For private circulation only

A N e w s l e t t e r o f th e A s s o c i a t i o n o f M u t u a l F u n d s i n I n d i a January - March 2005 Vol : IV. Issue : IV

FROM THE CHAIRMAN’S DESK Fiscal 2004-05 gone by, was a year with a difference for the mutual fund industry. It was the year in which the largest number of new schemes – 97 in all, were launched in a single year. This was a record. The amount mobilised by the new schemes at over Rs. 25,000 crores was also a new record. The gross amount garnered was as high as about Rs. 8.40 lakh crores – up by 42 percent over the year. But what is indeed discouraging, is the fact that the net accretion at only Rs. 2,154 crores was the lowest in the last five years. This was mainly due to the net outflow of over Rs. 14,000 crores from the Income Funds and Rs. 1,345 crores from Gilt Funds coupled with a substantially lower net inflow of Liquid Funds (Rs. 10,347 crores as against Rs. 24,577 crores last year). Inspite of 36 new equity schemes mobilising Rs. 11,756 crores, ten times more than in the previous year, the net mobilisation under equity schemes was only Rs. 7,247 crores, lower than in the previous year. May be, this is a temporary phenomenon reflecting the market realities and the scenario might change in the years to come. Yet, isn’t this a situation that needs to be analysed, lessons learnt and suitable measures taken ? Well, the industry has a challenge before it – a challenge to reach out to retail investors and to position the mutual fund products as a long term investment avenue for the household sector. This is an ongoing task, that we all have to undertake in a sustained manner. We extend our warm and cordial welcome to Mr. M. Damodaran, IAS, who has been appointed as Chairman of SEBI. We look forward to his guidance and support. Yours,

A.P.Kurian Chairman May 5, 2005



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