A new breed of mutual fund houses, from fintech firms to discount brokers, is rushing to get a foothold into the expanding mutual fund industry. But will investors show the maturity to stay invested, amid stretched valuations and uncertain near-term returns?
At least seven to eight companies have lined up plans to launch mutual fund schemes soon
India’s newest set of mutual fund investors will look back at the current phase—with stock market indices at record highs, valuations stretched and investing with a new set of technology focussed mutual funds—as both challenging and a test of sorts. They will choose to invest with financial services players who have almost no track record in mutual fund investing, at a time when future returns will always be challenging.