SEBI's latest norms on remuneration of key employees in which it has asked AMCs to pay 20% of the total net salary in the form of MF units, has boosted investor's confidence on Mutual Fund products and overall Industry.
( These units will be locked in for three years)
Who will have to invest where?
Every Key employee will have to invest their salaries. This circular applies to not just senior employees but junior research staff, dealers, and support function heads. The dedicated fund managers managing only a single scheme/single category of schemes will have to invest in them 50 per cent of the mandated compensation, while they can diversify in other schemes with the remaining 50 per cent.
Imagine, its like a restaurant owner is asked to eat the same food which he/she is selling. This is a great way to build trust among end consumer.
In last few years, SEBI has taken many strong and appreciable steps to strengthen the Mutual Fund Industry. It is quite obvious why they are doing so ? To build boost the investors confidence in Mutual Fund, which is surely the best and most secured way to invest in Indian Financial Market - specially for retail investors. Assets managed by the Indian mutual fund industry has increased from Rs. 24.71 trillion in March 2020 to Rs. 32.17 trillion in March 2021. That represents 30.20% increase in assets over March 2020
Indian investors have not only gained handsome returns from Mutual Fund schemes, but have also realised that this is one of the safest , transparent and well regulated product category. And safety does not mean guaranteed return - but transparency and liquidity ! See the chart below to check the investment trend of Indian investors in various Mutual Fund Category :
Mutual Fund is a vehicle to reach to your desired Financial destination , whatever it be : retirement, Monthly Income , Tax Savings , Kids education, wealth building etc . Are you riding on the right vehicle ?
Given below is the table of all MF Scheme performance chart - category wise ( as on 30th April 2021) :
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Author, Mr Abhinesh Kumar is a veteran in Mutual Fund Industry with over 25 Years of experience . Send any of your query related to the Author, at : firstname.lastname@example.org
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