|
As mutual fund participation expands beyond traditional investor segments, SEBI Chairman Tuhin Kanta Pandey has stressed the need for stronger governance and oversight, while calling for products, distribution and communication to adapt to the growing participation of first-time investors and people from smaller towns.
Speaking at the 31st foundation day of the Association of Mutual Funds in India (AMFI) in Mumbai, Pandey underlined the growing role of mutual funds in channelising household savings into the productive economy. "Mutual funds perform a dual role - helping households participate in India's growth and channelling their savings into the productive economy," said Tuhin Kanta Pandey, Chairman, SEBI. He also cautioned that the expanding scale and complexity of the industry places a greater responsibility on fund managers and other stakeholders. "The mutual fund industry manages public money, which brings with it a special fiduciary responsibility. As the industry grows in scale and complexity, governance and oversight must keep pace," the SEBI Chairman said. Pandey said the next phase of growth in the mutual fund sector would increasingly involve investors who have traditionally had lower participation in capital markets. "The next generation of investors will increasingly come from smaller towns, first-time investors and under-represented segments. Products, distribution and communication must adapt accordingly," he said. AMFI Chairman Sundeep Sikka said the industry now faces the challenge of taking the culture of disciplined and long-term investing to a wider section of the country while building confidence among new and underserved investors. "The opportunity now is to take this progress to a wider section of the country by strengthening investor awareness, expanding access and building greater confidence among first-time and underserved investors," said Sundeep Sikka, Chairman, AMFI. AMFI Chief Executive Venkat N. Chalasani said simplicity, accessibility and trust would be critical if mutual funds were to become relevant to a broader section of households. "For mutual funds to become truly relevant to every household, investing must be simple, accessible, trustworthy and aligned with everyday financial needs," said Venkat N. Chalasani, Chief Executive, AMFI. Chalasani also highlighted the role of distributors in expanding the industry's reach, while stressing that growth should not come at the expense of responsible conduct. The comments come as the mutual fund industry seeks to broaden investor awareness across smaller cities, women, first-time investors and members of Self-Help Groups and microfinance communities. As part of the initiatives announced at the event, AMFI said it would work with the National Institute of Securities Markets (NISM) on workshops for mutual fund distributors covering fiduciary responsibility, ethics, compliance, mis-selling, churning and data privacy. The programme is expected to cover around 10,000 distributors over the next 12 months. Another initiative with Sa-Dhan, an RBI-recognised self-regulatory organisation for the microfinance sector, will focus on investor awareness among Self-Help Group members and microfinance borrowers. The association also announced the Bharat Nivesh Mela, which is to be piloted in five cities during World Investor Week and will seek to simplify investment concepts such as systematic investment plans, compounding, asset allocation, market volatility and fraud prevention. A women-focused financial awareness initiative with Pinkathon is also planned across multiple cities, while the latest AMFI-Crisil Fact Book 2025-26 was launched with data on the changing profile of mutual fund investors, women's participation, SIP growth and the geographical expansion of mutual funds. (ANI)
|
