Page 19 - BANKING FINANCE APRIL 2017
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MUTUAL FUND
MUTUAL FUND
Mutual Fund investment NRIs want to invest in Indian mutual funds because of
rises by 8% in 2016 strong economy
A major chunk of NRIs are now obtaining for investing in Indian mutual funds
More investors seem to be looking at
India as which has gone up in the last two months, say sev-
fundraising eral mutual fund advisors. "The number of NRI cli-
ents in our client base is on a rise recently. This is
for invest-
mostly because of the strong Indian economy and
ing the
capital in the great show by Indian stock markets and the
the country jumped by about 8% in mutual fund industry," says Neeraj Chauhan, CEO,
The Financial Mall.
2016 as against a year earlier, accord-
ing to a Bain Private Equity Survey. Mutual fund advisors believe that apart from the India Story, gloom in the real
estate sector is also prodding Indians abroad to explore lucrative avenues like
"India continued to be an attractive
Indian mutual funds. "After 2011, NRI investors quit the real estate sector as it
destination for investments, as funds was not paying off. Now, the gears have shifted to mutual funds," says Puneet
allocated to India increased by 8% Oberoi, a Certified Financial Planner (CFP), based in Delhi.
over the previous year", the India
Private Equity 2017 report said. Indian mutual fund industry has been growing at a rapid pace lately. The indus-
try manages a record Rs 18 trillion, according to AMFI data. After the currency
This comes at a time when fund rais-
withdrawal of the central bank and lower interest rates on bank deposits are
ing in Asia-Pacific region dropped by
forcing investors to consider mutual funds.
about 16% in the same period. The
jump in the India numbers seem to SEBI mulling to introduce ARFP
be on account of new asset classes
The Securities and Exchange Board of India (SEBI) is mulling to come up with
like alternate investment funds (AIF) Asian Region Fund Passport or ARFP that means Indian
the report added.
mutual fund schemes will be allowed to be sold in Asian
"New asset classes like alternative in- countries without regulatory approvals, according to
vestment funds (AIFs) have grown in the sources in the industry.
the Indian market, aided by govern- Mutual Fund 'Passporting' or fund passport, once
ment regulations and tax breaks. implemented will allow cross-border marketing of
Registered AIFs in India have more managed funds across participating economies in the
than doubled over the past two years Asian region. If implemented, domestic mutual fund
and stood at approximately 270 in schemes will be allowed to sell mutual fund schemes in Asian countries without
2016", it added. the fund house having to register separately with the regulator of that country.
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