ldblquote We feel excessive restrictions on the investment mix is seriously weakening unit fund
quote s performance,
dblquote President of the Unit Trust Association, S Jeyavarman told Lanka Business Online.
rnrnHowever, the industry is not advocating any amendments to the limit on maximum investment in an individual company.
rnrnPresently fund management companies have to put in Rs. 25 mn towards their licence fees.
rnrnFund managers are however, seeking amendments to the minimum Rs. 25 mn seed capital requirement for each new fund.
rnrnThe rationale behind it is that in the event the fund does not succeed within a given time frame of a year or so, the fund management company will close the fund and return the money to the unit holders.
rnrnThe industry is also looking at a series of policy measures to stimulate investments, like tax benefits and allowing fund manager
quote s to invest overseas.
rn”The industry is now restricted to the local stock market, which is volatile. In the fixed income