Assignment No.

1
Financial Services
Growth of Mutual Fund Industry.

Siddhanth Waghmare
322322

 Introduction
This assignment talks about the Mutual Fund Industry & the upcoming trends
in this industry worldwide.
This industry in India has been spread for over 2 decades and has seen its
share of success & failure. Also it is commendable that we have reached a mark of
10 trillion INR of asset under management as of May, 2014. This has been possible
due to the collaboration of the industry stake holders viz. the distributors, the asset
management company & also the regulator who has shaped the way forward for the
industry.

Analysis

Challenges for the asset managers -

 Benefits to Mutual Funds from increased use of

Digital Services
-

Number of mobile phone subscribers is increasing faster in circles

covering the smaller cities.
Yet to tap into the widespread banking network for the distribution of
mutual funds.
Most population beyond the T15 cities suffer from documentary proof.
They can just fill up the KYC form & once this is done the process will
becomes even simpler, as a KYC registered person can easily start
investing in mutual funds.
AMCs can utilize the mobile channel facilities in order to sell simpler
products in smaller towns.
Develop mobile application based sales system.
Provide SMS investment & redemption options.

The Way Forward

The Mutual asset industry needs an 'outside-in' context as looked at to 'back
to front' viewpoint. Understanding financial specialists " needs ought to be taken
after by an item channel arrangement. Various change impetuses talked about in
the past segment like innovation, interest in B-15 urban areas, speculation
counselor and so on would be required to offer assistance guarantee the general
goal of reasonable development and benefit. Expanding monetary proficiency will
be the way to open the ways to B-15 and additionally to uproot the discernment
that compares shared asset to just value. Speculator mindfulness battles ought to
be directed to build the AUM in littler urban communities which would assist
industry with progressing in an all-encompassing way. AMC, merchants what's more,
IFAs are all doing their bit yet AMFI and SEBI ought to additionally assume a
noteworthy part in making mindfulness.
Information about shared asset industry ought to be incorporated into
instructive educational modules. The mantra ought to beto catch them youthful.
Asset houses may need to discover and band together with the privilege merchant
to make the items accessible to financial specialists in littler urban areas. Along
these lines, Banks and IFAs could assume a crucial part in coming to the financial
specialist base. Likewise, merchants ought to be incentivized enough to guarantee
that they anticipate common assets as a long haul speculation for satisfying
budgetary objective.
Technology can go about as a key empowering agent and offer the asset
some assistance with housing achieve financial specialists requiring little to no
effort and more effective way. AMCs need to make the significant interests in
innovation to reach financial specialists to guarantee exchanges on their preferred
channels.

The future capability of Investment Advisors could be chosen by Investors

and the controllers. Vicinity of an unprejudiced counsel could construct speculator
trust from one viewpoint and prize performing items on the other.