One of the ways in which a restaurant owner gives confidence to his customers is to show his customers that he and his family consume the same food that is served to the customers. When he does that the customers are certain that the hygiene is of an acceptable standard, that the ingredients that go into the food prepared is of a good quality and they will get good food.

But the fund managers of mutual funds do not think so. Moneycontrol.com in a recent post on its website (Click  https://www.moneycontrol.com/news/business/mutual-funds/how-much-do-mutual-fund-managers-invest-in-their-own-schemes-2883731.html) makes startling disclosure. In 32 of the top 100 mutual fund schemes in India, the fund managers have not invested even a rupee of their own money. In another 18 schemes the respective fund manager’s investment has in no scheme has exceeded Rs. 10 lakhs. Thus in 50 % of the mutual fund schemes, the fund managers have either no investment or have a negligible investment!

This should be a good lesson for life insurance sales persons. While claiming that their mutual funds give high returns, the fund managers (the very persons who are supposed to invest and earn the high returns) are themselves not invested in the funds they are managing, Mind you the fund managers are supposed to be the persons who work to give you all the promised high returns. But they apparently do not believe that their funds will actually earn what they are claiming will earn! As the American saying goes they do not walk their talk. They do not believe in themselves and their ability to generate high returns from risky investments.

Please tell your customers this the next time they say they want to invest in mutual funds. One should not get carried away by media hype. If a restaurant owner does not eat the food cooked in his own restaurant it is best to avoid eating in that restaurant, no matter what the restaurant owner says about the quality of food in his restaurant.