Mutual and other Funds

41. ''The contribution of direct marketing to the total sales is miniscule , but the cost burden  is huge.'' In this context , explain the relationship  between cost  and sales.

Ans: Mutual Fund excercise little control over price and (except through direct sales) litttle over people.Their problems is, within the existing regulatory and institutional constraints , to differentiate their products and depending on the particular Trust, whether it is specialized or general , independent or part of a large group, to choose a segment of the market to which it can most appeal and suitably promote in the appropriate place to attract investors.