The Unit Trust of India Asset Management Company on Saturday called for a lower tax regime for mutual fund industry for the benefit of average investors.
"We have to strongly articulate a case for better tax regime which will bring down the costs and thereby benefit the mutual fund investors," Chairman M Damodaran said while inaugurating a seminar on mutual funds in Chennai.
Noting that a vibrant and healthy mutual funds sector was required for the growth of the industry as a whole, he said increasing number of regulations were also putting more pressure on the cost of operations of the mutual funds.
He said the Indian mutual fund industry would soon be consolidated as the smaller players will be forced to merge with the bigger entities in the days to come.
"The compliance is getting more difficult and costlier and the industry is paying heavily to bear the additional costs," he said at the seminar organised jointly by Assocham, Association of Mutual Funds of India and Madras Chamber of Commerce and Industry.
He asked the investors not to panic when smaller players get merged with bigger entities in the mutual fund business.
"Currently, there are about 30 AMCs in Indian mutual fund industry and after consolidation, you will have less players," Damodaran said.
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