The recent multi-crore advertisement campaigns undertaken by some of the large mutual fund (MF) houses like HDFC Mutual Fund and Franklin Templeton Asset Management have raised several eyebrows on whether these companies are using investors' funds to boost their "brand equity".
Though these multi-crore ad campaigns are not illegal, they have raised ethical issues when the regulator - Securities & Exchange Board of India (SEBI) has been working to cut costs for investors, including banning of entry loads. And, it is noteworthy that all mutual fund schemes' advertisements go through the SEBI before going public.
Billboards and signs at traffic lights across Mumbai and Delhi that have sprung up display the companies prominently instead of individual funds, which normally is the case. One such advertisement reads - "choose a healthy investment-HDFC Mutual Fund SIP." The other - "Invest in Franklin Templeton Mutual Fund." At the bottom of the boards, one of their funds' name is written in a small font, the corpus from which possibly the cost of promotion is met.
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