The mutual fund industry is gaining more stability since the SEBI ban on entry load. This is obvious from the falling turnover (gross buying + selling
of equity mutual funds) in the domestic mutual fund flows.
The SEBI ban has not affected the relative position of the industry in the equity markets as is apparent from the share of the assets under management in
market capitalization which remains intact. Equity AUM as a percentage of Market Cap is maintained at 3.25% in the last 5 years.
Contrary to market belief that equity mutual funds witnessed inflows during 2004-08, the data suggest that existing schemes of domestic equity funds saw
outflows during 2004-08.
Despite the entry loan ban, in 2010, gross inflows in equity funds touched a 3-year high. Over the past three months, equity mutual funds have seen the highest cumulative inflows since Aug-09. This is despite the new KYC regulations becoming Mandatory for everybody. Thus SEBI and Bhave's No Entry Load is the best move for retail investors where your Rs 100 will continue to grow from Day-1 [Earlier Rs 100 - Rs 2.25 Entry Load = Rs 97.75 was your capital]
