Mutual Funds are Trend Setter ?

Rs 35 bn worth of redemeptions! That is the kind of outflow that the Indian mutual fund industry witnessed in July 2010. Reasons for the same could come from several quarters. Investors being wary of yet another crash, ban on entry loads and regulatory dispute on schemes are just a few of them. But what is certain is that the industry needs to revamp its operations on an urgent basis. In a sector where size was all that mattered, huge outflows could be suicidal. Performance has been the key metric that the mutual fund regulator is emphasizing on these days. And probably that is what even the players should focus on instead of relying on distributors to popularize their schemes.