Mutual funds sahi hain, but...

Small-town investors are being mis-sold MFs, based on past returns and without being told about their potential risks

Mutual funds sahi hain, but...
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Sanjay Kumar Singh
A rising stock market always leads to rampant mis-selling. And ultimately the investor is left with a bad taste in his mouth. Recently, Rohit Karna, a Patna-based businessman, received a call from a mutual fund agent wanting to sell him a balanced fund. "The fund will give you a 12 per cent tax-free return per year," said the agent. Incidents of mutual funds being sold based on promises that are not entirely true are becoming quite common, especially in smaller towns. Retail investors need to do their own fact-finding before falling for fact-finding.

In 2017, the returns from equity

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First Published: Dec 26 2017 | 12:32 AM IST

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