Mutual fund route the best for small investors
Hyderabad: At a seminar on mutual funds organised by the Federation of Andhra Pradesh Chambers of Commerce & Industry, the chairman of the Unit Trust of India, Mr. P. S. Subramanyam, said that the small investor was not geared to play directly in the stock markets. The volatility of the markets was best handled by a financial institution and, as such, he felt that small investors would be better off by investing in mutual funds.

The chairman stated that institutional investing would be different from individual investing in the terms of the risk preferences. By investing through a mutual fund, he advised, the risk gets diversified. He also felt that small investors could participate in the financial reforms like book-building, derivatives, etc. by going through a mutual fund.
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