AMFI In Talks With Fintechs To Conduct Stress Tests Across MF Schemes, Says Chief Chalasni

The Association of Mutual Funds in India plans to conduct stress tests across all mutual fund schemes, said Chief Executive Venkat Nageswar Chalasani.

“In February, we came out with stress tests on small and mid cap spaces. Now we are planning to do a similar stress testing for all schemes,” Chalasani said at India Fintech Forum's IFTA 2024.

With this initiative, the industry body will be able to bring out new models and are in talks with several financial technology companies to conduct stress tests for the entire industry, he said.

This will further help the industry body with efficient disclosures.

Venkat Chalasani, chief executive of Association of Mutual Funds in India. (Photographer: Vijay Sartape/NDTV Profit)

On retailing debt schemes, Chalasni said that AMFI has put in place a set of recommendations in front of the government to bring back the indexation benefits that were withdrawn last year.

“The corporate bond market has to evolve and for that to happen, you need to have some taxation benefits,” he told NDTV Profit on the sidelines of the event.

In March 2023, the finance ministry made amendments to the finance bill 2023, removing long term capital gains and taxation benefits on income from debt mutual fund schemes.

Speaking of the slowdown in recent equity inflows, he said that this is a dip because of a rise in lump sum investments. However, overall the path for long-term looks intact.

Inflows to equity mutual funds in November declined 14% to Rs 35,943 crore against Rs 41,886 crore in October, according to latest AMFI data.

Overall, Chalasni emphasised on the support from the fintech sector and said that the opportunity on innovation and technology still remains untapped.