The Association of Mutual Funds in India (AMFI) said it will launch three new television commercials films on April 26 to warn small savers against Ponzi schemes and address their key concerns.
The TVCs will feature cricket legends Sachin Tendulkar and Mithali Raj, and will address "each of the three identified key fears impacting the investors’ psyche - market volatility, new age digital trends and unregulated schemes", AMFI said in a press released issued on April 25.
More than 10 crore Indians have been defrauded by "top 15 pump-and-dump Ponzi schemes" in the last three decades, leading to an average loss of Rs 15.27 lakh per victim, the mutual funds body said, citing a joint study done by the Indian Institute of Corporate Affairs (IICA) and Investor Education and Protection Fund Authority (IEPFA).
Two of the three new TVCs make small savers aware of the "pitfalls of investing in dubious schemes and new-age trends" and also "encourage them to shift towards formalised and regulated investment avenue like mutual funds", AMFI said.
The first film in the campaign, featuring Tendulkar, highlights how volatility is inherent and embedded characteristic of stock markets, and "appeals to investors to simply focus on their goals, and stay invested", it noted.
Market volatility usually results in investors panicking and ending up redeeming their investments, most of the times, resulting in a loss or reduced profits.
"The second film showcases how a young investor, blinded by social media, invests in new age digital trends and ends up losing his life savings. Tendulkar explains why we must steer clear of hyped digital trends and focus on a regulated investment option like mutual funds," AMFI said.
The third film, featuring Raj, the star captain of the Indian women’s cricket team, highlights the issue of unregulated deposit schemes which promise double returns and gullible investors, especially women, falling prey.
AMFI Chairman A Balasubramanian said the intent behind the TVCs is to educate small savers to shift towards formal and regulated mode of investments, and opt for mutual funds as the preferred investment avenue.
"Last financial year the mutual fund Industry added 1.09 crore new Mutual Fund investors. A significant section of retail savers voiced their concerns about continued market volatility in the light of various global geo-political events. We wanted a voice of reason, someone who people trust to address the concern and educate them that it is best to ignore short term volatility and focus on long-term goals. Hence, we chose Sachin Tendulkar, our brand ambassador for this," Balasubramanian said.
AMFI Chief Executive NS Venkatesh said the commercials are aimed at preventing youngsters and women, particularly those belonging to rural and semi-urban areas, from investing their hard-earned money into dubious schemes."We wanted to address both these audiences and warn them of the pitfalls and ask them to choose a very well regulated investment option like mutual funds," he said.