AMFI (The Association of Mutual Funds in India) has come up with ads saying it is wiser decision to invest whatever little you can every month in Mutual funds.
My view was – Eradication of entry load would actually mean lesser investment in mutual funds by non-savvy investor and so it is not at all a wise decision.
Do you still think no entry load was the right way forward at that time?
Similar phenomenon is also occurring to ELSS Funds through New Direct Tax Code. I know quite a few of my friends and colleagues who invested in ELSS fund with as little as 10,000 to complete 100,000 tax saving option under 80C now have a portfolio of few lakhs in mutual funds. Removing ELSS option would actually mean such investors will not be able to judge the kind of returns mutual funds can actually give and so will never think about investing in equity market.
Share your opinion in comments below.