Over the last few days theres a radio advert that goes something like this. A voiceover says, I love you or whatever and theres an echo of the same thing. Then the voice over says, some XYZ multi cap fund and the echo comes back with "Small cap, large cap, mid cap".
Mutual funds were simple once upon a time. There was only the UTI and little else. Then a few other players entered and then the mutual funds were , without exception debt and equity. Then there was a growth (reinvestment) or dividend option. The Equity funds called themselves diversified or sector specific (there was a rash of IT specific funds in the late 90s). Some of them were tax savers and some were gilt funds and so on.
Today (and for sometime now) marketing demands exotic names for mutual funds. Therefore there have been Flexi cap funds, TIGER (Templeton India Growth and something else) funds, Super SIP (check out the accompanying visual - complete with a superman lookalike),COMMA (something to do with commodities),STAR, Discovery and many others. Notice that all names are what I could call 'turbocharged names' and not names which evoke memories of slowness, like there is never a tortoise or a snail fund, but always a tiger or a lion.
It was only recently that SEBI made the mutual funds refer to their first offer to the public as a NFO (New Fund Offer), rather than an IPO (Initial Public Offer). Looks like some more work will have to be done in both the naming and advertising sphere.
Saturday, September 10, 2005
Posted by ecophilo at 4:20 PM