1. Vis-à-vis India
-Akarshi Jain

2. What is mutual fund market?
 made up of a pool of funds
 collected from many investors for the purpose of
investing in securities
 Operated by money managers, who invest the fund's
capital and attempt to produce capital gains and
income for the fund's investors.
 Portfolio is structured and maintained to match the
investment objectives stated in its prospectus.

3. Advantages of Mutual Fund
 Small investors have access to professionally
managed, diversified portfolios of equities, bonds and
other securities
 Each shareholder participates proportionally in the
gain or loss of the fund.
 Mutual fund units, or shares, are issued and can
typically be purchased or redeemed as needed at the
fund's current net asset value (NAV) per share.

4. Profile of Japanese Mutual Funds
Market
 Japan's mutual fund market 8th-biggest in the world
 Lehman Shock in 2008
 Europe's debt crisis and the yen's strength.
 Japanese Investors suffered investment losses of $169
billion

6. Recent Trends in Investment in
Mutual Funds
 Japanese individuals hold some $15 trillion in assets
 Less than 5 percent goes into the mutual fund market.
 Most stays in bank and postal deposits
 attracted net inflows in 2011 for the 8th consecutive
year
 mutual fund buying by retail investors is shrinking.

7.  The amount of initial inflows into newly launched
mutual funds fell to 1.63 trillion yen in 2011, down 32
percent from the previous year.
 2013: The Japanese mutual fund market grew by a
record amount in 2013, boosting overall asset size
above 80 trillion yen
 Net Inflows rose by almost six times from a year earlier
to 10 trillion yen

8.  Retail investors poured huge amounts of money into
foreign high yield funds, real estate funds and
exchange-traded funds in 2013.
 The weakness of the yen is expected to help boost
performance and lift the asset value, as many funds are
foreign currency-denominated funds

9. Changes
 Asset management companies and fund distributors
are becoming reluctant to market sophisticated
products such as dividend-oriented funds
 Japanese regulators tighten rules on selling such
products, requiring investors to be given a full
explanation of the risks.
 launch of a tax-free investment facility dubbed
NISA, for the Nippon Individual Savings Account

10.  4.4 million Japanese have opened such NISA accounts
by Jan. 1.
 The government projects NISA accounts could draw
more than $250 billion by 2020.

11. Mutual Fund Market in India
 Mutual Funds available for over two decades in the
market.
 Less than 10% of Indian households have invested in
mutual funds
 perceived high risk and a lack of information on how
mutual funds work

13.  The industry witnessed consistent declines of 6.3
percent and 5.1 percent in 2011 and 2012 respectively.
 concentration of mutual funds to a few major cities
Regulation Changes:
 Changes in regulatory guidelines-example ban on
entry load, stringent KYC norms, guidelines on
transaction charges, tightening valuation and
advertisement norms

15.  As concentrated in few cities, AMCs are allowed to
charge an additional total expense ratio.
 SEBI has also relaxed the mandatory requirement of a
permanent account number (PAN) card or bank
account for cash investments of up to INR 20,000 per
financial year
 simplify the distributors’ registration process and
widen the distributor
 Mandated AMC’s to set aside certain percentage for
investor education fund.