FINANCIAL
INTERMEDIARIES
ASSOCIATION
OF INDIA
DECEMBER
2015
FINANCIAL
INTERMEDIARIES
ASSOCIATION
OF INDIA
DIARY
DECEMBER, 2015
FOR PRIVATE CIRCULATION
ABOUT FIAI
Financial Intermediaries Association of India (FIAI) was formed as
a financial distributors’ body to strengthen the cause,
development, education and progress of the industry. FIAI's
endeavour is to bring all the national & regional players like
National Distributors, Banks and IFA Associations on one platform
to pursue the industry development and education agenda.
WELCOME
Year 2015 was quite an epic year for the Indian
Mutual Fund Industry. The year was a historic
one for both the Mutual Fund Industry and the
Distribution business with new highs touched in
the all business parameters like positive
inflows, Assets under management and new
investors added on a continuous and
sustainable basis.
Last month we concluded the fourth phase of
Arthik Gyan as a part of the NFLAT test for the
School students. It was a super success drive
and we surpassed all previous records of the
earlier drives. This time while we conducted
trainings & mock tests on a larger scale, we
also provided technology support of the
training content & tests through tow newly
launched Mobile Apps and our website. Social
media interaction through Facebook was also
done to engage students and provide them full
awareness of the financial Industry and thus
helping them prepare well for the exams.
The ET Money Gurukul financial literacy events
where FIAI is the Alliance partner was held last
month at Benguluru. We had fresh meetings
with Finance Ministry on resolving the
Distributor commission Service Tax issue and
on the growth of the Mutual Fund Industry. We
also had meetings with the IFA Associations
last month on jointly pursuing the Industry
growth issues.
While there were some challenges in the year
gone by, we hope in the year to come by the
Industry stakeholders will join hands and solve
them together. We wish all our Industry
colleagues and friends a merry Christmas and
a very happy new year in advance!!!
Gurpreet Singh
Principal Consultant - FIAI
Some of the key objectives of FIAI are to promote and develop the
Indian financial intermediary industry on professional, healthy and
ethical lines and to enhance and maintain standards in all areas of
operations and to work towards protecting and promoting the
interests of financial intermediary and their members
THE KEY OBJECTIVES OF FIAI ARE:
INDUSTRY DEVELOPMENT:
Promotion & development of the Financial Distribution Industry on
professional, healthy and ethical lines.
INDUSTRY STANDARDS:
To ensure, promote and maintain a high professional and ethical
standards in all areas of operation of financial intermediaries and
their members and to enhance and maintain standards with a view
to protecting and promoting their interests.
SUGGESTIONS:
Engaging with and proposing suggestions & initiatives to the
industry players, associations and regulators for the growth of the
industry.
TRAINING & EDUCATION:
Sharing of knowledge and giving a forum for enlightenment &
exchange of ideas within the industry.
ENGAGING OTHER STAKEHOLDERS:
Actively engaging with certification bodies including NISM and
FPSB for distribution to agree professional standards and
accreditations for financial advisors in India and to drive its
implementation across the intermediary fraternity.
DIARY 1
TRUSTS VS WILLS
READING CORNOR
By Dileep Choksi, Chief Mentor of C.C.Chokshi
Advisors Pvt. Ltd. and CCC WillEffect Pvt. Ltd
The choice between opting between a trust and a will
is most debated. The selection in cases of larger
estates lies in a judicious combination of both. In
cases of smaller estates, the prevailing
circumstances help decide one or the other or on
both. The similarity between a trust and a will lies in
the fact that both are unilateral executions of the
owner. In the case of a will the desire of the owner of
the property takes effect on death. In the case of a
gift the intention is put to action immediately.
Disputes as to whether a deed is a gift or a will is rare
but does exist. In concluding what is best, the nature
of the estate, the relationships between the owner
and the recipients inter se have an important role to
play. This is not to undermine the significance of the
nature of the estate in question.
As illustrated above a gift is an action done and
complete and difficult to retrieve. This is unlike a
disposition by will which can be changed as unwary
as one likes under changing circumstances whether
they be family or business are major influencing
factors. This is quite apart from the fact that the
potential of the receiver to manage the inheritance is
also a determining factor - Minors, ladies, special
children are always better off under a trust for the
reason that responsibility of administration is not
pointed on them. Also the objective of allowing a set
of individuals to enjoy the fruits of property without
ownership rights is best achieved under a trust. For
all personal purposes a trust has legal ownership of
property with an attached obligation to honor the
wishes of the settlor. It is not as if a will cannot do
that but then that may require trust to be created
through wills. The preparing of a will gives comfort to
the testator that devocation of an estate can take
place as desired by the testator. In a will a
disposition made in one manner can be changed.
This is best achieved by drafting an another will
which automatically annuls the earlier.
Taxation and estate duty are also matters that lead to
formation of individuals structures such as wills and
trusts. These are complex and have to be suited to
the legislation prevailing in the relevant place.
Similar to wills, trusts could in many cases also have
trustees from other jurisdiction. Disposition to be
made specially to individuals in special
circumstances or specific geographies are best
achieved through trusts supplemented by wills. The
important objective is that the legate or the ultimate
receiver must have a good title to the property
received. Where ownership of business or large
value estate is concerned an appropriate trust could
be a good answer. If the vesting is to be postponed
to after the lifetime of the owner then a disposition by
will to a trust is also possible. Such dispositions
could place ownership in hands of professionals
(which is now becoming an accepted practice) who
can effectively administer the property and look after
the estate. Unlike in the case of a will where a
probate or a succession certificate is necessary as it
is often demanded by a successor title such
requirement is not usually necessary in case of
trusts.
The matters briefly discussed above keep in mind
the fact that matters of succession are personal and
unique and require complete compliance with laws.
The fact that some personal laws do not grant to the
ostensible owner full disposable rights of all owned
assets does add a complication at times. However, if
dispositions are to be contested then irrespective of
they being through will or trust they will always be.
Therefore, the choice is not only between a will or a
trust but on a much large canvas which covers family
governance and individual desires.
DIARY 2
ACTION AT FIAI
ARTHIK GYAN PHASE IV CONCLUDED
Arthik Gyan is the flagship Financial Literacy Drive
program of Financial Intermediaries Association of
India (FIAI) to inculcate financial literacy and spread
the cause of the financial awareness across the
country. FIAI undertook and completed a major drive
of spreading financial Literacy in the country through
its flagship program 'Arthik Gyan'. The Arthik Gyan
2015 drive ran by FIAI from October to December
was a big success. FIAI was able to meet its
objective of conducting the bigger better and more
impactful Financial Literacy campaign. In the
process, we surpassed last year's efforts by covering
more schools & cities, conducting more trainings
and involving many more volunteers.
The key highlights of this year's Drive was as follows:
Summary of Statistics: 128 schools, 135 trainings,
27 cities, 15 states covering 10000 + students
Extensive use of Technology: Specific Mobile apps
were developed and both the Apps & our Website
had all support of the training material and mock
tests
Social Media interaction: Facebook page of Arthik
Gyan generated lot of engagement with students
FIAI reached out to the schools with the help of
NCFE to provide the training for schools registered
with the NFLAT exam. Appropriate trainings were
done by well equipped professional people with
tools such as Power Point presentations, case
studies, black board, Mobile Applications, Online
Mock Test Papers, AVS and interactive mode to
ensure students get a grasp of the subject.
Appropriate Study material was left behind with them
for self study. The statistics were quite encouraging
- 128 schools, 135 trainings in 27 cities of 15 states
covering 10000 + students were provided with the
trainings by 82 FIAI member trainee volunteers. FIAI
members participating in the drive were Aditya Birla
Money Mart Ltd, Axis Capital, Bajaj Capital Ltd, IFAN
Finserv Pvt Ltd, Karvy Stock Broking Ltd, NJ India
Invest Pvt Ltd and Standard Chartered Bank.
Members
Aditya Birla
Axis Capital
Bajaj Capital
IFAN
Karvy
NJ
SC
Grand Total
No. of
Training
35
13
8
6
29
18
26
135
No. of
Schools
35
11
7
6
26
18
25
128
No. of
unique
Cities
16
4
5
3
6
14
12
60
No. of
students
Covered
2421
819
692
307
3078
1452
2181
10950
No. of
trainers
21
5
6
5
19
15
11
82
DIARY 3
ET MONEY GURUKUL EVENT HELD IN BENGULURU
More than 100 participants benefited from ET Edge’s
Money Gurukul Summit, held at The Grand Magrath
Hotel in Bangalore, on Nov 26, 2015. Speakers like
Sabyasachi Mukherjee (Head of Personal
Investment Consulting, IIFL), Nayan Mehta (Chief
Financial officer of BSE ltd.), Ajay Mittal (Senior Chief
Manager, Birla Sun Life), Bandam Srinivas (Assistant
Vice President, NSDL Chennai office) and Gaurav
Mashruwala (Financial Planning Professional) came
together to provide understanding and insights on
the basics of finance, myths which surround financial
planning and the various available tools of
investment. Money Gurukul Summits are Financial
Literacy Summits structured by Economic Times and
alliance partner FIAI . Summits are being held in 12
cities across the country. The first summit at Mumbai
was held on Oct 15, 2015. Subsequently, Money
Gurukul events were also held at Chennai and
Kolkata last month. The next summit is in Jaipur on
Dec 17, followed by Hyderabad, Cochin, Gurgaon,
Delhi, Ahmedabad, Surat , Pune.
3RD ANNUAL WEALTH MANAGEMENT CONVENTION, 2015 OF AAFM
ITC Maratha Mumbai, Dec 19, 2015
Wealth Management For Masses – The New
Paradigm
The Year 2015 has seen a lot of hopes, many
opportunities, continuing threats and yet improving
economy coupled with great volatility across the
globe. While country grows by leaps and bounds,
Financial Services Industry must also keep the pace
with it and help the people sustain their economic
rise. AAFM's Premiere Wealth Management
Convention, 2015 is themed around this need of the
Market aimed at reaching out Wealth Management
to the Masses to equip people with connections,
learning & inspirations. FIAI is the Distribution
Partner to the Event.
SERVICE TAX ISSUE MEETING WITH FINANCE MINISTRY
FIAI has another follow up meeting with Finance Ministry on the issue of Service Tax on MF Distributor
commissions
INDUSTRY GROWTH MEETING WITH FINANCE MINISTRY
We met with senior people in Finance Ministry on discussing the MF Industry growth agenda
DIARY 4
INDUSTRY UPDATES
KEY DEBT MARKET INDICATORS DATA FOR MONTH: DECEMBER 2015
Benchmarks
As on
30-Nov-15
As on
31-Oct-15
As on
31-Aug-15
Change
(Month)
Change
(Quarter)
364 Day Tbill
91 Day Tbill
10-year Benchmark (7.72% 2025)
3 Months Certificate Of Deposit (CD)
3 Months Commercial Paper (CP)
AAA Corp Yields - 1 Yr
AAA Corp Yields - 3 Yrs
Bank Rate
RBI LAF-Repo rate
RBI LAF-Reverse Repo rate
Foreign Exchange Reserve($ bn)
Brent Crude Oil ($/bbl)
Gold ($/oz)
US Fed Funds Rate
US 10-yr Gilt
CRR
7.18%
7.13%
7.79%
7.30%
7.68%
8.30%
8.38%
7.75%
6.75%
5.75%
351.61
43.05
1061.90
0.25%
2.20%
4.00%
7.18%
7.08%
7.64%
7.27%
7.68%
8.20%
8.25%
7.75%
6.75%
5.75%
353.64
46.75
1142.35
0.25%
2.15%
4.00%
7.54%
7.40%
7.78%
7.48%
7.77%
8.40%
8.50%
8.25%
7.25%
6.25%
351.92
48.32
1135.00
0.25%
2.22%
4.00%
0.00%
0.05%
0.15%
0.03%
0.00%
0.10%
0.13%
0.00%
0.00%
0.00%
-2.03
-3.70
-80.45
0.00%
0.05%
0.00%
-0.36%
-0.27%
0.01%
-0.18%
-0.09%
-0.10%
-0.12%
-0.50%
-0.50%
-0.50%
-0.31
-5.27
-73.10
0.00%
-0.02%
0.00%
DOMESTIC MARKETS - KEY INDICES % Returns as on 30th November, 2015.
Indices
S&P BSE Sensex
NIFTY 50
S&P BSE 100
S&P BSE 200
NIFTY 500
NIFTY MIDCAP 100
S&P BSE Small Cap
S&P BSE Midcap
NIFTY NEXT 50
Close
26145.67
7935.25
8082.02
3365.29
6686.10
13248.70
11636.49
10989.76
19616.70
1 Month
-1.92
-1.62
-1.37
-1.14
-0.96
0.08
2.84
0.14
-0.59
3 Month
-0.52
-0.45
-0.48
-0.09
0.25
1.45
6.06
2.38
-2.38
1 Years
-8.88
-7.60
-6.51
-4.13
-3.35
6.94
3.24
7.00
5.65
3 Years
10.57
10.51
11.00
12.09
12.67
17.63
16.10
18.55
18.49
Source: Various (BSE, NSE, SEBI)
5 Years
5.66
5.89
5.89
6.14
6.52
7.73
5.35
9.23
9.19
10 Years
11.30
11.39
11.38
11.47
11.05
13.01
9.31
14.65
13.84
Source: BSE & NSE. Returns are calculated on absolute basis for less than one year and on CAGR basis for one year or more.
DOMESTIC MARKETS - KEY SECTORAL INDICES % Returns as on 30th November, 2015.
Indices
S&P BSE Auto
S&P BSE Bankex
S&P BSE FMCG
S&P BSE Healthcare
S&P BSE Metal
S&P BSE Oil & Gas
S&P BSE Realty
S&P BSE TECk
NIFTY INDIA CONSUMPTION
NIFTY INFRA
NIFTY MEDIA
NIFTY DIVIDEND OPPT 50
Close
18964.36
19916.30
7912.00
16298.41
7118.40
9328.39
1343.89
5942.80
3546.85
2771.40
2432.70
1904.40
1 Months
4.39
0.72
0.83
-9.79
-2.59
2.90
-2.02
-2.82
1.82
-2.20
1.14
0.76
3 Months
6.15
1.42
1.59
-9.26
-4.40
5.07
6.60
-2.52
3.58
-6.14
4.48
0.59
1 Year
-1.33
-6.11
2.31
8.97
-37.04
-14.53
-20.15
-3.50
3.79
-14.72
4.62
-13.19
3 Years
20.59
12.60
9.90
26.95
-11.74
4.17
-12.39
18.99
15.17
1.77
13.07
4.33
5 Years
13.00
7.27
15.63
18.83
-15.12
-1.79
-14.93
9.80
13.51
-4.33
6.90
3.99
10 Years
16.78
15.14
16.12
17.75
1.68
8.42
NA
9.84
NA
3.60
NA
NA
Source: BSE & NSE. Returns are calculated on absolute basis for less than one year and on CAGR basis for one year or more.
*Return for CYTD (Year To Date) is calculated on absolute basis.
DIARY 5
GLOBAL MARKETS – KEY INDICES % Returns as on 30th November, 2015.
Indices
Close
1 Months
3 Months
1 Year
3 Years
5 Years
10 Years
Shanghai Composite (China)
Nikkei 225 (Japan)
Nasdaq (USA)
Dow Jones Ind Avg (USA)
All Ordinaries (Australia)
FTSE 100 (UK)
NIFTY 50
RTS Index (Russia)
Bovespa (Brazil)
3445.41
19747.47
5108.67
17719.92
5218.19
6356.09
7935.25
847.10
45120.36
1.86
3.48
1.09
0.32
-1.33
-0.08
-1.62
0.54
-1.63
7.47
4.54
6.95
7.21
-0.07
1.73
-0.45
2.72
-3.23
28.42
13.10
6.62
-0.61
-1.51
-5.45
-7.6
-13.14
-17.46
20.28
27.87
19.28
10.80
4.92
2.71
10.51
-16.16
-7.75
4.06
14.61
14.91
9.50
2.21
2.41
5.89
-12.31
-8.24
12.15
2.50
8.43
5.00
1.33
1.41
11.39
-2.34
3.23
Source: bloomberg.com. Returns are calculated on absolute basis for less than one year and on CAGR basis for one year or more.
*Return for CYTD (Year To Date) is calculated on absolute basis. Sorted on basis of 1 Year returns.
INSTITUTIONAL ACTIVITY
(Rs. Crores)
Nov-2015
01-Jan-15 To 30-Nov-15
FIIs
Mutual Funds
Debt
-3,752.28
30,838.90
Equity
-7,074.17
6,547.70
Total Debt Equity Total
-10,826.45
37,386.60
51,344.30
4,00,873.80
20,622.80
64,514.80
71,967.10
4,65,388.60
FOREX
Currency movements against INR
Source: bloomberg.com
30-Nov-15
31-Oct-15
31-Aug-15
30-Nov-14
% Change
(Month)
% Change
(Quarter)
% Change
(Year)
1 US$
1 Euro
100 Yen
1 Pound
66.67
70.68
54.41
100.37
65.27
71.67
53.92
99.93
66.48
74.50
54.75
102.31
62.03
77.16
52.45
97.36
-2.10%
1.40%
-0.90%
-0.44%
-0.28%
5.40%
0.62%
1.93%
-6.96%
9.17%
-3.60%
-3.00%
MUTUAL FUND MONTHLY DATA
Amount in Rs. Crore (Source: SEBI)
TYPE AS ON 31ST OCTOBER, 2015 FOR SEPT. 2015 MONTH (RS.CR.)
No. of
Schemes
No. of
Folios
Assets
(Rs. Cr.)
Sales
(Rs. Cr.)
Purchases
(Rs. Cr.)
Net Sales
(Rs. Cr.)
A
Income/ Debt Oriented
Schemes (i+ii+iii+iv)
1,615
76,44,574
8,71,353
8,52,588
9,79,196
1,26,608
i
Liquid/ Money Market
54
3,44,497
2,76,655
8,23,259
9,26,565
1,03,306
ii
Gilt
48
69,187
17,898
576
1,004
428
iii
Debt (other than assured return)
1,506
72,30,842
5,75,324
28,753
51,627
22,875
iv
Debt (assured return)
0
0
0
0
0
0
v
Infrastructure Development
7
48
1,476
0
0
0
B
i
Growth/ Equity Oriented
Schemes (i+ii)
462
3,41,21,188
3,96,764
7,648
13,916
6,268
ii
ELSS
55
67,47,132
40,312
295
558
263
Others
407
2,73,74,056
3,56,452
7,353
13,358
6,005
C
Balanced Schemes 26 22,52,485 37,682 651 1,405 753
D
Exchange Traded Fund (i+ii)
51
7,01,716
16,257
893
1,864
971
i
GOLD ETF
13
4,49,015
6,227
68
0
68
ii
Other ETFs
38
2,52,701
10,031
825
1,864
1,039
E
Fund of Funds Investing Overseas
31
1,33,961
2,108
62
26
36
Total (A+B+C+D+E)
2,185
4,48,53,924
13,24,165
8,61,842
9,96,407
1,34,565
Source: SEBI
DIARY 6
BECOME A FIAI MEMBER
FIAI invites all National Distributors, Banks and
IFA Associations to become its members to be
able to successfully pursue the objectives of the
body in interest of the entire industry & distributors
at national level.
Membership Benefits
FIAI provides an excellent opportunity to
participate in the process of building a think tank
that puts forth well-researched and independent
points of view on topic relevant to the financial
products distribution / advisory practice.
Members will be able to suggest and participate in
building of the research subjects and the
underlying reports.
Members will get access to the updates of
regulatory and business changes.
The FIAI members will be privy to our reports
immediately prior to submission with regulatory
bodies.
Members will have the opportunity to engage with
eminent people and organisations through a range
of events.
Members will be able to reach remote areas by the
use of the planned FIAI regional/ zonal offices.
FIAI will undertake services for promotion of
financial business of its members and the
development of the securities market.
FIAI will undertake studies /surveys on important
matters and access to such report will be helpful
for the business practices of its members.
Registration Process
To become a member, kindly contact us...
CONTACT FIAI
Communicaton Address: #2004, The HUB, Tower
2A, 10th Floor, One Indiabulls Centre, 841 S. B. Marg,
Elphinstone (W), Mumbai - 400 013
Registered office: Navjivan Society, Office No. 1209,
Building No. 3, Lamington Road, Mumbai - 400 008.
Website: www.fiai-india.org
Suggestions & feedback: Email: info@fiai-india.org
DIARY 7
Members
Financial Intermediaries Association of India
MEMBERS
IFAN Finserv Private Limited
Here for good
Communicaton Address: #2004, The HUB, Tower 2A, 10th Floor, One Indiabulls Centre, 841 S. B. Marg, Elphinstone (W), Mumbai - 400 013
Registered Office: Navjivan Society, Office No. 1209, Building No.3, Lamington Road, Mumbai - 400 008.
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