Posted by: sanjayshetty | June 22, 2005

Mutual Fun(d)

Mutual funds in India seem to be having a whole lot of fun. In the US starting September 2003 many of the funds had a hard time with new revelations of the various crooked ways of these funds. They had caused a few trillion in terms of losses to investors. Even though these funds weren’t doing great their managers were handsomely paid :-). The regulators found issues with many of these funds and fined them… Compared to the losses they had caused they were fined peanuts.

In India last year (2004) Business World did an interesting article on the state of affairs in the Indian mutual fund industry and how they are taking consumers for a royal ride. The beauty being that agency SEBI who i guess should look into this, is well with blinders ๐Ÿ™‚

Currently as I write, the Indian stock market seems to be in boomtown. With the indexes going of the charts or as the experts say into un-charted waters.
I’ve been watching the mutual fund NAV’s and not surprisingly, I’m not aware of any of them doing great. The amazing part is that people are still buying into these funds at amazing rates… No I’m not saying Mutual funds are bad, well most of them ๐Ÿ˜‰ However people shouldn’t be buying holding and praying as Rich Dad, Kiyosaki would say.

Would be interesting if BusinessWorld did a followup article… if any of you reading this have more information do let me know.

Sanjay Shetty


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