The 2017 book, ‘How Fund Managers are making you Rich’, resonates with the advertisement jingle ‘mutual funds sahi hai’ (mutual funds are terrific). But the book also talks about a meeting between Ajit Dayal, the founder of Quantum Mutual Fund, and senior management at other mutual funds (MFs): “Dayal…called the mutual fund industry a den of thieves”. It is impossible to reconcile the title of the book with that quote.
There are others who are critical of MFs. Sanjiv Shah, former CEO of Goldman Sachs’ Indian MF and co-founder of Benchmark AMC, has written in an article that: “If one looks at the way [mutual fund asset management company] AMC business is structured, you wouldn’t be wrong to surmise that intermediaries [and not the end investors] are the clients”.