The mutual fund sector in India has lost the trust of its investors in last few years owing to the lower publicity of the products in small towns. This has further affected the mutual fund investments and that has concerned the Finance Minister, P Chidambaram as well. As per his latest directive, FM has guided the mutual fund providers to take specific moves to spread the mutual fund literacy amongst all segments of society. The investors who have lost their trust on the mutual fund products due to lack of knowledge may now get back to the mutual fund investments with proper promotion of the product.
As a part of this mutual fund awareness drive, the mutual fund companies may extend their network to small cities and towns to reach even the small scale investors. The banks have already made its presence felt in rural as well as urban areas with its promotional strategies. The same strategy can also be applied to mutual fund sector to cover maximum investors. This will become a comeback strategy for mutual funds as it will get fresh investors and investment plans.
The Finance Ministry is also planning to amend the regulations for mutual fund sector to make it investor friendly. The mutual funds have been known for good returns and are offered from many renowned finance companies. The mutual funds have always fetched good returns to its investors in good market conditions but some efficient mutual fund companies may work wonders even in turbulent market conditions. The investors may therefore invest their funds in the plan that may fetch consistent returns irrespective of the market conditions.
The mutual fund awareness drive may surely help the mutual fund sector to great extent but it will offer better investment scopes to the investors as well.
A release published by indiaprwire.com on 4th Feb 2014