India’s mutual fund industry came in for some heavy criticism on Wednesday from Sebi chairman C.B. Bhave. Speaking at a meet in Mumbai. Bhave said the industry had only itself to blame for its current state. Bhave said mutual funds were not meeting the needs of investors and pointed out that 60% of the roughly 3,000 funds gave poor returns. He added that many of today’s mutual funds did not represent real financial innovation.
Bhave’s statements came after members of the mutual fund industry criticized many of Sebi’s regulations. The statements also came just days after a Presidential ordinance over Ulips favoured insurance regulator Irda over Sebi.
Markets ended Wednesday on a flat note. The Sensex nudged up a mere six points to finish at 17,756. And the Nifty climbed seven to close at 5,323.