Addressing the mutual fund fraternity at the fourth global Mutual Fund Summit 2008 organised by the Confederation of Indian Industry (CII), Bhave said investors now get different statements for investments made in various fund houses. The industry should look into developing a depository-like system that will help investors receive a consolidated statement, instead of different statements from various fund houses, he said.
The Sebi chairman said that an advisory committee for the mutual fund industry would be set up soon on the lines of the Primary Market Advisory Committee and the Secondary Market Advisory Committee. It will discuss and debate issues and policies for the sustainable growth of mutual funds,
He said that trustees play an important role in the proper functioning of the fund houses. A workshop on trustees will be conducted in two months to discuss how to make this office more effective. Intermediaries and investors can also be invited to share their views on how to further strengthen the trustee office.
Bhave said the MF industry should focus on the needs of investors. The industry could conduct a survey among investors to understand their grievances and concerns and to know which schemes they invest in to get better returns.
The shift of focus to clients needs would be in the interest of the MF industry. All the players in the industry are competing for savings of investors. Thus, in order to attract more investors and grow, it is pertinent to overcome challenges, he said.
Bhave said that a re-look at the distribution model is needed. Human resource is not only an issue of the industry but also for the investors, he said.
Setting the tone of the conference, UK Sinha, chairman, CII Mutual Fund Summit 2008, and the chairman of UTI AMC, said that mutual funds were a maturing market and that there is a growth momentum to sustain it.
AP Kurian, chairman, Association of Mutual Funds in India, said that mutual funds should also be allowed to offer pension funds.