The other day, a pretty young thing asked me about literacy in India. It is quite a change, on the kind of issues that young women are interested in nowadays. Proudly I told her about the number of engineers, doctors, post graduates and graduates we produce every year, unlike her country. The discussion slowly turned towards financial literacy, among the financially literate. And then the surprises started coming in. On one of the parameters, how literate are our fund managers working in the mutual fund companies, and no, not measured in terms of the fancy management degrees they have, but in terms of how literate they were on the job. How much they knew about the companies in which they invested and how active were they in tracking the managements. Apparently, there is a research done by InGovern, and the findings are startling. Half the time fund managers asbtain from the meetings (AGM, EGM). Only about one percent of the time, they opposed the management decision. The overall fund management community still believes that the best way to protest, is to walk out of the company. Their investors may also be thinking alike, simply redeeming.
Posted on: Wed, 05 Jun 2013 06:55:55 +0000