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The mutual fund industry is showing signs of revival. There has been a significant rise in the number of distributors queuing up for renewal of their AMFI registration numbers (ARN).
According to Association of Mutual Funds of India (AMFI) data, renewals in December have shot up to 875 from around an average of 500 in the previous months.
The number of ARN renewals for the industry rose from 418 in October to 535 in November before jumping to 875 in December. The industry also witnessed more than 700 new registrations in the quarter ended December 2012.
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“There is a trend emerging and people are slowly coming back. Over the last few months we have seen money coming through distributors who had registered long back but have done business for us for the first time,” said A Balasubramanian, CEO, Birla Sun Life AMC.
AMFI deputy CEO, V Ramesh, said that it is a good trend and seems to be a result of better revenues, growing market and also reduced cost for
For the year 2012, the local market generated a lower return compared to the previous year as market valuations were on the multiyear highs. On the other hand, global equities experienced immense improvements when compared to 2011's performance. The World Index was up 13.2 per cent versus the negative 7.6 per cent in 2011. As a result, the majority of locally-sponsored mutual funds with investments in international securities benefitted from the rally.