assets under management

Market regulator Sebi is likely to make it mandatory for mutual fund players to declare their assets under management (AUM) and details of new schemes to ensure that retail investors take informed decision before investment. SEBI is working towards making MF industry disclose their AUM for a retail investor to understand. If you are making a particular scheme, it is important for a retail investor to know what has been the track record of the fund manager. We see no prob.. Full Article

The Reserve Bank of India (RBI) advisory to banks for limiting their mutual fund (MF) exposure has prodded the lenders to put in place a detailed investment norm. While large banks were capping their MF exposure at 20 per cent of total investment, smaller banks were limiting such investments to Rs 1,000 crore, executives at public sector banks said. Full Article

The mutual funds advisory committee, which met on Friday, has recommended that asset management companies lower the fund management fee from the present level. Fund houses currently charge 1.25 per cent as asset management charges for the first Rs 100 crore (Rs 1 billion) garnered by a scheme, and 1 per cent thereafter. Full Article

These are uncertain times. The subprime mortgage crisis weighs heavily on the financial markets and it is starting to cause considerable collateral damage to the wider economy. The outlook for 2009 is bleak, and the major economies in the US and Europe can expect deep and prolonged recessions. Some asset managers have felt the full force of the downturn, as collapsing investor confidence has sparked a massive withdrawal of funds. Full Article