Business News: SEBI Questions High-Risk Sale of Mutual Fund Products Amid Increasing Number of Investment

Mutual Funds Investments: The Indian mutual fund industry is continuously increasing, leading to a growing awareness of the stock market among Indians. However, many individuals are eager to earn returns quickly, leading them to invest in high-risk mutual funds, especially in small and mid-cap funds. In this regard, the market regulator, the Securities and Exchange Board of India (SEBI), has kept a close watch on these fund houses to protect investors’ interests. 

Mutual Funds Houses in Radar of SEBI

Recently, SEBI questioned several mutual fund houses through letters regarding the improper sale of mutual fund products, after observing several instances where mutual fund houses are selling high-risk category funds, targeting low-risk investors, including senior citizens and super senior citizens. Additionally, SEBI has also raised concerns about investment in fashion-oriented funds and schemes with lock-in periods. Before purchasing mutual funds next time, assess your risk profile and choose mutual funds accordingly, and secondly, determine your investment goal and invest responsibly.