Indians should explore investment avenues beyond land and gold for better returns: SEBI ED 

SEBI Executive Director urges investors to diversify into Mutual Funds and stocks for better returns and safety.

Securities and Exchange Board of India (SEBI) Executive Director Manoj Kumar said the saving culture in the country remained the same for decades, with a large number of people investing in land and gold and not exploring new and better-yielding investment avenues. 

He suggested that the prospective investors consider diversifying into Mutual Funds (MFs) and stocks according to their risk appetite.

Addressing a regional investor awareness programme held by the Association of Mutual Funds of India (AMFI) here on Saturday, Mr. Manoj Kumar said the Indian financial market has been quite robust since the stock exchanges fully shifted to electronic mode in 1997-98 and the demat account revolution of 2003-04, but no amount of regulation would shut out the scammers.

Uninformed public tend to be misled by the unscrupulous elements scouring the marketplace to make quick buck at their expense. This is why investor education is extremely crucial, he said, insisting that mutual funds are a safe bet and observing that retail participation in it has been low despite the surge in fund inflows over recent years.

Mr. Manoj Kumar pointed out that significant reforms have taken place after the Harshad Mehta scandal caused the stock markets to collapse in 1992. Thanks to technological advancements, the whole process of MFs, shares of companies and other instruments have become transparent and the settlement issues are few and far between.

Stock market trading and investing in MFs can now be done on smartphones, he said, while noting that ‘ring trading’ is still prevalent in the New York stock exchange to some extent.

The MF industry got a big boost from the adoption of latest technologies over the past few years, he said and asserted that the MFs are acting as a counter balance to Foreign Institutional Investors (FIIs), the selling pressure from whom has often been shaking the markets.