Mutual funds wary of rising inflows

Asset managers mull raising exit loads, gating flows, tempering investor expectations

Continuous large inflows with expectations of high returns by investors are unnerving executives in the mutual fund industry, which now manages nearly Rs 23 lakh crore of assets, more than three times of what it did five years ago.
 
“When inflows become so large, management becomes an issue,” said a chief executive of a fund house. “The risks attached become equally important if we want many more happy investors,” he added. “It is better to put in safeguards to avoid a possible crisis. The worry is what is driving these flows and with what expectations?” said the chief executive