It is often said that cricket and Bollywood are two of the most discussed topics amongst Indians. Now a third topic is slowly finding its place in the wedding parties and social gatherings — the stock markets. Despite the turbulence, market investors are still bullish about the Indian growth story and investors in mutual fund (MF) schemes are amongst the most hopefuls.

Flashback 2001 — the US ‘64 scam had dented investors’ confidence and the Congress party, then in opposition, had asked for an explanation from the finance minister Yashwant Sinha. But, today all that the finance minister needs to do is ask the investors to stay invested for a long-term to get good returns. And indeed, MF investors are apparently paying heed to his suggestions.

Qamar Ahsan, 55, a Patna University professor says, “I have been investing in MFs for the past 20 years. As a teacher, my income is limited, so MFs have been safe instruments for me to let my money grow. I have invested in both balanced and special situation funds and, of course, in ELSS to save taxes. Over the years the schemes I have invested in have generated 15-16 per cent returns, so I think it is better to invest in MFs than investing in the government’s saving schemes.”

In 45 years of its existence, the mutual fund industry in India seems to have come a long way. From a one fund industry managing around Rs 7,000 crore 20 years ago, it has grown over 80 times to manage assets worth over Rs 5.6 lakh crore through 39 fund houses today. This would not have been possible without the participation of retail investors who have shown immense confidence in the industry. However, at times of acute volatility, the jitters inevitably get to the investors.

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