Who controls and regulates management of thousands of Crore rupees in Indian financial sector. All along, people suspected some sort of a “Jole” in the mutual funds. For one, the final decision to buy types of equities may be a “one-man show” and purchases and sales may be person-biased. This paves way for a lot of loop holes and opportunities to favour selected companies, which may not be in the interest of gullible Indian investors. Often, there is pressure from politicians and other influential company CEOs to buy or sell equities of particular company at a particular time. For example, the Indian mutual fund managers completely missed April rally. Instead, they pumped in Rs.26,000 Cr into debt, their highest ever investment in a month.
Finally, the investor is the loser. More than 40% of the mutual fund NAVs languish below Rs.10/- and may remain so for a year more. The advertisements are fooling the public and for a heft commission, the agents/sales executives somehow convince the people to buy these funds. Some economist’s suspect organized frauds in the management of mutual funds.
Why the investors are taken for ride, again and again? No regulations? Why PSU banks should support these funds? Any answers?
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