Indian MF industry most transparent: Sebi official

Vijayawada : The Indian mutual fund industry is one of the most transparent in the world, according to Manoj Kumar, executive director of the Securities and Exchange Board of India (SEBI). Speaking at a Mega Regional Investor Seminar here on Saturday, Kumar emphasised SEBI’s commitment to enhancing investor awareness, protecting investor interests, and promoting long-term wealth creation. The event, jointly organised by SEBI and the Association of Mutual Funds of India (AMFI), was part of the ‘Mutual Fund Sahi Hai’ investor awareness programme.

Kumar highlighted SEBI’s efforts to maintain transparency in the stock market, including the introduction of electronic trading. He stressed the importance of educating investors to empower them to make informed financial decisions. “An informed investor is an empowered investor,” he said, adding that such awareness programmes are crucial for ensuring financial security and long-term stability. He also encouraged investors to take calculated risks and explore mutual funds as a viable investment option.

The seminar, inaugurated by Vijayawada East MLA Gadde Ram Mohan, aimed to equip investors with essential financial knowledge and promote responsible investing. Experts from leading asset management companies discussed the shift from traditional savings to structured investments, offering guidance on various investment avenues and wealth-building strategies. Kumar noted that while investors in Andhra Pradesh traditionally prefer investing in land and gold, there is significant potential for diversification into mutual funds.

Venkat N Chalasani, chief executive of AMFI, stressed the importance of investor education in building a resilient financial market. He stated that AMFI is dedicated to helping investors navigate market cycles, mitigate risks, and build long-term wealth. Chalasani also pointed out that AP’s contribution to the national stock market is only 1.25 per cent, despite accounting for 8 per cent of India’s GDP, indicating untapped potential for mutual fund investments.

MLA Ram Mohan echoed these sentiments, urging investors to move beyond traditional investments like gold and land. He cautioned that declining population trends in AP could reduce future demand for land, potentially impacting prices. He advised investors to exercise caution and conduct thorough research before making investment decisions.

The seminar is part of a broader initiative to conduct similar events across Andhra Pradesh, fostering a culture of financial awareness and responsible investing. With SEBI and AMFI’s collaborative efforts, the mutual fund industry aims to build trust and confidence among investors, particularly in developing regions, while contributing to the growth of the Indian economy.