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00:03 Is that regulators have created non-level playing field
00:18 between mutual funds and ULIP?
00:21 When you move between equity and debt in ULIP,
00:24 it doesn't get taxed.
00:26 In mutual fund, it does get taxed.
00:29 When you withdraw money from mutual funds,
00:31 you pay capital gains tax, short term or long term.
00:34 In ULIP, that's not paid.
00:36 So there is a normal race being run by ULIP
00:40 and a hurdle race being run by mutual funds.
00:43 As long as we have products which
00:44 serve the need of the customers, as long as we have fund
00:47 managers who can deliver value to the customers,
00:50 and as long as we have distributors
00:52 who can carry that message to the investors,
00:54 I think the future of mutual fund industry is ahead.
00:57 I think in India, the mutual fund investors,
00:59 if you see, 2% of the population has
01:01 been investing in mutual funds.
01:03 And majority of these investors, they
01:05 love looking at either gold, real estate.
01:08 And when this money comes into mutual fund industry,
01:11 even after the LTCG, the kind of returns
01:14 the mutual fund industry can generate,
01:16 this 10% does not impact.
01:18 Mutual fund industry is going to be driving the key change
01:21 in the Indian capital markets.
01:22 And now mutual funds is going to-- and SIPs
01:24 is going to become a part of monthly wallet
01:26 for every Indian.
01:28 So I think I don't see a very big impact.
01:31 A lot of people, intellectual people,
01:32 will keep talking about LTCG.
01:34 I think it is not going to impact the real Bharat, where
01:38 I think I, for me, that's the audience for mutual funds
01:40 in India.
01:40 Mutual funds and insurance products
01:43 will always, in a way, compete for each other.
01:46 And insurance, actually, where it's genuinely insurance
01:48 is serving a different purpose.
01:50 So I think it's wise to actually have some exposure
01:53 towards insurance.
01:55 Evidence shows that alpha has been shrinking.
01:58 There's no denial to that.
01:59 And I would not be too worried, because as mutual funds,
02:03 like what even Nilesh was mentioning,
02:04 and it would be wise for us to not position ourselves
02:08 only around alpha and only around equity as an asset
02:11 class.
02:12 But we are a vehicle which gives a window to investors
02:15 to invest right from a cash fund all the way
02:19 to international funds.
02:20 So there's a huge range available.
02:22 Globally, in many markets, when a component changes,
02:26 a constituent goes out or comes in, they calculate impact cost.
02:31 But in India, we don't calculate impact cost.
02:33 The index can throw out a company in one day.
02:36 Can I do that in portfolio?
02:38 Can index creators teach me how to do that in one day
02:42 without creating impact cost?
02:44 I bet none of the index creators will take that challenge.
02:47 It's an open challenge to any index creator.
02:50 Please teach me how to change my portfolio
02:52 without creating impact cost like you do it in index.
02:55 None will come forward.
02:56 I can bet on that.
02:57 All segments of investors were self-directed.
03:00 So you have to serve them.
03:02 You have to respond to the market.
03:05 I don't think the intention is to create the market
03:08 necessarily.
03:09 You could take that view as well.
03:11 I actually think some people will take that view.
03:14 But our position on this is that you can't afford
03:18 not to respond to the market.
03:20 Alpha is very hard to come by.
03:21 I don't think we need to pretend that alpha is a birthright
03:25 or that we are all going to be able to generate it.
03:27 If you're talking of cost coming down,
03:29 digitization is very important.
03:31 It's going to take away a lot of inefficiency from the system.
03:34 Present volatility and the increased cost
03:37 and the tax burden that has been imposed,
03:41 I'm not really thinking in terms of alpha.
03:43 I'm just thinking in terms of protecting my portfolio
03:45 until you navigate this mid-air turbulence.
03:49 Now, what would you do to save your--
03:53 to keep your NAV in check and to protect your portfolio?
03:57 What would you do?
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