The SIP (systematic investment plan) culture has taken firm root among mutual fund (MF) investors in India; more and more security market investors are using MFs rather than direct equities. But as markets regulator Securities and Exchange Board of India’s (Sebi’s) latest Investor Survey (2015) shows, there are many misconceptions that non-investors harbour about mutual funds. These in turn prevent them from utilising the wealth creation potential of MFs.
First, a look at the positives thrown up by the survey. MFs have become more popular (66 per cent) than direct equities (55 per cent) among those who already invest in

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