Indian Retail Investors Just don't know where to invest

Exactly.

 

Seriously Shabbir, I don't understand why people are still ready to be fooled by some of these.

 

You are right.

 

Even people go in for unit linked (market linked) LIC policies - mostly they're pathetic. I have learnt a lesson early in life by doing so once in the past and will never go for it again.

Regarding MFs, everything sells here - companies spend behind promotions and give fat amounts to agents/sub-agents selling them. DSP BlackRock has been a brand in Indian MF industry for quite some time, so it is no big deal for them to launch such MFs and fool people, they've good network to do so here. And people are entering into the fool's paradise

Finance is the most critical things/subjects among all, people don't have basic knowledge on how things operate and are lured into financial schemes/instruments thinking (or rather dreaming) only about the return, and do not think on the risk side or the loss side. For thinking even, they need basic knowledge, which many lack and go by what agents & tv ads & other people tell them.

If Ponzi & cheat-fund schemes (who are not recognized as financial houses) can operate and gather money - everyone must be knowing about Saradha (in West Bengal) by now, how they cheated people - even I know 3-4 people from Calcutta itself who are educated but they invested there only to get more returns - if that's the case, they it is all the more easy to sell such schemes in rural areas which Saradha did and collected huge huge money. They looted people. So it is not very difficult for a brand like DSP Blackrock to sell MF schemes (they're at least a legal authorized financial asset management company allowed to collect money from public).

So, discredit only goes to common people who've put their money, if any.

I would like to make special mention of Shabbir's blog ( http://shabbir.in ), where he has posted several articles time-and-again several times on MFs and do's and dont's you might try out. He has always been shouting at his blog through his posts to make people more aware on MFs, and what are their negatives and positives.