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Mutual Funds Under Fire for Lenskart IPO Investments
7 Nov
Summary
- Mutual funds managing ₹75 lakh crore criticized for bidding in Lenskart IPO
- Debate over whether MFs should invest in companies not considered "fit" by some
- Calls for MFs to publicly explain their investment decisions
As of 2025-11-07T06:21:03+00:00, India's vibrant IPO market and mutual fund industry have faced a recent controversy. Mutual funds, which manage ₹75 lakh crore of the common man's money, have come under fire from financial advisers on social media for bidding in the Lenskart Solutions' IPO.
The debate centers on whether mutual funds, as custodians of the public's investments, should be investing in a company that some experts do not consider a "fit" investment case. While arguments for and against the IPO's pricing and the actions of investors are being questioned, the vital element is that all of this is based on publicly disclosed facts.
The missing link, according to the article, is the mutual fund managers' reluctance to publicly explain the reasons behind their investment decisions. The author argues that public discussions about a company by expert managers can help investors understand businesses and investing better, as well as notice any red flags they may have missed.
The article suggests that the regulator, the Securities and Exchange Board of India (SEBI), should require asset managers to provide a concise summary of the rationale for their investments. This, the author believes, would contribute immensely to educating investors and enhancing their faith in the market.
