The increasing financialization of investment assets of the average household, since demonetization, is being widely discussed in social and media circles, and mutual funds have been a significant vehicle in this phenomenon.
A thrust from the Securities and Exchange Board of India (Sebi) is also there, in the form of bifurcation of T15 (top 15) and B15 (beyond the top 15) and some nominal incentives for B15 business. However, of late, the debate on mutual funds has been centred around the adviser versus distributor or fee versus commission model. While there is merit and propriety in saying that an entity or individual should follow only one model, let’s focus on the bigger picture. It is about the spread of awareness about market-driven investments, vis-à-vis physical or contractual return avenues, through the vehicle of mutual funds. This is challenging, given the high levels of financial illiteracy even in urban areas.
