SEBI dropped a proposal that would allow companies to pay part of your salary directly into mutual fund units
The industry is already touting this as convenient, seamless, and disciplined, but it's none of those things.
It will turn your monthly hard-earned cash into a permanent, automated subscription service for the mutual fund industry.
India’s retail participation in equity is massive, but it’s still volatile. So, by creating a system where payroll-linked deductions become the norm, the industry is securing a guaranteed, non-stop flow of retail capital.
It turns the workforce into a perpetual cash-cow for fund houses, regardless of whether the market environment is favorable for the average employee.
The regulator has decided that the average Indian is too unreliable to handle their own money, so they’re building a pipe that sucks it directly out of your paycheck and into the stock market.
Change my mind.