Mutual fund investing must become foundation of the many, not privilege of few: SEBI's Amarjeet Singh
New Delhi, July 3
The mutual fund industry has become a key pillar of India's financial markets by helping households create long-term wealth and providing stable domestic capital for economic growth, but millions of Indian households are still outside the mutual fund ecosystem, making innovation in products, distribution and investor communication critical for broader participation, SEBI Whole-Time Member Amarjeet Singh said on Friday.
Addressing ASSOCHAM's 17th Mutual Fund Summit on the theme "Capitalizing on India's Economic Ascent for Viksit Bharat" here, Singh said the mutual fund industry is emerging as an important force in India's financial markets and has a larger role to play in the country's journey towards becoming a developed nation.
"It is heartening to note that the MF industry in India is an important force in our financial markets today and is shaping up nicely on three important dimensions," he said.
Singh said the industry is contributing on three key fronts by enabling households to participate in long-term wealth creation in a transparent and cost-efficient manner, providing stable and patient domestic capital for India's growth, and playing an increasingly significant stewardship role as a shareholder in listed companies.
He added that there remains considerable scope for strengthening these contributions.
Highlighting the industry's future potential, Singh said millions of Indian households are yet to invest in mutual funds.
He stressed that expanding participation would require innovation in product design, distribution channels and investor communication while maintaining a strong commitment to investor protection.
He cautioned that investor trust is fundamental to the industry's growth, saying it is difficult to rebuild once lost. Singh expressed confidence that regulators, asset management companies, distributors, investor associations and educational institutions can collectively build an investment ecosystem aligned with the vision of Viksit Bharat, making mutual fund investing accessible to a much larger section of the population.
Speaking at the summit, ASSOCHAM National Council on Commodity Markets & Investments Chairman S.K. Jindal said the mutual fund industry has a pivotal role in mobilising household savings into productive investments that support India's economic growth. He said disciplined savings and efficient capital allocation are essential for achieving the country's development goals.
— IANS
Reader Comments
Good points about innovation in distribution channels. But honestly, many distributors still push high-commission schemes instead of what's best for investors. Last year, an agent recommended a sectoral fund to my retired father—totally unsuitable for his risk profile. SEBI should tighten the screws on mis-selling. More investor education is great, but without accountability, trust won't come back easily. 😤
As someone who moved from Canada to work in Bengaluru, I've seen both systems. India's MF industry is actually more transparent than many developed markets in terms of cost disclosure and expense ratios. The SIP culture here is brilliant—it instills financial discipline that most Canadians lack. Amarjeet Singh is right: make it accessible, keep the costs low, and the growth will take care of itself. My Indian colleagues who started SIPs early are in a great position now.
"Foundation of the many, not privilege of few"—absolutely spot on! I'm a small-town guy from Bihar, working in Delhi now. My parents still think only gold and fixed deposits are safe. MFs are slowly changing that mindset, but we need more local language content. Also, the ₹500 minimum SIP is good, but why not ₹250 or even ₹100? Lower the entry barrier further, and crores of new investors will join. Viksit Bharat needs every household to participate. 💪
Important message from SEBI. However, I wish they'd also address the issue of excessive fund launches. Every month there are 10-15 new NFOs, many of them thematic or sectoral funds that confuse retail investors. Yes, innovation is needed, but not at the cost of simplicity. Let's first strengthen the basic equity and hybrid categories before flooding the market with niche products. Also, improve the mutual fund advisory ecosystem—most "advisors" are just product pushers.
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