Why SEBI’s investment advisory regulation is a step in the right direction for mutual fund investors

When it comes to consumer buying behavior, most of us are hooked to the product and the service itself. We do not really care or try to find about the distributor of that product or service, do we? But, it is the opposite in the case of mutual funds where the distributor is considered to be an important intermediary and impacts the product buying behavior. The reason for this is the fact that an investor believes a mutual fund distributor to be his ‘Advisor’. And, given that most investors look for advisory assistance, an advisor obviously commands an important mind space.

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