“The role of mutual funds to promote savings continues to be insignificant, with mutual funds contributing less than 10% of the Indian GDP, despite its popularity the world-over,” Subir Gokarn, Deputy Governor, Reserve Bank of India, said at the 7th Mutual Fund Conference of the Confederation of Indian Industry (CII).
The main aim of promoting Mutual Fund investments is to attract investors of all income groups. It is a wrong perception that Mutual Fund investments are subjected to only middle and higher income groups. After all even a common man earning about 5-7k can invest in Mutual Funds and be motivated to grow his investments by saving more.
The general public should be made aware of the benefits one has by investing in Infrastructure, or markets’ linked Mutual Funds. Not only you, as an investor, enjoy the benefits of inflating investments with a growth in the markets but also help you achieve your financial goals through a savings and investment approach and not by adopting for ‘a personal loan or any loan’ approach.
It is the responsibility of fund houses to devise certain schemes and products that can cater to the low income group, so as to have an inclusive growth in the Indian economy. The country so far, has not been able to enjoy the gains of Mutual Funds investment in the market because of the lack of awareness of its population.
The SEBI (Securities Exchange Board of India) has come with a lot of relaxation in then what was considered to be a burden on investors, like abolishment of entry loads, increased transparency in the working of the markets etc, so that the country can see a growth in its investments sector and enjoy the popularity that Mutual funds hold abroad.