Probably nothing can define the spirit of being ‘mutual’ better than this verse. And who else to understand it better than the mutual fund industry. It seems the mutual fund industry in India is slowly but surely beginning to recognize this aspect for the better. Today, there is greater emphasis on the role of the industry, the regulator, Securities and Exchange Board of India (Sebi) and the industry body, Association of Mutual Funds in India (AMFI) on creating awareness among investors and improving investor services. In fact, the efforts of both the regulator as well as AMFI are laudable for promoting the cause of investor education religiously. The ‘one product caters to all needs’ approach has given way to offering products which suit the specific needs of investors a la product innovation. There is also increased emphasis on convenience in terms of hassle-free transaction services to investors by using various delivery or distribution platforms like the Internet, ATMs, corporate brokers, etc. In fact, distribution innovation has come to play a key role in the growth of the industry. Industry players are using different distribution channels to increase their market penetration. However, a significant change that is being witnessed now is the swift response on part of the regulator to safeguard investors’ interests. Thanks to the collective efforts of Sebi and AMFI, and also the industry players, the domestic mutual fund industry has been untouched by the malaise of late trading, insider trading, etc., which affected the US Mutual Fund industry in recent times. However, that is not to say that the Indian Mutual Fund industry is completely problemfree. Issues such as low penetration in both semi-urban as well rural areas (mutual funds have so far been largely an urban affair that too in big cities), poor investor awareness and exploitation of this fact by industry players, as demonstrated by the mutual fund IPO ruckus and excessive focus on corporate and other big-pocket investors at the expense of retail investors are some of the issues that the industry needs to address.

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