The mutual fund frenzy (MFs) has caught on in India over the past few months now. Private fund managers are constantly innovating new schemes to catch the fancy of the discerning investor. The latest trick is to offer investors with tailor-made financial plans.

Typically, a fund manager's investment philosophy may not suit all the investors in the scheme. Besides, no single investment philosophy is good enough for all market situations. Realising this, fund managers in the US came out with an innovative financial plan, which was tailor-made to suit the taste of the individual investor. Based on the investor's investment perspective, the plan gave investors an optimum mix of equities, bonds and cash.

As is the case with most other things, Indian fund managers have 'borrowed' this concept from their American counterparts. Taking the lead in this direction are private MFs like Templeton, Prudential ICICI, Birla MF and Kothari Pioneer.

With private players constantly innovating to draw investors, schemes like the tailor-made financial plan is just what the doctor ordered for the MF segment. Public players, UTI in particular, had better watch out.

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