Money & Banking

Sinha voices concern at declining retail participation in MFs

Our Bureau Mumbai | Updated on June 26, 2013

SEBI Chairman U. K. Sinha (file photo)

SEBI Chairman U. K. Sinha has expressed concern over the diminishing participation of retail investors in mutual funds.

Speaking at the 9th CII Mutual Summit in Mumbai on Wednesday, he said "the retail investor’s contribution as a percentage of assets under management has been going down. In 2011, it was 28 per cent. It came down to 27 per cent in 2012. In 2013, it is 23 per cent. The number of folios has also come down for the last five quarters."

On allowing AMCs to manage pension money, Sinha said "SEBI has allowed AMCs to manage any pooled investments. How many AMCs have marketed the proposition to corporates of managing their employee money, especially those who draw more than Rs 6,500 per month?” he asked.

It is mandatory to put money in the Employees' Provident Fund Organisation (EPFO) for employees who draw a monthly salary of less than Rs 6,500.

SEBI will be there to help if the AMCs want to manage these funds, said Sinha.

Sinha said SEBI would receive applications from eligible entities for setting up a self-regulatory organisation (SRO) for mutual fund distributors until July 31.The SEBI board on Tuesday decided to have a single SRO.

Published on June 26, 2013

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