‘Some changes in RGESS can be very useful’
The asset under management (AUM) of ELSS have swelled to a two-year high. What is your outlook for the year 2013?
The number of people utilising the tax benefit under ELSS is reduced because for most people the Rs 1 lakh limit under Section 80C gets exhausted by their PF, PPF and insurance premium. The assets would have been much bigger (at least three times better) if it is under different section since the performance of these funds is very attractive.
Much has been said about Mutual Funds getting investors from smaller cities. Are you looking at any concrete steps in the direction?
Post the September 2012 circular, asset management companies are actively putting their strategies together to penetrate into smaller cities. Converting investors from smaller cities typically requires lots of efforts and convincing. The fact remains that mutual fund products are still a push products. Our members are conducting Investor Awareness Programmes to the extent of about Rs 1,000 a month. Of this more than 80 per cent of the programmes are conducted in cities which are beyond the top 15 cities. It is a clear indication of the efforts. Moreover, we are planning to conduct some camps in various smaller cities in India,