Bank MFs face the heat - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Bank MFs face the heat

Dec 22, 2000

News reports in leading business dailies indicate that some bank-sponsored mutual funds are looking to exit from the mutual fund business.

The writings on the wall for bank sponsored mutual funds. A sharp slump in performance coupled with declining investor interest are the main reasons for these funds heading for the exit door. Apart from some exceptions like Canbank MF and SBI MF, others like PNB MF and Bank of India MF failed to incite investor interest with innovative products like open-ended monthly income plans, liquid/money market funds, gilt funds. Given their extensive bank network these mutual funds had an enviable distribution channel. In fact, private funds have begun to realise the importance of banks in the distribution of mutual funds and are tying up with them with this objective. The Kothari Pioneer IndusInd Bank tie-up is a case in point.

Falling industry share and market realities have woken up bank funds to the fact that fund management is just not their forte. News reports reveal that PNB MF and BoI MF are looking to exit from the business. Other bank funds are looking to divest some stake in favour of a foreign partner.

Regardless of the condition of most bank-sponsored funds, news reports indicate that there are some banks are waiting to get into the mutual fund business viz. Jammu & Kashmir Bank, ABN Amro Bank. It remains to be seen how these banks plan to woo investors and succeed where others before them have failed.

Equitymaster requests your view! Post a comment on "Bank MFs face the heat". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS