The Hindu Business Line : `Investors need to be cautioned during bull run'

PROFESSIONAL service-providers in the stock market such as mutual funds and analysts might not have been of much use to investors, said Mr P.S. Ramamohan Rao, Tamil Nadu Governor, at an investor awareness programme here.

Delivering the inaugural address of the programme conducted under the SEBI's guidance, Mr Rao felt that mutual funds might not have assessed investment risks well enough, and analysts' inference of events tends to be unstable. In this context, he identified the Unit Trust of India as a mutual fund that had an unsatisfactory record.

Mr Rao said the immediate need was to caution investors against greed when the equity market displayed a firm trend. Awareness had to be spread that "the bull will run away with money," he said.

Mr T.M. Nagarajan, whole-time member, SEBI, highlighted the steps taken by the regulator to tighten the market structure over the last decade. Even though the changes enhanced market safety, Mr Nagarajan cautioned investors that "human ingenuity knows no bounds, and malpractices come up again and again."

The speakers at the awareness programme urged investors to be more self-reliant in investment. Investors had to be clear about their objectives, and do their own "due diligence" was the message.

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