10 FACTORS THAT HAVE BOOSTED INVESTOR CONFIDENCE TOWARDS MUTUAL FUNDS

1. Increasing awareness about mutual funds among novice investors.
2. Consistent lacklusture returns in traditionally preferred assets like gold and real estate.
3. Continuous fall in interest rates of banks and post office savings.
4. Growing favour among investing public towards equity assets, especially MF SIPs.
5. Introduction of big bang reforms more consistently than earlier, enabling spending of more money on developmental projects.
6. Consistently high GDP growth, moderate inflation, falling cost of capital, increasing foreign exchange reserves, increasing consumption and infrastructure investment driving equity returns.
7. Vast scope for MFs to tap the increasing Indian savings as well as global investment.
8. Increase in service-oriented and convenience-oriented innovations by the MF industry along with prompt servicing and transparency.
9. Comprehensive financial planning products offered by MFs by delving deeper into investors' needs at different lifecycle stages.
10. Focused product offerings in MFs by designing schemes that invest in stock markets, government securities and corporate papers catering to short-term, medium-term and long-term needs of investors through liquid funds, income funds and equity funds.