COVER STORY

Mutual Fund Industry in India On a Growth Trail

- - Amit Singh Sisodiya Feroz Zaheer and Aala Santhosh Reddy

The mutual fund industry in India has been on a roll as the assets under management continue to see strong spurt in growth. The assets under management swelled to Rs. 1,67,978 cr by May 31, 2005 from Rs. 1,01,565 cr in January 2000. This apart, the industry has also seen a spurt in the number of schemes on offer, which amount to 460 at present, catering to varied needs of investors. A booming economy, soaring stock market, and a conducive regulatory environment, amongst a slew of other factors have added to the growth of the Industry. Given the huge opportunity in sub-urban and rural markets, which lie hitherto untapped, and growing income levels in the country, the industry's future looks bright.

© 2005 IUP. All Rights Reserved

MARKET PENETRATION

Market Penetration Redefining Distribution

- - Amit Singh Sisodiya and Shishir Kumar

To realize the potential of the mutual fund industry, AMCs will have to overhaul their channels of distribution to garner greater penetration.

© 2005 IUP. All Rights Reserved

MUTUAL FUNDS

Mutual Funds Busting the IPO Myth

- - Amit Singh Sisodiya and Priyanka Sugandhi

If you have mistaken a mutual fund IPO for a stock IPO, it is time for a reality check. Contrary to the popular perception, a mutual fund cannot launch an IPO. It can only launch a new scheme, and the word IPO is strictly used in the context of public offering of shares by a company, for the purpose of listing it later on a stock exchange.

© 2005 IUP. All Rights Reserved

MUTUAL FUND REGULATIONS

Mutual Fund Regulations Facilitating Growth

- - Amit Singh Sisodiya and Ravi Babu Adusumilli

A slew of regulations by Sebi in recent times have not only instilled confidence in investors, but also facilitated strong growth for the mutual fund industry in India.

© 2005 IUP. All Rights Reserved

GOLD EXCHANGE TRADED FUNDS

Gold Exchange Traded Funds Bullion and the Bourse

- - Ch Rajeshwer and Sharath Jutur

GETFs are all set to transform gold into tradable security, just like stocks. That will be a giant leap for the gold market.

© 2005 IUP. All Rights Reserved

MUTUAL FUNDS PERFORMANCES

Mutual Funds Performances Comparative Analysis

- - Amit Singh Sisodiya and Aala Santhosh Reddy

My bounty is as boundless as the sea, My love as deep; the more I give to thee, The more I have, for both are infinite.

-- Shakespeare in Romeo and Juliet

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

AMFI's Decade-long Existence

- - A P Kurien

"The regulatory standards and the regulatory provisions for mutual funds in India are among the best in the world."

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

Equity Schemes Gaining Flavor

- - N R Ramanujam

"During the last 1-2 years, the retail participation in the equity schemes has increased and the same is visible in terms of increase in AUM under equity schemes."

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

Room for More Players

- - T P Raman

"We believe that we are just about in the growth stage with the Indian market stabilizing; we think that the market will become enticing for more players to enter."

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

Comprehensive Regulatory Framework

- - Shashi Krishnan

"The regulatory environment for Mutual Funds in India has evolved over the years and today there is a very comprehensive regulatory framework governing the Mutual Fund industry."

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

Effective Risk Management Practices

- - Nilesh Shah

"We have introduced risk management parameters of our own so as to raise the bar in our effort to protect the interests of our investors."

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

Mutual Fund Investment Strategies

- - S K Das

"We follow a bottom-up strategy with regards to stock selection, keeping in view medium to long-term growth prospects."

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

Tapping the Untapped

- - Sameer Kulkarni

"At Franklin Templeton, we have always believed that the litmus test for the domestic mutual fund industry would be to expand the distribution network to sub-urban and rural areas where most of the small investors live."

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

Branding in Mutual Fund Industry

- - V Uday Shankar

"It is important to create a well-connected association/bond with the fund's overall objectives. Branding, however, becomes a mere cost exercise if the fund house does not deliver the results that satisfy the needs of its clients, the investors."

© 2005 IUP. All Rights Reserved

EXPERT VIEWS

Tremendous Potential

"Mutual Funds today form 1/10th of the banking industry's size. If we compare this an indication in the current interest rate scenario, MF has ample shelf-space to grow into an industry like the banking industry in India."