Sebi today told mutual fund houses that it is working to expand distribution channels in the fast-growing industry even as the regulator said players seem to be unwilling to reduce costs for retail investors.
While expressing satisfaction over the overall growth of domestic mutual fund industry, the markets regulator has also emphasised that it is not against distributors.
Sebi Chairman U K Sinha, who addressed the annual general meeting of the Association of Mutual Funds in India (Amfi) here, said the regulator wants to create more distribution channels, according to sources.
The Securities and Exchange Board of India (Sebi) is working on ways to further deepen the distribution network for mutual funds. Recently, the regulator said a new online platform for buying and selling of mutual funds would be put in place.
According to sources, Sebi chief expressed satisfaction about the growth of the mutual fund industry and mentioned that the sector has been seeing encouraging trends in recent years.
Currently, the mutual fund industry’s asset base is worth over Rs 15 lakh crore while the number of folios is close to 5 crore.
Sources also said Sinha indicated that cost of investing in mutual funds could be reduced further for retail investors.
“Mutual fund houses are willing to add more zeros after decimal and substantially reduce cost for the assets under management from institutional investors but they are unwilling to reduce cost for retail investors,” a source, who was present at the meeting, said.
At the general meeting, the procedure for selection of Amfi office bearers was also discussed.