In the last three-four years, mutual funds have not given much return to the investors, thereby making gold a better option for investment. This is in stark contrast with the pre-recession (prior to 2008 global meltdown) time when mutual funds were the sole attraction of retail/small investors in India.

Opening of more equity schemes like the Rajiv Gandhi Equity scheme (that allows mutual funds) would be a welcome move. The government can also give tax rebate on such investment instruments to make it more attractive. However, the lock-in period, maturity and liquidity are still among the major concerns for common investors. The government should address these issues to make other financial instruments a much better option.


Ajeet Kumar/Reema Sharma