Really speaking, they do not sell anything, tangible or intangible. This does seem confusing. Banks sell their products on the basis of certain assured returns; insurance companies sell contracts. Not so mutual funds. They mobilize funds from the investing public to manage those funds efficiently, i.e., they create an expectation of good returns in the minds of investors and generate a desire in them to put their money with a particular fund.
There is a clear distinction between company shares and mutual fund units. When a company issues capital, investors expect that the company will be able to return the worth of their investments through manufacturing or servicing activities, but in the case of mutual funds managerial efficiency and investment skills would determine returns. Successful mutual fund marketing therefore must create confidence among potential investors and strengthen their desire to put their money with a particular fund. It is not only publicity, talking skills and public relations, which will strengthen confidence, but also evidence of good performance. Additionally, organizational image, visibility of operational policies and quality of management form an indirect part of mutual fund marketing.
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