Speaking about the importance of mutual funds at the AIBI Annual Summit in Mumbai, SEBI Chief Ajay Tyagi said that it is better for retail investors to deploy their money in mutual funds as compared to investing directly in equities.
The mutual fund industry has grown at a healthy pace. While this is a welcome sign for the Rs 26 lakh crore industry, it has also raised a moot point if the average investors entering the industry are aware about the risks involved in their investment, he added.
Tyagi said, “Retail investors should be informed about which schemes are good for them and what the other sides of those schemes are. It is a big challenge as well as an opportunity for the MF industry.”
He further added that the MF industry can sustain its growth story if they remain transparent and set the right expectations and inform investors about the risks involved. “We have repeatedly said at various industry events that a good story can be sustained only if it is based on bona fide intentions and when investors are made to be aware of the risks involved in it,” Tyagi said.
