More recently, AMFI has introduced guidelines for advertising by mutual funds, a training and certification programme for distributors and is now working on the introduction of pension funds. A P Kurian , chairman, AMFI discussed these and other issues concerning the industry in a wide ranging discussion with Amit Kumar and Sumit Gulati . There are three elements in a pension system. The first is to make people save regularly for getting a retirement benefit. Every one at every age must start saving on a regular basis and in a dedicated form.
Savings are also, of course, a part of Indian culture.
We have a high rate of saving and are not a spendthrift people. Unfortunately we withdraw our savings for marriages and other requirements with the result that we hardly have anything to fall back on at the time of retirement. Savings must be so structured that withdrawals are discouraged. The second element is the direction of investments. In today's existing system the entire investment is tilted towards government securities, PSU bonds and other instruments which give relatively low returns.