Why mutual fund penetration is low in India – Firsthand learning
I wasn’t a great fan of investing in MFs till recently when some of my investor friends finally succeeded in luring me to over 40% tax free RoI that some of these offer in spite of the warning that “MF investments are subject to market risks. Please read offer document carefully before investing. Past performance doesn’t guarantee future returns”. It sounds like warning on a pack of cigarettes and it seems as if banks have lobbied to regulators for it to protect their fixed deposits. J Once I was convinced, I decided to start SIPs for all the members in our joint family of 9, including kids. That’s when the fun started. Below are some observations and learnings. I called a friend who runs an investment advisor shop to advice on how to get started. He turned up the same afternoon and explained to me in detail for an hour the advantages of investing in MFs in spite of me telling that I am ready to ‘start’. He said he’ll identify the funds we should invest in and send forms