Why do people not invest in mutual funds?

Well I am sure that the world is willing to pay a huge price to get THE CORRECT ANSWER. Sadly there is no single answer. but let me make an attempt.

1. Mutual funds do not have ears: Have you see any mutual fund ever asking you (the customer) for suggestions about what  YOU want?

I have not heard. Do they ask you (in their form) the following questions:

– why are you investing?

– why are you redeeming?

– how long will you stay?

– did you know that you NEED NOT WITHDRAW the whole amount just because 3 years have passed in an ELSS scheme?

I am sure the dumb mutual fund did not tell you anything of the above. Right?

2. When you make a suggestion to the mutual funds, they tell you: 

a) it has always been done like that here

b) we have been in the business for 20 years and we know everything

my reaction: Obviously if they wanted my view they would have paid for it, right? so no free advice please. It hurts the giver and the so called taker.

3. When I wanted a calculator, I asked them. I was told they will have a REGULATORY ISSUE and they had to take SEBI permission. I have dealt with lawyers and regulators ENOUGH to know what is BS. This was unadulterated BS. Luckily I get my calculators from www.freefincal.com. Thank you Pattu.

4. Templeton Mutual fund accepts one cheque in the name of “Franklin Templeton Family Funds” – for all the investments that one needs to make….HOWEVER in Templeton the amount remains static over the period of the investments. Why cannot the amount be dynamic?

“Good Idea Subra…we should look into it” .

5. Hdfc and Icici Mutual funds expect one cheque per scheme – and as many forms.

Both these houses allow the amount to be dynamic…you can increase the amount on a 6 monthly basis. Why can they not accept one cheque like Templeton does?

“Good Idea Subra…we should look into it”.

As a trainer I have a huge advantage. Everybody talks to me politely. Does not mean things get done. No, that is a different topic !!



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  1. Dear Subra sir,

    what do you think of taking coaching/ tutorial as second income generation tool, or even at retirement this can be used as earning tool. Could you please throw some light on it.
    I could not find any other place to write, so putting my questions at comment section.

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