Investors cannot start with an assumption that every mutual fund scheme that they intend to invest in can beat inflation. Portraying mutual fund as a product capable of beating inflation to gullible investors is unfair

Vivek Sharma

Have you seen the advertisment campaign that Association of Mutual Funds of India (AMFI) is running these days to promote mutual funds? If not, it is time to watch it now. AMFI is promoting mutual funds as, “Savings ka naya tareeka” and “Inflation ka injection”.  The idea behind the advertisement is to pitch mutual funds as a savings product to first time investors. The main protagonist in the advertisement says that, “Mutual fund ko injection bhee kah sakte hain, inflation ka injection. Zara sa chubhega, lekin salo tak mahgaee ki bimari se ladgea” (“Mutual fund can also be termed as injection against inflation. It will fight inflation for years”). It is important to note that this advertisement is being promoted by an association which claims that it is meant to serve some of the objectives which are as follows:

• To define and maintain high professional and ethical standards in all areas of operation of mutual fund industry 

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