Reflecting on the progress made by the mutual fund industry, Amfi chairman, AP Kurian said that although the mutual funds collectively garnered Rs 10,045 crore, 110 per cent up over 1996-97, the collection figure is still below the annual average of early 90s. He said the challenge to the industry is to tap this vast market by positioning and promoting positive perception about mutual funds.

Commenting on the committment of UTI to Amfi, Kurian said that UTI was by far, the largest contributor of funds to the organisation and the executive trustee of UTI was on the board of Amfi.

The tasks that Amfi identified are building up a partner relationship with Sebi with increased transactionbetween the two. For this purpose, Amfi has taken up valuation and accounting policy as an important area. Amfi has set up a standing committee on valuation and accounting policy which, in association with Price Waterhouse under the Fire Project and supported by technical experts of Crisil and I-Sec, has worked out a system for standardisation of valuation of non-traded debt securities.

For investor education and training investors guide and agents, handbooks are being distributed. For the purpose of research and statistics, a working group of Amfi members has been formed for collection, compiliation and analysis of mutual fund information.

In the area of capital market reform and policy evolution, Amfi has presented the industry's views to RBI and the government of India. Under which they have asked, among other things, to introduce a nwe cluase in the Income Tax Act 1961 on the lines of 401-K plan of US tax laws.

As regards to the issue of assured returns, the Amfi chairman said that the industryshould move away from the same as funds have to fish out crores of rupees to meet these obligations. Only a specific target class of people like retired, widowed and above 58 should be identified for assured returns, he said.