MFs find India friendlier than China: Morningstar
Mutual funds find Indian market more investor friendly than China's although some of its practices are not at par with global standards, says a Morningstar report.
According to the Fund Investor Experience Report, of 25 countries, <g data-gr-id="32">Korea</g> and the US were named as the most investor- friendly markets while China was the least investor-friendly.
"With an overall grade of C+, India has a mix of outstanding practices and others that fail to meet global standards, relative to other markets evaluated in this report," Morningstar, a provider of independent investment research said adding that the Indian fund market lacks any asset-based commissions.
From 'A' to 'D+', there are nine grades in the report.
Morningstar evaluated countries in four categories that are weighted to calculate the overall grade: Regulation and Taxation, Disclosure, Fees and Expenses, and Sales and Media.
In the Regulation and Taxation category, India receives a B- grade. "India is one of only a few countries in the report that continues to have capital controls, which limits investors' ability to invest in foreign securities," the report said.
In the Disclosure category, India received a C+ grade.
India requires disclosure of full fund portfolio holdings monthly instead of on a semiannual basis typical of other markets evaluated in the report. India is one of only two countries that hold this distinction, the report said.
Korea received an A this year because of its improved sales <g data-gr-id="30">practices,</g> while the United States
garnered the highest score for the fourth time.
The Netherlands and Taiwan got an A- <g data-gr-id="28">grade,</g> while United Kingdom got B+ and Sweden received B.
The countries that received B- ranking include Australia, Denmark, Finland, <g data-gr-id="31">Norway</g> and Switzerland.
India along with Canada, Germany, New Zealand and Thailand got a C+ <g data-gr-id="29">rank,</g> while Belgium, France, Hong Kong, Singapore, South Africa and Spain got C.
India to be 'country of honour' at South Asia Expo
India will be the 'country of honour' at China's annual five-day South Asia Expo to be held this week in Kunming city, <g data-gr-id="62">capital</g> of southwest Yunnan Province, officials said on Tuesday. The opening ceremony of the South Asia Expo to be held from June 12 will be attended by Chinese Vice President Li Yuanchao, according to the Foreign Ministry here. This is the third consecutive year that the South Asia Expo is being held by China to expand its trade and business footprints in South Asia.