The recent yo yo of Indian stock markets has 'experts' advising the 'common' folks on the value of not trying to time the market and staying put for longer term. Expert after expert on innumerable TV channels is advising investors that trying to time the market, of buying low and selling high is not a feasible investing strategy. On the other hand that is exactly what the Mutual Fund Managers are trying to do with the same money that doesn't belong to them, and the high fund management fees does not necessarily translate into a better service which is transparent enough for tracking compliance of mandate.
The different approach based on recognizing in-ability of anyone being able to consistently time the markets and investing through Index Funds with a measurable tracking error and low fees and expenses seems like a good idea until you figure out that the fund's mandate doesn't get followed in India. Perhaps the Indian investors will do well to stick it back to the indian financial bureaucracies by moving money out of this country(as a side effect helping India's exporters) and avoid the completely offline (the Indian regulators do not understand how Internet works), invasive,in-efficient and eminently game able KYC norms that need to be repeatably followed when transacting with most type of financial institutions.
But then who cares as long as the 'markets can remain irrational for longer than (sane) people can remain solvent'. Maybe when sanity returns to the markets, more people shall be bothered by the non-fee based activities( an oxymoron if there was one, they do charge you the fee only they collect it from the mutual fund directly ) of your friendly neighborhood bankers and distribution channels.
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