Sandesh Kirkire, CEO of Kotak Mutual Fund and a member of managing committee of the Association of Mutual Funds in India (AMFI), felt that fundamentally there is no problem with the SEBI guid
eline.
``It`s a good initiative to let the customer decide what he wants to pay. But the guideline says that there should be two separate cheques of which one would be towards payment of distributor`s commission. At a time when the industry is under-penetrated, it is important to keep the process easy to increase penetration,`` Kirkire added.
Ajay Srinivasan, chief executive, financial services, Aditya Birla Group said, ``This is a matter that the industry needs to discuss and decide on, keeping the long term agenda for the mutual fund industry in mind. This will not only bring greater flow of funds into the mainstream economy, but will also give the individual investor the opportunity to create wealth.``
``However, to achieve a multiple increase in retail penetration, there is a cost of expansion. With the recent announcement, the question we need to ask ourselves is how we will achieve this market expansion now. An entry load does help to part fund this ambition,`` Srinivasan added.
Speaking on condition of anonymity, an industry official said, ``The MF industry is unhappy over the SEBI move to do away with entry load on fund schemes. Abolishing entry load could slow the growth of the industry since a part of the entry load was used for activities like investor education, marketing, sales, research, etc.``
``It would be a major internal hurdle in the short-term for all mutual funds. We expect a re-jig in terms of exit load for mutual funds,`` said Waqar Naqvi, CEO of Taurus Mutual Fund.
For further details visit as : www.myiris.com/newsCentre/newsPopup.php?fileR=20090622102516173&dir=2009/06/22&secID=livenews
eline.``It`s a good initiative to let the customer decide what he wants to pay. But the guideline says that there should be two separate cheques of which one would be towards payment of distributor`s commission. At a time when the industry is under-penetrated, it is important to keep the process easy to increase penetration,`` Kirkire added.
Ajay Srinivasan, chief executive, financial services, Aditya Birla Group said, ``This is a matter that the industry needs to discuss and decide on, keeping the long term agenda for the mutual fund industry in mind. This will not only bring greater flow of funds into the mainstream economy, but will also give the individual investor the opportunity to create wealth.``
``However, to achieve a multiple increase in retail penetration, there is a cost of expansion. With the recent announcement, the question we need to ask ourselves is how we will achieve this market expansion now. An entry load does help to part fund this ambition,`` Srinivasan added.
Speaking on condition of anonymity, an industry official said, ``The MF industry is unhappy over the SEBI move to do away with entry load on fund schemes. Abolishing entry load could slow the growth of the industry since a part of the entry load was used for activities like investor education, marketing, sales, research, etc.``
``It would be a major internal hurdle in the short-term for all mutual funds. We expect a re-jig in terms of exit load for mutual funds,`` said Waqar Naqvi, CEO of Taurus Mutual Fund.
For further details visit as : www.myiris.com/newsCentre/newsPopup.php?fileR=20090622102516173&dir=2009/06/22&secID=livenews
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