EPFO flows might lead to higher FII allocation

Even though the Employee Provident Fund Organisation (EPFO) has allocated only five per cent of incremental inflows into the stock market, market players say this is a good start. "In the next two-three years EPFO will have a strong presence in the benchmark indices, which will reduce volatility substantially," says a player. In the past few months, while foreign institutional investors (FII) were selling, domestic players bought aggressively. Market players believe steady EPFO inflows, along with domestic players' money, might lead to higher FII investments as well.

Don't discount us, say MF distributors

A leading fund house's attempt to move the existing investors to direct plans has brought it in direct collision with distributors. The fund house had recently sent SMSes and emails to its existing investors with login IDs and password, asking them to activate their online accounts with the fund house. The fund house also proposed to give better facilities to investors who use this option. Distributors are upset with the move and are seeing this as an attempt by the fund house to sideline them.

Digitisation in financial markets still a dream

Prime Minister Narendra Modi's call for 'Digital India' saw a robust response from corporate India. However, the financial sector is still struggling to digitise. Recently, the head of a financial conglomerate was taken aback when the chief executive officers of his insurance, mutual fund and brokerage businesses claimed that barely 20-25 per cent of the inflows was through the online route." The reason: even in case of online insurance, the process isn't entirely digitised. Though people can select insurance plans from the website, one has to sign the policy document. Similarly, online mutual fund buying is catching up but only a few do it. At this rate, the aspiration of combining all financial transactions under one permanent account number could take decades to complete.