There are some loose cannon balls out there at the regulators place who are hell bent on letting blood flow…

The mutual fund industry in India was anyway a top 8 cities, institutional phenomena. However the retail portion was serviced by a huge army of advisers and employees of AMCs.

You should meet the Indian mutual fund / life insurance agents of rural India. They are themselves not very trusting of the companies that they represent. Many of them are very well to do – and socially they will not do anything that will get them a bad name in the long run.

Of course there are some who will churn the portfolio (egged on by the holy mutual fund employee who had targets to meet). I met one agent who was encouraged TO CHURN FROM THE SAME FUND HOUSE SCHEME to meet an NFO target. Of course there are agents who knew the advantages (personally) of churning.

However all of these people put together have not been able to reduce the love we have for our banks and post offices….fixed income, real estate and of course the new ponzi – gold.

Read MoneyLife…Sucheta has been writing about the death of the small IFA and the reckless drivers of gold…