Policy vacuum in MFs,rues Sinha

Mutual funds,unlike other sectors,have no such policy,he said,adding that the only legislation pertaining to the mutual funds is the UTI Act,1964,which was created with the objective of mobilisation of domestic and corporate savings. He,however,added that despite this,the MF industry has always acted as a shock absorber in case of a liquidity crisis.

On the performance of the industry,Sinha said,8221;About 79 per cent of the assets under management AUM performed better than the benchmark index in the last one year,whereas for the last 5 years,the rate was about 77 per cent.8221;

Despite the global economic crisis,none of the MF companies in India defaulted due to high redemption pressures,he said.