hand in 2009,as regulatory changes made mutual funds more attractive to park their money in even as the industry shrugged off recession blues with its assets hitting an all time high of Rs 8 lakh crore. The year was particularly significant as the market regulator Sebi acted in favour of the investors and eased norms making it easier for them to invest in mutual funds. The key changes include abolishment of entry load on purchase of schemes and allowing MFs to be traded on the stock exchanges. Only intermediaries,like brokers,stood to lose by this change in regulatory norm,as they stand to lose the commission they earned from entry load. "Even though these are early days,both (regulatory changes) have deep potential for a positive impact. The abolition of entry load is a significant game-changer as it completely transforms the business model of the fund distribution industry. For fund companies as well as distributors,it throws up a challenge of managing a big change if they have to flourish," mutual fund tracking firm Value Research CEO Dhirendra Kumar said. According to marketmen the move for introduction of MFs on exchanges as well as an improvement in the state of the economy would increase reach of MFs across the country.
