Moody’s, Icra To Unveil New Indices

Mumbai, July 25: | Updated: Jul 26 2002, 05:30am hrs
Moody’s Investors Service, along with their Indian collaborator Icra, is planning to launch co-branded indices for the domestic mutual fund (MF) industry, said Moody’s vice-president and senior analyst, Enrico Bucalossi.

Currently in India to declare the quarterly review of the CNBC-Moody’s Mutual Fund Awards, Mr Bucalossi said: “The new co-branded indices will be a marketing vehicle for Moody’s to further launch new products in India”.

The indices would be benchmarks for evaluating the performances of both equity and debt fund schemes of MFs, and would be beneficial mainly to retail investors.

In all probability, the indices will be based on weighted averages and on the relative ratio performance of the funds, Mr Bucalossi said.

The new indices from Moody’s and Icra will also be used in calculations to declare the MF awards.

On the current sceanario in the Indian MF industry, Mr Bucalossi said: “Although, market figures have been volatile over the past few months due to the Indo-Pak border tensions, the MF industry has not lost much in terms of the assets under management, which have been relatively stable”. This proves that MFs have been quite good at marketing their products, he added.

Further, according to Mr Bucalossi, the Indian MF industry is currently passing through its adolescent stage and will bloom during the next bull run. With foreign players like Dundee and Newton exiting their Indian operations, there are some other foreign players planning to make India their next destination.

Also, talks of the launch of pension funds in India will also give the required momentum to the market, Mr Bucalossi said.

Mr Bucalossi said that a lot of regulations and changes have come into effect in India due to the problems faced by the Unit Trust of India and these changes have given fund managers a niche to work.