| "Presently the market is growing at a rate of Rs 8000-10000 crore a month and hence considering the worldwide market size of $12.20 trillion, the Indian MF market is set to double every couple of years in the coming decade," said Prabal Nag, head marketing and sales, JP Morgan Asset Management. |
| According to him the retail contribution would be of immense importance for the future growth and stability of the market and in this context the household savings would play vital role. |
| "Today only 3 percent of the total household financial savings is being chanellised into the MF market which is very low compared to the developed markets, so there is a huge room for improvement in this segment," he added. |
| In order to increase flow of household savings into the MF market, micro level retailing would be essential. |
| The major hurdle in micro retailing of MFs was the requirement to have a PAN. |
| The possession of PAN was mandatory for any amount of investment but most small rural investors did not have PAN, he said. |
| However he made it very clear that considering money laundering risks, the identification of the source of funds was important. |
| "Its a big dilemma in front of the industry and the regulator as a whole and definitely I don't have any proper answer to that but definitely there must be some other way out for the rural investors," he said at a seminar organised by the myplexus.com. |
| Meanwhile reacting to the lower rate of money generated into the funds compared to the bank deposits in the country Nag said that until the regulator allows for the money market cheque facility the things would not improve. |
| "The main advantage of keeping money in the bank is the cheque facility which unable people to transfer funds when required, but in the countries like US people can transfer money from money market to the equity market instantly through the money market cheques issued there," he added. |
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