Cracking the MF code in rural India: Mahindra MF looks to expand markets

Unpredictable income, poor banking habit and a dearth of distributors will be key hurdles in the way

Somewhere close to Jalandhar, the chief executive of a fund house is trying to explain the patriarch of a wealthy Punjabi joint family the concept of mutual funds (MF). At first, this 50-year old mistakes the CEO for a share dalal or an agent of sorts. The asset management company (AMC) CEO quickly changes tack. “Imagine you are investing in the business of Maruti, Pepsi or ITC...’’ The CEO lets him ponder over that for a moment. “How is that possible? Why would these big guys need my money?” He is puzzled and excited at the same time. As an