Expense Account, Mint
No. The Indian fund industry will not shut shop, but the news that Fidelity mutual fund may be on the block did burn the financial industry airwaves earlier this week. The possible sale of the almost seven-year-old fund house known for its retail focus, mature industry practices and its stable performance did cause a bit of a panic in the Rs 6.8 trillion fund-management industry. Fidelity mutual fund has issued a statement saying that there is a global strategic review on, but that it remains committed to managing investors’ money. True or not, the possibility that Fidelity may be packing its bags has brought the issue of mutual fund viability to the front burner again. The quick finger is pointed at regulatory practices in India and the increasing non-viability of managing retail money due to a cost tightening by the regulator. Both these do not stand analysis.