The Association of Mutual Funds in India has reiterated its long-standing demand to bring parity in tax treatment of mutual funds and Unit Linked Insurance Policies, both of which are investment products and invest in securities.
Markets regulator Sebi on Thursday extended the date for implementation of framework for uniformity in applicability of net asset value (NAV) across various schemes on realisation of funds to February 1, 2021.
Despite the equity funds seeing outflow for the fifth consecutive month, the overall inflows into mutual funds crossed Rs 30 lakh crore for the first time in November, driven by open-ended debt funds and mark-to-market gains after a rally in the equity markets, according to a report.
Mutual funds' asset base rose by 7.6 per cent to 29.71 lakh crore in the quarter ended December, mainly on account of the rally in equity markets. The average asset under management (AAUM) of the industry, comprising 45 players, was at Rs 27.6 lakh crore in July-September quarter, according to data by Association of Mutual Funds in India (AMFI).
The change in NAV calculation rule for uniformity in applicability of NAV across various schemes on realisation of funds was supposed to be implemented from January 1, 2021.
The AUM of the mutual fund industry grew by 13% to an all-time high of Rs.30 lakh crore in 2020 by November-end itself, from Rs.26.54 lakh crore at the end of December 2019.
Ratings agency Crisil on Thursday said the mutual fund industry will post double-digit growth for the next few years and its assets under management will cross Rs 50 lakh crore by 2025. Crisil's research wing said the increase in inflows is bound to be fuelled by investments into equities as against other asset classes.
The mutual fund industry of India and the US received "top" grade for robust disclosure practices in areas such as fees and transparency of fund holdings, according to a global study by Morningstar.
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