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Unformatted text preview: COMMENTARY Economic & Political Weekly EPW JUNE 26, 2010 vol xlv nos 26 & 27 13 can be done by seeking to divide them using instruments of the modern land tenure mechanisms such as with definite and mathematically precise boundaries, marked by pillars and fences, etc. These notions were not meant to be pushed through this way and any attempt to do so would throw up conflict situations. The Kuki-Naga feuds in the 1990s and indeed the “Naga integration-Manipur integrity” tensions now over the demand for a Greater Nagaland, etc, are tragedies that have resulted or are waiting to result out of this insistence on dividing what are fundamentally indivisible. Since the no- tions of ancestral lands and homelands of traditional ancestral neighbours overlap, the only way peaceful coexistence can re- sult is to agree to allow these overlaps to continue in the spirit of sharing and a ccommodation. Myopic Investment View of the Indian Mutual Fund Industry Rajesh Manjrekar, Pankaj Sinha Since the majority of mutual fund investors are salaried individuals, the MF industry should have a long-term investment horizon. However, the data from all mutual funds for December 2007-May 2008 and December 2008-May 2009 reveals that the industry has adjusted its position on a short-term basis in tandem with the short-term volatility of the market. The findings substantiate the observation that there is an urgent need to set up an audit committee for this industry. T he Indian financial market is one of the fastest emerging markets in Asia and has attracted a lot of at- tention from professionals and research- ers. While the focus for professionals has been the impressive growth and the vast potential that the market seems to offer, researchers, on the other hand, are trying to focus on interpreting the so-called spectacular success and understanding the various factors at play. The one area that has been of particular interest is the strength of the short-term returns in the mutual fund ( MF ) industry. Sehgal and Jhanwar (2008) attempt to quantify the reasons for the short-term returns by ex- amining three aspects: (a) investment “churn” of the industry, (b) sector exposure movements, and (c) investment movement patterns for two periods of six months each. This article is based on the hypothe- sis that in consideration of the i nvestor profile of the MF industry, the funds are required to take a long-term p erspective of the investments that they undertake. Trends in the MF Industry The MF industry in India has its origins in the Parliament Act (52 of 1963). The Act proposed setting up of an asset manage- ment company ( AMC ) in order to create an instrument for channelling investments....
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This note was uploaded on 07/31/2010 for the course FIN 201 taught by Professor Hcverma during the Summer '10 term at IIT Kanpur.
- Summer '10