So is it that MF companies are really not interested in wooing the retail investors? Says Amit Saxena, CEO, Planman Financial to 4Ps B&M, “Partly, yes! Wooing corporate money is always advantageous from the fund’s standpoint. Leaving Tier I cities, retail investors from other cities are not even thought of by MF houses. But added to this is the fact that even the retail investor is strangely thoroughly disinterested in investing in mutual funds.” Have the Indian retail investors overnight gained the acumen to leverage knowledge of global cues and associated periodic bouts of volatility to directly invest in the stock market? Or have they become so risk averse that they now prefer opting for FDs or insurance products? And why is the continued disinterest of MF firms towards Tier II cities? Saxena of Planman Financial answers, “Over the years, the contribution of the metros toward the AUM of the industry has increased considerably (from 78% in 2001 to 81% in 2006; of which, 49% belongs to corporate clients, banks and FIs and the remaining 32% to retail investors).
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)
