The mutual fund (MF) industry has been around for more than 20 years. Still, not even two per cent of the population has an MF folio.
Traditional investment that offers fixed returns continues to hold sway. However, there appears a glimmer of hope if one looks at the way domestic institutional investors have reacted to the recent correction in stock markets. The fact that they were net buyers when foreign portfolio investors sold shares marks a major shift in the way equities are being viewed in India. Till a few years ago, it was common for retail investors to buy when markets peaked. But now, MF investors do not fear market corrections. It was at the start of the millennium that the asset management industry leveraged the sharp rise in markets after the initial public offer boom of early 90s to launch a slew of schemes.
