Over 200 luminaries were present at SEBI's workshop for Mutual Fund Trustees and Independent Directors of Asset Management Companies yesterday, at Mumbai. SEBI Chairman, Mr. Bhave made a couple of interesting observations:
1. Profits of Asset Management Companies have gone up four-fold since SEBI banned entry loads.
2. People talk of investors withdrawing money from mutual funds - decline of Rs10,000 crore in 1 year. The gross figures are - Addition Rs63K; Reduction Rs73K. If Rs63,000crore of new money came into mutual funds - then taking a saving of 2% (on account of entry load being banned), investors have benefited to the extent of Rs1,260crore. Which other regulatory move has given back Rs1,260 crore to investors in 1 year?
Definitely worth pondering over.
