Left Menu
Development News Edition

Global scenario not rosy, will impact MF sector: SEBI official

Global scenario not rosy, will impact MF sector: SEBI official
Image Credit: ANI

The ongoing tension between the US and China, which has been affecting the global trade, will have its impact on the emerging markets and will not spare the mutual fund (MF) industry too, a Sebi official said on Saturday. The amount of liquidity of the US economy is being sucked out as the Federal Reserve has been "withdrawing USD 660 billion per year", Sebi's whole-time member G. Mahalingam said.

"This will definitely have an impact on the emerging markets and will not spare the MF industry. The global scenario is not rosy," he said at a program organized by the Indian Chamber of Commerce here. The official of the Securities and Exchange Board of India said that liquidity is an important benchmark. "There could be credit or operational risk.

More risk management guidelines will be forthcoming as the capital markets regulator will discuss on these issues," he said. Mahalingam said prudent management is required for the sustainability of the mutual fund industry on a long-term basis. "Sustainability is required. The MF industry is growing at 21-22 percent and this growth rate will not be there forever. It will come down," he said. Asking whether the MF instruments are competitive as compared to bank deposits, he said, "Safety of the investments is equally important and this feature has to be in-built."

The MF industry should leverage technologies and reach out to retail investors beyond metro or tier-I cities. Mahalingam ruled out the possibility of using mutual funds as payment instruments in India in near future as it is done in some other countries. He said that there is "a credibility issue" in the MF industry which can be addressed through awareness drive. N S Venkatesh, chief executive of the Association of Mutual Funds in India said that the growth of assets under management (AUM) in the industry is expected to be flat this fiscal.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.



Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Handling fake news Infodemic in time of Coronavirus epidemic

Social media has provided a platform where everybody can disseminate his her views without any supervision. Its excellent if the message is genuine but misinformation is equally disastrous. Health is such a topic where every Tom and Harry c...

Sentiment Analysis on Budget 2020: Long shot for solution to economic worries?

Industries and individuals alike had high expectations from the government to take tangible steps but the budget 2020 seems to have failed expectations....

How can technology help the future of mobility?

More than a billion people or one-third of the global rural population lacked access to all-season roads and transport services in 2016, subsequently hindering the socio-economic development....


Latest News

Blues-Ducks postponed game rescheduled for March 11

The St. Louis Blues postponed game against the host Anaheim Ducks will be played March 11. The NHL on Sunday announced the schedule change for the game that initially was postponed after Blues defenseman Jay Bouwmeester collapsed on the ben...

UPDATE 1-Golf-Scott wins by two strokes at Riviera, and this time it is official

Fifteen years after his first victory at Riviera, Adam Scott won the Genesis Open in Los Angeles on Sunday, and this time his victory is official.The elegant Australian overcame an early double-bogey to shoot one-under-par 70 and triumph by...

UPDATE 3-Virus spreads on cruise ship in Japan, U.S. passengers flying home

Hundreds of passengers were preparing to be evacuated from a cruise ship on Sunday after spending two weeks under quarantine off Japan over the coronavirus, with Americans flying home on chartered evacuation planes early Monday morning. Sev...

Islanders seek offense in the desert vs. Coyotes

The New York Islanders offensive woes didnt originate in Las Vegas. But the Islanders would be happy to have those issues stay in Vegas as they continue a Western Conference road trip on Monday at the Arizona Coyotes in Glendale, Ariz. It w...

Give Feedback