Afternoon Voice

AMFI’s next campaign to focus on debt funds investments advantages

The Association of Mutual Funds of India (AMFI) is all set to come out with its next campaign that will focus on the benefits of investing in debt funds, following the popular ‘Mutual Funds Sahi Hai’ drive.

“We are now planning the second phase of mutual funds campaign on debt investment benefits. It is expected to be aired from the third week of September,” AMFI Chief Executive N S Venkatesh said.

Venkatesh said at present, debt fund investment by retail investors constitute just 10 per cent, while the rest is equity, and this ratio is not prudent asset allocation.

He said in the 2018-19 fiscal, AMFI will spend Rs 150-175 crore to promote mutual funds investments. In the last fiscal, it had spent Rs 200 crore for the purpose.

“There is no plan to pull-out the ‘Mutual Funds Sahi Hai’ campaign. Instead, it will become the master campaign brand and sectoral products will also come under it,” he said.

Regulator SEBI has repeatedly stressed that risks associated with mutual fund investments should be clearly spelt out.

It has also called for rationalisation in the Total Expense Ratio (TER) of the MF industry.

“There is a need to have more competition in the sector and there is a need for TER rationalisation. We are looking into this,” SEBI chief Ajay Tyagi had recently said.

The concept of TER started in the late 90s when assets under management (AUM) was Rs 50,000 crore and today it is Rs 23 lakh crore. “Therefore, we are examining the need for rationalisation,” he had said.

Meanwhile, Venkatesh said that only two crore PAN card holders are active investors in mutual funds out of a total of 29 crore card holders, indicative of the potential the industry holds.