INSUBCONTINENT EXCLUSIVE:
Mumbai: Alpha generation is going to be an obsession in the mutual fund industry
However, this cannot be the sole factor driving the whole industry, said G Mahalingam, whole-time member, Sebi
He emphasized that the industry should focus on widening the customer base and include more retail investors
Speaking at CII Mutual Fund Summit in Mumbai, he added that the search for yield is going to intensify going forward
investing, Mahalingam said that the strategy is yet to get a boost from the industry
His views came after the market regulator on Thursday said that it has allowed investors to directly access stock exchange infrastructure to
purchase and redeem mutual fund units.
Mahalingam is sure that the mutual fund industry will grow in the coming years
There is a need to look beyond big cities
scope for the growth of the mutual fund industry
However, he added that shift from active investment to passive is one the biggest challenges for the industry.
Venkatesh also added that the
compression of fees for asset management companies is another challenge for the industry
foreign institutional investors