|
|
 |
 |
 |
| Thursday, 2 September 2004 |
 |
|
 |
Business | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Call to extend Capital market development to all parts of Lanka by Shirajiv Sirimane Capital market development must not be confined to the Western Province but should be spread to the other parts of the country said the Director General, Securities and Exchange Commission of Sri Lanka, (SEC) Palitha Silva Gunawardane. Speaking at the launch of Sri Lanka's first Money Market Fund by National Asset Management Ltd. (NAMAL), he said that over 90 percent of people involved in Capital Fund Management are based in the Western Province. Over 80 percent of mutual funds have been invested by the institutions and the balance by individuals. "The time has come to cater to different markets and the funds must be spread all over Sri Lanka," he said. Chief Executive Namal, S. Jayaraman said that the Money Market Fund, will give high returns on a quarterly basis for investors. "This is mainly for the low end of the market and the risk factor is very low," he said. Four dividends per year would be paid by the Money market fund which would be tax-free. A mutual fund expert from India with 30 years' experience in the field, Chairman, Association of Mutual Funds in India, A. P. Kurian said that the money market is a fast growing product which has a short term investment value. "When this product was introduced to India in 1993 99 percent of clients were corporate. "However, today more individuals and small and medium entrepreneurs are investing in this product," he said. Fixed deposit assets are the largest single deposit in India and this product is fast catching up. The returns from fixed deposits are not very impressive while there is no interest paid for current account holders. He said that the interest offered from savings accounts is very complicated as there are various clauses such as minimum of four withdrawals, minimum balance, deposit should before a set date and so on. Mutual funds are very popular in the USA since it offers cheque book facilities and most of the people direct their salaries to these funds and pay their day to day expenses via cheque. This is why there are more investments in mutual funds rather than in bank accounts. India and Sri Lanka must take a cue from USA and introduce the cheque facility," he said. |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
