Monday, June 17, 2024
HomeBusiness‘WhatsApp university’: Parekh flags financial misselling, says MFs’ role key

‘WhatsApp university’: Parekh flags financial misselling, says MFs’ role key

Amid rising incidents of unregistered entities providing misleading stock recommendations to investors, HDFC Asset Management Company Chairman Deepak Parekh on Friday stated that mutual fund (MF) distributors can play an important role in driving financial literacy and ensuring investors remain invested for the long-term.

“In an era of easy online access of information or what is called the proliferation of “WhatsApp University”, there is also a lot of misinformation and misselling, despite all the safeguards put in place by the regulator.

Most Read 1Chandrayaan-3 mission: Dawn breaks on Moon, all eyes on lander, rover to wake up 2As Indo-Canadian relations sour, anxiety grips Indian students, residents who wish to settle in Canada 3Karan Johar says Sanjay Leela Bhansali did not call him after Rocky Aur Rani: ‘He’s never called me but…’ 4Gadar 2 box office collection day 40: Hit by Shah Rukh Khan’s Jawan onslaught, Sunny Deol movie ends BO run with Rs 45 lakh earning 5Shubh’s tour in India cancelled: Why is the Canada-based singer facing the music?

“There are many ill-informed investors who start out with mutual funds and then abandon them thinking they can invest in the markets directly with a tip here and there only to end up burning their fingers. This is where your role as distributors is critical in ensuring investors stay invested for the long-term,” Parekh, who is also the Chairman of HDFC Life, said at an event organised by Franklin Templeton.

This will also be beneficial because the trail commissions earned also increases not just with longevity of the investment, but more so with the mark-to-market appreciation on the investments.

Also ReadSensex plunges 796 pts, Nifty closes at 19,901; HDFC Bank, Reliance weigh…IRDAI plans committee to create Bima Sugam platform, to appoint project c…Goldman Sachs pays Rs 26.44 lakh to settle FPI guidelines violation case …Reliance spin-off Jio Financial Services valued at $20 billion, above est…

Markets regulator Securities and Exchange Board of India has been cracking the whip on unregistered entities or financial influencers (finfluencers) who are providing stock specific tips or advice on various social media platforms.

© The Indian Express (P) Ltd

RELATED ARTICLES
- Advertisment -

Most Popular