Religare joins list of fund houses, more to follow MUMBAI: Even as the prospect of healthy returns from equities gets cloudier by the day, Indian retail investors are set to get more options to invest their savings. Religare will become the 37th asset management company to offer mutual fund products as it received the final approval from Sebi on Thursday.
This approval comes in the wake of Schroeders, a UK AMC, getting an in-principle approval to start an AMC recently and people familiar with the situation said that Shinsei Bank could be next in the line to get a final approval. Over the next few months, the number of mutual fund companies operating in India is set to go up sharply. There are as many as 15-20 new ones that are likely to start, bringing the total up to over 55. The question that analysts are asking is whether there is any need for such a large number of AMCs, especially when the existing ones are bleeding due to loss of appetite for equity products among Indian investors. Says Religare Aegon AMC chief executive Saurabh Nanavati: "For long-term players, temporary conditions in the market are irrelevant. If you show performance, then distributors and investors will definitely come to you in the course of time." Other fund managers say the entry of newer players is desirable as it will lead to more choice for Indian investors. But this argument is not finding many takers. Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ "Unfortunately, investment management (and other financial services) is not an industry where more competition which means a better quality of products," says Dhirendra Kumar, who runs a popular MF investment portal Valueresearchonline. "If 10 AMCs competing with each other leads to 10% of the funds delivering great returns, then it doesn't quite follow that 20 competing AMCs will result in 20% of the funds delivering even greater returns," he quips. But less than half a per cent of Indians invest in funds today, a number which is bound to grow to several times in just a few years. This is the market that the upcoming AMCs are hoping to tap. AMCs launched by Axis Bank, Peerless, Jaypee, DLF, Union Bank, Indiabulls, Nikko and many more are expected to be operational in the coming years. -- Visit site at – http://investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Forums- http://forums.investorline.co.in/ Iwebs Open Source Web Publishing Platform - http://webs.investorline.co.in/iwebs/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
