I have been reading lot of articles on moneylife.in one of the effective blog on the financial awareness for retail investors.  Indian blogmutual fund houses seem to have finally cracked the code for attracting investors from outside the big cities. More than half the folios, or accounts, opened in 2013-14 under a Systematic Investment Plan have come from tier-II or smaller cities — known in sector parlance as B-15, meaning, beyond the top 15 cities. Will not explore on the data much, lets take the example of a Reliance mutual fund claiming that it  has grown 11 times in less than 11 years.

This compared to the benchmark—CNX bank Nifty, that has grown about eight times over the same period. The return on paper looks great and is enough to lure an average investor. But is the Reliance Mutual Fund add an example of financial illiteracy? Continue reading

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