Market regulator the Securities and Exchange Board of India (Sebi) today asked the asset management industry to look at having presence in the pension funds, as retail investors would prefer the route.
"There is a good potential here [pension funds], which perhaps we are missing," Sebi Chairman UK Sinha said at the CII summit on Mutual Funds.
"I would like to urge the industry to solicit pension funds and pension funds schemes, also for development of financial advisors in the country," he added.
Sinha said in the US 68% of the households own mutual fund products through the pension route, perhaps through the pension reforms that took place in the US.
He said in India, the asset managers classified each investor alike, which according to him was a mistake.
"The pension products are required, as in the US pension reforms helped the industry," he said.
"I would ask the industry if we can work on that plan and then we can talk to other regulators. The important thing is to plan first," he added.